Dragon Sourcing - 龙 源 Your Tailored Sourcing Approach to Emerging Countries
Leather Jacket&Garment Case Study
Agenda
1.
Project objectives, approach, Schedule and demand analysis
2.
Suppliers responses Key figures
3.
RFI analysis and ranking
4.
RFQ analysis and recommendations
5.
Supplier Profile
© 2022 Dragon Sourcing. All rights reserved.
Project Objectives Context Objectives: • To carry sourcing services : -leather Jacket&Garment Geographical scope: • China • India • Pakistan • Turkey Deliverables: • Supplier data base • RFI / RFQ template • RFI / RFQ analysis report • Supplier profiles &rankings
© 2022 Dragon Sourcing. All rights reserved.
DS Approach consists in the following work steps: 1.Collect detailed spend information about the nature of the products required (supplier capabilities required, specifications, volumes, drawings, and samples when relevant for all references to be included in the RFI-RFQ process) with all spend data to be provided by Client. Identify list of potential suppliers to include in the RFI process by incorporating existing list of DS potential suppliers, by leveraging the web, external databases and various networks of experts 2.Carry out a phone pre-screening of the suppliers based on maximum 45 screening criteria per category (e.g.: min size, having certain quality certification, experience in relevant industry,…) with these criteria to be provided by Client.. 3.Develop the RFI-RFQ jointly with by Client, to include all key supplier qualification criteria (e.g.: financial, technology,, corporate responsibility, quality certification, MOQ, client references…)and quotation requirements 4.Administer the RFI / RFQ process to ensure as high a return rate as 5.Analyze responses based on qualitative criteria and use a balance score card together with by Client to rank suppliers and recommend suppliers which by Client needs to take through a formal qualification process 6.Carry out sampling with pre-selected suppliers together with by Client.
Approach & Schedule The project is scheduled for a 8 working weeks period but may be impacted by the time taken to receive validations/approvals by Client Steps
W1
W2
W3
W4
W5
W6
W7
W8
Sampling
1. Demand Analysis
2. Supply Market Analysis
3. Telephone Pre-screening RFI
/ RFP &Scorecard Approved
4. Develop RFI /RFQ Shortlist
5. Conduct RFI / RFQ Administration
for recommended sampling
6. Develop the Score card and Analyze RFI /RFQ Responses
7. Suppliers Sampling
Milestone
© 2022 Dragon Sourcing. All rights reserved.
Not-started
Started
Finished
Leather Jackets & Garment Total spend USD 299K #
Reference No.
Product name
Total 6 sized sizes
Color
No. of Colors
Initial Order qty per color in PCS
Target FOB Price/pc in USD
Spend Value in USD
1
1033053
Biker Sauco
XS to XXL
Dark Blue (28)
1
800
55
44,000
2
1033066
Chaqueta Aviador Amber
XS to XXL
Brown Café (11)
1
800
55
44,000
3
1033071
Chaqueta Romero
XS to XXL
Black Negro (00)
1
800
60
48,000
4
1033079
Chaqueta Biker Azalea
XS to XXL
Brown Café (11)
1
800
49
39,200
5
1033080
Chaqueta Azulum
XS to XXL
Brandy (05)
1
800
49
39,200
6
1033081
CAMISA ML CUERO BASICA
S TO XL
Black Negro (00)
1
350
45
15,750
Subtotal spend in USD
© 2022 Dragon Sourcing. All rights reserved.
230,150
Product Picture
Leather Jackets & Garment Total spend USD 299K Initial Order qty Target FOB Spend Value per color in Price/pc in USD in USD PCS
#
Reference No.
