Dragon Sourcing - éž™ ćş? Delivering sustainable sourcing value from emerging markets
Sports Facility Case Study
Agenda
1.
Introduction
2.
Sourcing Approach
3.
Results
2
Context Background Client is high-end sports facility and accessories brand in USA, aim to provide the good quality sports facility and accessories with right value to their customers, this client assigned DS as the sourcing agency in China. Scope 1.Flex Soccer Goal 2.Bench Tent 3.Back Rebounder
Deliverables: ďƒźRFQ ďƒźRecommended suppliers factory photos
3
Flex Soccer Goal
Items
Specs and Description of Products
Height
6.5’
Width
12’
Depth
2’
Base
3’
Weight Material
Construction
4
30lbs Steel, Zinc Plated Steel, POLYOXYMETHYLENE, Others per Requirements of Drawings Fiberglass and metal. Tool-free set-up and take down Tension poles provide constant soccer goal shape. White vinyl posts/crossbar provides a true soccer goal look. 2.4mm, 4" mesh, white net, Carry bag.
Bench Tent Item
Bench Tent
Picture
Specification Benchtent:size 4300mmx1750mm,210D black oxford cloth,print two logo. Fiberglass tube:¢7.8mm*380mm*3pcs ¢7.8mm*460mm*2pcs ¢7.8mm*432mm*2pcs ¢9.5mm*617mm*8pcs ¢9.5mm*540mm*4pcs ¢9.5mm*535mm*6pcs Plastic tube:¢16.39mm*384mm*4pcs One set fiberglass put in a poly bag. Plastic clamp:8pcs,put in a poly bag Whole set put in a 210D black oxford bag,then put in a poly bag.
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Carton size
QTY
without box 1set put in a brown box, size:130X130X680mm 1set put in a brown box with barcode, size:130X130X680mm 1set put in a white box with barcode, size:130X130X680mm • Full color printed retail package • Brown Kraft box with full color printed label • White box with full color printed label
500SETS
Back Rebounder
Name
Back rebounder
Picture
Specification
Tube size:38X1.5X1670mmX2pcs 38X1.5X1665mmX2pcs 38X1.5X1136mmX2pcs 38X1.5X525mmX2pcs 38X1.5X1155mmX1pcs each tube put in a poly bag Nail:¢5X22mmX4pcs Net:288.93X80.01cmX1pc Elastic Band:60pc one set put in one colour box then in a outer brown carton
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Carton size
Net Material
47''X15.25''X4.75'' (inner box) 47.5''X15.75''X5.25'' (outer carton)
HTPP,GSM221
Agenda
1.
Introduction
2.
Sourcing Approach
3.
Results
7
Approach – Phase 1 Phase 1: Supplier Pre-Qualification No. Step Deliverables Demand Analysis Project Requirement 1. Work with client to define and understand the products and requirements (specs, volumes, materials, Questionnaire production technology requirements) Kick-Off Report Supply Analysis 2. Identify long list of potential suppliers in the selected markets by leveraging B2B Websites, DS Supplier Long List Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References. Telephone Pre-screening Selection of suppliers to be included in the RFI/RFP process by telephone pre-screening based on 3. Shortlist for RFI/RFQ agreed simple criteria (e.g. capability to make the product, minimum company size, interest in participating) Develop RFI/RFQ RFI/RFQ Template Prepare an RFI/RFQ document, with an aligned Balanced Scorecard that has the objective to pre Balanced Scorecard 4. qualify the competitiveness and capabilities of the suppliers, including: Background, financial, Client Introduction Letter and product experience, Quality certification & processes, Social Responsibility, NDA Manufacturing/technology capability, R&D capability Milestone 1: RFI/RFQ & Scorecard Approved Conduct RFI/RFQ Administration Control Sheet 5. The RFI/RFQ is translated to the local languages as relevant, and distributed to the relevant suppliers, Completed RFI/RFQs with telephone follow-up to push for maximum participation. Analyze RFI/RFQ Responses RFI/RFQ Report Analysis of RFI/RFQ responses, estimation of logistics costs, and preparation of a report which profiles Supplier Profiles 6. & objectively ranks the suppliers by capability and competitiveness, including a recommendation for Proposed Shortlist for those to be audited. Audit Milestone 2: Shortlist for Audit Agreed 8
Approach – Phase 2 Phase 2: Selection & Contracting No. Step Prepare for Audits 7. Planning the audit schedule, budget, and drafting the Audit Questionnaire that will be used for the supplier self-assessment and on-site audits. Conduct Audits Distribution of the Audit Questionnaire to suppliers for their self-assessment (and to get them 8. prepared), followed by onsite audits, with or without XXX buyers, of all the suppliers. Focus is management, logistics, production & quality. 9.
