Dragon Sourcing - éž™ ćş? Delivering sustainable sourcing value from emerging markets
Gear Box Case Study
Agenda
Š 2019 Dragon Sourcing. All rights reserved.
1.
Project Objectives
2.
Approach & Schedule
3.
Result & Recommendation
4.
Supply Markey Survey
5.
Supplier’s location
6.
Supplier Assessment
7.
Company Profiles
2
2. Project Objectives
Client is the fourth-largest wind turbine manufacturer in the world and has been the market leader in Germany since the mid-nineties.
Objectives: Run “Request For Information (RFI) Process.
Identify manufacturers in supply market of China and India for Gear Box
• • •
Final deliverables: Supplier database RFI analysis report Supplier profiles and ranking
© 2019 Dragon Sourcing. All rights reserved.
3
Agenda
Š 2019 Dragon Sourcing. All rights reserved.
1.
Project Objectives
2.
Approach & Schedule
3.
Result & Recommendation
4.
Supply Markey Survey
5.
Supplier’s location
6.
Supplier Assessment
7.
Company Profiles
4
Approach & Schedule, Stage 1: Supplier Pre-Qualification No.
Step
1.
Demand Analysis Work with Client to define and understand the products and requirements (volumes, materials, production technology requirements, Quality tests, Standards, etc.)
Kick-Off Report
2.
Supply Market Analysis Identify long list of potential suppliers in the selected markets (China & India) by leveraging B2B Websites, DS Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References.
Supplier Long List
3.
Telephone Pre-screening Selection of suppliers to be included in the RFI process by telephone pre-screening based on agreed simple criteria (e.g. capability to make the product, Minimum company size, quality certifications, interest in participating, Export capability etc to be defined by Client).
Shortlist for RFI process
4.
Develop RFI document Prepare an RFI template, with an aligned Balanced Scorecard that has the objective to pre-qualify the capabilities of the suppliers, including: Background, financial, Client and product experience, Quality certification & processes, Social Responsibility, Manufacturing/technology capability)
RFI Template Balanced Scorecard
5.
Conduct RFI Administration The RFI is translated to the local languages as relevant, and distributed to the relevant suppliers, with telephone follow-up to push for maximum participation.
Completed RFI’s
6.
Analyze RFI Responses Analysis of RFI responses and preparation of a report which profiles & objectively ranks the suppliers by capability including a recommendation for those to be audited.
RFI Report Supplier Profiles Proposed Shortlist for Audit.
© 2019 Dragon Sourcing. All rights reserved.
Deliverables
5
Approach & Schedule, - Stage 1: Supplier Pre-Qualification timeframe. - Project schedule to be completed in 10 weeks. •
Steps
Please note, Schedule may be impacted by the time taken to receive validations.
Duration/ week commencing
1. Demand Analysis
1
2. Supply Market Analysis (Long list supplier database)
3
3. Pre-screening the identified suppliers 4. Develop RFI template for validation
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Week 10
06-26 06-30
07-03 07-07
07-10 07-14
07-17 07-21
07-24 07-28
07-31 08-04
08-07 08-11
08-14 08-18
08-21 08-25
08-28 09-01
3
2
1 5. Administer RFI process
3
6. Analyze responses & submit RFI report
2
Supplier profiles with recommendations.
2
today © 2019 Dragon Sourcing. All rights reserved.
6
Agenda
Š 2019 Dragon Sourcing. All rights reserved.
1.
Project Objectives
2.
Approach & Schedule
3.
Result & Recommendation
4.
Supply Markey Survey
5.
Supplier’s location
6.
Supplier Assessment
7.
Company Profiles
7
Result & Recommendation Results
Recommendation
Whole project is carried out in 9 weeks with total 133 suppliers identified in China and India.
DS recommend 23 suppliers for next step, • China: 16 • India : 7
• Total 25 RFI’s received from 40 suppliers passed in pre-screening process. • Information about rejection during pre screening process & RFI rejection by suppliers are given in the report.
