Dragon Sourcing - 龙 源 Delivering sustainable sourcing value from emerging markets
Case Study Glass Gourd Sourcing Project
Agenda
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1.
Objectives, approach, timeline & team
2.
Demand analysis
3.
RFI/RFQ Analysis and Supplier Recommendations
4.
Company Profiles
2
Objectives and approach Context
Project Objectives: • Identify and recommend new potential competitive suppliers for gourds.
1.
Countries and Scope: • Turkey • Visegrad Countries : -Czech Republic -Hungary -Poland -Slovakia • China
2.
3.
4.
Deliverables: • Supplier database • RFI-RFQ template • RFI-RFQ analysis report • Supplier profiles and ranking • Supplier's pre-audit reports (optional)
5.
6. 7.
8.
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3
DS Approach consists in the following work steps: Demand Analysis: Work with client to define and understand the products and requirements (specs, volumes, materials, production technology, quality testing, certificates, etc.) Supply Market Analysis: Identify long list of potential suppliers in countries in scope by leveraging B2B Websites, DS Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References Telephone Pre-screening: Selection of suppliers to be included in the RFI-RFQ 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) Develop RFI-RFQ: Prepare an RFI-RFQ document, with an aligned Balanced Scorecard that has the objective to pre-qualify the competitiveness and capabilities of the suppliers, including Background, Financials, Client references and Product experience, Quality certification & processes, Social Responsibility, Manufacturing/technology capability, R&D capability. Administer RFI-RFQ: The RFI/RFQ is distributed to the suppliers who signed the NDA, with telephone follow-up to push for maximum participation. Validate with client the balance score card to evaluate suppliers according to RFI/RFQ Analyze RFI-RFQ: Develop with the client a balance score card to evaluate suppliers and analyze the RFI-RFQ. Prepare the final report which profiles & objectively ranks the suppliers by capability, including a recommendation for those to be audited. Suppliers' pre-audits (optional)
The project until step 7 will last about 8 working weeks. The time required to perform the pre-audits will depend on how many suppliers need to be audited and their location. A weekly report will be sent every Friday, not excluding direct communication as needed. Steps
1. Demand Analysis
2. Supply Market Analysis
In Charge
W1
W2
Client/DS
W3
W4
W5
W6
W7
W8
RFI / RFQ &Scorecard Approved
DS Shortlist for recommended Audit
3. Telephone Pre-screening
DS
4. Develop RFI-RFQ
DS
5. Administer RFI-RFQ
DS
6. Analyze RFI-RFQ and supplier recommendations for pre-audits
DS
7. Supplier Pre-audits (optional)
Client /DS
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4
Agenda
© 2022 Dragon Sourcing. All rights reserved.
1.
Objectives, approach, timeline & team
2.
Demand analysis
3.
RFI/RFQ Analysis and Supplier Recommendations
4.
Company Profiles
5
Demand Analysis
Product Description: Glass gourd (sodocalcique or borosilicate) with; - silicone sleeve - wooden cap with a string A mold for the glass gourd and for the sleeve can be provided to the supplier that will be selected
Category
Colour
Annual Volume
MOQ
Target Price Unit Price
Glass Gourd with silicone sleeve and wooden cap
Coloured silicone sleeve
15.000 pcs
5000 pcs
2,8 Euro
Estimated Yearly Spend:
42.000 Euro
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6
Clarification questions Dragon Sourcing Questions (General) •
Feedback from Client
What are your key MUST have criteria for a suitable supplier selection? Ex: Quality, environmental and/or product certification .
MUST BE ISO9001 MUST BE ENGLISH SPEAKER MUST MAKE OVER 5M€ YEARLY TURNOVER MUST BE OK FOR PHYSICAL AUDIT IF PRE-QUALIFIED
FYI: Supplier would be disqualified during pre-screening if they don’t have a «MUST have» requirement. •
Are there any suppliers that should NOT be included in the RFI-RFQ process?
•
The company making caps called *** and https******
•
Can your company name be used to support the RFI-RFQ process?
•
Yes
•
Final delivery location, (City-Country) for suppliers to quote transportation?
•
******France
•
Incoterm expected from the suppliers in the RFQ (FOB, CIF, DDP)?
•
DDP
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Pre-screening – Used to disqualify unsuitable suppliers from the RFI-RFQ process. No
1
•
Examples of Pre-screening question
•
Are you manufacturer or trader?
Importance
Traders Discarded
2
• Do you have ISO 9001?
Must Have
3
• ISO14001 ?
Good to Have
4
• French speaking staff ?
Good to Have
5
• Do you have French Speaking Staff?
Good to Have
6
• What is your yearly turnover
Good to be over 5M Euro
7
• Do you accept audits?
Must be Yes
Suppliers not able to answer the question for “Must have” will be considered as disqualified for next step of RFI-RFQ process.
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8
Agenda
© 2022 Dragon Sourcing. All rights reserved.
1.
Objectives, approach, timeline & team
2.
Demand analysis
3.
RFI/RFQ Analysis and Supplier Recommendations
4.
