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Glass and Wood Decorative Pots SE Asia, Eastern Europe & Turkey Sourcing Project Case Study
Agenda
Š 2018 Dragon Sourcing. All rights reserved.
1.
Project Planning and Sourcing Strategy
2.
Progress Reports
3.
RFI Report Example
2
Stage 1: Supplier Pre-Qualification No.
Steps in stage 1
1.
Demand Analysis Work with the client to define and understand the products and requirements (specs, volumes, current unit prices, delivery destinations of delivery/consumption).
2.
Supply Market Analysis Identify long list of potential manufacturers in target countries by leveraging B2B websites, DS database, fair • Supplier Long List catalogues, Chamber of Commerce, magazines, network, references.
3.
Telephone Pre-screening Selection of manufacturers to be included in the RFI/RFP process by telephone pre-screening based on agreed simple criteria (e.g. capability to make the product, can export, interest in participating, etc.)
• Shortlist for RFI-RFQ process
4.
Develop RFI/RFQ document Prepare an RFI/RFQ document, with an aligned balanced scorecard that has the objective to pre-qualify the competitiveness and capabilities of the manufacturers, including: background, financial, client and product experience, quality certification & processes, social responsibility, manufacturing/technology capability, R&D capability.
• RFI-RFQ Template • Balanced Scorecard
5.
Administer RFI/RFQ: The RFI/RFQ is translated to the local languages as relevant, and distributed to the relevant manufacturers, with telephone follow-up to push for maximum participation.
• Completed RFI-RFQ’s
6.
Analyze RFI/RFQ Responses: Analysis of RFI/RFQ responses, estimation of logistics costs, and preparation of a report, which profiles & objectively ranks the manufacturers by capability and competitiveness, including a recommendation for those to be audited.
• RFI-RFQ Report • Supplier Profiles • Proposed Shortlist for Audit.
© 2018 Dragon Sourcing. All rights reserved.
Deliverables
3
• Kick-Off Report
Objectives and approach DS Approach consists in the following work steps,
Context Project Objectives: • Identify and recommend new potential competitive suppliers
Stage 1 1. 2. 3. 4. 5. 6.
Category and Scope • Wood : SE Asia • Glass: China, East Europe, Turkey Example Products in the Project Scope:
© 2018 Dragon Sourcing. All rights reserved.
4
Demand Analysis Supply Market Analysis Telephone Pre-screening Develop RFI/RFQ Conduct RFI/RFQ Administration Analyze RFI/RFQ Responses
Project Schedule Project is scheduled to be completed in 9 weeks.
Steps
Duration/week commencing
1. Demand Analysis
1
2. Supply Market Analysis (Long list supplier database)
2
3. Pre-screening the identified suppliers
2
4. Develop RFI/RFQ template for validation
1
5. Administer RFI/RFQ process
3
6. Analyze responses & submit report
2
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
1
2
today Not started
Š 2018 Dragon Sourcing. All rights reserved.
5
Ongoing
Finished
Holiday
Milestone
Demand Analysis, The approximate yearly volumes and estimated yearly spend
#
Category
Number of SKU’s in category
1
Wood
74 (total historical)
units
28967
$391,153.05
2
Glass
229 (total historical)
units
88806
$1,720,766.91
Š 2018 Dragon Sourcing. All rights reserved.
Estimated Yearly Volumes
6
Estimated yearly spend in US$
Pre-screening Stage to filter unsuitable suppliers before the RFI-RFQ process. No
• •
Examples of Pre-screening question
Importance
1
•
2
• Do you have export license?
3
• Any quality certification like ISO 9001?
Good to Have
5
• Do you have WRAP certification or similar social compliance?
Good to have (RFI)
6
• Do you have LEED or similar certification?
Good to have (l RFI)
7
• ....................
Are you manufacturer or trader?
Traders Discarded
Must have
Suppliers not able to answer the question for “Must have” will be considered as disqualified for next step of RFI-RFQ process. TBC: To be confirmed.
© 2018 Dragon Sourcing. All rights reserved.
7
Agenda
Š 2018 Dragon Sourcing. All rights reserved.
1.
Project planning and Soucing Strategy
2.
Progress Reports
3.
RFI Report Example
8
Supply market analysis table for each project step
Wood Process
Supplier Identification
Glass
Steps
Total SE Asia
China
Turkey
East EU
• Suppliers identified
115
90
9
21
235
• Supplier passed prescreening
45
37
2
12
96
• Suppliers failed Prescreening
73
53
7
9
142
• RFI-RFQ sent
45
37
2
12
96
• Intend to respond
10
15
2
9
36
• Don't intend to respond
35
17
0
3
55
• Number of both RFI-RFQ received
9 +1 RFI
9
1+1 RFI
7+2 RFI
30
Pre-screening
RFI-RFQ Administration
RFI/RFQ finished © 2018 Dragon Sourcing. All rights reserved.