•
1. NDA Process with shortlisted suppliers 2. RFQ process with NDA responders
Nearly all the RFI responders have confirmed, • Their planetary gearboxes are suitable to wind turbine for pitch and yaw control, • Can meet dimensions up to 1100(L) x 540(W) x 540(H) mm • Can offer weight up to 550 KG All the suppliers are ISO 9001 certified, Many suppliers are certified with ISO 14001, OHSAS 18001, TS 16949, CE & others © 2019 Dragon Sourcing. All rights reserved.
Immediate next steps:
8
Average RFI scoring: 73
Shortlisted
Result & Recommendation - Executive summary of the 25 RFI responders. Produce Planetary gearboxes RFI Suppliers Country Score %
Yes/No
PCS produce in 2016
Planetary gearboxes suitable to wind turbine for pitch and yaw
Could be considered Not shortlisted
ISO 9001 Types of Can offer mounted dimensions up to Can offer planetary 1100mm (L)x weight up to gearboxes can 540mm(W)x 540 550 KG produce, (H)
Certification, others. (Yes/No)
1
China
88
Yes
2000
Yes
Flange, Foot, Agitator
Yes
Yes
Yes
CE
2
China
85
Yes
130000
Yes
Flange, Foot, Agitator
Yes
Yes
Yes
CE
3
China
84
Yes
1200
No
Flange, foot
Yes
Yes
Yes
TS16949, ISO14001 & CE
4
China
84
Yes
1500
Yes
Flange, Foot, Agitator
Yes
Yes
Yes
ISO14001 & OHSAS 18001
5
China
82
Yes
21000
Yes
Flange
Yes
Yes
Yes
CE & UL
6
China
82
Yes
120
Yes
Flange
Yes
Yes
Yes
ISO14001, OHSAS18001 & GL
7
China
81
Yes
1200
Yes
Flange, Foot, Agitator
Yes
Yes
Yes
CE
8
India
79
Yes
30
Yes
Flange, Foot, Agitator.
Yes
Yes
Yes
Nil
© 2019 Dragon Sourcing. All rights reserved.
9
Average RFI scoring: 73
Shortlisted
Result & Recommendation - Executive summary of the 25 RFI responders.
Could be considered Not shortlisted
Produce Planetary gearboxes RFI Suppliers Country Score %
Yes/No
Planetary Types of Can offer gearboxes mounted dimensions up Can offer suitable to wind planetary to 1100mm (L)x weight up turbine for pitch gearboxes can 540mm(W)x 540 to 550 KG PCS produce and yaw produce, (H) in 2016
ISO 9001 Certification, others. (Yes/No)
9
China
79
Yes
13000
Yes
Flange, Foot, Agitator
Yes
Yes
Yes
ISO14001, OHSAS18001, CE, UL & GL,
10
India
77
Yes
2891
Yes
Flange, Foot, Agitator.
Yes
Yes
Yes
Nil
11
China
76
Yes
4
Yes
Flange
Yes
Yes
Yes
Nil
12
India
75
Yes
400
Yes
Flange, Foot, Agitator.
Yes
Yes
Yes
Nil
13
China
75
Yes
8000
Yes
Flange, Foot, Agitator
Yes
Yes
Yes
TS16949 & ISO 14001
14
China
75
Yes
500
Yes
Flange, Foot, Agitator
Yes
Yes
Yes
ISO 14001 & CE
15
China
72
Yes
2000
Yes
Flange, Foot, Agitator
Yes
Yes
Yes
CE
16
China
72
Yes
900
Yes
Flange, Foot, Agitator
Yes
Yes
Yes
CE
© 2019 Dragon Sourcing. All rights reserved.
10
Average RFI scoring: 73
Shortlisted
Result & Recommendation - Executive summary of the 25 RFI responders. Produce Planetary gearboxes Suppliers
Country
RFI Score %
Yes/No
Planetary gearboxes suitable to wind turbine PCS produce for pitch and in 2016 yaw
Could be considered Not shortlisted
Can offer Types of dimensions mounted Can offer up to planetary weight up 1100mm (L)x gearboxes can to 550 KG 540mm(W)x produce, 540 (H)
ISO 9001 Certification, others. (Yes/No)
17
India
71
Yes
10000
Yes
Flange, Foot, Agitator.