Product name
Size
Color
No. of Colors
1
1033075
FALDA EUCALIPTO
XS TO XL
Brown Café (11)
1
200
78
15,600
2
1033083
SHORT CUERO TREBOL
XS TO XL
Honey/miel(02)
1
200
40
8,000
3
1033084
PONCHO CUERO
M
Honey/miel(02)
1
200
70
14,000
4
1033085
PANTALON CUERO CROCO
XS TO XL
Black Negro (00)
1
100
50
5,000
5
1032062
Top_tank_cuero
S TO XL
Black
1
200
26
5,200
6
1031362
chaleco_cuero_obi
S TO XXL
Dark Blue
1
300
50
15,000
7
1031400
Falda Ankara
S TO XL
black
1
150
37
5,550
Subtotal spend in USD
68,350
Total spend of leather Jacket& Garment in USD
298,500
© 2022 Dragon Sourcing. All rights reserved.
Product Picture
Agenda
1.
Project objectives, approach, planning and demand analysis
2.
Suppliers responses Key figures
3.
RFI analysis and ranking
4.
RFQ analysis and recommendations
5.
Supplier Profile
© 2022 Dragon Sourcing. All rights reserved.
Sourcing progress, 93 suppliers identified, 93 called, 50 passed pre-screen, 28 RFI/RFQ received, 3 RFQ received
Step
China
India
Pakistan
Turkey
Total
Total number of suppliers
20
26
25
22
93
Suppliers called
20
26
25
22
93
Suppliers passed prescreen
9
16
14
11
50
RFI/RFQ sent
9
16
14
11
50
RFI/RFQ received
4
11
9
4
28
RFQ received
2
0
0
1
3
© 2022 Dragon Sourcing. All rights reserved.
Not-started
Started
Finished
Supplier rejection analysis: 43 suppliers failed pre-screen, 19 failed in RFI/RFQ process.
Supplier Pre-Screen rejection analysis
Supplier RFI/RFQ rejection analysis
16
7 14
14
6 6
12 10
5
10
5
8 8
4
4
4
6 4 4
3 3
2 2
1
0
1 2
1
0 Consider themselves not competent for this project China
India
Pakistan
© 2022 Dragon Sourcing. All rights reserved.
Turkey
Total
Not interested to Contacted by client Need more detailed continue or want to contact drawings / sampels client directly to proceed
China
India
Pakistan
Turkey
Total
Agenda
1.
Project objectives, approach, planning and demand analysis
2.
Suppliers responses Key figures
3.
RFI analysis and ranking
4.
RFQ analysis and recommendations
5.
Supplier Profile
© 2022 Dragon Sourcing. All rights reserved.
© 2022 Dragon Sourcing. All rights reserved. 56
50
Supplier 19 Turkey
61
Supplier 14 China
60
Supplier 26 China
66
Supplier 16 China
68
Supplier 22 China
69
Supplier 21 India
70
Supplier 6 Pakistan
70
Supplier 28 Turkey
70
Supplier 8 India
76
Supplier 12 India
77
Supplier 13 India
77
Supplier 17 India
78
Supplier 4 Pakistan
78
Supplier 25 India
80
Supplier 15 Pakistan
80
Supplier 11 Pakistan
80
Supplier 7 Pakistan
81
Supplier 9 Pakistan
82
Supplier 24 India
82
Supplier 1 Pakistan
83
Supplier 29 Turkey
Supplier 3 Pakistan
83
Supplier 5 India
Supplier 18 India
90
Supplier 20 India
90
Supplier 10 India
91
Supplier 27 Turkey
Supplier 2 Pakistan
Total 28 suppliers scored and ranked: China 4,India 11, Pakistan 9, Turkey 4. Average RFI score 74. Supplier RFI Score
100
89 86
75 65 60 55 46
40
30
20
10
0
Agenda
1.
Project objectives, approach, planning and demand analysis
2.
Suppliers responses Key figures
3.
RFI analysis and ranking
4.
RFQ analysis and recommendations
5.
Supplier Profile
© 2022 Dragon Sourcing. All rights reserved.
