Dragon Sourcing Your Tailored Approach to Emerging Markets
Marine Industry Components Sourcing Case Study 2021
Agenda
1.
Objectives , work plan and time line
2.
Category Approach (Plastic Injection Molding)
3.
Results
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2
Objectives and approach Dragon Sourcing approach
Context Objectives: • Identify new potential competitive suppliers from 6 out of the 8 countries per category, China, India, Vietnam, Indonesia, Thailand, Malaysia, Mexico and Singapore.
1. Demand Analysis: Work with Client to define and understand the products and requirements (specs, volumes, materials, production technology requirements) 2. Supply Market Analysis: Identify long list of potential suppliers in China and India by leveraging B2B Websites, DS Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References.
Categories involved • Plastic Injection Molding : 21 references (part numbers) ranging from approximately 63,000 – 263,000 pieces per reference. • Composite Tube : 4 references (part numbers) of approximately 131,000 total pieces. • DC Motors/Lower Motor Assembly : 7 main references (parts numbers) of approximately 131,000 total pieces.
3. 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, interest in participating) 4. Administer RFI: Prepare an RFI document, with an aligned Balanced Scorecard that has the objective to pre-qualify the capabilities of the suppliers, including: Background, Financials, Client and product experience, Quality certification & processes, Social Responsibility, Manufacturing/technology capability. The RFI is distributed to the relevant suppliers who passed pre-screen, with telephone follow-up to push for maximum participation.
Deliverables: • Supplier data base • RFI / RFQ report • Score Card • Company profiles • Recommended audit supplier list
5. Administer RFQ: RFQ is distributed to the relevant suppliers which filled out RFI and were evaluated as qualified to quote. 6. Analyze RFI /RFQ Responses: Analysis of RFI/RFQ responses to objectively rank the suppliers by capability and competitiveness, and to develop sense for price points
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3
The project is scheduled for 10 working weeks period with a weekly follow report sent every Friday. Step
Who
0
Kick off
Client/DS
1
Demand Analysis
Client/DS
2
Supply Market Analysis
W0
W1
W2
W3
DS
W4
W5
W6
W7
W8
W9
W 10
3
Telephone pre-screening
DS
4
Develop the RFI-RFQ
5
Conduct RFI Administration
DS
6
Conduct RFQ Administration
DS
7
Analyze RFI/RFQ Responses
DS
Client/DS
TODAY © 2021 Dragon Sourcing. All rights reserved.
4
Not-started
Started
Delayed
Finished
Holiday
Milestones
Agenda
1.
Objectives , work plan and time line
2.
Category Approach (Plastic Injection Molding)
3.
Results
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5
Total 483 suppliers identified from 6 countries, 370 suppliers passed pre-screen, 118 RFI received, 44 RFQ received.
Step
China
Thailand
Vietnam
Indonesia
Malaysia
Mexico
Total
Total number of suppliers
334
9
44
36
27
33
483
Shortlisted supplier after call
254
0
40
35
20
21
370
Number of RFI sent
254
0
40
35
20
21
370
Number of RFI received
88
0
7
6
2
17
120
Number of RFQ sent
88
0
7
6
0
10
111
Number of RFQ received
36
0
3
0
0
5
44
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6
China: 36 suppliers submitted RFI and RFQ are mainly located in Zhejiang, Shanghai, Fujian, Guangdong, Jiangsu, Shandong # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Company 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 Supplier 19 Supplier 20 Supplier 21 Supplier 22 Supplier 23 Supplier 24 Supplier 25 Supplier 26 Supplier 27 Supplier 28 Supplier 29 Supplier 30 Supplier 31 Supplier 32 Supplier 33 Supplier 34 Supplier 35 Supplier 36
State Zhejiang Zhejiang Guangdong Guangdong Zhejiang Zhejiang Zhejiang Shanghai Fujian Zhejiang Shanghai Guangdong Zhejiang Zhejiang Zhejiang Zhejiang Zhejiang Jiangsu Zhejiang Tianjin Fujian Shanghai Shanghai Zhejiang Zhejiang Shanghai Zhejiang Zhejiang Shanghai Zhejiang Fujian Zhejiang Zhejiang Shandong Zhejiang Zhejiang
© 2021 Dragon Sourcing. All rights reserved.
