Digital procurement takes up about 7.5% of China’s corporate procurement, indicating a huge potential of digital procurement market in the process of industrial digitalization, according to a report released by China Federation of Logistics and Purchasing on Friday.
The report, titled “the development of digital procurement in 2022,” shows that the corporate procurement in China surpassed 174 trillion yuan (about 25.8 trillion U.S. dollars) in 2021, while the total of digital procurement stood at 10 trillion yuan (about 1.48 trillion U.S. dollars), less than 10 percent of the total corporate procurement in the country.
“Instead of the traditional manual procurement, the digital-technology-powered procurement makes the process highly transparent and the procurement efficiency remarkably improved,” said Hu Dajian, assistant to the president of China Federation of Logistics and Purchasing.
It is estimated that digital procurement can bring prices down by 5% to15%, save 30% of time, and reduce operational cost by no less than 40%.
The report was released at the third summit of digital procurement and smart supply chain in state-owned enterprises.