Company Profiles
9
Supply Market Analysis Process metrics follow up for both the categories Process
Steps
Turkey
China
Czech
Hungary
Poland
Slovakia
Total
Supplier Identification
• Suppliers identified
21
45
5
7
5
3
86
• Supplier passed prescreening
13
11
4
3
3
3
37
• Suppliers failed Prescreening
8
33
1
4
2
0
48
• Pending
0
0
0
0
0
0
1
• RFI-RFQ sent
13
11
4
3
3
3
37
• Intend to respond
0
0
0
0
0
0
0
• Don't intend to respond
12
1
4
3
3
3
26
• Number of both RFIRFQ received
1
10
0
0
0
0
11
Pre-screening
RFI-RFQ Administration
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10
RFI-RFQ Status
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11
Price Summary – DAP Price Analysis
Suppliers below the target price
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12
RFI Results Chart
Suppliers below the target price: >A >D >C >B
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13
Supplier Price vs RFI Score Analysis Table Phone screening Replies
Does the Do you Are you a Do you Do you supplier have manufactu have ISO Yearly Do you accept have ISO communic French FOB Price DAP Price Recommend rer? 9001? Turnover audits? RFI Score 14001? ate in Speaking Eur Eur ed Suppliers (Yes/No) (Yes/No) in M EUR (Yes/No) (Yes/No) English Staff? (Must) (Must) (Yes/No) (Yes/no)
#
Supplier Name
Country
1
A
China
Yes
Yes
No
4 M EUR
Yes
No
Yes
75
1,10
1,7
Yes
2
B
China
Yes
Yes
No
4.7 M EUR
Yes
No
Yes
0 (no RFI)
1,93
2,53
Yes
3
C
China
Yes
Yes
No
Yes
No
Yes
85
2,00
2,6
Yes
4
D
China
Yes
No
No
Yes
Yes
Yes
39
2,18
2,78
5
E
China
Yes
No
No
1.34 M EUR
Yes
No
No,because the factory is moving
61
2,29
2,89
6
F
China
Yes
Yes
No
18 M EUR
Yes
No
Yes
84
2,30
2,9
7
G
China
Yes
No
No
0.67 M EUR
Yes
No
Yes
0 (No RFI)
2,45
3,05
8
H
China
Yes
Yes
Yes
2.6 M EUR
Yes
No
Yes
63
2,61
3,21
9
I.
China
Yes
Yes
No
Yes
78
3,08
3,68
10
J
Turkey
Yes
Yes
No
Yes
34
3,30
4,32
11
K
China
Yes
Yes
No
Yes
83
4,63
5,24
NO, we NO, we 10.76 EUR have BSCI have BSCI Below 5M Yes Yes EURO Yes
Yes
Recommended Suppliers Secondary Recommended Suppliers
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10.72 M EUR 1.35 M EUR
14
NA
Yes
Supplier Recommendation Reasons No.
Supplier name
RFI Manufacturer Score or Trader?
ISO9001
ISO14001
French speaking staff ?
English speaking staff ?
Yearly Turnover (M EUR)
Accept Audits?
Reason for recommending
• • • • 1
A
75
Manufacturer
Yes
No
No
Yes
4M
• • • • • • • •
DAP price is 1.7 (EUR/pcs), lower than target price. 12 years of industry experience 2020 annual turnover 4 M EUR. 8 years of export experience, with 10% sales export to EU, 15% to North America. 300 employees, work floor size 18,000 square meters and warehouse size 10,000 square meters. ISO9001 certified. English speaking staff available. DAP price is 2.60 (EUR/pcs) , lower than target price. 23 years of industry experience 2020 annual turnover 11 M EUR. 18 years of export experience, with 20% sales export to EU, 25% to North America. 300 employees, work floor size 6,000square meters. ISO9001 certified English speaking staff available. DAP price is 2.53 (EUR/pcs), lower than target price. Did not fill in RFI but accepted audits Turnover is close to 5M EUR ISO9001 certified. English speaking staff available.
• • • • •
DAP price is 2,90 (EUR/pcs) , close to target price. 20% sales export to EU, 30% to North America. 500 employees, work floor size 15,000 square meters. ISO9001 certified English speaking staff available.
Yes •
2
3
4
C
B
F
85
0
84
Manufacturer
Manufacturer
Manufacturer
Yes
Yes
Yes
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No
No
No
No
No
No
Yes
Yes
Yes
11 M
4,7 M
18 M
15
Yes
Yes
Yes
• • • • • •
Recommended Supplier Quotes A FOB Price/pc DDP Price/pc - Euro - Euro
1,10 €
1,70 €
MOQ
Mold Cost
5000 pcs
EUR 650
Payment Term
Supplier Comments
T/T 30% mold fee can't deposit,70% refund before delivery
C FOB DDP Price/pc - Price/pc Euro Euro
2,00 €
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2,60 €
MOQ
Mold Cost
Payment Term
5000 pcs
Don't need mold fees, quote their mold
30% deposit in advance and 70% balance seeing B/L COPY
16
Supplier Comments
Recommended Supplier Quotes B FOB Price/pc - DDP Price/pc Euro Euro
1,93 €
2,53 €
MOQ
10000 pcs
Mold Cost
Payment Term
Supplier Comments
bottle :€1500 sleeve:€15000. mold cost for wood cap is unpredictable, for reference, Mold cost for plastic cap is about TT Western Unin EUR 3000. But if you use our current cap mold, material is bamboo, then there is no mold fee of cap.
F
FOB Price/pc - DDP Price/pc Euro Euro
2,30 €
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2,90 €
MOQ
5000 pcs
Mold Cost
€1380.95 For silicone sleeve
17
Payment Term
Supplier Comments
For Bottle and cap we can use our molds. Only do not Despoit 30%, have the Groove in the center 70% before between glass and sleeve delivery
Agenda
© 2022 Dragon Sourcing. All rights reserved.
1.
Objectives, approach, timeline & team
2.
Demand analysis
3.
RFI/RFQ Analysis and Supplier Recommendations
4.
Company Profiles
18
Company Profiles
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19