Yes
Yes
Yes
Nil
18
China
71
Yes
2700
Yes
Flange , foot
Yes
Yes
Yes
ISO 14001 & GL
19
China
70
Yes
N/A
Yes
Flange , foot
N/A
N/A
Yes
ISO14001, OHSAS 18001, CCS & BV
20
India
68
Yes
75
Yes
Flange, Foot, Agitator.
Yes
Yes
Yes
Nil
21
India
67
Yes
10
Yes
Flange, Foot, Agitator.
Yes
Yes
Yes
CE
22
China
63
Yes
10000
Yes
Flange, Foot, Agitator
No
No
Yes
Nil
23
China
62
Yes
800
N/A
Foot, Agitator
Yes
Yes
Yes
ISO 14001
24
India
48
Yes
15
Not sure
Flange, Foot, Agitator.
Yes
Yes
Yes
Nil
25
India
45
No
N/A
N/A
Flange, Foot
Yes
Yes
Yes
Nil
© 2019 Dragon Sourcing. All rights reserved.
11
Agenda
Š 2019 Dragon Sourcing. All rights reserved.
1.
Project Objectives
2.
Approach & Schedule
3.
Result & Recommendation
4.
Supply Markey Survey
5.
Supplier’s location
6.
Supplier Assessment
7.
Company Profiles
12
Supply Market Analysis RFI process completed with 25 RFI received,
China
India
Russia
Total
78
54
1
133
• Supplier passed pre-screening
26
13
1
40
• Suppliers failed Pre- screening
52
41
0
93
• Number of RFI sent
26
13
1
40
RFI • Number of RFI received so far, Administration
17
8
0
25
• Number of RFI rejected so far,
9
5
1
15
Process
Steps
Supplier • Suppliers identified Identification
Pre-screening
© 2019 Dragon Sourcing. All rights reserved.
13
13
Supply Market Analysis – per category - From 133 suppliers, 93 of them failed pre screening. Pre screening Rejection reason
In Total
%
China
India
•
Not producing planetary gearboxes suitable for wind turbine industry, (produce industrial gears, helical gearbox, others)
55
59.1%
29
26
•
Cannot export
15
16.1%
12
3
•
Unable to contact them/ Company shutdown
6
6.5%
6
•
Traders/distributors or Importers only,
5
5.4%
•
Discarded by Client
8
8.6%
•
Not ISO 9001 certified
2
2.2%
2
•
Stopped Producing
2
2.2%
2
93
100%
Total
8 5
5 5
3
52
41
2
Not producing planetary gearboxes suitable for wind turbine industry ( produce industrial gears, helical gearbox, others)
2
Cannot export
6
Unable to contact them/ Company shutdown
15
55
Traders/distributors or Importers only, Discarded by Enercon Not ISO 9001 certified Stopped Producing
© 2019 Dragon Sourcing. All rights reserved.
14
23
Supply Market Analysis – per category - From 40 passed suppliers, 15 rejected the RFI for below reasons, In Total
%
China
India
Russia
• Not interested to continue
7
46.7%
4
2
1
• Not producing planetary gearboxes suitable for wind turbine industry • (produce industrial gears, helical gearbox, others)
3
20.0%
• Supplier disclosed now that they cannot export
2
13.3%
2
• Management and sales do not speak & write in English
2
13.3%
2
• Group Company of Simens, Supplier "Winergy"
1
6.7%
1
15
100%
9
RFI Rejection reason
Total
1
Not producing planetary gearboxes suitable for wind turbine industry ( produce industrial gears, helical gearbox, others) 7
2
5
Not interested to continue
1
2
3
Supplier disclosed now that they cannot export Management and sales do not speak & write in English
3
Group Company of Simens, Supplier "
© 2019 Dragon Sourcing. All rights reserved.