Supplier FOB price and Total spend comparison (in USD) 13 suppliers quoted all 13 items,15 suppliers quoted 8 to 12 items,3 suppliers quoted less than 6 items. Initia 1 2 3 4 5 6 7 8 9 10 11 l Targ Indi Paki Indi Paki Orde et Pakistan India Pakistan Refere a stan a stan r qty pric # nce per e /pc Sup Sup Sup Sup Sup Sup Su Sup Sup Sup Sup No. colo in plier plier plier plier plier plier ppli plie plier plier plier r in USD 1 2 3 4 5 6 er 7 r 8 9 10 11 PCS 1
103305 3 103306 6 103307 1 103307 9 103308 0 103308 1 103307 5 103308 3 103308 4 103308 5 103206 2 103136 2 103140 0
12
13
India
14
15
16
Chin Pakis Chin a tan a
17
18
India
19 Turk ey
20
21
India
22
23
Chin Turk a ey
24
25
India
26
27
Chin a
28
29
Turkey
30
31
China
Sup Supp Supp Supp Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup plie lier lier lier plier plier plier plier plier plie plier plier plier plier plier plie plier plier plier plie r 12 13 14 15 16 17 18 19 20 r 21 22 23 24 25 26 r 27 28 29 30 r 31
800
55
43
53
55
55
52
53
56
52
67
57
63
68
64
64
76
62
70
79
80
80
85
108
105
129
123
135 135 130
120
78
264
800
55
44
53
59
53
51
60
63
59
54
55
57
60
63
57
70
65
61
71
85
69
97
105
105
108
139
120 140 145
---
70
239
800
60
--
53
49
--
55
--
--
--
--
78
81
--
65
92
--
66
57
68
--
102 112
105
115
140
135
150 125 125
--
--
--
800
49
37
47
42
46
48
52
47
55
58
48
48
51
55
62
58
62
70
78
75
82
81
90
96
92
95
120 135 125
115
64
--
800
49
35
47
46
45
48
52
46
52
50
50
47
52
55
57
54
64
61
68
75
71
78
95
96
85
89
115 130 120
---
--
--
350
45
38
43
46
47
48
43
44
48
47
49
45
52
51
51
67
62
63
61
80
70
77
98
95
86
110
130 140 140
---
--
--
200
78
--
--
--
--
--
--
--
--
--
78
70
75
42
--
--
120
109
--
133 111
50
--
182
175
--
---
--
--
200
40
23
25
42
30
36
31
37
--
34
34
36
38
42
42
46
49
48
51
58
55
53
40
79
78
78
40
85
90
--
--
200
70
34
35
49
--
--
--
63
--
57
80
71
81
63
35
--
70
80
84
95
78
135
92
--
132
149
189 180 375
---
--
--
100
50
35
35
45
44
45
45
45
45
45
46
43
52
68
51
49
55
56
56
70
61
64
45
98
83
99
149 105 115
90
--
--
200
26
30
29
35
30
35
32
37
25
30
38
32
34
56
26
55
49
50
52
40
47
65
66
63
80
85
80
95
75
----
--
--
300
50
42
45
50
38
48
32
48
45
45
46
54
50
36
51
49
76
55
66
67
57
78
85
92
89
88
85
140
95
115
--
--
150
37
28
33
39
33
38
35
44
--
34
38
41
39
50
42
56
50
53
41
58
52
71
40
77
74
86
52
100
95
---
--
--
# items quoted
13
11
12
12
10
11
10
11
8
11
13
13
11
13
13
10
12
13
13
11
13
13
13
11
13
13
12
13
13
5
3
2
2 3 4 5 6 7 8 9 10 11 12 13
© 2022 Dragon Sourcing. All rights reserved.
