Zhejiang Metallurgical Materials Join Hands To Find Steel Mesh, Digital Empowerment To Promote Industrial Upgrading

On May 17, the National Committee of the Chinese People's Political Consultative Conference held a special consultation meeting on "Promoting the Sustainable and Healthy Development of the Digital Economy". It was stated at the meeting that we will support the sustainable and healthy development of the platform economy and the private economy, and continue to strengthen, optimize and expand the digital economy, so that it can better serve and integrate into the new development pattern and promote high-quality development.

Driven by digitization, build a new digital commerce. State-owned enterprises have injected Internet genes one after another to conduct in-depth collaboration with digital technology companies, and there are many excellent successful cases. Zhejiang Metallurgical Materials Co., Ltd. (hereinafter referred to as "Metallurgical Materials"), which is celebrating its 40th anniversary, has taken the lead and joined forces with the leading domestic industrial Internet platform to find, and achieved good results.

In November 2020, Metallurgical Materials and Zougang jointly launched the "Xingmao Yicai" product, a digital supply chain project; at the beginning of this year, Metallurgical Materials and Zougang jointly announced that the two companies will jointly establish a digital steel trading company—— Shanghai Xingmao Zhilian Technology Co., Ltd. (hereinafter referred to as "Xingmao Zhilian"), both parties give full play to their respective advantages, use technological innovation to promote industrial upgrading, and jointly empower the digital development of the steel trade industry chain.

State-owned enterprise mixed reform, innovating the old and bringing forth the new to activate the value

Cooperating with leading platform enterprises in the industry, promoting enterprise development through the power of marketization and digitization, and enhancing the competitiveness, innovation, control, influence, and anti-risk ability of the state-owned economy are the results of metallurgical materials in the past two years. new approach.

The cooperation between Metallurgical Materials and Zougang is a "strong alliance" between state-owned enterprises and well-known Internet companies. Through the cooperation of "Xingmao Zhilian", metallurgical materials have taken substantial steps in the digital transformation of iron and steel commerce. At the same time, looking for steel network to divest the self-operated business, inject Xingmao Zhilian, and completely embark on the development path of Internet platform. This is also equivalent to an attempt to carry out mixed reform of state-owned enterprises in the joint venture company, injecting more vitality into the new company.

It is reported that after the establishment of the joint venture company, it will enter the Zougang platform, and together with other three-party merchants on the platform, enrich the product line of the Zougang platform with different business modules to meet the needs of consumers.

Zheng Hao, Secretary of the Party Committee and Chairman of Zhejiang Metallurgical Materials Co., Ltd., said, "On the one hand, we are confident that on the basis of the original good foundation, the joint venture will quickly become bigger and stronger. On the other hand, digital commerce will be our focus. In addition, the sales of metallurgical materials include non-ferrous metals, alloys, etc. in addition to steel, these categories may be sold on the steel network platform in the future. The joint venture will be built into a digital supply chain integration service platform, access to There are big data algorithms, digital car-free carrier platforms, access to digital supply chain finance, digital warehousing systems, etc. We hope to build a comprehensive digital business company through the joint venture to empower the industry.”

State-owned enterprises improve efficiency and digitize the "seven chains"

The iron and steel circulation industry is a capital-intensive industry, so capital has become a pain point for the development of purchasing companies.

According to the characteristics of the industry, many large companies have launched the pallet business to help small, medium and micro enterprises in the industry solve financial problems in the form of trade. Data shows that the current transaction volume of terminal and sub-terminal enterprises accounts for about 70% of the circulation in China's steel market, and the number is about 200,000 to 300,000. For these huge long-tail users, although the traditional pallet business can partially solve the needs of insufficient funds, it faces problems such as high supply chain management costs, opaque information, high acquisition costs, and low turnover efficiency.

The "Star Cat Easy Mining" launched by Zanggang and Metallurgical Materials can link steel mills and warehousing through the supply chain system to achieve pure online transactions, allowing buyers to complete the flow of goods without leaving home, making transactions more convenient; at the same time, With the mature data monitoring and analysis of the steel market, it helps the purchaser to manage the purchase, sale and inventory, which significantly improves the customer's inventory turnover rate.

The "Xingmao Yicai" supply chain cooperation project not only exerts the advantages of metallurgical materials as a high-quality state-owned enterprise, such as brand influence, strong financial security, strong market development and advanced management concepts, but also combines the advantages of looking for steel mesh. The advantages of Internet technology and big data have continuously realized the integration of the "seven chains" of innovation chain, industrial chain, supply chain, data chain, capital chain, service chain and talent chain in practice, and built a new digital business ecology.

In the first year of trial operation of the Xingmao Yicai platform, the transaction volume exceeded 1 million tons. As of the beginning of May this year, the transaction volume of the project has exceeded 2 million tons, and the cumulative transaction volume has exceeded 10 billion yuan. At present, the average monthly turnover of Xingmao Yicai is 2.7 times, and the average turnover of the steel circulation industry is 8-9 times a year, which has greatly improved the efficiency of the entire industry.

Wang Dong, founder and CEO of Zanggang, said that through digitization, it can not only improve the circulation efficiency of the industry, but also force the digitization of logistics, finance and production. "If only production is digitalized, the production is faster, and the sales efficiency is low, which will have a negative impact on the company's inventory and cash flow. For example, a single circulation in the traditional steel trade industry is a 1.5-month turnover, and logistics is also at this rhythm. When a star cat Yicai’s monthly turnover exceeds two times, and logistics has to undergo digital transformation in order to obtain more digital commerce business, and to keep up with the rhythm of digital commerce, the efficiency of the entire industry chain has been improved.”

In the past 40 years, metallurgical materials have fulfilled the social responsibility of state-owned enterprises, and digital means have helped the steel trade industry change. In the past 40 years, metallurgical materials have continued to innovate and improve efficiency, helping the healthy development of the circulation industry. Looking forward to the future, Zanggang will work with metallurgical materials to deeply cultivate the industry and digitalization, serve the upstream and downstream entities in the industrial chain, and strive to promote the high-quality development of the industry.

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