Dragon Sourcing Your Tailored Sourcing Approach to Emerging Countries
PCBA Supplier Sourcing Case study
Agenda
1.
Objectives
2.
Approach
2
Objectives DS Supplier Market analysis Objectives
Context Client overall objectives •
To identify new potential competitive PCBA suppliers in China
•
Develop the RFI/RFQ document – jointly with Client – to include all key qualification criteria.
•
Identify list of potential suppliers to include in the RFI/RFQ process by leveraging the web, external databases, DS knowledge, database and various networks of experts
•
Conduct first phone screening of supplier database to identify potential suppliers
•
Administer RFI/RFQ process to ensure as high a return rate as possible
•
Analyze responses and use balance score card process to rank suppliers and recommend suppliers
•
Audit suppliers to check their capability to meet Client requirement
Segments involved: A. PCBA
3
The project is scheduled for 9 weeks period Steps
Who
0
Kick off meeting
1
Analyze the demand and define criteria allowing to qualify potential suppliers
DS
2
Develop the RFI/RFQ to include all key qualification criteria.
Client/ DS
3
Identify list of potential suppliers to include in the RFI/RFQ process.
Client / DS
4
Conduct first phone screening of supplier database to send RFI/RFQ
DS
5
Administer RFI/RFQ process to ensure as high a return rate as possible
DS
6
Develop balance score card to evaluate suppliers according to RFI/RFQ.
Client / DS
7
Analyze responses and recommend suppliers to take through the auditing process
Client / DS
8
Supplier auditing arrangement
Client / DS
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Client / DS
TODAY 4
Not-started
Started
Delayed
Finished
Milestones
Agenda
1.
Objectives
2.
Approach
5
Total 276 suppliers identified, total 28 RFI received, 42 RFQ received
Action
Supplier quantity
Number of suppliers identified
276
Number of RFI/RFQ sent
231
Number of RFI received
28
Number of RFQ received
42
6
Sourcing Response Analysis of supplier RFI/RFQ Participation
Suppliers negative response 100
1: Cannot produce: Supplier don't do PCBA Can't purchase components Supplier is not able to meet quality requirements
84 80
2: No interest: Unwilling to do OEM manufacturing Supplier is not really a manufacturer Supplier don’t want to fill the RFI/RFQ
60 60 44 40
20
0 Can't produce
No interest:
Different products
7
3: Different products Supplier focuses on own products No experience in this kind PCBA
Supplier map, 29 in Guangdong, 7 in Zhejiang, the other 7 in another 4 provinces. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43
Supplier name Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 Supplier 10 Supplier 11 Supplier 12 Supplier 13 Supplier 14 Supplier 15 Supplier 16 Supplier 17 Supplier 18 Supplier 19 Supplier 20 Supplier 21 Supplier 22 Supplier 23 Supplier 24 Supplier 25 Supplier 26 Supplier 27 Supplier 28 Supplier 29 Supplier 30 Supplier 31 Supplier 32 Supplier 33 Supplier 34 Supplier 35 Supplier 36 Supplier 37 Supplier 38 Supplier 39 Supplier 40 Supplier 41 Supplier 42 Supplier 43
Province Zhejiang Zhejiang Zhejiang Zhejiang Zhejiang Zhejiang Zhejiang Shanghai Shanghai Shanghai Shanghai Jiangsu Hunan Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Guangdong Fujian
RFI Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No Yes No Yes No No No No Yes Yes No No Yes Yes No Yes Yes Yes Yes Yes No No Yes No No Yes No Yes
RFQ Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes
BOM Price Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes No Xinjiang Yes Yes No Yes Yes Yes No Yes No Yes Xizang Yes Yes No Yes Yes No Yes Yes Yes Yes No Yes Yes Yes Yes No Yes Yes
Heilongjiang
Jilin Liaoning BEIJING
Neimongu
Gansu
Hebei Shanxi
Ningxia Qinghai
Gansu
Shandong
Hubei
Zhejiang Jiangxi
CHONGQING Hunan Guizhou Guangxi
Fujian
Guangdong
Hong Kong
8
SHANGHAI
Anhui
Sichuan Sichuan
Yunan
Jiangsu
Henan
Shaa nxi
Taiwan
Battery account for 30% value, top 8 components account for 83% value, the other 35 components account for 17% value. BOM Average price (RMB) 12.00
10.05 10.00
8.00
6.00
5.75
5.53
4.00 3.10 2.62 1.95
2.00
1.71
1.69
1.68
U9
U5
U6
0.00 Battery
U1
U10
PCB
U3
9
The other 35
Components price including all , average price RMB 34.63 Components cost 70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
10
Assembly cost, Average RMB 7.11 Assembly cost (RMB) 18.00 16.00 14.00 12.00 10.00
8.00 6.00 4.00
2.00 0.00
11
Score card template Company background
Weight
Turnover in 2012 ?
10%
Employee No.
