Case Study-Blankets Project Intermediary REPORT

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Blankets Project Intermediary REPORT Geneva, January 10th 2008

© 2007 Dragon Sourcing. All rights reserved.

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by Pierre Rousseaux


Blankets Project – Product required

Product

Demand analysis

Hight thermal Resistance Blankets

350.000 units per year

100 % Virgin Polyester Fleece – – – – –

– Delivery dates: March & June – Quantity / order: 100.000 units – Destination: Bandar Abbas – Iran Aqaba - Jordan – Contract validity: June 2008

Thermal Resist: TOG 4 minimum (0.4 k.m²/W) Size: 150 cm x 200 cm Weigth: 1500 gr – 2000 gr maximum Thickness: Minimum 4.9mm under 2kPa Flammability: Class I (ASTM D4151)

– Finish:

Whipped seam with ribbon, 15 stichs/10cm minimum on 4 sides

– Packaging:

Bales of 25 blankets Bales of 50 x 50 x 80 cm

© 2007 Dragon Sourcing. All rights reserved.

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Blankets Project – Current Situation Out of the 28 identified suppliers, 6 have produced sample in order to be introduced to the Red Cross/

7 suppliers were not specialized in blankets 28

15 suppliers could not meet the Red Cross specifications 21

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1 supplier could not produce the sample before the 10/01/2008

7

Identified suppliers

Qualified after phone call

Š 2007 Dragon Sourcing. All rights reserved.

Sent RFI - RFQ

3

Replied RFI- RFQ

6

Produced sam ple


Blankets Project – CIF Quotations estimates

 Sea freight from Shanghai (China) to Bandar Abbas (Iran) and to Aqaba (Jordan)

 Loading on container on manufacturing site

EXW Pric e

 Container transportation to Port  Export documents expenses, transportation & other taxes  Handling & loading of the container on the vessel

FOB Price

 Additional fees (BAF & CAF)  Insurance cost based on the FOB value, plus the transportation cost

Suppliers’ quotation Logistics flow from FOB CHINA port to DDP Bandar Abbas / Aqaba

© 2007 Dragon Sourcing. All rights reserved.

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 Port handling cost  Port taxes

DDP Pric e


Blankets Project – CIF Quotations estimates assuming 0%, 15% & 30% import duty tax rates

Aqaba ----------Abbas

Taxes

FOB Price

Units per 40 ft container

FOB-CIF 40 Ft Costs

CIF-DDP 40 Ft costs

CIF 40HQ

0%

15%

Supplier 7

€ 1.74

7,750

€ 2,553

€ 2,843

€ 2.07

€ 0.00

Supplier 8

€ 2.13

7,750

€ 2,553

€ 2,843

€ 2.46

Supplier 1

€ 2.66

7,750

€ 2,553

€ 2,843

Supplier 10

€ 2.66

7,750

€ 2,553

Supplier 6

€ 3.52

7,750

Supplier 9

€ 3.55

7,750

30%

0%

15%

30%

€ 0.31

€ 0.62

€ 0.04

€ 2.11

€ 2.42

€ 2.73

€ 0.00

€ 0.37

€ 0.74

€ 0.04

€ 2.49

€ 2.86

€ 3.23

€ 2.99

€ 0.00

€ 0.45

€ 0.90

€ 0.04

€ 3.03

€ 3.47

€ 3.92

€ 2,843

€ 2.99

€ 0.00

€ 0.45

€ 0.90

€ 0.04

€ 3.03

€ 3.47

€ 3.92

€ 2,553

€ 2,843

€ 3.85

€ 0.00

€ 0.58

€ 1.16

€ 0.04

€ 3.89

€ 4.47

€ 5.05

€ 2,553

€ 2,843

€ 3.88

€ 0.00

€ 0.58

€ 1.16

€ 0.04

€ 3.91

€ 4.49

€ 5.08

NOTE: •Aqaba and Abbas DDP Price have 0.01 € difference.

• Total cost from CIF to DDP have been estimates based on previous quotations for shipping to Southampton as no partner has been identified in IRAN.

• Exch. Rate: 1 eur = 1.41 US $

• Loading capacity based on the packaging specified by the ICRC

© 2007 Dragon Sourcing. All rights reserved.

DDP Price

CIF-DDP 40 Ft costs

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Blankets Project – CIF Quotations estimates assuming 0%, 15% & 30% import duty tax rates

Aqaba / Abbas DDP Price (0 % import tax) Current DDP Price : 3 €

Aqaba / Abbas DDP Price (15 % import tax) Current DDP Price : 3 €

Aqaba / Abbas DDP Price (30 % import tax) Current DDP Price : 3 €

Supplier 9

€ 3.92

€ 4.50

€ 5.08

Supplier 6

€ 3.90

€ 4.48

€ 5.06

Supplier 10

€ 3.03

€ 3.48

€ 3.93

Supplier 1

€ 3.03

€ 3.48

€ 3.93

€ 2.50

Supplier 8

€ 2.12

Supplier 7

€ 0.00

€ 1.50

€ 3.00

© 2007 Dragon Sourcing. All rights reserved.