9
RFQ Results of Wood Category showed savings ranging from 15 to 25% THAILAND Supplier 9 Original FOB Wood Wood Type price Type USD/pc
INDONESIA
Supplier 4 FOB Wood price Type USD/pc
Supplier 8 FOB Wood price Type USD/pc
Supplier 1 FOB Wood price Type USD/pc
VIETNAM
Supplier 10 FOB Wood price Type USD/pc
Supplier 6 FOB Wood price Type USD/pc
Supplier 7 FOB Wood price Type USD/pc
Supplier 5 FOB Wood price Type USD/pc
Supplier 2 FOB Wood price Type USD/pc
#
Product Code
1
31771
Teak
NA
NA
$21.36
Teak
$11.00
Teak
$12.55
Teak
$24.35
Teak
$13.50
Teak
NA
NA
NA
NA
$30.00
Acasia
2
032908
Teak
NA
NA
$15.06
Teak
$9.00
Teak
$8.60
Teak
$14.75
Teak
$12.00
Teak
NA
NA
NA
NA
$13.00
Acasia
3
034868
Teak
NA
NA
$15.06
Teak
$7.00
Teak
$6.85
Teak
$9.35
Teak
$10.00
Teak
NA
NA
NA
NA
$10.00
Acasia
4
031770
Teak
NA
NA
$15.06
Teak
$6.50
Teak
$9.55
Teak
$22.75
Teak
$12.00
Teak
NA
NA
NA
NA
$10.00
Acasia
$4.99
Alocasia Wood
$3.20
rubber wood
$2.55
nacreou s wood or rubber wood
$2.50
Acasia
$2.50
Teak
$3.75
Teak
$2.95
Teak
$3.50
Teak
$1.50
Rubber wood
$1.10
nacreou s wood or rubber wood
$2.00
Acasia
5
Picture
7451-027
Alocasia
6
7451-028
Paulownia Wood
$2.30
Acasia
$3.37
Paulown ia Wood
7
4938-134
Teak
NA
NA
$1.99
Teak
$4.00
Teak
$5.30
Teak
$2.60
Teak
$9.00
Teak
NA
NA
NA
NA
$3.00
Acasia
8
8897-029
Plywood
NA
NA
$9.73
Ply wood
$6.00
Ply wood
NA
NA
$2.75
Ply wood
$10.00
Teak
NA
NA
$1.91
Pine veneer covered plywood
$4.50
Acasia
© 2018 Dragon Sourcing. All rights reserved.
$3.70
Acasia
$4.50
Teak
$4.85
10
Teak
$3.65
Teak
$5.00
Teak
Highest Price
Lower Price but different features
Best Price
RFI Scoring of Wood Category Suppliers
Rank 1 2 3 4 5 6 7 8 9 10
Š 2018 Dragon Sourcing. All rights reserved.
11
Supplier Name Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 Supplier 10
Market Total Score Indonesia 81% Vietnam 74% Thailand 63% Thailand 60% Vietnam 59% Indonesia 57% Vietnam 57% Indonesia 53% Thailand 49% Indonesia 44% 60% Av
Recommended Suppliers for Wood Category
RFI Rank 1 2 3 4 5 6 7 8 9 10
Supplier Name Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 Supplier 10
Market Indonesia Vietnam Thailand Thailand Vietnam Indonesia Vietnam Indonesia Thailand Indonesia
Total Total Score Rate 81% 80% 74% 75% 63% 65% 60% 83% 59% 68% 57% 90% 57% 70% 53% 68% 49% 78% 44% 60% 1st Group Suppliers 2nd Group Suppliers
Š 2018 Dragon Sourcing. All rights reserved.
12
# of Quoted Items 7 8 0 8 3 8 2 8 2 8
RFQ Results of Glass Category showed savings of 16% to 28% CHINA
#
Project Code
Supplier 7 Supplier 12 Supplier 8 Supplier 5 Supplier 13Supplier 18
Supplier Supplier 20 Supplier 9 19
FOB USD/pc
FOB FOB USD/pc USD/pc
Picture FOB USD/pc
FOB USD/pc
FOB USD/pc
FOB USD/pc
FOB USD/pc
FOB USD/pc
TURKEY
SLOVAKIA
Supplier 6
Supplier 1
FOB USD/pc
EXWNotes USD/pc
POLAND Supplier 15 EXWUSD/pc
Notes
Supplier 10 FOB USD/pc
Notes
Supplier 16 EXWUSD/pc
Notes
Supplier 4 FOB USD/pc
Notes
1
8898-011
1.90
0.95
1.25
0.98
1.22
1.91
1.43
0.79
1.11
3.10
5.83
clear glass, no holes, ind.pack.
