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ChemChina Launches Its E-Commerce Platform Construction Project
Source: ChemChina Date: 2015-12-08

On the afternoon of November 25, 2015, the e-commerce platform construction and pilot implementation project was launched at the ChemChina headquarters, marking the full start of ChemChina’s proprietary e-commerce platform construction project. This is a big move for ChemChina to shift from production-oriented manufacturing to service-oriented manufacturing, combine traditional business with emerging Internet via the “Internet+” initiative, and establish an efficient business system and a creative business mode.

At the launch ceremony, the e-commerce project team, composed of members from the information center and several well-known technology implementation and business consultation service providers, reported the construction progress, objectives and scope, main contents and the implementation strategy of the project, and made arrangements for key tasks to be performed in the short term. According to the general arrangements of ChemChina, the e-commerce platform will be built into an integrated platform meeting the needs of diverse business of the Group and the chemical industry. The Phase I of the whole e-commerce platform project will be carried out in four pilot Tire-III companies: Changyi Petrochemical, Huaxing Petrochemical, Zhenghe Industrial Group, and Zhonglan Petrochemical, all under ChemChina Petrochemical. Meanwhile, a survey will be conducted among all the companies under the ChemChina Group to prepare for the establishment of an integrated e-commerce platform. The Phase I project will start in November this year and is planned to be put into trial operation on June 1, 2016.

By summarizing and drawing from advanced experience of other companies in the industry at home and abroad and considering the business, operation and management reality of the Group, ChemChina plans to build the e-commerce platform into a proprietary platform with “one-stop and whole-process trade services” and the most influential e-commerce trade and integrated service platform in the chemical industry. The e-commerce platform, once completed, will become an important business trade channel for the Group, meet the core marketing and management demands of each business unit of the Group, help increase the business revenue and reduce the cost, and continue to improve the operational efficiency. In the future, it will gradually cover all the services for the upstream and downstream supply chain, extend to meet the diverse needs of clients, grow into a major base for the Group to form an ecosystem in the chemical industry and help with the Group’s transformation, upgrading and business innovation.

GM Yang Xingqiang showed great support and acknowledgement for the preparation for the e-commerce platform project and made arrangements for the next step. According to GM Yang, ChemChina must have its own e-commerce platform instead of relying on a third-party e-commerce platform out of the consideration for both the development trend of the chemical industry and the corporate strategy. A proprietary e-commerce platform means a lot for the Group to continue to strengthen the core competitiveness of each business unit, improve the operational and managerial level and deepen the development of core business. In ChemChina’s 13th Five-Year Plan, it's a major strategy to transform from a producer of basic and special chemical products to an integrated service provider covering the whole value chain. Different from the traditional development mode that emphasizes assets in the production & manufacturing industry, in the future the Group will grasp the keywords of “transformation” and “service”, start from the production links --- the bottom of the Smile Curve, and gradually extend to other service links throughout the whole value chain including product design and R&D, procurement, marketing, logistics, finance, and data management, in an effort to transform from a self-service producer to a service provider for customers throughout the value chain. The e-commerce platform will play a key role in helping the Group realize the transformation from production-oriented manufacturing to service-oriented manufacturing.

Yang also said that the Group held high expectations for the pilot implementation project and hoped that the experience and lessons drawn from the platform construction practice would pave the way for promoting the e-commerce platform among all the business units within the Group. The e-commerce platform project has won much attention and support from the leadership of pilot petrochemical companies, who showed strong support during project demonstration and preparation and made major contribution to the successful launch of the project. Meanwhile, GM Yang fully recognized the input and support of the information center and hoped that it would coordinate internal and external resources to ensure the smooth implementation of the project. Yang also asked the project team to make a full survey of demands, design plans carefully, complete the project with high quality, and provide experience for other specialized companies to build their own e-commerce platform; to seize time and strive to put the platform into operation as soon as possible.

Other participants of the launch ceremony included representatives of the Office of Production & Operation, Business Dept., Management & Information Dept., Planning & Development Dept., ChemChina Petrochemical and its subsidiaries, Bluestar, China Haohua Chemical, China National Tire & Rubber Corporation, China National Agrochemical Corporation, China National Chemical Equipment Corporation, China National Chemical Information Center and related construction companies.

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