Dragon Sourcing Your Tailored Approach to Emerging Markets
Steel Parts Sourcing Latam Case Study
Agenda
1.
Product Scope
2.
RFI Results
3.
Supplier Scoring
4.
Company Profiles for example
2
The project covered six references of Steel Parts
Product Description
Picture Reference
Quantity / pcs. Year
Drawing Nr.
Main Beam WU 12
22.400
551349100
Edge Support
1.000
551349110
Double Wailing Stiffener
40.000
551349102
Bracing Connector Small
2.000
551349150
Vertikalprofil MF 160
500
580660000
Bracing Connector
4.000
551349140
3
Agenda
1.
Product Scope
2.
RFI Results
3.
Supplier Scoring
4.
Company Profiles for example
4
Over 138 Steel Parts suppliers identified, Nineteen (19) suppliers finally submitted RFI
137
137
53
20
5
19
19 suppliers are located in Brazil (5), Mexico (13) and Peru (1) COMP ANY NAME XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
COUNT RY BRAZIL BRAZIL BRAZIL PERU MEXICO MEXICO MEXICO MEXICO MEXICO MEXICO MEXICO MEXICO MEXICO MEXICO MEXICO MEXICO BRAZIL BRAZIL MEXICO
Mexico
Peru
6
Brazil
Agenda
1.
Product Scope
2.
RFI Results
3.
Supplier Scoring
4.
Company Profiles for example
7
Scoring Criteria and weight are basing on five different sections of the RFI document: 1. Business Information Business information
Score is basing on a 100 points score base:
Section
Year Founded
5%
Registered capital in USD
5%
Turnover in 2014 in USD
5%
Workfloor area
5%
No. of employee
3%
English speaking employees
2%
Export experience
15%
Number of years in the Steel Industry
10%
Profile of Top Customers
20%
Steel Parts in their core business % of their total revenue
5%
Steel Parts export experience
15%
Weight of criteria
Business Information
10%
Production
30%
Quality Management
25%
Social Responsibilty
5%
RFI Products Capacity
25%
Cooperation
5%
Total
Weight of criteria
100%
Manufacturer or retailer Subtotal
8
10% 100%
Scoring 1=After 2010 2=Between 2006 to 2010 3=Between 2000 to 2005 4=Between 1995 and 1999 5=Before 1995 1=Less than 100,000 2=100,000 - 500,000 3=500,000 -1M 4= >1M 1=Less than 1M 2=Between 1 to 3M 3=Between 3 to 5M 4=More than 5M 1=Less than 1,000m2 2=1,000m2-5,000m2 3=5,000m2-10,000m2 4=Above 10,000m2 1=Less than 50 employees 2=50-100 employees 3=100-300 employees 4=300-500 employees 5=Above 500 employees 0 = don't have 1 = have 0= no export, no license 1=Less than 5 years 2=5-10 years 3=More than 10 years 1=Less than 5 years 2=5-10 years 3=More than 10 years 0=Not provided 1=Local customers 2=National customers 3=International customers 4= Lead European retailers customers 0 = < 5% 1 = 5% - 20% 2 = 20% - 50% 3 = >50% 0 = not export 1 = export but not to Europe 2 = export and to Europe 0 = retailer 1 = Manufacturer
2. Production, 3. Quality Management, 4. RFI Products Capacity 5. Social Responsibility and additionally, and additionally 6. Cooperation during screening process Production
Yearly production capacity
Weight of criteria
20%
Production equipment
20%
Maintenance program
10%
Production process description
25%
Control raw materials - Steel
5%
Product shelf life
10%
Able to provide shelf ready packaging
Able to pack using slip sheets
Subtotal
5%
5%
Scoring
Quality Management
0= Below 100 1 = 100 - 500 2 = 500 - 1,000 3 = 1,000 2,000 4 = 2,000 - 3,000 5 = > 3,000 0 = not listed 1 = listed 0 = don't have 1 = have 0 = not desribed 1 = described but incomplete 2 = Yes, clearly described 0 = not desribed 1 = described but incomplete 2 = Yes, clearly described
