Dragon Sourcing - 龙 源 Your Tailored Sourcing Approach to LCC Sourcing
CNC Parts Sourcing Case Study
Agenda
1.
Objectives & Approach
2.
CNC Turned Parts Category
3.
CNC Milled Parts Category
4.
Supplier Profiles & RFI Analysis
2
Objectives and Approach DS Approach consists of the following work steps:
Context
1. Demand Analysis: Collect detailed spend information about the nature of the products required (supplier capabilities required, specifications, volumes, drawings, and samples when relevant for all references to be included in the RFI-RFQ process) with all spend data to be provided by Client. 2. Supply Market Analysis: Identify list of potential suppliers in countries in scope to include in the RFI/RFQ process by incorporating existing list of DS potential suppliers, by leveraging the web, external databases and various networks of experts. 3. Telephone Pre-screening: Selection of suppliers to be included in the RFI-RFQ process by telephone pre-screening based on agreed simple criteria (e.g. capability to make the product, minimum company size, quality certifications, interest in participating) with these criteria to be provided by Client. 4. Develop the RFI-RFQ – jointly with Client – to include all key supplier qualification criteria (e.g.: financial, technology, corporate responsibility, quality certification, MOQ, client references, etc.) and quotation requirements. 5. Administer the RFI-RFQ process to ensure as high a return rate as possible. 6. Develop with Client a balance score card to evaluate suppliers according to RFI/RFQ. 7. Analyze RFI-RFQ Responses based on qualitative criteria and use a balance score card together with Client team to rank suppliers and recommend suppliers which Client needs to take through a formal qualification process. 8. Carry out pre-audits of recommended suppliers jointly with Client (optional).
Objectives: • To carry sourcing services for categories: 1. CNC Turned Parts 2. CNC Milled Parts
Geographical scope: • Turkey • Slovakia • Romania
Deliverables: • Supplier data base • RFI / RFQ report • Score Card • Company profiles • Recommended audit supplier list
3
Agenda
1.
Objectives, Approach, Planning and Team Structure
2.
CNC Turned Parts Category
3.
CNC Milled Parts Category
4.
Supplier Profiles & RFI Analysis
4
Demand Analysis – CNC Turned Parts Part Information
Picture
Description
2D Drawing
Annual quantity (pc)
1
Piston-Pad
Yes
738,000
2
Feedback lever
Yes
165,000
3
Retaining ball (steel)
Yes
49,000
4
Eccentric pin
Yes
126,000
5
Brake piston
Yes
18,000
6
Control bush
Yes
79,000
7
Control piston
Yes
106,000
5
Sourcing Progress - RFI/RFQ Phase: CNC Turned Parts Category 56 NDA’s received and RFI/RFQ sent to all 56 suppliers CNC Turned Parts
6
Supplier Name
Country
Status
Supplier 1
Romania
RFQ received
Supplier 2
Romania
Quoted only for one part
Supplier 3
Slovakia
Quoted only for one part
Supplier 4
Slovakia
RFQ received
Supplier 5
Turkey
RFQ received
Supplier 6
Turkey
RFQ Received
Suppliers’ Locations CNC Turned Parts Category
CNC Turned Parts
7
Supplier Name
Country
Status
Supplier 1
Romania
RFI/RFQ
Supplier 2
Romania
RFI/RFQ
Supplier 3
Slovakia
RFI/RFQ
Supplier 4
Slovakia
RFI/RFQ
Supplier 5
Turkey
RFI/RFQ
Supplier 6
Turkey
RFI/RFQ
Sourcing Progress - RFI/RFQ Phase: CNC Turned Parts Category RFI/RFQ Rejection Reason Analysis Rejection Reason: RFI/RFQ Administration
Total
%
Turkey
Romania
Slovakia
Don't want to fill the RFI template
1
2.0%
0
1
0
Can not meet high tolerances
1
2.0%
1
0
0
can not meet the qtys
1
2.0%
1
0
0
Do not reply calls or mails
1
2.0%
1
0
0
Capacity full
3
6.0%
0
3
0
Not interested to continue
5
10.0%
0
2
3
Consider themselves not competent for this project
15
30.0%
3
12
0
Can't meet the technical requirement / quality standard
23
46.0%
7
9
7
Total Rejected
50
100.0%
13
27
10
General Technical and Quality Rejection Reasons of Suppliers: -The parts are complex -Qtys are high which is not possible with the machines that suppliers have. -Suppliers need to make investment but Client makes short term agreements -Part tolerances are high
8
Sourcing Progress - RFI/RFQ Phase: CNC Turned Parts Category RFI Scores & Items Quoted
9
Sourcing Progress - RFI/RFQ Phase: CNC Turned Parts Category RFQ Responses Sum and Chart /PN – Raw Material Costs not included
#
CNC TURNED PARTS
Romania
Romania
Slovakia
Turkey
Slovakia
Turkey
Product data
Supplier 1
Supplier 2
Supplier 3
Supplier 4
Supplier 5
Supplier 6
Description
Annual quantity FCA Price (pcs) (Eur/pc)
1 Piston-Pad
738,000
2 Feedback lever
165,000
3 Retaining ball (steel)
49,000
4 Eccentric pin
126,000
5 Brake piston
18,000
6 Control bush
79,000
7 Control piston
106,000
3.492
Price without Raw Mat Cost
FCA Price (Eur/pc)
Price without Raw Mat Cost
FCA Price (Eur/pc)
Price without Raw Mat Cost
2.893
12.620
11.270
2.370
1.770
2.660
2.060
10
FCA Price (Eur/pc)
Price without Raw Mat Cost
FCA Price (Eur/pc)
Price without Raw Mat Cost
1.376
2.141
1.751
FCA Price (Eur/pc)
Price without Raw Mat Cost
9.720
3.780
6.080
2.350
0.910
0.680
Agenda
1.
