Case Study-Analysis of Potential Sourcing Destinations

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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

Š 2015 Dragon Sourcing. All rights reserved.

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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

© 2015 Dragon Sourcing. All rights reserved.

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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

© 2016 Dragon Sourcing. All rights reserved.

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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

© 2016 Dragon Sourcing. All rights reserved.

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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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