Analyse Audit Results Analysis of the audit results, together with RFI/RFQ results, and preparation of a report that ranks the suppliers, including a recommendation for those for sample development.
Milestone 3: Shortlist for Sampling Agreed Sample Development & Testing 10. Managing the sample development and testing iterations to determine which suppliers can meet the quality. Negotiation & Contracting 11. Conducting final negotiations with the shortlisted suppliers, and facilitating contracting between selected suppliers and XXX. Milestone 4: Contracts Secured
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Deliverables • Audit Plan • Audit Questionnaire Completed Audit Questionnaires Audit Report Supplier Audit Profiles Proposed Shortlist for Sampling Samples Sample Analysis Reports Contract(s)
Approach & Schedule for RFI-RFQ stage Flex Soccer Goal Sourcing Project Done Note that the schedule maybe impacted by the time taken to collect category specifications, gain deliverable Delay validation, short list suppliers, produce samples & test samples.
Not started In process
Feb
Project Activity Week No.
W 07 Feb 13rd
W 08 Feb 20th
March W 09 27th
1. Demand Analysis
2. Supply Market Analysis
3. Telephone Pre-screening
4. Develop RFI/RFQ 5. Conduct RFI/RFQ Administration & Supplier Scorecard 6. Analysis RFI /RFQ Responses 7
W 10 Mar 6th
W 11 Mar 13rd
W 12 Mar 20th
April W 13 Mar 27th
W 14 April 7th
The first step for demand analysis was to develop a comprehensive understanding of the requirements
Items
Specs and Description of Products
Height
4’
Width
6’
Depth
1.5’
Base
3’
Weight
20lbs
Material
Steel, Zinc Plated Steel, POLYOXYMETHYLENE, Others per Requirements of Drawings
Construction
Fiberglass and metal. Tool-free set-up and take down Tension poles provide constant soccer goal shape. White vinyl posts/crossbar provides a true soccer goal look. 2.4mm, 4" mesh, white net, Carry bag.
Part Number
Purchasing Qty. 2016(Pieces)
Current Cost (USD/PC)
2016 Total Spend (USD)
Target Cost (USD/PC)
xxxxxx
500
xxxxx
xxxxx
xxxxx
11
Estimate Spend 2017 (USD) xxxxx
Then an extensive supplier data base is built leveraging multiple sources of information Sources of Information - China Company and contact information
Website name
No.
Product category
Supplier name
1
Flex Soccer Supplier 1 Goal
2
Flex Soccer Supplier 2 Goal
3
Flex Soccer Supplier 3 Goal
4
Flex Soccer Supplier 4 Goal
5
Flex Soccer Supplier 5 Goal
Province
City
Website
Source
Contact Person
Telephone
12
Mobile
websites
Remark B2B for all over the Alibaba www.alibaba.com world B2B for all over the Global Sources www.globalsources.com world B2B for all over the Gongchang www.gongchang.com world B2B for all over the Tradekey www1.tradekey.com world B2B for all over the ECVV www.ecvv.com world B2B for all over the EC21 www.ec21.com world Trade Asia www.etradeasia.com B2B for Asia www.made-inmade in china china.com BSB for China TOP 1 source engine Baidu www.baidu.com in China
After building a supplier long list, a telephone pre-screening process is carried out to select the suppliers to be included in the RFI/RFQ process
No.
Pre-screening question for case 2
Importance
1
•
Do you manufacturer for the inquired products, what’s the range?
Must have
2
•
Do you have certificates of ISO?
Must have
3
•
Do you have experience export to EU, USA, Australia, etc.
Must have
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After completing the phone pre-screening process, we administer the RFQ process Contact Information Inquiry
Request for information - Contact Information 信息征询 - 联系信息 I. COMPANY INFORMATION 公司信息 1-1 1-2 1-3 1-4
1-5 1-6 1-7 1-8 1-9
RFQ Chart: EXAMPLE -Key commercial terms -Key certificates -Key questions for order: MOQ, color/packaging customization -Etc.
