Forum told digital procurement the future

Shanghai firms are being encouraged to use digital methods in procurement and to improve the supply chain, which will hedge risks of the pandemic and boost the city’s digital economy, industry officials told a forum on Thursday.

The “black swan” influences of the epidemic on supply chain have pushed firms to speed up digital transformation, including upgrading the procurement process with new technologies, said He Yong, a director with the city’s economy and information technology commission.

E-commerce platforms can play important roles during the process. Firms should focus on data, technology and talent on digital procurement, according to the Shanghai Electronic Commerce Association.

The future of procurement features automation and prediction, which can forecast demand and risk, Dai Peihua, chairman of the local e-commerce association told the forum.

JD.com, one of the top e-commerce platforms in China, signed digital procurement agreements with local firms SMM, Juneyao Air, China Taiping and Ronshine China. 

SMM is one of the major metal business platforms in China with more than 1 million enterprise users. 

Multinationals such as Siemens and WeWork also use digital procurement to improve the supply chain and expand their business in China, the firms told the forum.