Lower than Target price
140 354 100
The same as Target price
Total spend analysis, 28 suppliers quoted items more than 6 items quote Client Target price was used in calculation). 1 #
Client Target
2
3
4
5
Pakistan
6
India
7
8
9
10
11
12
Pakista Pakista India India n n
Pakistan
13
14
15
16
17
Pakista China China n
India
18
19
India
20
Turkey
(for items supplier didn’t
21 India
22
23
24
China Turkey
25
26
India
27
China
28
Turkey
Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli er 1 er 2 er 3 er 4 er 5 er 6 er 7 er 8 er 9 er 10 er 11 er 12 er 13 er 14 er 15 er 16 er 17 er 18 er 19 er 20 er 21 er 22 er 23 er 24 er 25 er 26 er 27 er 28
USD
Total 298,50 241,80 272,45 283,05 286,00 288,40 298,12 301,96 305,32 310,55 317,65 321,00 323,53 331,75 336,30 355,65 362,93 366,22 401,80 418,00 440,74 502,60 522,30 553,80 613,80 649,90 683,10 751,50 797,05 spend 0 0 4 0 0 0 5 8 0 0 0 0 8 0 0 0 1 0 0 0 4 0 0 0 0 0 0 0 0 in USD # items 13 11 12 12 10 11 10 11 8 11 13 13 11 13 13 10 12 13 13 11 13 13 13 11 13 13 12 13 13 quoted Potential 56,700 26,046 15,450 12,500 10,100 375 -3,468 -6,820 -12,050 -19,150 -22,500 -25,038 -33,250 -37,800 -57,150 -64,431 -67,720 103,30 119,50 142,24 204,10 223,80 255,30 315,30 351,40 384,60 453,00 498,55 saving in USD 0 0 4 0 0 0 0 0 0 0 0 Saving% 19.0% 8.7% 5.2% 4.2% 3.4% 0.1% -1.2% -2.3% -4.0% -6.4% -7.5% -8.4% -11.1% -12.7% -19.1% -21.6% -22.7% -34.6% -40.0% -47.7% -68.4% -75.0% -85.5% 105.6% 117.7% 128.8% 151.8% 167.0%
Supplier Total Spend and RFI Score
900000
100 91
800000
89
700000
83
82
81
80
78
76
600000
78
77 70
69
66
500000
80
75
70
65
60
55
90
90
86
83
80
77
61
68 70 60
56
50
46
400000
40
300000 200000
30 13
11
12
12
10
11
10
11
100000
8
11
13
13
11
13
13
10
12
13
13
11
13
13
13
11
13
13
12
13
13
20
10
Total Spend
© 2022 Dragon Sourcing. All rights reserved.
RFI Score
# items quoted Lower than Target price
Higher than Target Price
Supplier 28 Turkey
Supplier 27 Turkey
Supplier 26 China
Supplier 25 India
Supplier 24 India
Supplier 23 Turkey
Supplier 22 China
Supplier 21 India
Supplier 20 India
Supplier 19 Turkey
Supplier 18 India
Supplier 17 India
Supplier 16 China
Supplier 15 Pakistan
Supplier 14 China
Supplier 13 India
Supplier 12 India
Supplier 11 Pakistan
Supplier 10 India
Supplier 9 Pakistan
Supplier 8 India
Supplier 7 Pakistan
Supplier 6 Pakistan
Supplier 5 India
Supplier 4 Pakistan
Supplier 3 Pakistan
Supplier 2 Pakistan
Supplier 1 Pakistan
0
Client Target
0
4 suppliers recommended for Supplier Profile which will require samples to be sent to them in order to get quote confirmation #
Supplier name
Supplier Country
RFI Score
Annual # items Saving(%) turnover (M quoted USD)
Famous customer reference
1
Supplier 1
Pakistan
81
19%
12.4
11
TAURO,INDITEX, G-III GROUP,MANGO
2
Supplier 2
Pakistan
91
8.7%
10.7
12
GIII Apparel Group, FMC, H&M,ZARA
Industry supplied • • • • • • Manufacturing of Leather, • • PU & Denim Garments, Leather • Gloves, Belts and Accessories •
Fashion leather jackets, Motorbike jackets&leather Garments
3
Supplier 3
Pakistan
82
5.2%
2.9
12
INDITEX,JOFAMA, TORRAS,CLOVER
Leather Garments
4
Supplier 4
Pakistan
76
4.2%
2.3
10
HM MODEN,MDK, TASI E.K
Fashion leather jackets and Garments
© 2022 Dragon Sourcing. All rights reserved.