Company Name 公司名称 Factory Address 工厂地址 Town 城市
Quotation date报价日期: Validty 报价有效期: Client's Payment Term: 客户付款条件
Province 省份 Company Website 公司网址
Country of Origin 产地国
CONTACT INFORMATION 联系信息
Do you have ISO 22716 certificate? (Y/N)
Contact Person 联系人 Title 职位 Email 电子邮件地址 Tel 电话 Fax 传真
Port of Loading 装运港
Do you have GMPC? (Y/N) Please fill the orange cells 请填写表格中的橙色区域 Product 产品名称
Item/Drawing number 产品代码/图纸号
Specification 产品信息 Picture 产品图片
Product Decription 产品描述
Item weight (lbs) 产品重量
Unit 单位
Quotation 报价 Single Order quantity 单个订单数量
1-10 Mobile phone 手机 1-11 English Contact Person 英语联系人 1-12 Title 职位 1-13 Email 电子邮件地址 1-14 Tel 电话 1-15 Fax 传真 1-16 Mobile phone 手机
Flex Soccer Goal 便携式美式 足球门
2B1701
Cost Breakdown 价格结构分析
14
Flex Soccer Goal 便携式足球门 Height(高):4' Width(宽): 6' Depth(顶深): 1.5' Base(底深): 3'
20
pc
250-1000
Raw Materials Cost 原料成本
pc
0
Assembly cost 装配成本
pc
Other Cost 其他成本
pc
Packaging 包装 1) ITEM PACKAGING - GOAL FOLDED AND PLACED IN A POLY BAG. POLY BAG AND INSTRUCTIONS PLACED IN VZ780 BAG WITH BUBBLE WRAP AT BOTH ENDS. CARRY BAG PLACED IN A FULL COLOR RETAIL BOX. RETAIL BOX SIZE - 41.5 X 10 X 7 (OUTSIDE) CORRUGATED CARDBOARD 2) INNER PACK - NONE 3) MASTER PACK - CONTAINS ONE ITEM PACK IN DOUBLE WALL CORRUGATED BOX TAPED CLOSED. BOX SIZE 42 X 11 X 8 (OUTSIDE MAXIMUM) LABEL - WITH UPN# 0001617305018168 OUTSIDE BOX TO BE MARKED WITH ITEM NUMBER, QUANITITY, PO NUMBER AND ITEM DESCRIPTION IN ALPHANUMERIC FORMAT
1.球门折叠好后放置在一个塑料袋内。装好球 门的塑料袋和装配说明书一起放置在图纸号 为VZ780的携带袋里。携带袋两头用气泡膜封 好。携带袋再放入一个分销彩盒里。彩盒尺 寸为41.5'x10'x7',材质为瓦楞纸。 2. 无内包装。 3.外包装:外包装为双层白色瓦楞纸箱。每个 纸箱装一套球门用胶带纸封好。纸箱尺寸:4 2'x11'x8'。外箱上需要贴标签,标签内容:U PN# 0001617305018168。纸箱需印制箱唛,箱唛 内容显示货号,数量,订单号和货物描述, 文字字体为 ALPHANUMERIC.
FOB price (USD/PC) FOB价格(美金/套)
0
Supplier Sourcing Response will be followed and analyzed 4 suppliers sent us completed RFI/RFQ and 2 suppliers filled RFI only. There are many manufacturers specializing in soccer goals but very few of them are familiar with the flex soccer goal as required by drawings.
15
RFI/RFQ Analysis will be present in chart 4 suppliers responded to the RFI-RFQ, 2 suppliers only to the RFI waiting for samples to provide quotes.
