Mumbai: China Petroleum and Chemical Corp's (Sinopec's) on-line purchasing system has reached a new record high in 2007 in terms of its total transaction value.

Throughout the year of 2007, the total on-line purchasing value has reached RMB 145.5 billion Yuan ($20.78 billion, at present levels of $1 = CNY 7), which was RMB 32.5 billion Yuan ($4.64 billion) up from that in 2006, representing a growth of 29 per cent. Besides, it has launched a range of on-line services, such as purchasing by invitation to bids, purchase of imports and purchase of logistic services, etc.

The on-line purchasing value reached another new high

As at the end of 2007, Sinopec has realised an accumulated on-line purchasing value of RMB 433.6 billion Yuan, thereby cutting down its purchasing costs by RMB 15.9 billion Yuan Its on-line purchasing values in both 2006 and 2007 exceeded RMB 100 billion Yuan, by reaching RMB 113 billion and RMB 145.5 billion respectively. To be more specific, up to 92 per cent of its transactions were closed on-line; whilst a diversity of its materials, such as raw chemicals and auxiliary chemicals, steel products, coal and electromechanical equipment, as well as other bulky, import and general-purpose materials have all been subjected to on-line purchasing.

On-line purchasing practices have been improved constantly

Sinopec has followed out a routine conference system for on-line purchasing work, intensified its supervision and administration of on-line purchasing practices, regularly organized personnel to receive trainings in a centralized way and enhance their on-line transacting skills, and improved its evaluation of on-line purchasing work, as well as having conferred bonuses and meted out punishments according to its personnel's working performance.

The e-commerce system has continued to better and upgrade its functions

Sinopec has stuck to its principle of "uniform standards in six respects" to govern its on-line flow of purchasing by invitation to bids, and put into force this flow, which comprises publication of bid information, automatic picking of experts, opening of bids, and scoring as well as other important links all of which can be operated on-line Thus far, bids from totally 27 enterprises were handled on-line, constituting 79.2 per cent of the total bids entered to Sinopec. This has helped the company cut down its purchasing funds by up to 20.3 per cent.

The on-line flow of imports purchasing has also been put into operation. So far, Sinopec Corp has been able to conduct on-line purchasing of 9 major categories (114 varieties) of imports ranging from steel products and chemicals to equipment items; and totally 62 suppliers specialized in foreign trade have closed on-line deals with Sinopec. On top of that, the competing quotation function has been further bettered.

As Sinopec speeds up its pace in pursuing internationalisation, and its on-line purchasing practices are being constantly improved, whilst the functions and operation flow of its on-line purchasing system have been bettered from day to day, Sinopec's e-commerce network of material purchasing is playing a rather important, unique and irreplaceable role. At large, Sinopec has embraced a new era of on-line purchasing as far as its purchase of materials is concerned.