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Strategic Sourcing Case Study – AIS, GIS, Transformer in substation Jan 30th 2019
Agenda
Š 2019 Dragon Sourcing. All rights reserved.
1.
Objectives, Approach, and Schedule
2.
Demand Analysis
3.
Results
2
Objectives and Approach Context
Dragon Sourcing approach in 2 stages Stage 1: Supplier Pre-Qualification
• Objectives: Identify and recommend new potential competitive suppliers.
1. 2. 3. 4. 5. 6.
• Geographical scope: China. • Category: Sub Station Equipment • Deliverables: Stage 1 − Supplier database − RFI-RFQ template − RFI-RFQ analysis report − Supplier profiles and ranking Stage 2: − Audit Report − Contract(s)
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Demand Analysis Supply Market Analysis Telephone Pre-screening Develop RFI/RFQ Administer RFI/RFQ Analyse RFI/RFQ Responses
Stage 2: Audits, Selection & Contracting 7. Prepare for audits 8. Conduct audits jointly with Sterlite Power 9. Analyse audit results 10.Negotiation & Contracting
3
Stage 1: Supplier Pre-Qualification No.
Steps
1.
Demand Analysis Work with Sterlite to define and understand the products and requirements (specs, volumes, current unit prices, delivery destinations of delivery/consumption).
• Kick-Off Report
2.
Supply Market Analysis Identify long list of potential manufacturers in China by leveraging B2B websites, DS database, fair catalogues, Chamber of Commerce, magazines, network, references.
• Supplier Long List
3.
Telephone Pre-screening Selection of manufacturers to be included in the RFI/RFP process by telephone pre-screening based on agreed simple criteria (e.g. capability to make the product, can export, quality certifications, interest in participating, etc.)
• Shortlist for RFI-RFQ process
4.
Develop RFI/RFQ document Prepare a RFI/RFQ document, with an aligned balanced scorecard that has the objective to pre-qualify the competitiveness and capabilities of the manufacturers, including: background, financial, client and product experience, quality certification & processes, social responsibility, manufacturing/technology capability, R&D capability.
• RFI-RFQ Template • Balanced Scorecard
5.
Administer RFI/RFQ The RFI/RFQ is translated to the local languages as relevant, and distributed to the relevant manufacturers, with telephone follow-up to push for maximum participation.
• Completed RFI-RFQ’s
6.
Analyze RFI/RFQ Responses Analysis of RFI/RFQ responses, estimation of logistics costs, and preparation of a report, which profiles & objectively ranks the manufacturers by capability and competitiveness, including a recommendation for those to be audited.
• RFI-RFQ Report • Supplier Profiles • Proposed Shortlist for Audit
© 2019 Dragon Sourcing. All rights reserved.
Deliverables
4
Stage 2: Audits, Selection & Contracting No. Steps
Deliverables
7.
Prepare for Audits Planning the audit schedule, budget, and drafting the Audit Questionnaire that will be used for the supplier self-assessment and on-site audits.
• Audit Plan • Audit Questionnaire
8.
Conduct Audits Distribution of the audit questionnaire to manufacturers for their self-assessment followed by onsite audits of all the manufacturers. Focus is management, logistics, production, quality and includes photos & videos where allowed.
• Completed Audit Questionnaires
9.
Analyze Audit Results Analysis of the audit results together with RFI/RFQ results and preparation of a report that ranks the manufacturers, including a recommendation for those for sample development.
• Audit Report • Supplier Audit Profiles • Proposed Shortlist for Sampling
10.
Negotiation & Contracting Conducting final negotiations with the shortlisted manufacturers.
• Contract(s)
Milestone: Contracts Secured •
The time required to perform the audits will depend on how many suppliers need to be audited and their location.
© 2019 Dragon Sourcing. All rights reserved.
5
Dragon Sourcing received 8 categories in parallel (1 GIS, 1 Transformer, 6 AIS)
Step
Who
1. Demand Analysis
Sterlite/ DS
2. Supply Market Analysis
Sterlite/ DS
3. Telephone Pre-screening
DS
4. Develop RFI/RFQ
DS
5. Administer RFI/RFQ
DS
6. Analyze RFI/RFQ Responses
W1
W2
11/2
11/9
W3
W4
W5
11/16 11/23 11/30
W6
12/7
W7
W8
W9
W10
W11
W12
Sterlite/ DS
6
W14
12/14 12/21 12/28 01/04 01/11 01/18 01/25 02/01
Milestones
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W13
Agenda
Š 2019 Dragon Sourcing. All rights reserved.
1.
Objectives, Approach, and Schedule
2.
Demand Analysis
3.
Results
7
Number of categories Phase 1
#
Category
# of configuration
Volume (Nos/Set/Bay)
1
CB
12
426
2
Isolator
26
681
3
Arrester
6
249
4
Insulator
13
762
5
CRP
53
1283
6
CT/VT/CVT
22
815
7
Transformer/Reactor
14
60
8
GIS
2
15
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8
Product pictures
Transformer
GIS
CB
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CT
CRP
Isolator
Arrester
9
Insulator
Agenda
Š 2019 Dragon Sourcing. All rights reserved.
1.
Objectives, Approach, and Schedule
2.
Demand Analysis
3.
Results
10
Total 101 suppliers identified, 46 passed pre-screening, 20 submitted RFI. 2 offered AIS, 3 offered GIS, 2 offered transformer, 1 offered both transformer and GIS.
Step
Total
# of suppliers identified
101
# of suppliers passed pre-screening
46
# of suppliers failed pre-screening
55
# of RFIRFQ sent
46
# of suppliers reject to respond on RFI and RFQ
26
# of suppliers submit RFI but reject on RFQ
12
# of suppliers submit both RFI and RFQ
8
Š 2019 Dragon Sourcing. All rights reserved.
