shanghai polyformaldehyde has used e-business to cut costs and increase profits this year by looking to purchasing. company leaders talked with various departments about e-business purchases and the purchasing department immediately established e-business purchasing channels under the leadership of dong weiyu, the company’s cco. other departments responded as well, for example finance which offered funds, supervision which decided to review and monitor purchasing and helped personnel set up basic accounts and put purchases in an e-file, so that e-business officially got started just after this past spring festival. so far, the company has made 23 purchases and held individual purchase costs down by 3.3 percent year-on-year, and overall costs, 25.9 percent. according to the purchases, labor protection device costs were down at around 10 percent, while industrial use products at around 20 percent. for example, in purchasing welding electrodes, the company got offers from 21 manufacturers in hebei and guangdong provinces a few days after posting its needs online. in this way, the company could compare prices easily.
this success has increased its confidence in e-business for faster development and leaders have asked purchasers to study the data, purchase larger amounts, make best use of e-purchasing, and monitor it, while supplying professional e-purchase training, increasing efficiency, cutting costs, and increasing profits.