In 2010, Baosteel e-commerce achieved record new transaction value of 184.2 billion yuan, a 43% increase of 2009. Online futures trading of steel reached 84.8 billion, spot trading 4.45 billion, online purchase 17.85 billion, a y-o-y increase of 44%, 200% and 92% respectively.
In 2010, integration of marketing and sales e-commerce platform with Baosteel Online at its basis started in full swing, accomplishing projects of Baosteel Online upgrading and spot trading center building. E-commerce service covered every segment of sales and material purchase in full scale with continued enhancement in capability and value creation. Welcoming results were achieved in innovation, service system and iron and steel related business expansion.
Baosteel e-commerce formalized standard solution schemes for major customers and established service models for batched purchase, cross-region collaboration and system accommodation with 31 new and upgraded passages. It enhanced supply chain integration, and set up e-commerce for Baosteel International processing center with IEC service scheme.
In spot transaction, Baosteel e-commerce built up platforms supporting multilateral trading units, unified customer information and transaction model, optimized online transaction center service with improved efficiency, tripling transaction value of 2009. Online bidding of some spot goods and recycling materials became more volatile, 3.5 billion in value and 240 million in premium.
As new online collaboration model of manufacturers, merchants and banks, Baosteel e-commerce supply chain financing platform was increasingly welcomed with sustained growth in partnership, service model, capability, and systematic function. It provided financing service for Baosteel International ten subsidiary companies, 13 provincial banks and 149 customers in 2010 with accumulated capital of near 1.4 billion, actively helping alleviate capital shortage and quicken spot goods inventory turnover.
In 2010, Baosteel e-commerce carried forward "sunshine purchase". Fourth phase project of purchase platform completed with new modules of online shops, transaction stewardship, search engines, supply and demand information, etc., which optimized customer experience. Purchasing materials included general equipments, spare parts, engineering materials, chemical industrial raw materials, iron alloy, waste steel.
Purchase organizations within the group increased to 119 from previous 23, suppliers over 12,000, scope of purchase dramatically expanded. In September, stationery purchase platform first phase was put on stream and applied in 14 departments of Baosteel Group Corporation headquarter. To supplement business travel service, enhance quality, Baosteel International Tourism Company contracted with China Airlines, China Eastern Airlines, Southern Airlines, etc.
, and around 1000 hotels to reduce costs.
