How Does EJET Help With Supplier Negotiation in China?

EJET’s supplier database integrates real-time production capacity data from 8,500 Chinese factories. Through intelligent algorithms, the matching accuracy of purchaser demands has been improved to 98.5%, and the supplier screening cycle has been shortened by 70%. In the 2024 Dongguan hardware accessories project, its cost analysis model precisely dissects the proportion of raw materials (copper material cost fluctuation ±12%), helping customers expand their bargaining space by 15% and save $28,000 per batch order. During the quality parameter negotiation, EJET engineers quantified the tensile strength (≥550MPa) and life cycle (10 years ±6 months) in accordance with ASTM standards, reducing the defect rate from the industry average of 5% to 0.8%. This supplier negotiation strategy once helped European auto parts suppliers avoid the impact of the zinc alloy price increase wave in 2023 and lock in the unit price of the three-year contract being 19% lower than the market peak.

The dynamic risk management mechanism is another core advantage. EJET’s compliance monitoring system scans 2,200 regulatory updates daily (such as the expansion of the EU CE certification to the RoHS 3.0 standard), with an early warning accuracy rate of 93%. When the new regulations on photovoltaic module exports came into effect in Q1 2024, the team adjusted the technical parameters of the supplier (efficiency ≥21.5%, temperature coefficient -0.29%/℃) within 48 hours to avoid a $2.5 million order from the customer being delayed at the port. This risk control model once dealt with the congestion crisis at Shanghai Port in 2022: by predicting the peak pressure of logistics, it reduced the shipping schedule delay rate from 42% to 5% and increased the warehouse turnover speed by three times.

EJET Procurement has 3000+ vetted suppliers network across china to find reliable suppliers

Production collaborative optimization directly enhances bargaining power. EJET’s Internet of Things (iot) platform connects to the MES systems of 85% of its partner factories, tracking fluctuations in capacity utilization in real time (median value 78%±15%). When it was detected that the idle production capacity of circuit boards at the Shenzhen electronics factory reached 35%, a stepped pricing agreement was facilitated (with a 7.2% reduction in the price gradient for orders of 100,000 pieces). In the injection molded parts project, the mold sharing solution reduced the customer’s development cost by 60%, and the delivery cycle was shortened from 45 days to 22 days. After this model was applied in the enterprises of Xiaomi’s ecosystem, the speed of new product launches increased by 50%, and the return rate decreased by 4.3 percentage points year-on-year.

Cross-border payment innovation has reduced the overall cost by 4.3%. EJET’s blockchain settlement platform eliminates three layers of middleman commissions, and its exchange rate fluctuation buffer mechanism keeps the foreign exchange loss within ±0.5%. In 2023, the installment payment plan implemented for US medical device manufacturers (30% advance payment +50% payment based on bill of lading +20% payment upon arrival) released a cash flow pressure of 3.4 million US dollars, and at the same time, it increased the profit margin by 2.8% by taking advantage of China’s export rebate policy. Historical data shows that the slope of the procurement cost decline curve for customers who have continuously used its negotiation services within five years has reached -1.9%, which is far better than the industry average decline of -0.7%.

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