What does centralized purchasing mean?

Literally, I think it can be understood as collective procurement and centralized procurement, and some people call it group purchase.

In Baidu Encyclopedia, group buying is defined as group buying, which means group shopping. It refers to a shopping method in which consumers who know or don't know unite to increase their negotiation ability with merchants in order to obtain the best price. According to the principle of small profits but quick turnover, merchants can give group discounts below the retail price and quality services that individuals can't get. As a new mode of e-commerce, group buying improves the bargaining power between users and merchants through consumer's own organization, professional group buying websites and merchants' group buying, and gains commodity profits to a great extent, which has attracted the attention of consumers, industry manufacturers and even the capital market.

Baidu Encyclopedia defines centralized procurement as: centralized procurement refers to the centralized procurement of goods, projects and services in the centralized procurement catalogue, including centralized procurement by centralized procurement institutions and centralized procurement by departments. Catalogue belongs to general procurement projects, and centralized procurement institutions shall be entrusted to purchase on their behalf. For projects with special requirements for this department and this system, centralized procurement by departments should be implemented. Compared with centralized procurement, it is called decentralized procurement.

Extension:

According to the "iResearch -202 1 China Enterprise Procurement E-commerce Market Research Report", in 2020, the transaction scale of China enterprise procurement e-commerce market reached 857 billion yuan. Since 20 18, the enterprise procurement market has shown a growth rate of not less than 18%, including Taobao Enterprise Service, JD.COM Enterprise Purchase and/KLOC.

Enterprise procurement mainly refers to administrative office supplies procurement, business gifts, business services, employee welfare, industrial products, labor insurance supplies, special scene supplies and other procurement transactions, which is a necessary expenditure behavior in enterprise business activities.

With the continuous maturity of cloud computing, mobile Internet, big data and Internet of Things technologies, enterprises are fully qualified to realize the feasibility of digital procurement. This paper analyzes and probes into how enterprises to realize digital centralized procurement from aspects of enterprise procurement supply chain construction, procurement service, payment, supply chain finance, logistics and technology.

Construction of Digital Procurement Technology Platform

The premise of enterprise digitalization must be the maturity of technology. The popularity of cloud computing puts people in the digital world, and people and things can be clouded and digitized. Who would have thought that people can get what they need in a short time just by operating the mobile APP in a few steps? Digitalization makes the transaction scene and extremely simplified. There are data to follow from ordering, payment and logistics, and there are traces to follow, which cannot be separated from the support of a strong platform.

18 years, in the practice of enterprise centralized procurement, the unique CPS trading platform and digital centralized procurement cloud technology platform solution were introduced to the market, which can help enterprises to easily deliver a set of digital centralized procurement platform at low cost, deeply integrate enterprise procurement and consumption scenarios into enterprise financial management processes, and create a one-stop humanized experience trading and consumption platform at the C end of the Internet. The specific industry map is as follows:

Construction of enterprise procurement supply chain

Supply chain refers to the network chain structure formed by upstream and downstream enterprises that participate in providing products or services to end users in the process of production and circulation. Generally speaking, the supply chain is to serve the production activities of enterprises, and build its own supply chain system according to the needs of materials and raw materials procurement of enterprises, such as e-commerce platform and raw materials procurement platform of enterprises.

The supply chain mentioned in this paper is the supply chain construction to solve the non-production procurement of enterprises. General enterprises have many suppliers to provide services, such as office supplies, cleaning and security, travel services, gift customization, employee welfare supply and so on. However, they all use offline transactions, so the demand cannot be aggregated, and the transaction links and financial costs are out of control, showing an uncontrolled state. These offline procurement methods can be completely online and digital, but enterprises must build them.

So does the supplier have the ability to digitize? The answer is yes.

B2B markets with resource integration capabilities, such as JD.COM Enterprise Purchase, Tmall Enterprise Service, 1688 Wholesale Centralized Purchase, etc., can all become members of the enterprise procurement supply chain. Such suppliers welcome the online procurement mode of enterprises very much, have standard and stable API interfaces, and support the integration into the digital centralized procurement platform of enterprises.

FMCG enterprises themselves are also building their own direct selling systems, such as Mengniu's milk direct supply, Gree air conditioning enterprise purchase, Haier Zhijia enterprise purchase and so on. They also have the direct selling ability and API docking ability of their own products, which has laid a good foundation for enterprises to build their own supply chain system.

OTA Internet giants also have the ability to integrate supply chains, such as Meituan, Hungry, Didi, airlines and hotel groups. There are standard product interface, inventory interface, order interface, payment interface and return interface, all of which can support direct connection with enterprises.

The offline suppliers signed by enterprises, if they have no technical ability, but meet the procurement positioning of enterprises, will provide their own entrances for such enterprises, realize the shelves of their products in the enterprise supply chain system, and make the enterprise supply chain system more complete and efficient.