15
33
Agenda
Š 2019 Dragon Sourcing. All rights reserved.
1.
Project Objectives
2.
Approach & Schedule
3.
Result & Recommendation
4.
Supply Markey Survey
5.
Supplier’s location
6.
Supplier Assessment
7.
Company Profiles
16
Shortlisted
Suppliers location – CHINA. - 17 Chinese suppliers responded to the RFI document, RFI Scoring
Supplier
City
State
88
Supplier 1
Hangzhou
Zhejiang
85
Supplier 2
Huanggang
Hubei
84
Supplier 3
Baoji Shi
Shaanxi
84
Supplier 4
Taiyuan
Shanxi
82
Supplier 5
Chongqing
Chongqing
82
Supplier 6
Beijing
Beijing
81
Supplier 7
Jingzhou
Hubei
79
Supplier 8
Dalian
Liaoning
76
Supplier 9
Deyang
Sichuan
75
Supplier 10
Qingdao
Shandong
75
Supplier 11
Wenzhou
Zhejiang
72
Supplier 12
Shanghai
Shanghai
72
Supplier 13
Wenzhou
Zhejiang
71
Supplier 14
Yinchuan
Gansu
70
Supplier 15
Chongqing
Chongqing
63
Supplier 16
Dongguan
Guangdong
62
Supplier 17
Shanghai
Shanghai
© 2019 Dragon Sourcing. All rights reserved.
Could be considered Not shortlisted
Heilongjiang
Jilin Liaoning
Xinjiang
Shanxi
Ningxia Qinghai
Beijing Tianjin Hebei
Inner Mongolia
Gansu
Gansu
Shaanxi
Shandong Jiangsu
Henan Anhui
Xizang
Sichuan Sichuan
Shanghai
Hubei
Zhejiang Jiangxi
Hunan Guizhou Yunan
Guangxi
Fujian
Guangdong Hong Kong
17
Taiwan
Shortlisted
Suppliers location – INDIA. - 8 Indian suppliers responded to the RFI document. RFI Scoring
Supplier name
City
State
79
Supplier 1
Vadodara
Gujarat
77
Supplier 2
Satara
Maharashtra
75
Supplier 3
Pune
Maharashtra
71
Supplier 4
Satara
Maharashtra
68
Supplier 5
Sangli
Maharashtra
67
Supplier 6
Navi mumbai
Maharashtra
48
Supplier 7
Navi mumbai
Maharashtra
45
Supplier 8
Rajkot
Gujarat
Š 2019 Dragon Sourcing. All rights reserved.
Could be considered Not shortlisted
Gujarat
Maharashtra
18
Agenda
Š 2019 Dragon Sourcing. All rights reserved.
1.
Project Objectives
2.
Approach & Schedule
3.
Result & Recommendation
4.
Supply Markey Survey
5.
Supplier’s location
6.
Supplier Assessment
7.
Company Profiles
19
Suppliers Assessment, - RFI scoring of all 25 RFI responders, - DS shortlisted 23 suppliers for further next steps, NDA process 100%
88
90%
85
4 1
80%
26
70%
84
5 3 26
60%
84
82
5 4 27
5 3 22
82
5 3 26
81
5 3 24
79
4 2
79
5 1
26
16
77
3 2 23
76
3 4 23
75
3 2 22
75
5 17
75
1 23
72
72
71
36
34
30%
28
33
33
30
34
33
32
34
31
35
33
70
68
4 23
5 19
4 20
1
29
31
31
5
19 20
32 31
5 22
20
IN
India
Average score 73
67
2
2
23
21
28
China
Shortlisted
63
50% 40%
71
CH
27
4 20
27
62
CSR 5%
15
20
Production 35%
23 20
17
13
14 15
19
15
14
Supplier 25
14
2
Supplier 24
20
1 11
Supplier 23
Supplier 17
Quality system 30%
14
Supplier 22
19
Supplier 21
17
Supplier 20
17
Supplier 19
18
Supplier 18
18
Supplier 16
Supplier 11
16
Supplier 15
20
Supplier 14
17
Supplier 13
21
Supplier 12
22
Supplier 10
Supplier 4
20
Supplier 9
Supplier 3
Š 2019 Dragon Sourcing. All rights reserved.