16
Supplier Scorecard will be developed to rank A supplier scorecard was developed to objectively evaluate the suppliers RFI responses Business information Year Founded Registered capital in USD Turnover in 2014 in USD Number of employees Do you have export license Export experience (year) Main market Experience in flex soccer goal industry Experience in exporting to US market % turn over from flex soccer goal Profile of Top Customers Factory pictures Production Does your company produce flex soccer goal in house? (Yes/No) How many sets of flex soccer goal does your company produce per year? How many percentage of your capacity is for new order?(%) Does supplier list any of key production equipments for flex soccer goal? Quality system ISO 9001 ISO 14001 Can your company accpet a 3rd party QC? Do you have incoming material inspection and report? What type of inspection to be conducted(100% or sample inspection)? Reject ratio Years to keep the QC records Does supplier list any of key QC equipments? Cooperation Cooperation during NDA,RFI/RFQ Completeness of RFI/RFQ
Weight of criteria 10% 5% 10% 10% 10% 10% 5% 10% 5% 5% 10% 10% Weight of criteria 30%
Max Score per criteria 1=Aft 2010, 2= >= 2006 to 2010, 3= >= 2000 to 2005, 4= >= 1995 and 1999,5=Bef 1995 5 1=Less than 0.5M, 2=Between 0.5 to 1M, 3=Between 1 to 2M, 4=More than 2M 4 1=Less than 0.5M, 2=1 - 2M, 3= 2-3M, 4=3-5M, 5=above 5M 5 1=<100, 2=100-200, 3=200-400, 4=400-500, 5=>500 5 0=No, 1=Yes 1 0=No export, 1=Less than 5 years, 2=>=5-10 years, 3=>=More than 10 years 3 1= local, 2= half local , half export, 3= USA 3 0=No, 1=Yes 1 0=No, 1=Yes 1 1=<10%, 2=10% - 30%, 3>=more than 30% 3 0=Not provided, 1=Local customers, 2=National customers, 3=International customers 3 0=Not provided, 1=Some pictures, difficult for overview, 2=Completed 2 Max Score per Scoring criteria 0=No, 1=Yes 1 Scoring
30%
1=<1M, 2= 1M-3M, 3>=more than 3M
3
20%
1=NA & more than 40%, 2=30% - 40%, 3=20% - 30%, 4= less than 20%
4
20%
0=No, 1=Yes
Weight of criteria 10% 10% 10% 20% 20% 20% 5% 5% Weight of criteria 50% 50%
Weight of the section
30%
Weight of the section
30%
1 Scoring
0=No, 1=Yes 0=No, 1=Yes 0=No, 1=Yes 0=No, 1=Yes 0= No, 1= Sample inspection, 2= 100% 1= Reject ratio>3%, 2= Reject ratio 1-3%, 3= Reject ratio<= 1% 0= No description, 1= less than 1 year, 2= 1-3years, 3= 3-5 years, 4= more than 5 years 0= No, 1= Yes Scoring 1= Poor,2= Satisfactory,3= Excellent 1= Poor,2= Satisfactory,3= Excellent Total Scoring
17
Max Score per criteria 1 1 1 1 2 3
Weight of the section
30%
4 1 Max Score per criteria 3 3
Weight of the section 10% 100%
Supplier will be ranked and presented by chart Only 1 supplier so far combines a high RFI score and competitive quotes
18
During the RFQ process, an RFQ control sheet is used to follow up the whole process, for good potential suppliers will be closely tracked in remark Company and contact information
RFI/RFQ Process follow up RFI/RFQ sent
No.
Product category
Supplier name
1
Flex Soccer Goal Supplier 1
2
Flex Soccer Goal Supplier 2
3
Flex Soccer Goal Supplier 3
4
Flex Soccer Goal Supplier 4
5
Flex Soccer Goal Supplier 5
Intend to respond
Province Y/N
Date
Y/N
If no, reason
19
Last call follow up
Date
Comment
RFQ received
Y/N
Date
If no, reason
Remark
Short-listed suppliers are audited to assess long-term partnership opportunities For audit process: All the new supplier for this client will fill-out the questionnaire, and DS and the client will evaluate the new suppliers based on the documents and decide if a) to approve directly for an initial order, or b) to do the on-spot audit, or c) reject Questionnaire of DS: -Management -Production Management -Quality Control -Logistics proceure -Safety and HR management -Etc
20
Audit Report Example – the main part contains: Overview – Questionnaire feedback – Scoring – Factory pictures
21
Agenda
1.
Introduction
2.
Sourcing Approach
3.
Results
22
Results
â&#x20AC;˘ The business relationship with new suppliers are in building further and new products to be develop for a wider products range. â&#x20AC;˘ We find the valuable manufactures to give quotation and samples, our client have the benchmark to improve their current supplier chain and selected the new manufacture to develop their products.
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