[Integrated] Sinopec Wang Yubing: Yipaike reflects the professionalism and responsibility of the central enterprises

Not long ago, Sinopec opened its internal procurement platform to the society - Yipaike. The first launch of the company triggered a strong concern in the industry. As China's largest e-commerce platform for industrial products, the company has huge transaction volume and large scale. Customers have envied the industry.

The careful observation of every detail of the E-mail platform reflects the rigor and responsibility of Sinopec, a large-scale central enterprise. Wang Yubing, general manager of China National Petrochemical Materials and Equipment Department (international business company) who participated in the research, development and promotion of Epworth, fully understands this.

Providing enterprises with reliable industrial procurement

"China Business News": The outside world is very surprised about the launch of Yipak. First, it is astonishing why central enterprises such as Sinopec have entered the e-commerce field. Another question is whether Yipak can adapt to market competition.

Wang Yubing: Currently, EPIC is China's largest e-commerce platform for industrial products and has created a new e-commerce model for supply chain-to-business (SC2B). Prior to this, industrial products procurement did not have a heavy-duty procurement platform.

In fact, the biggest resource of E-mail is Sinopec's internal business needs. E-mail is rooted in Sinopec's solid industry chain built over 33 years. Its predecessor was Sinopec's own professional procurement platform.

"Making purchases more professional" is an important feature that we are different from any e-commerce company. What we need to do is the professionalism of procurement in the Internet ecosystem.

When it comes to market competition, we can look at a set of data. In 1995, looking at the world, among the listed companies related to the Internet elements, the market value of the top 15 companies was 16.8 billion U.S. dollars. This market value was the richest companies in the Internet at that time, and last year, the top 15 listed companies on the Internet. The market value has reached 2.42 trillion US dollars. In this 20-year period, its growth rate is 144 times, which fully shows the tremendous changes brought by the Internet to the business model and the growth of value.

We also see that among the top 15 companies with the largest market value of listed companies in the world in 2015, Ali, Tencent, Baidu and Jingdong have already made a name, and a dozen more are in the United States. In the new e-commerce, new business model, and new model booming, E-mail also has the conditions for development, but also ready for the state-owned enterprises as Sinopec and national pillar enterprises, should be obliged to go ahead. Yipike is an SC2B e-commerce platform built on the huge demand of Sinopec.

“China Business”: Now that the dispute between Ali and Jingdong B2C has entered the “community” stage of the community, the competition in the e-commerce field is very fierce. Do you think that under this market environment, what characteristics does Yipaike rely on?

Wang Yubing: We can sort out the current business logic: For example, Wal-Mart, which ranks first in the world’s top 500 companies, has its resources all over the world, its retail outlets in densely populated areas, and its global distribution, with more than 6,000 in Beijing. Living quarters, it will set up some Wal-Mart sales points in densely populated areas. It integrates with such sales points to negotiate with suppliers. This is its resource.

E-commerce platform E-commerce, unlike China, is also different from any e-commerce site in the world. It has its own internal development foundation. Along with the reform of China's state-owned enterprises and the endogenous driving force for forward development, it is also easy to send customers. The potential of development.

Sinopec’s solid industrial chain enables everyone to understand and position Sinopec as an ultra-large energy company. This is accurate, but not accurate enough. In the year just passed in 2015, Sinopec’s revenue was 2.89 trillion yuan, including the listing of The company and surviving overseas companies are ranked second in the world's top 500 companies. This is just a figure, but we see that behind this figure is the essence of Sinopec. We say that Sinopec is not only building petrochemical products, except for the first The industry, the secondary industry, and the tertiary industry are across. At the same time, it covers 66 of the 96 industries in China, accounting for two-thirds of the total. In the industrial sector, it covers three quarters.

Although Sinopec is engaged in the energy industry, it mainly provides petrochemical products. However, Sinopec has a large industry coverage and has become an integrated group that provides products and services. Sinopec's industrial chain covers 66 industries. Behind each industry, there is a need for supply chain support. In addition to crude oil and other bulk products, Sinopec's annual fixed purchase demand is 200 billion yuan, in addition to 2015. With the transformation and development of China’s economy, Sinopec’s purchases were below 200 billion yuan, and were more than 200 billion yuan in previous years.

From this, we can see that Yipike relying on Sinopec, it has a strong bargaining power, but also has a very complete industrial industrial production chain. This is very attractive to business users.

No "burn money" professional team

"China Business News": There are so many kinds of industrial products appearing on the Yipak platform. At the same time, they use the credibility of the central enterprises to do endorsements. How does Yipaike check the products? If there is no professional team, E-Pay and Sinopec's brand will be affected.