5%
EMS industry experience? Experience of assembling for European customer? Can you do OEM? Profile of Top Customers
25%
1= Less than 2 million 2= 2-10 Million 3= More than 10 million 1= Less than 100 staff 2= 100 to 200 staff 3= More than 200 staff 1= Less than 5 years 2= 5 to 10 years 3= More than 10 years
Max Score
Max Point
3
0.3
3
0.15
3
0.75
Weight
10%
Quality and Test Control
Weight
Does the supplier have ISO 9001?
30%
Does the supplier have ISO 14000?
5%
Does the supplier have RoHS test?
5%
Does the supplier have ICT test?
10%
25%
0= No, 1= Yes
1
0.25
Does the supplier have AOI test?
10%
25%
0= No, 1= Yes 1=Unknown/Not provided 2=Local brands 3=International Brands
1
0.25
Does the supplier have aging test?
10%
3
0.3
14
2 Max Point
10%
Is the supplier able to support client in setting up new testing process? Subtotal
100%
Weight
Price Competitiveness
Weight
Is quotation competitive compared to other suppliers?
50%
Provided break down details?
25%
Does the supplier provid all components price?
25%
10%
Subtotal
100%
Production Capabilities
Weight
Is the supplier able to produce PCB in house? Assemble 0201 Assemble 0402 Assemble QFN packages Assemble BGA-packages Is the supplier able to support client in product design? Comply with IPC-A-600. Comply with IPC-6012. Comply with IPC-A-610. SMT in house Reflow soldering in house Wave soldering in house Wire bonding in house Manual solder, insert & assembly in house Plastic injectin in house What's the monthly assemble capacity of FR-4, double layer PCB? Subtotal
Scoring
Scoring
Max Score
5%
0= No, 1= Yes
1
0.05
2% 5% 2% 2%
0= No, 1= Yes 0= No, 1= Yes 0= No, 1= Yes 0= No, 1= Yes
1 1 1 1
0.02 0.05 0.02 0.02
15%
0= No, 1= Yes
1
0.15
5% 5% 5% 5% 2% 2% 10%
0= No, 1= Yes 0= No, 1= Yes 0= No, 1= Yes 0= No, 1= Yes 0= No, 1= Yes 0= No, 1= Yes 0= No, 1= Yes
1 1 1 1 1 1 1
0.05 0.05 0.05 0.05 0.02 0.02 0.1
10%
0= No, 1= Yes
1
0.1
10%
0= No, 1= Yes 1= Less than 50,000 2= Between50,000-200,000 3= More than 200,000
3
0.3
3
0.45
20
1.50
15% 100%
20%
30%
Subtotal
100%
Compliance & Cooperation
Weight
Is the supplier willing to sign a confidentiality agreement?
20%
Cooperation during RFI/RFQ
50%
Can you source and purchase components for client
30%
Subtotal 20%
12
50% Total scoring
Scoring 0= No 1= Yes 0= No 1= Yes 0= No 1= Yes 0= No 1= Yes 0= No 1= Yes 0= No 1= Yes 0= No 1= Yes Scoring 1= Lowest 1/3 competitive 2= Middle 1/3 competitive 3= Top 1/3 competitive 0= No 1= Yes 0= No 1= Partially 2= All Scoring 0= No 1= Yes 1= Poor 2= Satisfactory 3= Excellent 1= Poor 2= Satisfactory 3= Excellent
Max Score
Max Point
1
0.3
1
0.05
1
0.05
1
0.1
1
0.1
1
0.1
1
0.3
7
1.00 Max Point
Max Score 3
1.5
1
0.25
2
0.5
6
2.25 Max Point
Max Score 1
0.2
3
1.5
3
0.9
4 51
1.70 8.45
Weight
30%
30% Weight
25%
25% Weight
15%
15% 100.00%
Company Profile xxx How many employees can communicate in English? Do you have own finished product? If yes, what's it? How many years of EMS experience do you have?
COMPANY INFORMATION xxx xxx Hangzhou Zhejiang xxx
Company Name Address Town Province Company Website
CONTACT PERSON INFORMATION xxx Oversea Sales Manager xxx xxx xxx xxx
Contact Person Title Email Tel Fax Mobile phone
Can you do OEM? Can you do ODM? How do you manage customer IP proctection? Please give examples. What's your company's position considering price competition? ( High, Middle, Low)
BUSINESS INFORMATION What date was your company founded? 1997 How much is your registration capital 3.49 million (USD)?) Is company manufacturer or trading Manufacturer company? What's the nature of your company? (Private, state owned, joint venture, etc Joint venture ） 2015 ( to 2014 2013 date ) What is your turnover in million USD ? 82 80 81 What is the percentage of turnover Western Domestic North America distributed to: Europe % 62 5 12 Who are your top 3 Clients?
Total Employee 907
2002 79 Rest of the World 18
Industry
xxx xxx xxx
Japan Italy Taiwan
Controller Controller Controller
% of sales 9 8 9
20,000 PE/IE
R&D
633
35
80
Quality Control 54
16 Yes/No Yes Yes
If yes, please fill out client name.