City Hangzhou Ningbo Dongguan Shenzhen Ningbo Ningbo Ningbo Shanghai Xiamen Taizhou Shanghai Foshan Taizhou Ningbo Huanyan Ningbo Ningbo Suzhou Yuyao Tianjin Xiamen Shanghai Shanghai Ningbo Ningbo Shanghai Ningbo Taizhou Shanghai Taizhou Xiamen Ningbo Ningbo Qingdao Wenzhou Taizhou
Heilongjiang Heilongjiang
Jilin He bei
Xinjiang Neimongu
Gansu
Qinghai Xizang
Liaoning
BEIJING
Shanxi Nin Shand gxia ong Jiangsu Gansu Shaa Henan SHANGHAI nxi Anhui Hubei
Sichuan Sichuan
Hunan Guizhou Yunan
Zhejiang Jiangxi
Gua ngxi
Fujian
Guangdong
Hong Kong
7
Taiwan
Mexico 5 suppliers submitted RFI and RFQ are mainly are mainly located in Baja California ,Nuevo Leon and Sonora. #
Company
State
City
1
Supplier 1
Baja California
Tijuana
2
Supplier 2
Baja California
Tijuana
3
Supplier 3
Sonora
Nogales
4
Supplier 4
Nuevo Leon
Monterrey
5
Supplier 5
Baja California
Mexicali
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8
44 suppliers which sent RFI and RFQ are scored and ranked. Suppliers RFI Score 90
80
85
84 83 80
78 77 77 77
75 75 74 73 73 73 71 71 71 70
70
69 67
66 64
60
63 62 62 62 61 60 60 59 58
56 55 54
51 48 47 46
50
40
45
34
32
30 18
20
14
12
10
0
r 1 r 2 r 3 r 4 r 5 r 6 r 7 r 8 r 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 lie plie plie plie plie plie plie plie plie lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier lier p p p p p p p p p p p pp p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p p Su Su Su Su Su Su Su Su Su Sup Su Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup
Company Background Engineering and Molding
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Business Information Production Equipment
Human Resources Quality management
9
Corporate responsibility Cooperation
Production Capacity Total Points
• •
44 suppliers responded to RFI/RFQ, 20 Supplier which quoted all 21 references were analysed and compared. . 5 green highlighted suppliers recommended for next step considering price competitiveness and RFI score. Mould Cost (USD) Components cost FOB (USD)
Total spend (USD)
Price competitiveness
RFI ranking
RFI score
390,000
459,242
1
4
80
134,545
337,200
471,745
2
22
64
Supplier 10
80,116
404,640
484,756
3
10
75
4
Supplier 3
98,030
402,520
500,550
4
3
83
China
5
Supplier 23
106,480
436,840
543,320
5
23
63
China
6
Supplier 18
71,343
496,400
567,743
6
18
70
China
7
Supplier 27
155,990
474,680
630,670
7
27
61
China
8
Supplier 33
90,700
566,600
657,300
8
33
55
Mexico
9
Supplier 5
309,350
423,520
732,870
9
5
78
China
10
Supplier 2
43,377
710,560
753,937
10
2
84
China
11
Supplier 7
109,300
699,160
808,460
11
7
77
China
12
Supplier 26
66,250
773,280
839,530
12
26
62
China
13
Supplier 1
122,600
797,560
920,160
13
1
85
China
14
Supplier 35
90,150
917,520
1,007,670
14
35
51
Mexico
15
Supplier 25
402,700
633,000
1,035,700
15
25
62
China
16
Supplier 42
215,030
823,880
1,038,910
16
42
18
China
17
Supplier 30
134,559
990,320
1,124,879
17
30
59
China
18
Supplier 21
135,400
1,394,800
1,530,200
18
21
66
China
19
Supplier 10
54,490
1,595,560
1,650,050
19
10
75
China
20
Supplier 15
156,280
1,763,360
1,919,640
20
15
71
Country
#
Supplier Name
China
1
Supplier 4
69,242
China
2
Supplier 22
China
3
China
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10
Supplier profile – China Business overview Company Name
Supplier xxx
Address
xxx
Town
Shanghai
Province
Shanghai
Company Website
xxx
Contact Person
Emily Sun
Title
Sale for Foreign trade
xxx
Tel
xxx
Mobile phone
xxx
Company Background
Quality Management
Top 5 Customers Customer name XXX XXX XXX XXX XXX
Industry
Country
Percentage of sales
transducer
Japan
10%
Japan
9%
Japan
8%
Security Equipment Game Accessories Sports Apparatus Sharpener
Italy
5%
USA
5%
% Sales Export to Main Markets USA (%)
25
Europe (%)
25
Year Founded
2002
Japan (%)
25
Nationality/region of the company
Shanghai, China
Total (%)
25
capital amount (in USD)
2.3 million
Human Resources
Total employees
150
People in Each Position
work floor size (m²)
12,000
Turnover (in USD) 2017
7.8 million
2018
8.55 million
2019
9.6 million
2020
9.8 million
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Departments
Quantity
Management
10
R&D Staff
12
Quality Control
5
Factory Workers
123
11
Quality registration certificates (Yes/No)
International/Domestic product registration certificates (Yes/No)
ISO 9001
Yes
ISO 14001
Yes
OHSAS 18001
No
RoHS
Yes
Others
No
UL
Yes
CE
Yes
Others
No
Others
No
Quality control equipment in-house Three coordinates tester (Y/N) High precision dimension inspection (Y/N)
Others ( Pleas specify)
Y Y Caliper, height gauge, plug gauge, hardness, color difference meter, etc
What performance do you achieve on average in out going quality measures (% rejected) ?