Objectives, approach, planning and team structure
2.
CNC Turned Parts Category
3.
CNC Milled Parts Category
4.
Supplier Profiles & RFI Analysis
11
Demand Analysis – CNC Milled Parts Part Information
#
Picture
Description
2D Drawing (English)
Annual quantity (pc)
Yes A4 BR40 Pump Flange raw part 3732
1
Yes A4 BR40 Pump Flange machined part Yes 2
A4 BR40 Motor Flange raw part
3536 Yes
A4 BR40 Motor Flange machined part Yes 3
A4 BR40 Housing raw part
3739 Yes
A4 BR40 Housing machined part
12
Sourcing Progress – RFI/RFQ Phase: CNC Milling Parts Category 56 NDA’s received and RFI/RFQ sent to all 56 suppliers
Supplier Name
CNC Milled Parts Category Country Status
Supplier 1
Turkey
RFQ received
Supplier 2
Slovakia
RFQ received
Supplier 3
Slovakia
RFQ received
13
Suppliers’ Locations CNC Milling Parts Category
Supplier Name
CNC Milled Parts Category Country Status
Supplier 1
Turkey
RFQ received
Supplier 2
Slovakia
RFQ received
Supplier 3
Slovakia
RFQ received
14
Sourcing Progress – RFI/RFQ Phase: CNC Milling Parts Category RFI/RFQ Rejection Reason Analysis
Rejection Reason: RFI/RFQ Administration
Total
%
Turkey
Romania
Slovakia
Don't want to fill the RFI template
1
1.9%
0
1
0
Tolerances are too tight
1
1.9%
0
1
0
Do not reply calls or mails
1
1.9%
1
0
0
Not in their product range
2
3.8%
1
1
0
Capacity full
3
5.7%
0
2
1
The qtys are too high
3
5.7%
1
2
0
Not interested to continue
7
13.2%
0
5
2
Consider themselves not competent for this project
10
18.9%
3
7
0
Can't meet the technical requirement / quality standard
25
47.2%
3
16
6
Total Rejected
53
100.0%
9
35
9
General Technical and Quality Rejection Reasons of Suppliers: -The parts are complex -Qtys are high which is not possible with the machines that suppliers have. -Suppliers need to make investment but Client makes short term agreements -Part tolerances are high
15
Sourcing Progress – RFI/RFQ Phase: CNC Milling Parts Category RFI Scores and Items Quoted
16
Sourcing Progress – RFI/RFQ Phase: CNC Milling Parts Category RFQ Responses Summary - Raw Mat Costs not included
CNC MILLED PARTS
Slovakia
Slovakia
Turkey
Product data
Supplier 1
Supplier 2
Supplier 3
#
Description
Annual quantity (pcs)
FCA unit price
FCA Price wo RAW MAT
1
A4 BR40 Pump Flange
3,732
76.00
51.00
2
A4 BR40 Motor Flange
3,536
76.00
51.00
3
A4 BR40 Housing
3,739
207.00
57.00
17
FCA unit price
FCA Price wo RAW MAT
FCA unit price
FCA Price wo RAW MAT
14.33
13.65
10.69
17.45
16.62
70.00
40.74
38.80
Sourcing Progress – RFI/RFQ Phase: CNC Milling Parts Category RFQ Comparison Charts /PN - Raw Mat Costs not included
18
Agenda
1.
Objectives, Approach, Planning and Team Structure
2.
Aluminum Die Cast Parts Category
3.
CNC Turned Parts Category
4.
CNC Milled Parts Category
5.
Supplier profile example
19
Supplier Profiles Sample
20
Supplier Profiles Sample
21