Your Tailored Sourcing Approach to Asia
Dragon sourcing Offering Case Study: Analysis of Potential Sourcing Destinations
Dec 23rd, 2015
Project Objective, Deliverables & Cost Background & Objective: Client X would like to analyze the supply market of 6 spend categories in 12 pre-selected countries with an objective to identify the best sourcing destination for each category.
Categories in Scope and HS Codes to be considered for each category for the analysis: 1. 2. 3. 4. 5. 6.
Countries pre-selected in scope 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
Steel structures: HS 730890 Steel tubes: HS 730519 Steel formworks: HS 730840 Electrical Cables: (copper cable) HS 741300 Functional lightings: (LED) HS 940540 Furniture: HS 940350
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China India Indonesia Malaysia Thailand Vietnam Brazil Mexico South Africa Japan South Korea Taiwan
Deliverables & Result Deliverables per category: Deliverables per category
Cost Per Category Per Country
1. Export Statistics of the category at a HS 6 digit level • Year on year export by value for three years for the category • Key export markets (countries) • Each country’s share of world exports 2. Approximate number of suppliers falling in a range (Less than 10 suppliers, 11-20, over 20) 3. Map of the country with supplier hubs (if any), plotted on the map
USD 150
Result: The countries were ranked for each category based on a scoring system using the export statistics and the availability of suppliers in the countries and recommendations were made to launch sourcing projects in the top ranked countries
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Project Schedule & Methodology Process
Timing (in weeks)
Identification of Sources
4
Data Gathering
4
Data Analysis
3
Quality check and triangulation of data
2
Report writing & presentation
3
Month I 1
2
3
Month II 4
5
6
7
8
DS will send an update every Friday from the third week followed by a teleconference to discuss the progress of the project
Publicly Available Reports and Articles from Authentic Publications and Organizations
Desk Research using secondary sources
Data Collection, Analysis and Strategic Review
Regional Trade Statistics
B2B sites, yellow pages & chamber of commerce Š 2015 Dragon Sourcing. All rights reserved.
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Final Research Report
EXECUTIVE SUMMARY
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Country Vs. Category – Attractiveness Matrix Steel Structures
Steel Tubes
Steel Formworks
Electric Cables
Functional Lightings
Furniture
HS 730890
HS 730519
HS 730840
HS 854460
HS 940540
HS 940350
China India
Indonesia Malaysia Thailand Vietnam Brazil Mexico South Africa Japan South Korea Taiwan Turkey Export value >100 M USD or > 5% of the world Market
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Export value between 50 to 100 M USD or between 2,5% to 5% of the world Market 6
Export value < 50 M USD or < 2,5% of the world Market
Country Vs. Category – Attractiveness Matrix Legend
Code
Code GREEN
Code YELLOW
Code Red
• •
Criteria
Steel Structures
Steel Tubes
Steel Formworks
Electric Cables (New)
Functional Lightings
Furniture
HS 730890
HS 730519
HS 730840
HS 854460
HS 940540
HS 940350
Export Value
>100 M USD
>100 M USD
>100 M USD
>100 M USD
>100 M USD
>100 M USD
Exports Market Share
> 5% of the world Market
> 5% of the world Market
> 5% of the world Market
> 5% of the world Market
> 5% of the world Market
> 5% of the world Market
Number of Suppliers
Over 20 suppliers
Over 20 suppliers
Over 20 suppliers
Over 20 suppliers
Over 20 suppliers
Over 20 suppliers
Export Value
Between 50 to 100 M USD
Between 50 to 100 M USD
Between 50 to 100 M USD
Between 50 to 100 M USD
Between 50 to 100 M USD
Between 50 to 100 M USD
Exports Market Share
Between 2,5% to 5% of the world Market
Between 2,5% to 5% of the world Market
Between 2,5% to 5% of the world Market
Between 2,5% to 5% of the world Market
Between 2,5% to 5% of the world Market
Between 2,5% to 5% of the world Market
Number of Suppliers
10-15ish suppliers
10-15ish suppliers
10-15ish suppliers
10-15ish suppliers
10-15ish suppliers
10-15ish suppliers
Export Value
< 50 M USD
< 50 M USD
< 50 M USD
< 50 M USD
< 50 M USD
< 50 M USD
Exports Market Share
< 2,5% of the world Market
< 2,5% of the world Market
< 2,5% of the world Market
< 2,5% of the world Market
< 2,5% of the world Market
< 2,5% of the world Market
Number of Suppliers
Less than 10 suppliers
Less than 10 suppliers
Less than 10 suppliers
Less than 10 suppliers
Less than 10 suppliers
Less than 10 suppliers
CAGR- Cumulative Annual Growth Rate for three years- 2012-2014 Market Share- is the country’s share of world exports Highly Attractive
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Moderately Attractiveto be explored during sourcing exercise
Not Attractive
Steel Structures (HS Code 730890)
Export of Steel Structures (HS Code 730890) in USD Billions 0.92 0.84
Turkey 0.05 0.06
Taiwan South Korea
2.07
Japan
0.34 0.35
South Africa
0.33 0.31
2.49
0.54 0.58
Mexico 0.08 0.09
Brazil
0.15 0.10
Vietnam
0.46
Thailand Malaysia
0.40 0.41
Indonesia
0.38 0.37
0.79
0.42 0.38
India
8.39 8.39
China -
1.00
2.00
3.00
4.00 2014
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5.00 2013
6.00
7.00
8.00
9.00
EXPORT STATISTICS – STEEL STRUCTURES © 2016 Dragon Sourcing. All rights reserved.
