Dragon Sourcing Your Tailored Approach to Emerging Markets
Artificial Grass Carpet Case Study
Agenda
1.
Objectives
2.
Approach
3.
Results
2
Objectives DS Supplier Market analysis Objectives
Context Client overall objectives •
Identify list of potential current and new potential suppliers worldwide to include in the RFI/RFQ process by leveraging, current Dragon Sourcing suppliers database, the web, external databases and various networks of experts
•
Develop the RFI / RFQ – jointly with Client – to include all key supplier qualification criteria (e.g.: financial, technology, manufacturing experience for similar products, capability, tooling, conception and development, corporate responsibility, quality, language skills, others to be defined….)
•
Administer RFI / RFQ process to ensure as high a return rate as possible
•
Analyze responses, prices and use balance score carding process to rank suppliers and recommend suppliers per category.
•
Provide Client with a profile for all of the recommended suppliers
To identify new potential competitive suppliers
Segments involved: •
•
Semi finished artificial grass carpet
3
Agenda
1.
Objectives
2.
Approach
3.
Results
4
Demand Analysis, total value of the three items: € 939,800. HTS code: 5703.3088, import duty 8% from China and Australia, 0% from Turkey. Photo
Spec
Unit price (€)
Volume (m2)
Total value (€)
Item 1
Raw material: polyethylene, Yarn count: 5,000 dTex ,Filaments:4 thickness core/base：110 micron , Width:5mm cross section : rectangular , Turns: 25 T/m , tensile strength (peak value):55N , elongation at break :50% ,shrinkage at 90-100°: 7% , coating temperature: 80-90 °C, light fastness: 7-8 blue scale, gauge: 3/16”, stitch rate of 10cm: 22, tufts density: 46200, pile height: 18mm
€ 3.96
60,000
€ 237,600
Item 2
Raw material: polyethylene , Yarn count: 10,000 dTex ,Filaments:8 ( Light green: 4, green : 4, tape shape: monofilament combined thickness core/base：155 micron , Width:1mm, Turns: 28 T/m elongation at break :100% ,shrinkage at 90-100°: 9% coating temperature: 80-90 °C , light fastness: 7-8 blue scale gauge: 3/8”, stitch rate of 10cm: 29, tufts density: 30450, pile height: 20mm
€ 6.77
60,000
€ 406,200
Item 3
polyamide polyethylene (green) yarn count (dTex) 6000 8000 filaments beige(2),light green(6) light green(4),green(4) thickness (micron) 185 170 width (mm) 0.6 1.0 tensile strength (N/peak value) 145 13.5 elongation at break (%) 35 40 shrinkage at 90°-100°(%) 10 4 coating temperature 90 90 light fastness 7-8 7-8 gauge: 3/8”, stitch rate of 10cm: 15, tufts density: 15750, pile height: 20mm
€ 7.40
40,000
€ 296,000
5
129 suppliers identified for RFI/RFQ
Activity
China
Australia
Turkey
India
Suppliers initially identified
95
10
11
14
RFI/RFQ sent-out
56
8
7
0
Suppliers intending to respond
26
1
2
-
RFI/RFQ declined/ discarded
30
7
5
-
RFI/RFQ received
26
1
2
6
-
29 suppliers submitted their offers, 26 in China, 2 in Turkey and 1 in Australia Suppliers
Region
Country
12 suppliers 6 suppliers 3 suppliers 2 suppliers 1 supplier 1 supplier 1 supplier 2 suppliers 1 supplier
Jiangsu Guangdong Shandong Beijing Hebei Anhui Shaaxi
China China China China China China China Turkey Australia
Heilongjiang
Jilin Liaoning
Xinjiang
Hebei Neimongu
Gansu
Shanxi
Ningxia Qinghai
Gansu
Xizang
BEIJING
Shaa nxi
Shandong
Henan
Jiangsu
Hubei
Sichuan
SHANGHAI
Anhui
Zhejiang Jiangxi
Hunan
Fujian
Guizhou Yunan
Guangxi
Guangdong
Hong Kong
7
Taiwan
Scoring and ranking of the identified suppliers
Supplier ranking
Price Competitiveness Cooperation
100
90 76
80
Quality Management
70 69 69 68
60
67 63 63 60 60 58 56 56
Production & Technology
51 47 46 45 44
40
39 39
Corporate Responsibility
28
24 Business Information
20
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0
Recommend suppliers: Top 9 suppliers to further price negotiation , samples test and factory audit.