€ 3.24

€ 2.87

€ 2.74

€ 2.43

€ 4.50

€ 0.00

€ 1.50

€ 3.00

6

€ 4.50

€ 6.00

€ 0.00

€ 1.50

€ 3.00

€ 4.50

€ 6.00


Blankets Project – Supplier 1 GENERAL INFORMATION

COMPLIANCE WITH LOCAL LAW

SUPPLIER NAME

Zhejiang Willing Foreign Trading

Children labor

Yes

City

Hangzhou

Working hours

Yes

Province

Zhejiang

Contact person

Mr. Chen Juanhua

Health & Safety

Yes

Job title

Sales responsible

Environmental issues

Yes

Email

chenjh@zjnac.com

Phone number

139 581 21 338

Fax number

0571 857 73 720

Website

www.zjnac.com

QUALITY & ENVIRONMENT CERTIFICATION ISO 9001:2000 ISO 14000 Others

BUSINESS INFORMATION Found Year

1975

Ownership

State Owned

Capital

200 millions RMB

Number of employees 400 million RMB

% Sales exports to western markets

80 %

Main export markets

Europe, US, Japan

Customer Reference Production capacity per year for 1.000.000 units blankets © 2007 Dragon Sourcing. All rights reserved.

N/A

CERTIFICATION

Work floor size (m²) Revenue/Turnover (in million RMB) 2006 % of Production equipment dedicated to blankets

Yes

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Blankets Project – Supplier 1 Pictures of the sample Dragon Sourcing received

Specifications • Color: Sand • Size: 150 x 200 cm • Weight: 1.2 kg

The samples have been produced based on the Red Cross specifications. Except for the dimensions and the weight, Dragon Sourcing is not able to check if all the specifications are respected. © 2007 Dragon Sourcing. All rights reserved.

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Blankets Project – Supplier 6

SUPPLIER NAME

GENERAL INFORMATION Jinjiano Huafeng weaving & dyeing Ind.

City

Jinjiang

Province

Fujian

Contact person

Allen Han

Job title

Manager

Email

sales@vafong.com

Phone number

139 604 00 626

Fax number Website

COMPLIANCE WITH LOCAL LAW Children labor

Yes

Working hours

Yes

Health & Safety

Yes

Environmental issues

Yes

QUALITY & ENVIRONMENT CERTIFICATION ISO 9001:2000

2004 – 2007

0595 855 05 898

ISO 14000

2004 – 2007

www.vafong.com

Others

BUSINESS INFORMATION Found Year

1999

Ownership

Foreign owned

Capital

8 millions US $

Work floor size (m²)

60.000

Number of employees

600

Revenue/Turnover (in million RMB) 2006 % of Production equipment dedicated to blankets

Picture

100.000.000

% Sales exports to western markets

80 %

Main export markets

US, Europe

Customer Reference

IKEA

Production capacity per year for 9.000.000 blankets © 2007 Dragon Sourcing. All rights reserved.

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Blankets Project – Supplier 6 Pictures of the sample Dragon Sourcing received

Specifications • Color: Green • Size: 150 x 200 cm • Weight: 1.0 kg

The samples have been produced based on the Red Cross specifications. Except for the dimensions and the weight, Dragon Sourcing is not able to check if all the specifications are respected. © 2007 Dragon Sourcing. All rights reserved.

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Blankets Project – Supplier 7

SUPPLIER NAME

GENERAL INFORMATION Zhejiang Longxiang knitting technology

City

Shaoxing

Province

Zhejiang

Contact person

Tim

Job title

Export manager

Email

Tim.zjcn@yahoo.com

Phone number

137 068 51 655

Fax number

0575 881 58 179

COMPLIANCE WITH LOCAL LAW Children labor

Yes

Working hours

Yes

Health & Safety

Yes

Environmental issues

Yes

QUALITY & ENVIRONMENT CERTIFICATION ISO 9001:2000 ISO 14000

Website

Others

BUSINESS INFORMATION Found Year

1995

Ownership

Private Owned

Capital

5.000.000

Work floor size (m²)

90.000

Number of employees

1000

Revenue/Turnover (in million RMB) 2006 % of Production equipment dedicated to blankets

Picture

20.160.000 US $

% Sales exports to western markets

70 %

Main export markets

US, Europe

Customer Reference Production capacity per year for 150 x 40 HQ blankets © 2007 Dragon Sourcing. All rights reserved.