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Steel Structures (HS Code 730890) – China (1/2) Key Export Markets for Steel Structures from China in USD Billions
Total Export of Steel Structures from China in USD Billions (2012-2014) 8.65
8.63
1.40
8.60
1.20
8.55
1.00
8.50
0.80
8.45
0.60 8.39
8.40
8.39
1.28
1.09 1.00
0.99 0.95 0.85
0.85 0.73 0.50
0.44 0.45 0.48
0.40
0.20
8.35
0.40 0.28 0.19
0.00
8.30
South Korea
Japan
8.25 2012
2013
2012
2014
China's share of Steel Structures Exports in USD Billions (2014) 8.39 , 23%
28.41 , 77% Rest of the World © 2016 Dragon Sourcing. All rights reserved.
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China
Australia 2013
USA 2014
Vietnam
Steel Structures (HS Code 730890) – China (2/2) Approximate number of suppliers 20+
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Steel Structures (HS Code 730890) – India (1/2) Total Export of Steel Structures from India in USD Billions (2012-2014)
Key Export Markets for Steel Structures from India in USD Billions
0.43
0.12 0.42
0.42
0.10 0.08
0.41
0.40
0.10
0.06
0.39
0.39
0.04 0.05
0.04
0.38
0.38
0.02
0.37
0.00
0.04 0.02 0.02
0.02 0.01
0.02
0.01 0.02
0.003
USA
Saudi Arabia
0.36 2012
2013
2012
2014
India's share of Steel Structures Exports in USD Billions (2014) 0.42, 1%
36.38, 99% Rest of the World © 2016 Dragon Sourcing. All rights reserved.
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India
Canada 2013
Nigeria 2014
0.020.01 0.01
Oman
Steel Structures (HS Code 730890) – India (2/2) Approximate number of suppliers 20+
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Steel Structures (HS Code 730890) â&#x20AC;&#x201C; Indonesia (1/2) Total Export of Steel Structures from Indonesia in USD Billions (2012-2014) 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 -
Key Export Markets for Steel Structures from Indonesia in USD Billions 0.35
0.37
0.38
0.30
0.31 0.27
0.25 0.20 0.15 0.16
0.10
0.05
0.05
0.03
0.04 0.02
0.02
0.00 Australia 2012
2013
Singapore 2012
2014
Indonesia's share of Steel Structures Exports in USD Billions (2014) 0.38, 1%
36.41, 99% Rest of the World Š 2016 Dragon Sourcing. All rights reserved.
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Indonesia
0.02 0.01 0.01
Chile 2013
Japan 2014
0.00
0.00
Brunei
0.01
Steel Structures (HS Code 730890) – Indonesia (2/2) Approximate number of suppliers less than 10
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Steel Structures (HS Code 730890) â&#x20AC;&#x201C; Malaysia (1/2) Total Export of Steel Structures from Malaysia in USD Billions (2012-2014) 0.42
Key Export Markets for Steel Structures from Malaysia in USD Billions 0.14
0.41
0.12
0.41
0.11 0.08
0.08
0.39 0.38
0.12
0.10
0.40
0.40
0.12
0.06
0.06 0.37
0.04
0.04
0.37
0.02
0.36
0.00 Singapore 2013
Australia 2012
2014
Malaysia's share of Steel Structures Exports in USD Billions (2014) 0.40, 1%
36.40, 99% Rest of the World Š 2016 Dragon Sourcing. All rights reserved.