Reason for recommended
• • • • • • • • • •
Good capability and RFI score Price lower than Client Target ISO 9001 &BSCI Supply to international clients Not capable of making non-quoted items Excellent capability and RFI score Price lower than Client Target ISO 9001 &ISO14001,BSCI,WRAP Supply to international clients Capable of making non-quoted items after samples received Good capability and RFI score Price lower than Client Target BSCI&SEDEX Supply to famous clients Not capable of making non-quoted items Good capability, RFI score above average Price lower than Client Target BSCI Supply to famous clients Not capable of making non-quoted items
Agenda
1.
Project objectives, approach, planning and demand analysis
2.
Suppliers responses Key figures
3.
RFI analysis and ranking
4.
RFQ analysis and recommendations
5.
Supplier Profile
© 2022 Dragon Sourcing. All rights reserved.
Supplier Profile Example
Supplier name - Country Section: Business information& Social Responsibility
RFI Score
91
RFI Ranking
1
BUSINESS INFORMATION
COMPANY INFORMATION Company Name
Sales Distribution
City
%sales exports to the main markets
Country Company Website CONTACT PERSON INFORMATION
Domestic
Europe
North America
Customers
Industry
Country
South America
Rest of the world
Main supplier % of sales product
Top 3 Customers
Contact Person Contact Phone
SOCIAL RESPONSIBILITY
Contact Mobile
Company certificates
ISO 14001
BUSINESS INFORMATION
BSCI
Company type
WRAP SEDEX BASC The numbers of Western companies conduct social audit during the last 2 years If yes, which western company Pass the social audit Follow US OFAC compliance Clean drinking water accessible to all employees(Yes/No) All the workers have a labor contract(Yes/No)
Year Founded Ownership
Registration number Total number of employees The number of employees in R&D department Overall factory occupy(sqm) Workshop(sqm) The mainly serve industry
All the workers have a social insurance included in their labor contract(Yes/No)
Export directly or via export agent
Waste management arranged in a way that does not lead to pollution of the environment(Yes/No) Chemicals properly and separately disposed off(Yes/No)
Years of export experience Incoterms quote and operate The district of Main bank account
Emissions in legal conformity(Yes/No) 2021
Sales Turnover (in Million USD)
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Yes/No
2020
Accidents and injuries log (daily / detailed): pls fill the numbers
Certifying Org
Expiry date
Supplier Profile Example
Supplier name - Country Section: Production &Quality Management PRODUCTION MANAGEMENT
QUALITY MANAGEMENT Quality certificate
The leather products should be " First leather"
Yes/No
Certifying Org
ISO 9001
OEM or ODM
TS16949
The principal source of raw material (China or other)
The Finished leather Analysis Report(Yes/No)
Tannery under factory (Yes /No) Documented company-wide quality manual Types of real leather in jacket& garment
Daily on line quality inspection and report
Production capability
Leather jacket /garment
Producing in house(Yes/No)
Final products inspection and report Clear and systematic procedure to collect, register, handle and solve customer complaints
Monthly production capacity in PCS Fabric blends can offer?(Yes/No) Production Process
In house (Yes / The number of No) machine
Sewing Trimming, shading, tagging and packing process Printing Embroidery Sample production line or equipment(Yes/No)
The type of machine
The formal QC criteria and procedure for in-house quality control( Yes/No)if Yes, what is it ? Accept 3rd party QC or testing Automated and computerized CAD CAM system Finished Goods defect rate(PPM/%)
Test in house GSM tester
The approval sample lead time (days) Average production lead time (days)
PH Meter
The company operating instruction on site
Crock Meter
The company production and safety training for each worker ERP system The company product/service traceability System
Abrasion tester
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Color fastness tester Fatigue test of fastener: Buttons, zippers, snaps, etc
Yes/No
Expiry date
Supplier Profile Example
Supplier name - Country Section: Certificates, Factory Pictures Business Registration
Certificates
Factory Entrance
Office
Machine
Test lab
© 2022 Dragon Sourcing. All rights reserved.
Certificates
Workshop
Warehouse