8
Company Profile GENERAL INFORMATION
TURNOVER IN MILLION RMB
Supplier Name
2009
2008
2007
20
15.6
8.2
City Province
% SALES EXPORT TO MAIN MARKETS IN 2009 = 40%
Shandong
Contact person Job title
EU (%)
US (%)
Domestic (%)
Rest of the world (%)
15
12
60
13
Sales manager
CUSTOMER BASE
Phone number
Customers
Fax number
Country
Industry
Percentage of sales
1. n/a
Mobile 2.n/a Website 3. n/a BUSINESS INFORMATION Found Year
2002
Manufacturer, distributor, or agent
Manufacturer
Capital in million RMB
30
Work floor size (m²)
80000
Number of employees
200
License for self import/export (Yes/No)
Yes
Years of export experience
8
4.n/a 5.n/a COMPLIANCE WITH LOCAL LAW Do you adhere to all rules and regulations in respect to child labour? What is the age of your youngest and older employee? How many hours per week, including overtime are working your employee on a regularly scheduled basis?
PRODUCTION How many years of experience in artificial grass carpet?
8
What is your production capacity per year? (in M2)
7,000,000
Does your company produce yarn in house (Y/N)?
Yes
Does your company export yarn (Y/N)?
Yes
Yes 20-55 40
Are all your employees working in a safe, healthy and clean working place?
Yes
Do you adhere to all rules and regulations in respect to environmental issues?
Yes
Are you willing to sign a confidentiality agreement? (Y/N)
Yes
9
Company Profile EQUIPMENT
Equipment
Qty
Description
Extruder
2
Starlinger from Ausria
Tufter
7
COBBLE &CTS from England and Austrilia
Coating Line
3
CTS & TRCC from Austrilia and Unitied States
QUALITY & ENVIRONMENTAL REGISTRATION ISO9001
Yes
ISO14001
Yes
FIFA
Yes Quality Control
How many QC people in your company?
20
What quality control equipment do you have in-house?
artificial athlete, Lisport, UV Tester, Breaking strength tester, coloreye, detax tester,
Do you accept the 3rd party QC?
Yes
How long do you keep QC record form?
3 years
10
Company Profile FACTORY PICTURES
11
Company Profile FACTORY PICTURES
12
Agenda
1.
Objectives
2.
Approach
3.
Results
13
Euro : USD=1:1.3962 USD : RMB=1:6.6732
Saving analysis, the highest saving percentage of item 1 is 44%, 40% for item 2, 42% for item 3. Item 1 Ref
Saving
Item 2 Percentage
DDP
Saving
Item 3
Company
DDP
Percentage
Client
€ 3.96
Saving
Percentage
Saving
Percentage
1
Supplier 1
€ 2.22
€ 104,595
44%
€ 6.13
€ 38,351
9%
€ 6.13
€ 50,768
17%
€ 193,714
21%
2
Supplier 2
€ 2.93
€ 61,896
26%
€ 5.57
€ 71,768
18%
€ 4.71
€ 107,699
36%
€ 241,363
26%
3
Supplier 3
€ 3.32
€ 38,690
16%
€ 5.17
€ 95,902
24%
€ 5.21
€ 87,588
30%
€ 222,180
24%
4
Supplier 4
€ 3.34
€ 37,298
16%
€ 4.05
€ 163,199
40%
€ 4.44
€ 118,529
40%
€ 319,025
34%
5
Supplier 5
€ 4.07
€ 5.61
€ 69,447
17%
€ 4.27
€ 125,336
42%
€ 194,783
21%
6
Supplier 6
€ 4.30
€ 5.68
€ 65,270
16%
€ 5.23
€ 86,969
29%
€ 152,239
16%
7
Supplier 7
€ 4.55
€ 6.22
€ 33,246
8%
€ 6.16
€ 49,530
17%
€ 82,776
9%
8
Supplier 8
€ 4.71
€ 5.71
€ 63,414
16%
€ 5.25
€ 86,041
29%
€ 149,454
16%
9
Supplier 9
€ 4.71
€ 5.64
€ 68,055
17%
€ 6.95
€ 17,970
6%
€ 86,025
9%
10
Supplier 10
€ 4.78
€ 4.48
€ 137,672
34%
€ 5.87
€ 61,288
21%
€ 198,960
21%
11
Supplier 11
€ 5.06
€ 5.95
€ 49,490
12%
€ 5.06
€ 93,776
32%
€ 143,266
15%
12
Supplier 12
€ 5.33
€ 6.64
€ 7,720
2%
€ 6.18
€ 48,911
17%
€ 56,631
6%
13
Supplier 13
€ 5.63
€ 6.93
€ 5.28
€ 84,874
29%
€ 84,874
9%
14
Supplier 14
€ 6.49
€ 5.64
€ 5.64
€ 70,570
24%
€ 138,625
15%
€ 6.77
DDP
Total
€ 7.40
€ 68,055
14
17%