20
Supplier 8
Supplier 2
Cooperation 5%
18
Supplier 7
21
Supplier 6
21
Supplier 5
19
Supplier 1
Weight
0% 0
22
45
4
20% 10%
48
Business information 25%
-
Chinese suppliers were invited and 4 responded to the RFQ process. HS Code: 848340900 100.01.068-0-1-DEGearbox, Weight 200 KG
Sr. No
RFI ranking
Supplier
Country FOB
DAP Aurich, Germany.
1
9
Supplier 1
China
€ 1,475
€ 1,492
2
4
Supplier 2
China
€ 1,712
€ 1,731
3
5
Supplier 3
China
€ 1,950
€ 1,968
4
3
Supplier 4
China
€ 2,696
€ 2,712
100.03.027-0-1-DEGearbox, Weight 600 KG Sr. No
•
RFI Ranking
Supplier
Country FOB
DAP Aurich, Germany
Annual Annual Spend in Quantity million (PCS) based on DAP price
2,000 2,000 2,000 2,000
PCS in Sample 20ft cost container
Design cost
Deviation from the Client specs if any
€ 2.98
50
75
€ 2,215
€ 2,000
As per Client Drawings
€ 3.46
50
65
€ 3,424
€ 10,000
As per Client Drawings
€ 3.94
1 set
72
€ 2,601
Nil
Supplier has offered based on their drawings
€ 5.42
80
80
€ 2,965
Nil
As per Client Drawings
Design cost
Deviation from the Client specs if any
Annual Annual Spend in Quantity million (PCS) based on DAP price
1
4
Supplier 1
China
€ 2,617
€ 2,656
2000
€ 5.31
2
9
Supplier 2
China
€ 4,275
€ 4,325
2000
€ 8.65
3
5
Supplier 3
China
€ 4,681
€ 4,707
2000
€ 9.41
4
3
Supplier 4
China
€ 5,816
€ 5,866
2000
€ 11.73
RFI ranking from total 25 suppliers.
© 2019 Dragon Sourcing. All rights reserved.
MOQ in Pcs
21
MOQ in Pcs
50 50 24 25
PCS in Sample 20ft cost container
32
€ 5,234
€ 10,000
As per Client Drawings
25
€ 6,415
€ 2,000
As per Client Drawings
48
€ 3,901
Nil
Supplier has offered based on their drawings
25
€ 6,397
Nil
As per Client Drawings
Agenda
Š 2019 Dragon Sourcing. All rights reserved.
1.
Project Objectives
2.
Approach & Schedule
3.
Result & Recommendation
4.
Supply Markey Survey
5.
Supplier’s location
6.
Supplier Assessment
7.
Company Profiles
22
How many years of export experience do you have?
27
What Incoterms can your company quote and operate?
FOB, CIF, DAP, DDP
Sales revenue
2016
Turnover (in Million USD)
420
2015
2014 393
Company Profile Example 1. Standard information Company Name
Suppier 1
City
Hangzhou
Country
China
Supplier Information
Website Contact Name Contact Phone Contact Mobile Contact Email
Sales distribution
Domestic
Europ North e America
Japan and Korea
Sout h Amer ica
Afric Australi Rest of the a a world
% Sales exports to the main markets
0
3.5
37
2
2.9
Customer reference
Customer name
Industry
Top 1 client
cable korea
Top 2 client
pouya sanat
1. Business information Your company's type?
Manufacturer
Which year was your company founded?
2002
Ownership
Private
Your company's business registration number How many employees does your company have?
419
How many square meters(m²) does your workshop occupy?
76500
What industry does your company mainly serve?