Manage customer IP procection Middle Price as High level Quality
What's your company's position considering quality competition? ( High, Middle, Low)
High
Which industry is your product used in?
controllers for air conditioners, refrigerators, microwave ovens, water heaters, kitchen range hoods and electric cookers， Automotive
If yes, please provide 3 customer reference we can contact:
Country
Production
No
Do you assemble for European customer?
Customer name
1 2 3 How many square meters(m²) does your factory occupy ?
278
Manage ment 57
Sales 48
1 2 3 Does your company have export license ?(yes or no) How many years of export experience do you have? Does your company have experience to provide stock for your client?
If yes, usually you will keep stock for your clients: Do you have an organization chart? (Yes/No
13
Yes Customer name Xxx Xxx xxx
Type(Asse mble /end Contact user) Italy Assemble German Assemble France Assemble Country
Tel
Yes 10 Yes 2 weeks
1 month
2 months
>3 months
45%
25%
20%
15%
Yes
If yes, please provide organization chart
Company Profile xxx PRODUCTION Does your company produce PCB in house? (Yes/No) If yes, can you produce FR-4, 2 layers PCB?(Yes/No) Maximum Layers your company can produce：
Yes
Yes
How many years ROHS product experience do you have？
14 years
4
How do you control PCB quality? Does your company do PCBA in house? (Yes/No) If yes, can you assemble FR-4, 2 layers PCB? (Yes/No) Minimum line width(mil) Minimum hole size on a 1.6mm board(mm) Maximum PCB Layers your company can assemble： Can your company assemble below components? 0201
Does your company comply with IPC-A610 ?
Yes
TS16949 Please respond to questions for the following technologies：
Yes
In house or Subcontracted
If in house, please prvide Brand/Type
If in house, please provide number of Machines
Yamaha,Samsu ng
14
Yes
Yes / No
Size ( inch )
n/a
SMT
n/a
Reflow soldering
n/a
Wave Soldering
In house
Wire bonding
In house
Type of equipment
Equipment quantity
Plastic injection
Yes
QFN-packages
Yes
-
BGA-packages Does your company have MRP？ (Yes/No) Can you source and purchase components for client? （Yes/No) Can you support client in product design? （Yes/No) Can you support client in production set up? (Yes/No) Can you support client in set up new testing process ? (Yes/No) Does your company comply with IPC-A600 acceptability standard for printed circuits? Does your company comply with IPC6012?
Yes
-
In house
Manual solder, insert & assembly
No
0402
In house
Yes Yes
What's your capacity utilization？(%)
7
Ridong
11
In house
28
Subcontracted <25 cm2
What's your monthly assemble capacity of right listed FR-4, double layer PCB? (pcs)
Nuosida
25-50 cm2
50-100 cm2
200k
90% Two shifts,
Yes
How many shift does your company work per day?
Yes
How many hours per shift?
Yes
How many days per week does your company work?
5-6 days
Yes
What's your standard inventory level?
n/a
Yes
What tools do you use to manage inventory? FIFO, LIFO, other?
14
8
FIFO
>100 cm2
Company Profile xxx QUALITY CONTROL What quality and environmental registrations do you have?
CORPORATE RESPONSIBILITY
Yes / No
Date of Certificate
ISO 9001
Yes
13/04/2011
13/04/2018
ISO 14001
Yes
27/10/2011
27/10/2018
TS16949
02902/0
Others (please list)
Certifying Org.
Date of Expiry Do you adhere to all rules and regulations in respect to child labour?(Yes/No)
27/10/2021
yes, respect to child labour
Do you have the equipment in If yes, please provide equipment house?(Yes or No) description and brand ICT
Yes
AOI
Yes
ROHS
Yes
Delvtai Fuxing
How many hours per week, including overtime are your employees working on a regularly scheduled basis?
Others equipment (please list) Does your company have in house reliability/aging assessment?
Yes
If yes, please describe the protocol you use.
TS16949
What's your production defective rate? (%)
2500ppm
What's the defective rate claimed by your customer? (%)
500 ppm,some less than 100 ppm
How do you control the incoming material quality?
IQC Checking
How do you control incoming material warehouse condition, like tempreture, humidity? How do you control finished product warehouse condition,like tempreture, humidity?
How long do you keep QC records for?
48 hours-56hours
Do you have any Ethical and Environmental Policies with independent verification of these policies? (Yes/No)
tempreture-5-35C , humidity:25-85%
Yes, Ethical and Environmental Policies with independent verification
Does your company have social audit by your client? If yes, What's their name?
Yes, we have social audit by client Electrolux,Sakura
Are you willing to sign a confidentiality agreement?(Yes/No)
Yes
tempreture-5-35C , humidity:25-85%
2-5 year
15
Factory Pictures xxx Factory entrance
Workshop
Finished goods warehouse
R&D
SMT
Reflow soldering
Wave Soldering
Manual solder, insert & assembly
Plastic injection
16
Supplier profile score out of 100 Supplier profile score out of 100 100 90 80
94
90
90
89
88
86
85
84
83
83
82
79
78
77
70 60 50 40 30 20 10 0
17
76
75
73
73
73
70
69
66
65
64
60
60
58