White paper on digital transformation of Chinese government and enterprise procurement

Government enterprise procurement can be divided into government procurement and state-owned enterprise procurement according to different procurement subjects. The main procurement objects are goods, services and projects. Government enterprise procurement has the characteristics of credit procurement, procurement stickiness and fairness, among which government procurement also has strong policy.

According to the different degree of digital penetration of government and enterprise procurement, the market can be divided into three stages: informatization, e-commerce and platform. At present, most government enterprises are in the transformation stage from e-commerce to platform, and the non-uniform digital maturity, uneven technical level and different management concepts are the main reasons restricting the digital upgrading of government enterprise procurement.

There are two forms of government procurement: electronic store and electronic bidding system (project electronic trading system). E-store system is generally applicable to goods, projects and services below the amount standard of public bidding. Electronic bidding system is generally applicable to goods, projects and service projects with public bidding amount above the standard. The above two types of systems can be built separately by local governments in the way of localized deployment, or they can assemble local systems based on Cloud Architecture to form an integrated regional collaborative procurement platform, namely government procurement cloud platform.

In addition to the self built mall, there are two forms of state-owned enterprise procurement: Digital procurement platform and exclusive mall. Digital procurement platform is a procurement system assisted by technical service providers. It connects internal information systems and external suppliers through an open platform. It is difficult to develop and suitable for medium and large state-owned enterprises. Exclusive mall is a procurement platform based on the procurement mall temsector provided by B2B e-commerce platform, and state-owned enterprises customize personnel permissions and approval processes. Compared with the digital procurement platform, the exclusive mall has higher flexibility, but there are limitations in commodity procurement channels, which is suitable for small and medium-sized state-owned enterprises.

Stimulated by both policies and the epidemic, the online penetration rate of China's government and enterprise procurement has increased significantly since 2020. In 2021, the transaction scale of China's government and enterprise procurement platform was about 2.8 trillion. With local governments actively building regional integrated procurement platforms and state-owned enterprises overweight online procurement, the transaction scale of government enterprise procurement platforms is expected to reach 5.9 trillion yuan in 2025.

As the advantages of the procurement platform in saving resources and improving efficiency are revealed, the main body of government and enterprise procurement will be further expanded, and industrial products will also become the key procurement category. At the same time, the government and enterprise procurement platform is upgrading towards mobility and intelligence, extending outward to enrich the procurement supply chain, and cooperating with third parties to form a service ecosystem to jointly serve government and enterprise customers.

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