11
12 potential suppliers located in 9 provinces (GIS and Transformer)
#
Supplier name Head office
GIS
Transformer
Score
Offer received or not?
95
Yes (GIS)
xxx
Zhejiang (Hangzhou)
2
xxx
Henan (Pingdingsha n)
88
No
3
xxx
Liaoning (Shenyang)
88
Yes (GIS)
xxx
Shanghai (Shanghai)
1
4
Heilongjiang
Jilin
Liaoning 87
/
xxx xxx
Shandong (Taian)
7
xxx
Henan (Xuchang)
71
Yes (GIS)
8
xxx
Hunan (Changsha)
70
No
Beijing (Beijing)
67
6
9
xxx
75
Shanxi
Ningxia 72
Beijing Hebei Tianjin
Yes (both) No
Qinghai
Shandong
Gansu
Jiangsu
Henan
Shaanxi
Anhui
Xizang Sichuan Sichuan
Hubei
Shanghai Zhejiang
Jiangxi Hunan
No Guizhou
10
xxx
Jiangsu (Liyang)
64
No
11
xxx
Guangxi (Liuzhou)
59
Yes (Transformer)
12
xxx
Jiangsu (Suzhou)
56
Yes (Transformer)
© 2019 Dragon Sourcing. All rights reserved.
Inner Mongolia
Gansu
Shandong (Taian)
5
Xinjiang
Yunan
Guangxi
Fujian Guangdong
Taiwan
Hong Kong Province
12
GIS
RFI Analysis – 9 suppliers can offer GIS, with average score of ’79’
Overall Score 100
95 88
88
87 75
score
75
72
71
70
Supplier 7
Supplier 8
67
50
25
0 Supplier 1
Supplier 2
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Supplier 3
Supplier 4
Supplier 5
13
Supplier 6
Supplier 9
GIS
RFI Analysis - assess 9 suppliers from 3 sections Overall Business 100
96
81
85
Supplier 2
Supplier 3
89 77
76
78
Supplier 4
Supplier 5
Supplier 6
80
81
Supplier 7
Supplier 8
Supplier 9
45
40
40
Supplier 7
Supplier 8
Supplier 9
score
75 50 25 0 Supplier 1
Project related capability 100
90
85
90
75
score
100
85 55
50 25 0 Supplier 1
100
Supplier 2
100
score
100
Supplier 3
88
Supplier 4
Supplier 5
Supplier 6
Quality/Certificates 100 100
88
100
88
75 50
29
25 0 Supplier 1 Š 2019 Dragon Sourcing. All rights reserved.
Supplier 2
Supplier 3
Supplier 4
Supplier 5 14
Supplier 6
Supplier 7
Supplier 8
Supplier 9
AIS + Transformer
RFI Analysis- 8 suppliers can offer either AIS or Transformer, with average score of ’66’
Overall Score 100
score
75
74 69
68
68
65
63
60
58
50
25
0 supplier 1
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supplier 2
supplier 3
supplier 4
15
supplier 5
supplier 6
supplier 7
supplier 8
AIS + Transformer
RFI Analysis - assess 8 suppliers from 3 sections Overall Business 100 74
score
73
72
75
62 51
48
supplier 1
supplier 2
50
56
65
25 0 supplier 3
supplier 4
supplier 5
supplier 6
supplier 7
supplier 8
30
30
supplier 6
supplier 7
supplier 8
88
88
88
supplier 6
supplier 7
supplier 8
Project related capability 100 80 70
score
75
50 50
40
50 40
25 0 supplier 1
supplier 2
supplier 3 100
supplier 4
supplier 5
Quality/Certificates 100
score
100
88
88
supplier 1
supplier 2
88
75
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supplier 3
supplier 4
16
supplier 5
Supplier 3 2.4
© 2019 Dragon Sourcing. All rights reserved. 2.0 1.8 1.0
1.9 1.3 1.4
17 0.8 0.9 0.7
1.1 1.1 0.9
80 MVA, 3 Phase 132/33 KV
50 MVA, 3 Phase 132/33 KV
0.8
100 MVA, 3 Phase 132/33 KV
9
105 MVA, 1 Phase 400/220/33 KV
3 8
105 MVA, 1 Phase 400/132/33 KV
2.3
7
160 MVA, 3 Phase 220/132/33 KV
Supplier 2 6
160 MVA, 3 Phase 220/132/11 KV
2 5
160 MVA, 3 Phase 400/220/33 KV
Supplier 1 4
200 MVA, 3 Phase 220/132/33 KV
1 3
315 MVA, 3 Phase 400/220/33 KV
Supplier name 2
315 MVA, 3 Phase 400/132/33 KV
# 1
500 MVA, 3 Phase 400/220/33 KV
Final Offer Summary – Transformer - 3 suppliers provide quotation with datasheet. FOB price ( M USD) 10 11 12
0.5 0.4 0.3
0.5 0.5 0.4
0.7 0.6 0.4
Final Offer Summary – GIS - 4 suppliers submitted offer with proposed drawings
#
Supplier name
FOB price - 220 KV GIS (M USD)
1
Supplier 1
1.5
2
Supplier 2
1.6
3
Supplier 3
1.8
4
Supplier 4
1.8
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18
Conclusions
✓ All the recommended suppliers are very well qualified (completed certificates, strong financial background and global experience) ✓ All recommended suppliers are vertical integrated mails having all the production process in house ✓ 2 suppliers have been visited by Sterlite with very good impression. More meetings/visits will be arranged in terms of RFI score. ✓ DS recommended suppliers are likely to become strategic partner of Sterlite.
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15