15%
0= No 1= Yes
Certifications European Standard En 1092-2
10%
0= No 1= Yes
Welding certificate (EN 1090-1 Table B.1)
15%
0= No 1= Yes
Relevant EU Regulation
10%
0= No 1= Yes
Conformity of the Factory Production Control (Regulation 305/2011 EU)
5%
0= No 1= Yes
Others
5%
0= No 1= Yes
Quality control process
Social Responsibility
5%
Waste management
5%
0= No 1= Yes
Weight of criteria 40%
Adhere to all rules and regulations in respect to child labor
30%
Adhere to all rules and regulations in respect to health and safety Subtotal
30%
20%
0= No 1= Yes to 1 2 = Yes to 2 3 = Yes > 2
Supplier management process
Subtotal
BSCI implemented
10%
0= No 1= 1-3 test equipment 2= >3 test equipment
0= No 1= Yes
100%
RFI Products Capacity
Scoring
ISO 9001
In house test equipment
0 = not given 1 = 1-2 Y 2 = > 2Y 0 = no 1 = Yes 0 = no 1 = yes ready to do it 2 = yes, ability and experience to do it
Weight of criteria
Able to produce Main Beam WU 12 specifications given
10%
Able to produce Edge Supportspecifications given
10%
Able to produce Double Wailing Stiffener specifications given
10%
Able to produce Bracing Connector Small specifications given
10%
Able to produce Vertikalprofil MF 160 specifications given
10%
Able to produce Bracing Connector specifications given
10%
For products they can offer - ability to meet the demand
15%
Ability to meet requirements specifications
15%
Ability to read/understand and meet additional quality requirements in appendix
10%
100%
Scoring
Subtotal Cooperation
0= No 1= Yes 0= No 1= Yes 0= No 1= Yes
100%
Scoring 0 = No 1 = Yes, partly 2 = Yes, all of mushrooms 0 = No 1 = Yes, partly 2 = Yes, all of mushrooms 0 = No 1 = Yes, partly 2 = Yes, all of mushrooms 0 = No 1 = Yes, partly 2 = Yes, all of mushrooms 0 = No 1 = Yes, partly 2 = Yes, all of mushrooms 0 = No 1 = Yes, partly 2 = Yes, all of mushrooms 0 = No 1 = Yes but not for all 2 = Yes, no issue 0 = No answer 1 = Answer and understand (with Questions possibly) 0 = No answer 1 = Answer and understand (with Questions possibly)
100% Weight of criteria
Scoring
Cooperation during RFI
50%
1= Poor 2= Satisfactory 3= Excellent
Completeness of RFI
50%
1= Poor 2= Satisfactory 3= Excellent
Subtotal
9
Weight of criteria
100%
19 suppliers were scored and ranked according to the scorecard. Suppliers’ scores range from 44 to 73 out of 100.
10
Suppliers’ scores range from 44 to 73 out of 100. The low scores are more a reflection of suppliers not wanting to divulge information prior to getting feedback on their samples than a real ranking of their capabilities. RANK
Supplier
Business Information
Production
Quality Management
Social Responsibility
RFI products capacity
Cooperation
10%
30%
25%
5%
25%
5%
Total out of 100
1
XXX
7
14
21
3
25
3
73
2
XXX
6
14
21
3
25
3
72
3
XXX
6
14
15
3
25
3
66
4
XXX
4
15
15
3
25
3
65
5
XXX
6
19
6
3
25
4
63
6
XXX
8
13
10
3
25
3
62
7
XXX
6
13
11
3
25
4
62
8
XXX
4
16
11
3
25
3
62
9
XXX
4
14
11
3
25
3
60
10
XXX
4
14
11
3
25
3
60
11
XXX
4
10
15
3
25
3
60
12
XXX
5
14
10
3
25
3
59
13
XXX
3
14
11
3
25
3
59
14
XXX
4
13
8
3
25
4
57
15
XXX
0
14
11
3
25
3
56
16
XXX
6
13
4
3
25
3
54
17
XXX
4
15
6
3
20
3
51
18
XXX
4
15
6
3
20
3
51
19
XXX
6
6
3
3
25
2
44
11
Agenda
1.