NA
NA
2.35
no holes, no frosting, ind.pack
1.81
cold cut, no holesfrostingaccessori es,
2
7453-002
1.70
2.50
3.40
1.60
1.21
NA
3.73
2.23
2.61
3.80
NA
NA
NA
NA
NA
NA
NA
NA
2.72
hot cut, no accss, ind. Pack
NA
NA
1.60
cold cut, no accessori es, individual packing
2.80
hot cut, no accss, ind.pack.
NA
NA
NA
NA
Supplier 3 FOB USD/pc
Notes
Supplier 11 FOB USD/pc
Notes
1.10
Machine Madesized-10h20cm, clear
3.20
no holes and frosting, no accss
NA
NA
NA
NA
0.90
MachineM. size:d-10, h-17cm, clear glass, no accss,
NA
NA
3
8896-029
2.30
1.20
1.70
NA
0.70
NA
0.78
0.79
NA
3.10
5.83
only glass, individual packing
4
7449-035
1.60
0.90
2.25
1.10
2.10
1.73
1.37
0.96
1.04
3.80
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
5
7453-020
0.85
0.90
1.45
1.05
NA
1.58
1.69
1.19
0.65
2.90
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
6
7452-007
0.85
1.20
1.60
1.00
1.75
1.64
1.19
0.99
0.86
2.40
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
1.13
hot cut, size h10cm, d12cm, opening – 7cm, no base, ind.pack
5.80
hot cut, no accessori es, ind.pack
NA
NA
2.95
only glass
2.15
hot cut, no base, only glass, ind.pack.
7
8896-015
1.65
3.50
2.60
NA
1.90
NA
2.11
NA
NA
3.50
6.51
no base
9.27
hot cut, no accsss, ind.pack
8
7446-004
1.20
0.85
1.70
1.09
1.05
1.87
1.76
1.21
1.11
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
9
8896-028
0.90
0.65
1.20
0.88
1.52
1.69
1.52
1.21
1.26
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
10
8896-018
1.20
2.75
2.70
NA
3.50
2.48
2.72
1.62
2.33
3.50
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Best Price © 2018 Dragon Sourcing. All rights reserved.
13
Lower Price but different features
Highest Price
RFI Scoring of Glass Category Suppliers
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
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14
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
Market
Total Score
Slovakia Turkey Poland Poland China Turkey China China China Poland Poland China China Czech Rep Poland Poland Poland China
87% 86% 83% 79% 75% 75% 74% 74% 73% 73% 73% 71% 70% 66% 65% 65% 57% 54%
Recommended Suppliers for Glass Category
Rank
Supplier Name
1 2 3 4 5 6 7 8 9 10 11 12 13
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
14
Supplier 14
15 16 17 18 19 20
Supplier 15 Supplier 16 Supplier 17 Supplier 18 Supplier 19 Supplier 20
Market
Total Score
# of quoted Items in RFQ
RFI available?
Slovakia Turkey Poland Poland China Turkey China China China Poland Poland China China Czech Republic Poland Poland Poland China China China
87% 86% 83% 79% 75% 75% 74% 74% 73% 73% 73% 71% 70%
3 Alternative Items Quotation 3 Actual Products+ Catalogues 3 9 15 20 20 11 2 Actual Products + Alternative Items quote+ catalogue 4 Actual Products + Alternative Items quote+ catalogue 20 13
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Alternative Items Quotation 5 4 Actual Products + Alternative Items quote+ catalogue Alternative Items Quotation 10 14 16
Yes Yes Yes Yes Yes No No
66% 65% 65% 57% 54% 0% 0%
1st Group Suppliers 2nd Group Suppliers Š 2018 Dragon Sourcing. All rights reserved.
15
Agenda
Š 2018 Dragon Sourcing. All rights reserved.
1.
Project planning and Soucing Strategy
2.
Progress Reports
3.
RFI Report Example
16
RFI Report Example : The company reports for each supplier have been delivered in pdf form including the documents (certificates, forms etc) from the suppliers.
Š 2018 Dragon Sourcing. All rights reserved.
17
RFI Report Example
Š 2018 Dragon Sourcing. All rights reserved.
18
RFI Report Example
Š 2018 Dragon Sourcing. All rights reserved.
19