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CNCE Turns Losses into Gains with the Help of E-commerce
Source: China National Chemical Equipment Corporation Date: 2015-06-30

From January to May in 2015, China National Chemical Equipment Corporation (CNCE) sped up changing its marketing mode by strengthening centralized purchasing, e-purchasing, and e-commerce sale, so as to turn losses into gains. By the end of May, the company’s e-commerce sales had reached RMB 2.136 billion, accounting for 21% of the total sales and the direct sales increased by 2.38%. At the same time, its e-purchasing totaled RMB 1.698 billion, saving RMB 66.26 million in purchasing cost.

In term of e-commerce sale, CNCE made great efforts to expand distribution channels and introduce more marketing means. It worked with a total of 13 third-party trading platforms including Guangdong Plastics Exchange, Bohai Commodity Exchange, and Shanrong Commerce of China Construction Bank and on the basis it also proceeded from its own business realities and guided its subsidiaries to build their B2C sales platforms by operational sections. On May 14, Dezhou Shihua Chemical Co., Ltd. (Dezhou Shihua), Hebei Shenghua Chemical Industry Co., Ltd. (Hebei Shenghua), Haohua Yuhang Chemical Co., Ltd. (Haohua Yuhang)—three chlor-alkali manufacturers launched their respective ordering system. So far, they had a total of 12 clients placing orders online, with daily sales reaching RMB 500,000. In addition, Haohua Junhua Group Co., Ltd. (Haohua Junhua) finished the research into the key functions of its B2C sales platform which was expected to come into use in early September. The successive completion of B2C platforms would make the company’s sales process more regulated and operation more efficient.

On the e-purchasing front, CNCE strengthened the centralized purchasing of bulk commodities like coal, calcium carbide, crude salt, and steel, considerably improving the online and centralized purchasing ratios. So far, the first ten companies that launched the e-purchasing system have had all of their coal purchasing applications approved online. Among them, Dezhou Shihua, Haohua Yuhang, and Heilongjiang Haohua Chemical Co., Ltd. (Heilongjiang Haohua) got all the coal they needed through centralized purchasing. This March, Dezhou Shihua, Haohua Yuhang and Hebei Shenghua launched their system for calcium carbide and crude salt purchasing combined, getting all the two materials they needed through e-purchasing and centralized purchasing. After Bluestar International and ChemChina Petrochemical Co., Ltd. had their coal and three types of agents (catalysts, solvents and additives) purchased directly, CNCE started to directly purchase steel and place two purchasing orders of carbon steel plates worth RMB 2.4 million on May 28.

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