- Jan 15, 2021
- Business Update
Three Trends of 2020 Business Service Market Reflected by JD Business
by Vivian Yang
China’s leading economic and industry website JRJ.com published an article on January 14, highlighting three key trends of the B2B markets in 2020 and examined JD Business’ growth to reflect the major changes in the business service sector.
Fast-paced implementation of digitalization is the first main trend, accelerated by the need to withstand the risk of COVID-19. Statistics from International Data Corporation (IDC) showed that 67% of the top 1,000 global companies and 50% of the top 1,000 Chinese companies have planning digital transformation since 2018, but their actual implementation was slow due to various barriers in the process.
By disrupting the supply chain of many manufacturing companies, the outbreak of COVID-19 became an abrupt impetus for them to accelerate the execution of their digitalization plans. Quickly adopting a digital procurement management system is one among the plans to maintain continued production and operation efficiency.
JD Business’ smart procurement solution provided timely support for factories as they started to resume consumption after the lockdowns. Take the GreaterBio case as an example: The disinfectant manufacturer from Dalian of Liaoning province faced a shortage of containers when they planned to restart their work. They asked for JD Business’ help and it only took less than two hours for the JD team to complete a SaaS installation for the company, which enabled them to immediately connect with more than 30,000 partnership resources. During the production resumption period, GreaterBio procured about 100,000 pieces of industrial products in total on JD, which supported the production of over 800 tons of disinfectant at the most needed time.
Providing extensive services along the whole process of business cooperation is in rising demand from many business clients. Making a business deal only marks the beginning of a business service, with plenty of room to expand the services scope.
In light of this trend, JD Business introduced integrated technology service solutions for enterprises in October 2020, extending solutions from a single procurement management area to many other areas including pre-sale research and consultancy, top-level system design, integration with financial and assets management systems and more. Such long-chain technology service solutions fit the need of many large-sized companies, which are seeking more intensive and integrated procurement management solutions.
At the same time, JD Business is also leveraging its strong MRO e-commerce platform to offer more diversified service categories, especially in providing goods for factories, such as tools and equipment for protection, electricity distribution, cleaning and more. Through deepening cooperation with partners like Honeywell, 3M, ABB and more, JD Business will continue to improve its level of professional services in manufacturing scenarios.
In addition to the scope of services, business services are also developing towards deeper levels, from product delivery to operational services. As companies are confronted with a more complicated external environment in 2020, they prefer “marathoner-like” providers who can ensure long-term and devoted operational support.
In the collaboration with Sichuan Road & Bridge Co., Ltd. on a road construction project, JD Business, after delivering the technological solutions, went further to build a front distribution center on the construction site, given the mountainous area would be difficult for transportation and warehousing. The center, with 300 square meters and around 200 SKUs, was equipped with dedicated staff and vehicles to ensure smooth procurement and delivery of the frequently needed MROs for the project, shortening the fulfilment process from the previously needed nearly two weeks to only 24 hours.
JD Business continues to explore ways to enrich and deepen its services solutions to improve its clients’ operation efficiency. Examples include an intelligent settlement system that can help enterprises to realize information integration of budget, procurement, invoices and write-offs, as well as one-click auditing of project expenses, which helps improve the efficiency and accuracy of financial work.