N/A
Corporate Responsibility Adhere to all rules and regulations in respect to (Yes/No)
Child labour
Yes
Environmental issues
Yes
Health and safety issues
Yes
Supplier profile – China Production Capacity Production Capacity Total maximum production capacity (Tons in 2010) Actual annual production (Tons in 2010)
40,000,000pcs
Material
Yes/No
Example of Products
MRC PAG / M 300 GF33UVBK2000
No
N/A
OMNI LON PA6UGR33UVBK2000
Yes
N/A
OMNI PA6 U GR43 UV BK 2000, (43% Glass Re in forced, Utility grade nylon 6, UV stabilized) Polypropylene PP Stainless Steel SAE 1022 Supplier have experience Clariant ABS4500BK working with ASA 811 - 1005 the following plastic CHI MEI Polylac PA 747 ABS materials? (Y/N) ACETAL DELRIN 511 P NCO10W/UN0055 OMNI PA6 U GR33 UV BK 2000, (33% Glass Re in forced, Utility grade nylon 6, UV stabilized)
Yes
Yes
N/A
Yes
N/A
Yes
N/A
Yes
N/A
Yes
N/A
Yes
N/A
Yes
N/A
Y Customers
Country
Component description
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
How many days production lead time from date of the PO ?
Min
Max
10
60-80
What is the Tonnage of your plastic injection equipment ?
Min
Average
Max
60T
128T-488T
1000T
Length (mm) Width What is the range of plastic part dimensions that you can produce?
(mm)
Yes
Max
Max
1200
900
N/A
Min
Min
Min
N/A
N/A
N/A
Engineering and Moulding
Ticona Celcon M90 Acetal
Yes
N/A
Yes
What is the range of mold dimensions that you can produce?
N/A
N/A
Height (mm)
Max
Length (mm) Width
Yes
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If yes, then please list the developed majority components of electric trolling motors ?
N/A
CHI MEI Pollak PA-747 PolyOne Geon C7000 Black 2999 Flexible PVC
Have you developed moulds for electric trolling motors parts ? (Y/N)
40,000,000~60,000,000 pcs
What is the range of mold slides that you can produce?
N/A
12
(mm)
Height (mm)
Max
Max
Max
1,600
1,080
N/A
Average
Average
Average
N/A
N/A
N/A
Max
Average
N/A
30
Supplier profile – China Engineering and Moulding, Production Equipment. Production Equipment
Engineering and Moulding
Do you have an automated production line in your factory? (Y/N)
Do you have engineering capability in-house? (Y/N) Do You assign project managers? (Fluent English?)
Yes
Do you have experience working with customer's R&D Department?(Yes/No)
Yes
Supplier have following production equipment ? In-house or Subcontracted
Can you handle engineering models/drawings on 3D-CAD? (Y/N)
If yes, which formats of 3D models and engineering drawings can you provide? List Software platforms.
Yes
CAD,CAM,CAE,UG,PROE
Can you produce moulds in-house? (Y/N)
Y
Can you execute mould maintenance in-house? (Y/N)
Y
What is your mould production lead-time in days and average mould life span in pieces?
Average Average Life Mould LeadSpan time
35days
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500,000 times
13
Y Number of Machines
Capacity in Tonnage
CNC
In-house
6
N/A
High Speed CNC
In-house
1
N/A
Electro-discharge machines
In-house
4
N/A
Injection machines
In-house
25
60T~1000T
Grinding machines
In-house
3
N/A
Drill machines
In-house
2
N/A
Milling machines
In-house
5
N/A
Wire EDM
In-house
N/A
9 sets of screen printing machine ， 3 sets of printing machines ， A Taiwan highfrequency machine ， Punch, UV machine and etc.
Others (Please specify)
In-house
2
N/A
Others (Please specify)
In-house
6
N/A
Supplier profile – China Factory Pictures Factory overview
Production Floor
3D-CAD
R&D
Mold Shop
Injection Shop
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14
Agenda
1.
Objectives , work plan and time line
2.
Category Approach (Plastic Injection Molding)
3.
Results
© 2021 Dragon Sourcing. All rights reserved.
15
In total, 669 suppliers identified, 524 passed pre-screen, 156 RFI received, 60 RFQ received.
#
Category
# of supplier identified
Tel Pre-screen called # of supp pas Tel Pre-screen
RFI sent
RFI received
RFQ sent
RFQ received
1
Plastic Injection Molding
483
483
370
370
120
111
44
2
Composite Tube
104
104
82
82
19
18
9
3
DC Motors
82
82
72
72
17
15
7
669
669
524
524
156
144
60
Total
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16
3 categories potential saving summary, 45 out of 60 suppliers have potential saving on total 32 items, average saving range 3.7%-26.5%. Potential saving summary
#
Category
No of RFQ items
Number of suppliers responding to RFQ
Number of Suppliers with potential savings
Number of items with savings
Min potential saving
Max potential saving
Average potential saving
1
Plastic Injection Molding
21
44
36
21
10.0%
43.5%
26.5%
2
Composite Tube
4
9
5
4
2.0%
29.0%
14.0%
3
DC Motors
7
7
4
6
0.4%
5.3%
3.7%
32
60
45
31
Total
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17
