“The 7000 rescue boxes have arrived at the UNHCR’s cargo collection point in southern Sultan. Hope it can help the locals.” On May 29th, Wang Zhiqiang, director of “Hengda building materials” in the No.2 District of Yiwu International Trade City, said in an interview that in last April and this March, he has received a contract from the UNHCR procurement on rescue boxes. According to the contract, the rescue boxes worth more than 50 yuan have been delivered to southern Sultan on time.
The worth of this contract is not that large, but it’s of great significance for Hengda building materials. This means that the company has successfully joined the United Nations procurement supplier system and has the opportunity to take a share of United Nations procurement market worth 100 billion dollars annually, with the help of the Kuacaijia in Shanghai and the purchase service branch of Zhejiang China Commodities City Group Co. Ltd. The success of Hengda building materials has also greatly enhanced the confidence of our city’s enterprises in deepening the UN Procurement Market.
A wonderful business opportunity
In recent years, Yiwu has vigorously explored the United Nations procurement market, helping enterprises open up new ways for foreign trade growth. “Hengda building materials” is a representative of operators in Yiwu to take a share in the United Nations procurement market.
“Relying on platforms of 'Yiwu Go', Alibaba and other platforms, we have promoted our hardware products. And surprisingly, we received an order from the United Nations.” Wang Zhiqiang was so impressed with this experience. At that time, buyers of Kuacaijia in Shanghai check on our products through the platform of “Yiwu Go”, and immediately inquired prices in emails and other social medium.
After more than 20 days of communication, Hengda building materials received the first order of 4000 rescue boxes and 50% deposits from the UNHCR. “According to the requirement and delivery time of the order, we quickly arrange the factory to work overtime to complete the production as well as guarantee the quality and quantity, and pass the inspection. Then make the shipment.” Wang Zhiqiang said frankly, “At that time, buyer of Kuacaijia in Shanghai said that they were purchasing products for the United Nations. I was just having a try. And the results turned out wonderful.”
“In fact, as long as suppliers who have done business with the United Nations, they won’t find its threshold hard to reach,” said Wang Zhiqiang. The United Nations has a complete set of integrated and rigorous procurement rules. Each organization follows the procurement rules in the execution of the procurement task and operates in accordance with the standardized procurement process. In order to participate in the purchase bidding, an enterprise must first log in to the United Nations procurement platform to inquire the purchasing demand information, and then register on the purchasing web to become a potential supplier of the United Nations procurement.
As introduced, the United Nations purchase order is not large in amount and the procurement of material is mostly the nature of aid, which means the profit would be low. If the enterprise quit such opportunity, then it misses a very good chance to do business. Manager Li of purchase service branch of Zhejiang China Commodities City Group Co. Ltd. believes that the greatest advantage of doing business with the United Nations is that there are no discriminatory purchase terms, no tariff barriers and green barriers, and no problem of arrears. It is a wonderful business opportunity.
Open up a new blue sea
According to relevant data, the annual purchase amount of the United Nations reaches 120 billion yuan, nearly 20%of which are supplied by Chinese suppliers. The latest list of the first and second class suppliers of the United Nations includes 8777 enterprises, and only 418 enterprises are from China, which is relatively low. The main reason is lack of information channels and ignorance of trade rules.
“The products of the Yiwu market are very common in the United Nations and the international public procurement list, and the competitive advantage is also very obvious compared to products of other countries. But few operators can directly contact with such kind of purchase orders. In the past, they usually took orders from foreign merchants, and most of the price differences were gained by them,” said manager Li. In order to help the market operators to better understand the process and methods of participating in the procurement of international public institutions, the purchase service branch of Zhejiang China Commodities City Group Co. Ltd. actively docked the international public procurement service platform in Shanghai, inviting it to give lessons to general operators in Yiwu on the categories, processes and methods of the United Nations and international public procurement. And good repercussions were obtained.
Through the international public procurement service platform such as “Kuaicaijia”, market operators have received orders from the United Nations, including stationery, bedding, outdoor supplies, hardware tools and daily necessities, all of which are the key products of the United Nations and international public procurement.
“I hope that more enterprises like Hengda building materials could actively and directly participate in the procurement of the United Nations and international organizations.” Manager Li said that in this way not only the price differences can be avoided gaining by foreign merchants, but also enterprises can improve their profitability of foreign trade. And they can be enlisted in multinational companies’ purchasing list, get more market share and win a good reputation for them.
Posted from my blog with SteemPress : https://www.linkyiwu.com/blog/tens-of-billions-of-procurement-needs-the-un-started-to-procure-in-yiwu-opening-up-a-new-blue-sea-for-operators-in-yiwu/