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0.04 0.03 0.01 0.01
0.35 2012
0.03
Malaysia
Indonesia 2013
0.02
Phillipines
2014
0.02
0.02
Thailand
0.02
Steel Structures (HS Code 730890) – Malaysia (2/2) Approximate number of suppliers 15-20
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Steel Structures (HS Code 730890) – Thailand (1/2) Total Export of Steel Structures from Thailand in USD Billions (2012-2014) 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 -
Key Export Markets for Steel Structures from Thailand in USD Billions 0.60
0.79
0.53
0.50 0.40
0.57
0.36
0.30
0.46
0.19
0.20
0.07 0.05 0.06
0.10
0.09 0.06
0.06
0.00 Australia 2012
2013
Singapore 2012
2014
Thailand's share of Steel Structures Exports in USD Billions (2014) 0.46, 1%
36.34, 99% Rest of the World © 2016 Dragon Sourcing. All rights reserved.
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Thailand
0.01
Japan 2013
0.01 0.02
Laos 2014
0.00
0.00
Brazil
0.01
Steel Structures (HS Code 730890) – Thailand (2/2) Approximate number of suppliers less than 10
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Steel Structures (HS Code 730890) – Vietnam (1/2) Total Export of Steel Structures from Vietnam in USD Billions (2012-2014) 0.16
Key Export Markets for Steel Structures from Vietnam in USD Billions 0.025
0.15
0.14 0.12
0.019
0.020
0.11 0.10
0.018
0.015
0.10
0.012
0.010
0.08 0.06
0.005
0.04
0.008
0.006 0.001
0.004
0.001
0.003
0.011 0.007 0.005
0.010 0.007
0.008
0.000
0.02
Myanmar
Australia
2012
2013
2012
2014
Vietnam's share of Steel Structures Exports in USD Billions (2014) 0.15, 0.40%
36.65, 99.60% Rest of the World © 2016 Dragon Sourcing. All rights reserved.
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Vietnam
USA 2013
Japan 2014
Malaysia
Steel Structures (HS Code 730890) – Vietnam (2/2) Approximate number of suppliers 15-20
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Steel Structures (HS Code 730890) – Brazil (1/2) Total Export of Steel Structures from Brazil in USD Billions (2012-2014) 0.09 0.09 0.09 0.09 0.09 0.08 0.08 0.08 0.08 0.08
Key Export Markets for Steel Structures from Brazil in USD Billions 0.030
0.09
0.026
0.027
0.025
0.09
0.019
0.020 0.015 0.008
0.010
0.08
0.005 0.000
0.003
0.000
Ecuador 2012
2013
Angola 2012
Brazil's share of Steel Structures Exports in USD Billions (2014)
36.71, 99.80% Rest of the World © 2016 Dragon Sourcing. All rights reserved.
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Brazil
Bolivia 2013
0.006
0.007 0.002
0.002
2014
0.08, 0.20%
0.008
0.007 0.003
0.005 0.005
Venezuela 2014
Singapore
Steel Structures (HS Code 730890) – Brazil (2/2) Approximate number of suppliers 20+
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Steel Structures (HS Code 730890) – Mexico (1/2) Total Export of Steel Structures from Mexico in USD Billions (2012-2014) 0.60 0.59 0.58 0.57 0.56 0.55 0.54 0.53 0.52 0.51 0.50
Key Export Markets for Steel Structures from Mexico in USD Billions 0.60
0.59
0.50
0.58
0.48
0.47
0.43
0.40 0.30 0.20
0.54
0.06 0.070.07
0.10 0.00 USA 2012
2013
Venezuela 2012
2014
Mexico's share of Steel Structures Exports in USD Billions (2014) 0.54, 1%
36.26, 99% Rest of the World © 2016 Dragon Sourcing. All rights reserved.
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Mexico
0.01 0.00 0.01
Guatemala 2013
2014
0.002 0.00 0.001
Congo
Panama
0.003
Steel Structures (HS Code 730890) – Mexico (2/2) Approximate number of suppliers less than 10
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Steel Structures (HS Code 730890) – South Africa (1/2) Total Export of Steel Structures from South Africa in USD Billions (2012-2014)
Key Export Markets for Steel Structures from South Africa in USD Billions
0.36 0.35
0.12
0.35
0.10
0.09
0.10 0.09
0.08
0.34 0.33
0.33 0.32
0.06
0.31
0.02
0.30
0.00
0.05 0.02
Zambia 2013
2012
South Africa's share of Steel Structures Exports in USD Billions (2014)
36.47, 99% Rest of the World © 2016 Dragon Sourcing. All rights reserved.
