MOLBASE adopts the “two-wheel drive” development model, actively promoting both its e-commerce platform business and direct sales operations.
E-commerce platform partners
Our e-commerce platform implements a strict qualification review process for our partners (suppliers and customers), including ensuring they have valid qualifications and approvals such as a hazardous chemicals business license, an enterprise legal ID card, corporate authorizations, and most importantly, an EIA Report (Environmental Impact Assessment Report), to name a few. We believe that partners with excellent environmental performance should have more business opportunities, while partners with continued poor performance should be phased out. As of the end of 2019, we had 35,456 suppliers from 636 segments of the chemical industry, including coating materials, plastics, rubbers, daily chemicals and electronic chemicals, etc. We set up a scoring management system to classify the merchants according to the degree of store information accuracy, the completeness of the commodity data and the quotation activity level, allowing for allocation of the appropriate business opportunities. We help our suppliers and customers to be matched precisely and timely on our platform.
For platform signing users and suppliers with low transaction activity, the Company will conduct timely counseling and return visits to help solve the problems they might face. To better communicate with our partners, we have built a suggestion and complaint resolution mechanism. A total of 48 valid suggestions and complaints were received, and all have been resolved successfully during 2019.
In the field of supply chain finance, MOLBASE relies on a large amount of real trading data from the e-commerce platform to design and launch various supply chain financing products. These products help facilitate chemical transaction procedures covering production, sales and storage under different customer trading scenarios, all of which can help achieve multi-win results. By the end of 2019, MOLBASE had served over 2,400 corporate users with our financial solutions. We have already implemented an online system in cooperation with a number of banks, using big data to control credit risk.
For suppliers from direct sales, the Company performs supplier inventory reviews on a quarterly basis and follows a strict supplier rating process. We divide suppliers into six tiers factoring their qualification, transaction frequency, transaction amount, and risk score; the scores are re-assessed annually. Suppliers with large transaction volume or high economic risk are required to undergo site investigations conducted by our risk control and business department. Rules on suppliers' admittance, exit and re-entry mechanisms are also in place and requirements are clearly stipulated. The Company updated and released the Prepayment Procurement Risk Management System in 2019 to strengthen risk prevention and internal controls towards the pre-payment procurement business.
MOLBASE implements strict separation of powers and responsibilities, requiring procurement executives to isolate from supplier screening and validation processes. Meanwhile, we still encourage procurement executives to identify, report and solve the potential transaction risks during the operation.Back to ESG Governance page