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Blankets Project – Supplier 7 Pictures of the sample Dragon Sourcing received

Specifications • Color: Blue • Size: 150 x 200 cm • Weight: 1.6 kg

The samples have been produced based on the Red Cross specifications. Except for the dimensions and the weight, Dragon Sourcing is not able to check if all the specifications are respected. © 2007 Dragon Sourcing. All rights reserved.

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Blankets Project – Supplier 8 GENERAL INFORMATION

COMPLIANCE WITH LOCAL LAW

SUPPLIER NAME

Nihong knitting & textiles

Children labor

Yes

City

Shaoxing

Working hours

Yes

Province

Zhejiang

Contact person

Julie

Health & Safety

Yes

Job title

Foreign trade manager

Environmental issues

Yes

Email

julie57588@yahoo.com

Phone number

135 75583 642

Fax number

0575 856 47 757

QUALITY & ENVIRONMENT CERTIFICATION ISO 9001:2000

Yes

ISO 14000

Website

Others

BUSINESS INFORMATION Found Year

2002

Ownership

Private

Capital

100.000

Work floor size (m²)

30.000

Number of employees

150

Revenue/Turnover (in million RMB) 2006 % of Production equipment dedicated to blankets

CERTIFICATION

40.000.000

% Sales exports to western markets

60 %

Main export markets

Us, Europe, Japan

Customer Reference

Kim, Jain, Mustui

Production capacity per year for blankets

180.000

© 2007 Dragon Sourcing. All rights reserved.

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Blankets Project – Supplier 8 Pictures of the sample Dragon Sourcing received

Specifications • Color: Green

• Size: 158 x 200 cm • Weight: 1.4 kg

The samples have been produced based on the Red Cross specifications. Except for the dimensions and the weight, Dragon Sourcing is not able to check if all the specifications are respected. © 2007 Dragon Sourcing. All rights reserved.

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Blankets Project – Supplier 9

SUPPLIER NAME

GENERAL INFORMATION Shaoxing Shenyang knitting & textiles

City

Shaoxing

Province

Zhejiang

Contact person

David Sun

Job title

Sales manager

Email

davidsun25@126.com

Phone number

138 675 42 538

Fax number

0575 851 93 639

COMPLIANCE WITH LOCAL LAW Children labor

Yes

Working hours

Yes

Health & Safety

Yes

Environmental issues

Yes

QUALITY & ENVIRONMENT CERTIFICATION

Website

ISO 9001:2000

N/A

ISO 14000

N/A

Others

BUSINESS INFORMATION Found Year

2001

Ownership

Private owned

Capital

10.000.000

CERTIFICATION

Work floor size (m²) Number of employees

Revenue/Turnover (in million RMB) 2006 % of Production equipment dedicated to blankets

1000 200.000.000

% Sales exports to western markets

40 %

Main export markets

US, Europe

Customer Reference Production capacity per year for 800.000 blankets © 2007 Dragon Sourcing. All rights reserved.

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Blankets Project – Supplier 9 Pictures of the sample Dragon Sourcing received

Specifications • Color: Sand • Size: 150 x 200 cm • Weight: 1.2 kg

The samples have been produced based on the Red Cross specifications. Except for the dimensions and the weight, Dragon Sourcing is not able to check if all the specifications are respected. © 2007 Dragon Sourcing. All rights reserved.

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Blankets Project – Supplier 10 GENERAL INFORMATION

COMPLIANCE WITH LOCAL LAW

SUPPLIER NAME

Dinghao Group

Children labor

Yes

City

Yiwu

Working hours

Yes

Province

Zhejiang

Contact person

Yi Lakin

Health & Safety

Yes

Job title

Sales manager

Environmental issues

Yes

Email

lakin@necktie.com.cn

Phone number

139 579 49 055

QUALITY & ENVIRONMENT CERTIFICATION ISO 9001:2000

Fax number Website

ISO 14000

www.necktie.com.cn

Others

BUSINESS INFORMATION Found Year

1995

Ownership

Private

Capital

65.000.000

Work floor size (m²)

100.000

Number of employees

500

Revenue/Turnover (in million RMB) 2006 % of Production equipment dedicated to blankets

CERTIFICATION

20.000.000

% Sales exports to western markets

90 %

Main export markets

US, Europe

Customer Reference

Rubiss

Production capacity per year for blankets

750.000 units

© 2007 Dragon Sourcing. All rights reserved.

Yes

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Blankets Project – Supplier 10 Pictures of the sample Dragon Sourcing recieved

Specifications • Color: Sand • Size: 160 x 205 cm • Weight: 1.3 kg

The samples have been produced based on the Red Cross specifications. Except for the dimensions and the weight, Dragon Sourcing is not able to check if all the specifications are respected. © 2007 Dragon Sourcing. All rights reserved.

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