The introduction of e-commerce model, the maximum extent possible to reduce the expenditures of the related management costs.

China as the world's largest steel producer and largest trading nation, the annual steel trading volume reached 700 million tons, if you count the middlemen between the down goods transactions, but also reach more than 1 billion tons of the size of the transaction amount of large numbers trillion million.

But with the sharp drop in global steel demand, China's steel production continued to enlarge as well as high raw material costs eroded profit; China's steel industry-wide losses, has created numerous flourishes myth steel industry has entered the low profits or even losses stage of development, but also into the industrial adjustment and upgrading of the critical moment; in this historic period, as a representative of the high information technology, e-commerce technology and what role in the transformation and upgrading of the steel industry in turn? we may wish to explore the twelve.

To carry out steel e-commerce to save operating costs

Steel industry entered the industry losses, the vast majority of people believe that the rapid rise in cost of raw materials and other phagocytic industry profits due; perhaps too absolute, but at least there are certain factors which, however, in addition to the cost of raw materials, such as warehousing, transportation , the cost of distribution, sales, purchasing management is also a significant growth trend to further increase the burden on enterprises, in particular should be noted that rely on the traditional steel trading business, make the difference, the rising cost of a direct result of their non-profit to be made.

The introduction of e-commerce model, the maximum extent possible to reduce the expenditures of the related management costs. First, the traditional human travel sales, purchasing steel business model can be resolved through simple e-commerce platform, a computer in the office, you can achieve the upstream sourcing and downstream business negotiation, the key lies in the rapid and efficient Internet technology; save a lot of staff salaries, travel expenses, business entertainment expenses. Secondly, the use of e-commerce technology, can be directly butt end customers, reducing the value-added of goods passed on by intermediate circulation, saving the repeated transport, storage and other costs.

We can calculate the single one ton of steel stored in a warehouse a month, you need to produce at least 200 yuan more than the cost of management, coupled with the mentioned above, the cost of doing business, at least in more than 300 yuan; steel trading business as a single profit model make the difference, now market downturn and still be able to achieve a profit of 300 yuan / ton, can not be achieved only loss.

Rational use of e-commerce platform to broaden the procurement of sales channels

The rapid development of network technology, bringing the most direct impression is that even if separated by the "ends of the earth, both parties to communicate through a virtual network, and this exchange, including communications, text, pictures, video, information transfer, completely breaking the letter-writing since ancient times personally contacts the backward mode. Increasingly enhanced by the degree of market today, time is money, the channel is to protect.

Steel products due to its properties of the commodity in the traditional business dealings, the limitations of the market area is very obvious; consuming capacity is too great, and coupled with the loading and unloading of steel products, the high cost of storage; often each has a certain radius of the market circle, basically lost the ability to develop long-distance market. However, injected into the e-commerce marketing model does not exist above the risk of increased costs, but nothing will happen.

The steel market information exchange, procurement and sales can be remotely through a third party platform to discuss; which basically do not need to use the previously uninterrupted sent salesman go to the market with the samples to go around, and then a large number of shipments waiting to sell in the past; but on the Internet to maximize understanding of the demand side of the information and achieve business negotiations, direct remote sign a contract and pay the shipping. All these operations, only just a computer, an appropriate third-party steel e-commerce platform.

The above two, is also one of the steel trade enterprise in the restructuring of the industry most in need of focus adjustment structure; own business model of electronic and enjoy the efficient and convenient services, the pursuit of a minimum of cost management in order to market at this stage, the steel city the continued downturn, create maximum business efficiency, the traditional market share at the same time keep within the region, to actively seize new markets outside the region-wide, to create a more rich and diverse business opportunities to own.


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