From online shopping to doorstep delivery, consumers typically wait just 1-3 days. But for corporate procurement, how long does it take?

While businesses prioritize cost control over impulsive purchases, even urgent tool procurement requires requisition, quotation, and approval—often stretching to 20 days. Yet XCMG Group defies expectations with a 3-5 day turnaround.

Teng Sheng, General Manager of XCMG Global Procurement Center, attributes this to a digital-physical fusion model that redefines non-production procurement value. The enabler? JD Industrials, China’s industrial supply chain technology leader.

Originating from JD Group’s enterprise division in 2017, JD Industrials now serves automotive,新能源, robotics, and化工 sectors. Beyond transactional relationships, it acts as a strategic partner—iterating supply chain processes to unlock efficiency gains.

**MRO: The Industrial "Capillaries"** JD Industrials initially targeted MRO (Maintenance, Repair, Operations)—non-production materials like gloves or nuts—which account for just 5-10% of procurement spend versus 80%+ for BOM (Bill of Materials). Despite its slim margin, MRO’s complexity—dispersed SKUs, opaque pricing, and low standardization—makes it a management nightmare.

For XCMG, MRO consumed 60-80% of procurement resources. JD Industrials’ solution? The "Mercator" Standard Commodity Library, standardizing millions of SKUs and integrating 158,000 suppliers. By 2025, its system covered 81.1 million SKUs across 80 categories, streamlining China’s industrial "capillaries."

**Digital-Physical Fusion: Building the "Neural Network"** JD Industrials’ "Tai Pu" digital solution empowers enterprises like XCMG through two phases: 1. **Infrastructure**: Consolidating 55 subsidiaries’ procurement data into a visual platform backed by JD’s supply chain. 2. **Operational Upgrade**: Training programs slashed XCMG’s MRO procurement to 3-5 days.

Similar gains were seen elsewhere: a steel firm cut inventory costs by 40%, while a新能源 automaker reduced delivery cycles by 23%.

**Industrial Cognition as the Core Barrier** JD Industrials’ edge lies in deep sector insights. For CATL, it addressed battery manufacturing pain points—cost volatility,定制化 MRO needs, and 3-day delivery windows—via tailored procurement strategies.

With 15,800 suppliers and 11,100+ key clients (including 60% of Fortune 500 China firms), JD Industrials co-builds digital infrastructure. As JD VP Pan Feng notes, it’s both a "digital transformation partner" and "supply chain enabler."

**Future Outlook** Per the *Smart Supply Chains for New Industrialization* report, China’s 2024 industrial supply chain costs (¥115.2 trillion) could shrink by ¥6.8 trillion through optimization. For JD Industrials, the path ahead—though capital-intensive—promises broader industrial impact as it reshapes China’s manufacturing landscape.