Integrate procurement service resources

If complex and professional procurement only depends on the allocation of human resources, it may be difficult to meet the procurement needs of enterprises, especially industrial products procurement, business travel procurement and other professional service providers need to undertake procurement services. There are mature vertical buyers, travel service providers and integrated service providers in the market.

The services that service providers need to provide include: service order monitoring, demand analysis in demand pool and procurement plan planning, as well as return and exchange, receipt confirmation status tracking, receipt and payment during trading hours, reconciliation at settlement, etc. , as well as deeper SRM, supplier collaboration, business insight and data analysis.

In the market, such as travel agencies, B2B service providers and professional errands companies, if they have such service capabilities, they can enter the platform and provide procurement services for enterprises.

pay

With the centralized procurement platform and service resources, the procurement work of enterprises has to go through these processes: employees initiate procurement applications on the centralized procurement platform in advance, then make procurement appointments and pay funds. The platform is equipped with a cashier, and the funds flow directly to the corresponding suppliers. After the payment is completed, the supplier accepts the delivery process.

The most important link in enterprise procurement is enterprise payment, which is also a necessary condition for digital centralized procurement. ? Mobile payment and online payment effectively combine the Internet, terminal equipment and financial institutions to form a new payment system. Various mature payment modes such as third-party payment, enterprise payment, credit payment and mixed payment between enterprises and employees have sprung up. In enterprise procurement, common payment methods include:

1. Third-party payment channels: China UnionPay Express, UnionPay Payment, Aggregate Payment, China Merchants Bank-Netcom Payment, WeChat Payment and Alipay Payment;

2. Company payment: company deposit payment, company bank-enterprise direct link T+ 1 withholding;

3. Credit payment: the supplier gives the credit account period, which is settled monthly, and the transaction payment environment is completed by virtual payment;

4. Mixed payment between enterprises and employees: If there is a standard for enterprise procurement, then the needs of employees are diversified. If it exceeds the procurement standard, it needs to be paid in a mixed way. Enterprises within the standard pay, and some employees who exceed the standard pay by themselves.

Supply chain finance and logistics

Enterprise procurement depends on supplier's credit and monthly statement, and the capital pressure is borne by the supplier, or the enterprise deposits in advance, and the capital flow pressure is on the enterprise side. Is there a better solution?

In fact, many supply chain financial suppliers have emerged in the market. They provide a package of purchase payment solutions, such as JD.COM Baitiao, which provides financial solutions for enterprise procurement, gives credit to enterprises or employees, and only supports financial solutions for purchase payment.

There is also the financial plan of China Airlines Co., Ltd. to support business travel purchase. Enterprises buy business air tickets and hotels without paying any interest. China Airlines Co., Ltd. provides a settlement solution without charging any fees to suppliers, which effectively solves the financial pressure of enterprises.

A good financial solution must be based on the digitalization of procurement. Logistics is the key element of enterprise procurement, and the daily logistics orders of hundreds of millions in China fully prove the maturity and development of the logistics system. The digitalization of logistics has laid a good foundation for the digital procurement of enterprises. Enterprises can carry out customized and personalized logistics services with different logistics enterprises. For example, SF provides transportation services for documents and other items, Jingdong Logistics provides logistics services for e-commerce procurement, and logistics companies provide professional industrial products transportation services. Cold chain logistics also has a mature logistics transportation system. For example, it needs mature cold chain logistics to buy employees Mid-Autumn Festival benefits-hairy crabs, which can realize customized and personalized logistics services in enterprise procurement.

The receipt confirmation in the purchase order needs the support of logistics. The receiving link of an enterprise needs to follow up the logistics status and information in real time. At the same time, because the procurement of enterprises is often centralized, it is centralized by the headquarters and distributed to subordinate demand units through logistics. Therefore, the platform must support the function of one-click multi-delivery, confirm the receipt of goods in each link, and complete the closed-loop transaction.

To sum up, enterprise procurement has mature supply chain conditions, technical conditions, payment, logistics, services and other conditions. Integrating resources, coordinating demand and online purchasing through technology platform can help enterprises achieve the following benefits:

① Changing decentralized offline procurement into online digital one-stop procurement, which greatly improves the procurement efficiency of enterprises;

(2) Through the digital centralized procurement platform, the supply chain can be continuously optimized, which can help enterprises to do procurement scientifically, thus reducing procurement costs from the source;

(3) Digital centralized procurement digitalizes the enterprise consumption scene, deeply integrates into the enterprise financial expense management process, and realizes the real integration of industry and finance;

④ The digital centralized purchasing platform deposits high-value purchasing behavior data, such as demand analysis, purchasing behavior, standard execution, budget execution, expense list and so on, which provides sufficient and valuable decision-making basis for enterprise management.

References:

1 Baidu encyclopedia? Group purchasing

2 Baidu Encyclopedia centralized procurement

3? Yi Sheng technology? Digital Centralized Procurement | Insights into New Procurement in Digital Economy (2)