Wang Yubing: Yes, our professional review of platform products is very strict. The first core feature of E-mail is reflected in experts, experts, housekeepers, and everyone. Each product is to ensure the quality at the expert level.

Followed by lawful and lawful expert tendering, due diligence, butler service, innovation and win-win, everyone share. Sinopec has strong technical support. There are nine research institutes and eight design institutes. These nine scientific research institutes can ensure that industrial products can stand at the foremost and cutting edge of technology. We have process design, standard formulation, and quality. Testing, and technical support for skills assessment.

Among the experts' procurement, we have 15,000 professional procurement personnel, and there are 25 companies inside and outside China, of which there are corresponding business contacts in more than 100 countries and regions such as the United States, Japan, Europe, and Russia. With the support of professionals and international networks, we have ensured our own professional procurement costs and are able to land in the procurement of experts. We will divide different shopping malls into five-star, four-star, and three-star ratings and assessments. This is a distinctive feature of E.P.

We have appraisal teams of 7,500 professionals. This team is owned and controlled by Sinopec for more than a decade. It also covers a wide range of products involving 96 industries and 41 industrial sectors in China, including The bulk of raw materials, ore, and coal also include internal and fast-selling goods, such as office supplies such as copy paper, toner cartridges, and computers, as well as some scientific and technical materials, fine materials and specialized materials for professional equipment, and so on.

For example, we often copy paper, some people will say that as long as the money can go to the mall to compare prices, but there are nine technical indicators behind the copy paper product, which includes quantitative, a certain amount of weight to include the number of pages, followed by quantitative deviation is A certain unit weight, how good is the repeatability of your pages? Sometimes more and sometimes less, there is a big difference. Secondly, we have to conduct professional assessment on a total of nine indicators such as thickness, smoothness, opacity, brightness, viewing angle, and dust degree.

"China Business": We have noticed a number, that is, the professional procurement personnel of the 15,000 people just mentioned. In fact, for many companies that have developed e-commerce platforms, they are facing the problem of burning money. Sinopec is a state-owned enterprise. Will you participate in this "burn money" war?

Wang Yubing: The professional procurement personnel of 15,000 people are all from the professional procurement departments and scientific research institutes of Sinopec. They have rich practical experience and strong technical strength. Yipiao borrowed this resource from Sinopec.

Speaking of the issue of burning money, we also have several concepts. We are counting the taxi software and how to burn the taxi software? For taxi drivers, the cost of diverting an individual (new client) is more than 200 yuan, which means that it costs 200 yuan to divert a consumer.

And we do not need. We are faced with a large number of demanding companies. We can provide very comprehensive services to enterprises. E-mail is one of the four major businesses, one is purchasing, you have procurement requirements we help you, you have sales requirements we help you, you have financial needs we help you, you have logistics, warehousing, insurance, advertising and other needs we also Can help you.

At the same time, we are also providing loan services for many suppliers. From August last year to the end of last year, our financial services quota reached over 200 million yuan in the four months to provide loan services for 24 small businesses. At present, there are many small and medium-sized enterprises. The number of companies registered in China, including businesses, is about 65 million. How many SMEs are facing financial difficulties in the output value of 110 trillion yuan in our industrial products? At the same time, it is a contradiction that in the course of a transaction it is faced with the demand of one party to pay for delivery, while the other party requires cash on delivery. This is a problem that E-mail needs to solve. We provide a financial guarantee for both parties to the transaction. This is a major cut-off point for Sinopec's supply-side structural reforms.

“China Business”: These are the challenges faced by SMEs. For large companies, large clients, and even Fortune 500 companies, is it easy to provide value-added services?

Wang Yubing: Actually, many large companies have already joined Epco's platform, not just purchasing products. They also purchase the services provided by our professional team.

I would like to talk about the latest issue. Last year, we received a commission to entrust us with 1.2 billion yuan in tender procurement, mainly instrumentation with higher pressure. After this entrustment came, we formulated purchasing strategies through expert procurement, and saved users 450 million yuan in funds through open bidding. The rate of money-saving reached a staggering 37.5%. However, the money saved is not to lower prices, but to find the original value of the price. This is the "price discovery" function of Yipak to restore the true value of the product. In the end, this company sent a thank-you letter of “seven unexplained” to Yipai, affirming Yipaike’s “efficiency, process specification, cost savings, and direct investment rate of manufacturers”. What does direct investment rate mean? Many of China's products are operated on behalf of the company, resulting in a waste of resources. The direct investment rate of suppliers directly determines the level of their costs, but also reflects the management level, cooperation atmosphere and the degree of emphasis. Through this case, we can see that Yipai is recognized by the industry and it is our honor.