This platform will be operated by a newly formed joint venture, ChinaResources.com Limited, between CRE, Andersen Consulting and Oracle.
Leveraging China Resources Group’s established trading business foundation and its distribution network, ChinaResources.com acts as an electronic intermediary to connect buyers and sellers via the Internet. The venture, which becomes operational today, will initially facilitate the Group’s HK$40 billion in annual trading transactions with its thousands of suppliers and buyers in 8 industries.
With a market capitalization of more than HK$20 billion, CRE is a blue chip company listed on the Hong Kong stockmarket and one of the largest Chinese trading companies to trade with foreign companies outside Mainland China.
ChinaResources.com is expected to dramatically reduce CRE’s trading and distribution costs and increase its operating efficiencies through an integrated Internet supply chain system. The platform will extend CRE’s core business into a virtual e-business enterprise, allowing direct connection of members in China to its global distribution network.
ChinaResources.com offers a full range of value-added services ranging from payment settlement to insurance to logistics and fulfillment.
In the Internet Age, all businesses must become an e-business to stay competitive. China Resources is ready to transform its core trading business into electronic trading, said Frank Ning, President of China Resources Group and Chairman of CRE. Ushering in the next generation of self-service business-to-business trading and distribution, CRE is well positioned to become a worldwide industry leader.
ChinaResources.com will allow significant procurement savings by aggregating purchases from individual member buyers. Acting as an electronic agent between buyers and sellers, ChinaResources.com provides the technology and services which allow its members to conduct trading more effectively and efficiently.
China Resources Enterprise, Limited owns a majority stake in the new joint venture.
Oracle provides the core software for the site including Oracle iProcurement, a key component of the Oracle E-Business Suite, and Oracle8i database as well as related support services.
Andersen Consulting designed and implemented the systems and provided management consultancy.
The combination of Oracle’s technology and Andersen Consulting’s management and technology consulting experience enables ChinaResources.com to provide buyers and sellers with a fast, secure, high volume transaction environment for e-commerce.
In today’s Internet economy, businesses are working together to redefine their competitive advantage and create value for their customers and partners, said Keith Newton, Managing Partner of Andersen Consulting. Through our partnership with CRE and Oracle, we are confident that Andersen Consulting will be able to help revolutionize the trading business process through innovative use of Internet solutions.
CRE is the ideal partner for this joint venture, commented PW Pong, Regional Managing Director of Oracle Greater China. Leveraging CRE’s solid business foundation, this partnership offers Oracle the ideal opportunity to participate in a Greater China trading community that provides a key business conduit for foreign companies to tap into. For companies within China, we also see this as a great opportunity for them to build a global brand and expand their geographical coverage, he said.
Ning from CRE concluded, Oracle and Andersen Consulting are the clear leaders in business-to-business e-commerce. They enrich the process of moving our 50 years as a main player in the traditional trading and distribution business into the new electronic economy. This new e-business venture will not only bring China Resources new business opportunities, but also help our trading partners to grow their business together with ours.
