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JD Industrial and XCMG Global Procurement Center Achieve Strategic Cooperation

Views: 0     Author: Site Editor     Publish Time: 2024-03-27      Origin: Site


Recently, XCMG Global Procurement Center held a strategic cooperation signing ceremony with JD Industrial. Yang Dongsheng, Chairman and Party Secretary of XCMG Group and XCMG Machinery, and Xu Ran, CEO of JD Group, attended the ceremony and witnessed the signing. Chen Esheng, Vice President of JD Group and General Manager of JD Industrial Manufacturing Business Department, signed a strategic cooperation agreement with Teng Sheng, General Manager and Party Secretary of XCMG Global Procurement Center. The agreement stipulates that both parties will rely on the Taipu Intelligent Supply Chain Solution to intelligently transform and upgrade the procurement management of non productive materials (referred to as "MRO") of XCMG Group, promoting the "cost reduction, efficiency increase, supply guarantee, and compliance" of the entire MRO procurement chain.


XCMG Group is a billion dollar enterprise with a grand scale, complete product variety and series, highly competitive, influential, and national strategic position in the Chinese construction machinery industry. It is also a pioneer in the Chinese construction machinery industry. At present, it ranks third in the world's engineering machinery industry, fourth in China's top 100 machinery industries, and 382nd in the world's top 500 brands. It is a resounding business card of China's equipment manufacturing industry.

In recent years, with the accelerated integration of the digital economy and the real economy, intelligent transformation and digital transformation (referred to as "smart transformation and digital transformation") have become a consensus for the development of industrial manufacturing. XCMG Group is also vigorously promoting the "No.1 Project" of intelligent transformation, digital transformation, and networking. XCMG Global Procurement Center is the core procurement business management platform that this project focuses on building, fully integrating the procurement business of production and non production materials within XCMG Group, and implementing unified centralized procurement management for related materials. For a long time, XCMG Global Procurement Center has been committed to transforming and upgrading towards "specialization, digitization, greening, and internationalization" value procurement. It penetrates the entire value chain vertically with the total cost target and horizontally with technology empowerment, achieving value creation in procurement management. This cooperation with JD Industrial is an important part of XCMG's global procurement center in building value and technology oriented procurement.

In the past, the procurement model of XCMG's global procurement center was mainly offline, and each purchase required processes such as bidding and price inquiry, which were not only time-consuming and inefficient, but also required a lot of energy from procurement personnel. Through this cooperation, JD Industrial will leverage its long-term experience and advantages in digitalization of the entire supply chain, relying on the Taipu digitalization supply chain solution to build an aggregated digital procurement platform for XCMG Group and its subsidiaries, covering multiple types of materials including general MRO and professional MRO. This will help XCMG Group's digital transformation and upgrading of procurement management, and enhance its digital management capabilities for suppliers and the entire procurement process. On the basis of technical cooperation, JD Industrial will also act as a supplier to enter the digital procurement platform of XCMG Group. JD Industrial's 48 product categories and approximately 42.5 million SKUs of approximately 30000 manufacturers, distributors, and agents will be digitally connected with XCMG's global procurement center, effectively supplementing XCMG Group's non production materials and domestic and foreign spare parts supply chain resources.Through cooperation with JD Industrial, XCMG Group will be able to further improve procurement efficiency, reduce procurement costs, and achieve optimization and upgrading of the supply chain.

Based on the construction of the procurement platform, JD Industrial will also deeply participate in the overall project of XCMG Group's "smart transformation and digital transformation". Relying on the Mercator standard commodity library, JD Industrial will promote the standardized construction of XCMG Group's material data governance and equipment spare parts data governance, and effectively reduce communication and transaction costs in the procurement management process by achieving "one code connectivity" of material coding.

In terms of international supply chain, both sides will also carry out multiple innovative attempts. At present, XCMG Group has 15 overseas manufacturing bases and KD factories, 30 overseas branches, and 40 overseas representative offices worldwide. JD Industrial, relying on the international digital supply chain, will provide accompanying overseas services to help XCMG achieve efficient supply assurance on a global scale.

The person in charge of Industry stated that this strategic signing is only a starting point for cooperation between the two sides. In the future, the two sides will deepen cooperation around more scenarios throughout the entire supply chain, jointly building a digital highway that links supply and demand ends and is compatible with different types of materials, allowing data to flow more and goods to run less, providing strong support for XCMG to build a world-class enterprise and climb the global industrial summit.

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