China-Digital Procurement

Shotlist

FILE: China – Exact Location and Date Unknown (CCTV – No access Chinese mainland)
1. Various of equipment in operation
2. Worker in factory

Nanchang City, Jiangxi Province, east China – July 7, 2022 (CCTV – No access Chinese mainland)
3. Various of workers
4. Various of equipment in operation
5. Various of workers using microscopes to process components
6. Various of workers, equipment in workshop

Beijing, China – July 29, 2022 (CCTV – No access Chinese mainland)
7. SOUNDBITE (Chinese) Hu Dajian, assistant to president, China Federation of Logistics and Purchasing:
“Instead of the traditional manual procurement, the digital-technology-powered procurement makes the process highly transparent and the procurement efficiency remarkably improved.”

FILE: Tongling City, Anhui Province, east China – March 2021 (CCTV – No access Chinese mainland)
8. Various of electrolytic copper production

FILE: Huludao City, Liaoning Province, northeast China – Nov 14, 2017 (CCTV – No access Chinese mainland)
9. Various of production of zinc products

FILE: Ningbo City, Zhejiang Province, east China – Nov 2020 (CCTV – No access Chinese mainland)
10. Aluminum wire production

Storyline

Digital procurement takes up about 7.5 percent of China’s corporate procurement, indicating a huge potential of digital procurement market in the process of industrial digitalization, according to a report released by China Federation of Logistics and Purchasing on Friday.

The report, titled “the development of digital procurement in 2022,” shows that the corporate procurement in China surpassed 174 trillion yuan (about 25.8 trillion U.S. dollars) in 2021, while the total of digital procurement stood at 10 trillion yuan (about 1.48 trillion U.S. dollars), less than 10 percent of the total corporate procurement in the country.

“Instead of the traditional manual procurement, the digital-technology-powered procurement makes the process highly transparent and the procurement efficiency remarkably improved,” said Hu Dajian, assistant to the president of China Federation of Logistics and Purchasing.

It is estimated that digital procurement can bring prices down by 5 to15 percent, save 30 percent of time, and reduce operational cost by no less than 40 percent.

The report was released at the third summit of digital procurement and smart supply chain in state-owned enterprises.