Industrial transmission gear box ,High precision gear
Employee structure
Managem Sales Quality ent Control
R&D
Production
Finance
Purchasing
How many people does your company have in these positions?
15
30
280
18
25
How many people can speak English in each department?
2
Does your company have export license?
Yes
0
Country
% of sales
manufactue korea r
gearbox
29.6
manufactue Iran r
gearbox
22.3
Top 4 client Top 5 client 2. Production
20
4
45
1
0
Š 2019 Dragon Sourcing. All rights reserved.
0
1
Yes
Does your company have production and safety training for each worker?
Yes
Does your company use ERP system?
Yes
1
23
50
Main supplied product
Top 3 client
Does your company have production operating instruction on site?
0
Company Profile Example Which ERP system does your company use?
jindie
Does your company have product/service traceability system?
Yes
Does your company have an equipment maintenance program in place? Does your company have a formal ／ documented inventory management system?
Have any western companies conducted a social audit of your company during the last two years? If yes, which companies have conducted such audits? Does your company pass the audit?
Yes
Yes
3. Quality management Does your company have below certificates?
Yes / No
ISO 9001
YES
TS 16949
NO
Does your company have a documented company-wide quality manual?
Yes
Does your company have incoming material inspection and report?
Yes
Does your company have daily on line quality inspection and report?
Yes
Does your company have final products inspection and report?
Yes
Does your company have clear and systematic procedure to collect, register, handle and solve customer complaints?
Certifying Org.
Expiry date
Please upload your company's pictures of entrance, workshop, machine, test lab, warehouse and office.
Yes
Please upload pictures of your company's main products.
What performance does your company achieve on average in out going quality measures (% rejected) ？ 4.Social responsibility Does your company have below certificated?
Yes/No
ISO 14001
NO
SA 8000
NO
BSCI
NO
OHSAS 18001
NO
Certifying Org.
© 2019 Dragon Sourcing. All rights reserved.
Expiry date
24
No
2.Quality management Product certificate
CE
UL
Does your company have following product certificates (Yes/No)
yes
no
Others, Please specify.
Company Profile Example 2. Planetary Gearboxes 1. Production Main producing items
gear&gearbox
Your company's production capacity
Planetary gearboxes
Do you produce Planetary gearboxes (Yes/No)?
YES
How many pcs does your company produce in 2016 ďź&#x;
2000
Percentage of annual turnover %
65%
Are your planetary gearboxes suitable to wind turbine Industry for pitch and yaw?
yes
Can you offer dimensions up to 1100mm (length) x 540mm (width) x 540 (heigth)?
YES
Can you offer weight up to 550 KG?
YES
Types of mounted planetary gearboxes you can produce,
Flange, Foot, Agitator, Others
Can your company design/customize gearbox according to client's requirement?
YES,we can
In-house/outsource
Chemistry test
In-house
Magnetic powder test
In-house
Ultrasonic test
In-house
Hardness test
In-house
Mechanical property
In-house
What is your quality control standard and method?
National standards and enterprise standards
What are your warranty term for planetary gearbox?
one years
Production equipment,
Does your company have following production process/equipement in house?(Yes/No)
Forging
YES
Turning
YES
Does your company inspect each gear and have the record?
Yes
Milling
YES
Can your company provide PPAP?
Yes
Gear hobbing machine
YES
CAD/CAM
Gear measuring instrument
YES
Do you use CAD/CAM software? if yes which one?
Grinding equipment
YES
YES
Machining centre
YES
Do you accept 3rd party QC or testing? (like SGS, Intertek, Bureau Veritas)
Carburizing
YES
Nitriding
YES
CMM
YES
CNC gear shaper
YES
Technical dimensions range can offer for planetary gearbox,
Please advise up to max range can produce,
Power (HP)
3
Output speed: up to RPM
3
Reduction Ratio
3
Torque Rating: up to N.m
3
Š 2019 Dragon Sourcing. All rights reserved.
How many machines / production lines does your company have?
25
Others testing equipment's - You may want to list.
Test in house