0.02
Mozambique
2014
0.33, 1%
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South Africa
0.05
0.03
0.29 2012
0.06
0.04
0.04
0.31
0.06
0.06
0.01
Namibia 2013
Congo 2014
0.01
0.02
Bostwana
Steel Structures (HS Code 730890) – South Africa (2/2) Approximate number of suppliers less than 10
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Steel Structures (HS Code 730890) – Japan (1/2) Total Export of Steel Structures from Japan in USD Billions (2012-2014) 0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 -
Key Export Markets for Steel Structures from Japan in USD Billions 0.25
0.44
0.21
0.35
0.20
0.19
0.34 0.15
0.13
0.10 0.06 0.05
0.05 0.00 0.00
0.00 Singapore 2012
2013
Brazil 2012
2014
Japan's share of Steel Structures Exports in USD Billions (2014) 0.34, 1%
36.46, 99% Rest of the World © 2016 Dragon Sourcing. All rights reserved.
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0.04
0.05
Japan
0.02 0.02 0.02
China 2013
Taiwan 2014
0.01
0.01
Thailand
0.02
Steel Structures (HS Code 730890) – Japan (2/2) Approximate number of suppliers 10-15
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Steel Structures (HS Code 730890) – South Korea (1/2) Total Export of Steel Structures from South Korea in USD Billions (2012-2014) 2.60 2.50
Key Export Markets for Steel Structures from South Korea in USD Billions 1.00
2.49
2.47
0.86 0.80
2.40
0.64 0.60
2.30
0.40
2.20
0.30
2.07
2.10
0.20
2.00
0.04
0.00
1.90
Australia
0.02 0.02 Nigeria
1.80 2012
2013
2012
2014
South Korea's share of Steel Structures Exports in USD Billions (2014) 2.49, 7%
34.31, 93% Rest of the World © 2016 Dragon Sourcing. All rights reserved.
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South Korea
0.29 0.15 0.16 0.130.12 0.15 0.06 Vietnam 2013
China 2014
0.07 0.11 UAE
Steel Structures (HS Code 730890) – South Korea (2/2) Approximate number of suppliers 15-20
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Steel Structures (HS Code 730890) – Taiwan (1/2) Total Export of Steel Structures from Taiwan in USD Billions (2012-2014) 0.06
Key Export Markets for Steel Structures from Taiwan in USD Billions 0.010
0.06
0.008
0.008
0.06 0.06
0.06
0.006
0.005 0.004 0.005
0.004
0.06 0.05 0.05
0.002
0.05
0.000 USA 2012
2014
Taiwan's share of Steel Structures Exports in USD Billions (2014) 0.05, 0.10%
36.74, 99.90% Rest of the World © 2016 Dragon Sourcing. All rights reserved.
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0.004 0.004 0.004
0.004
0.002 0.001
Vietnam 2013
0.004
0.003
0.05 2012
0.005 0.0040.004
Taiwan
Canada 2013
2014
Japan
Hong Kong
Steel Structures (HS Code 730890) – Taiwan (2/2) Approximate number of suppliers 15-20
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Steel Structures (HS Code 730890) – Turkey (1/2) Total Export of Steel Structures from Turkey in USD Billions (2012-2014) 0.94 0.92 0.90 0.88 0.86 0.84 0.82 0.80 0.78 0.76
Key Export Markets for Steel Structures from Turkey in USD Billions 0.25
0.92
0.21
0.20
0.20
0.18 0.15
0.15
0.10
0.84
0.10
0.10
0.08 0.09
0.82
0.06
0.06
0.05
0.03 0.01
0.03
0.03
0.04
0.00 Iraq 2012
2013
Turkmenistan Azerbaijan 2012
2014
Turkey's share of Steel Structures Exports in USD Billions (2014) 0.92, 2%
35.88, 98% Rest of the World © 2016 Dragon Sourcing. All rights reserved.
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Turkey
2013
2014
Algeria
Free Zones
Steel Structures (HS Code 730890) – Turkey (2/2) Approximate number of suppliers 15-20
© 2016 Dragon Sourcing. All rights reserved.
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