Product Scope
2.
RFI Results
3.
Supplier Scoring
4.
Company Profiles for example
12
Company Profile #1 GENERAL INFORMATION Company Name
XXX
Address
XXX
State
XXX
Country
Mexico
Company Website
HUMAN RESSOURCES
XXX
Total # employees
194
Good English speakers (Y/N, #)
150
Production
Quality
R&D
Admin
150
19
5
20
CONTACT INFORMATION Contact Person
XXX
Title
XXX
XXX
Tel
XXX
Mobile phone
TURNOVER IN USD 2012
2013
2014
2015
31.000.000
40.000.000
50.000.000
N/A
XXX % SALES EXPORT TO MAIN MARKETS IN 2014
BUSINESS INFORMATION Found Year
1999
Nationality
Mexican
Production location
XXX
Ownership
Private
Capital in USD
N/A
Work floor size (m²)
90,000 ft²
Years in Steel Parts
30 Years
License for self import/export (Y/N)
Yes
Years of export experience
30 Years
Deliver to retailers in Europe (Y/N) Current EUR retailers supplied
EU (%)
US (%)
Others (%)
Total (%) export
10%
70 %
10 %
90 %
MAIN CUSTOMERS Customers
Industry Product category
Country
Percentage of sales
XXX
AUTOMOTIVE
USA
50 %
XXX
AUTOMOTIVE
USA
15 %
Yes
XXX
GLASSWARE
Mexico
10 %
• Honda WQ (Robotic) / • Honda Accord (Robotic) • Honda Pilot (Robotic) / • Ford U388 (Robotic)
XXX
INDUSTRIAL
USA
10 %
13
Company Profile #1 CORPORATE & SOCIAL RESPONSIBILITY Implemented BSCI - (Business Social compliance No initiative) Adhere to all rules and regulations in respect to Yes child labor (Y/N) Adhere to all rules and regulations in respect to Yes environmental issues (Y/N) Adhere to all rules and regulations in respect to Yes health and safety issues (Y/N)
PRODUCTION PROCESS
Production process description
Raw Material Steel U dimension range 120mm-130mm
Hot-Galvanizing : In- House Dip Coating: In- House Spray Painting: In- House Galvanizing: In- House Powder Coating: In- House Laser Cutting: In- House Blanking :In- House Drilling: In- House Milling:In- House Turning: In- House Autogenous welding:In- House
Y/N
1018, 1045, 4140T, H13, 12L14, SS 300 A36 ALU, STAINLESS
Incoming material Quality Inspection Raw Materials Incoming material Quality Inspection Packaging material
Packaging QUALITY CERTIFICATION Date of Certificate Name Certificate ISO TS 16949
Certifying Organization
10/21/2012
Certification ISO 9001
11/2004
Certification ISO 14000
12/05/2013
Product manufactured and controlled in accordance with...
Y/N
Comment
Certifications European Standard En 1092-2
Yes
N/A
Welding certificate (EN 1090-1 Table B.1)
Yes
N/A
Conformity of the Factory Production Control (Regulation 305/2011 EU)
Yes
N/A
Yes
Yes
In-process Quality Inspection
Yes
Finished Goods Quality Inspection
Yes
What performance do you achieve on average in out going quality measures (% rejected) ?
Certification # 2005116427
Women Business Enterprise
Instrumentos de medicion Vernier, Micrometro CMM Brown & Sharp (0.70 x 0.70 x 0.50) CMM Zeiss (1.20 x 2.00 x 1.20) Optical comparator Hardness Tester
3 %
Process for supplier evaluation
Yes
Long term contracts with your suppliers
Yes
Traceability measure
ERP
Data available upon request
Yes, ERP
Measures in place for record tracking
14
QUALITY PROCESSES Process description
ERP
Company Profile #1 FACTORY PICTURES & PRODUCTS Factory Entrance
Factory Office
Workshop
Workshop
Workshop
Pictures of workers
Workshop
Quality control lab
Machinery
Machinery
Raw materials warehouse
Machinery
Finished goods Warehouse
Showroom
15