Nutritional Company Case Study by Dragon Sourcing

Dragon Sourcing - 龙 源 Delivering sustainable sourcing value from emerging markets

Case Study – Multi-Categories

Project Objectives & Scope Objectives Primary objective is to secure savings through consolidating procurement and sourcing direct from manufacturers in emerging markets for the following categories.

Scope This scope is to conduct sourcing in multi countries for below categories: Sourcing activity in different countries: 2016 # of Subcategory

# of items

Country

XX

XX

XX

China, India, Russia

Joint Care

XX

XX

XX

China, India, Russia, Poland, Vietnam, Indonesia

3

Amino Acid

XX

XX

XX

China India, Russia, Indonesia

4

Fish oil

XX

XX

XX

Morocco, Peru, Vietnam, Denmark, Chile, Netherlands, Japan

5

Q10

XX

XX

XX

World wide

6

Calcium Ascorbate & MSM

XX

XX

XX

China (quick sourcing)

Priority Rank

Category

1

Vitamin B

2

Annual spend in M USD

2

Approach – Phase 1 Phase 1: Supplier Pre-Qualification No.

Step

1.

Demand Analysis Work with Client to define and understand the products and requirements (specs, volumes, materials, production technology requirements)

 Project Requirement Questionnaire  Kick-Off Report

2.

Supply Analysis Identify long list of potential suppliers in the selected markets by leveraging B2B Websites, DS Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References.

 Supplier Long List

3.

Telephone Pre-screening Selection of suppliers to be included in the RFI/RFP process by telephone pre-screening based on agreed simple criteria (e.g. capability to make the product, minimum company size, interest in participating)

 Shortlist for RFI/RFQ

4.

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, financial, xxx and product experience, Quality certification & processes, Social Responsibility, Manufacturing/technology capability, R&D capability

   

Deliverables

RFI/RFQ Template Balanced Scorecard Introduction Letter NDA

Milestone 1: RFI/RFQ & Scorecard Approved

5.

Conduct RFI/RFQ Administration The RFI/RFQ is translated to the local languages as relevant, and distributed to the relevant suppliers, with telephone follow-up to push for maximum participation.

 Control Sheet  Completed RFI/RFQs

6.

Analyze RFI/RFQ Responses Analysis of RFI/RFQ responses, estimation of logistics costs, and preparation of a report which profiles & objectively ranks the suppliers by capability and competitiveness, including a recommendation for those to be audited.

 RFI/RFQ Report  Supplier Profiles  Proposed Shortlist for Audit

Milestone 2: Shortlist for Audit Agreed 3

Approach – Phase 2 Phase 2: Selection & Contracting No.

Step

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.

• •

8.

Conduct Audits Distribution of the Audit Questionnaire to suppliers for their self-assessment (and to get them prepared), followed by onsite audits, with or without xxx buyers, of all the suppliers. Focus is management, logistics, production & quality.

 Completed Audit Questionnaires

9.

Analyse Audit Results Analysis of the audit results, together with RFI/RFQ results, and preparation of a report that ranks the suppliers, including a recommendation for those for sample development.

Audit Plan Audit Questionnaire

 Audit Report  Supplier Audit Profiles  Proposed Shortlist for Sampling

Milestone 3: Shortlist for Sampling Agreed 10.

Sample Development & Testing Managing the sample development and testing iterations to determine which suppliers can meet the quality.

11.

Negotiation & Contracting Conducting final negotiations with the shortlisted suppliers, and facilitating contracting between selected suppliers and Client.

Milestone 4: Contracts Secured

4

 Samples  Sample Analysis Reports  Contract(s)

Schedule Phase 1 (Supplier pre-qualification): 10 weeks

Phase 1: Supplier Pre-qualification

Phase 1

Steps

Week 1 Week 2 Week3 Duration/week commencing Apr. 17 ~ Apr. 24 ~ May 2 ~ 21st 28th 5th

1. Demand Analysis

1

2. Supply Market Analysis

2

3. Telephone pre-screening

2

4. Develop and validate RFI/RFQ

2

5. Administer RFI/RFQ

4

6. Analyze RFI/RFQ Responses

2

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

Week 10

May 8 ~ May 15 ~ May 22 ~ May 29 ~ June 5 ~ June 12 ~ June 19~ 12th 19th 26th June 1st June 9th June 16th June 23rd

1

RFI/RFQ Approved

2

Not started In process 5

Done Delay

Shortlist for Audit Agreed

Demand Analysis (Amino Acid example) Priority Rank

3

Category

Amino Acid

Sub-category CITICOLINE ALPHA LIPOIC ACID L-CARNITINE 5-HYDROXYTRYPTOPHAN L-LYSINE N-CAP +BLEND L-THEANINE L-ARGININE L-LEUCINE L-GLUTATHIONE N-ACETYL CYSTEINE L-TYROSINE L-CYSTINE L-ISOLEUCINE ACETYL CARNITINE L-SELEN0METHIONINE L-GLUTAMINE L-PROLINE L-VALINE L-ORNITHINE GABA L-CARNOSINE CREATINE L-METHIONINE L-CYSTEINE TRIMETHYLGLYCINE GLYCOCYAMINE L-TAURINE GLYCINE TAURINE L-PHENYLALANINE DL-PHENYLALANINE L-HISTIDINE BETA ALANINE (CARNOSYN) L-CITRULLINE DL-MALIC ACID CARNIPURE TARTRATE L-THREONINE DL-METHIONINE KOSHER L-ASPARTIC ACID L-GLUTAMIC ACID 41 sub-category

2016 Annual spend by country (M USD)

2016 Annual spend in M USD

# of items

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

6

# of suppliers xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

China xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

India xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

Russia xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

Progress Review - Vitamin B, Joint Care & Amino Acid 250

211 200

17

193 7 10

11

# of suppliers

Indonesia 63

150

Vietnam

74

Poland 12

113 6 11

100

Russia India

21 65

63 50

55 2

55 2

16

16

11

39

63 6 8 12

11

26

26

0

13

43

11 7 4

China

63 6 8 12 3 11

3 11 23

23

37

272 7 3 3

38

8 4

36 12

36 2 1

20

20

8 5

8 5

13 1 13 1 7

No. of suppliers No. of suppliers No. of suppliers No. of RFI/RFQ No. of suppliers No. of suppliers No. of suppliers No. of RFI/RFQ No. of suppliers No. of suppliers No. of suppliers No. of RFI/RFQ identified &

passed phone

included in

called

screening

RFI/RFQ

received

identified &

passed phone

included in

called

screening

RFI/RFQ

process Vitamin B

process Joint Care

7

received

identified &

passed phone

included in

called

screening

RFI/RFQ process

Amino Acid

received

Progress Review –Fish Oil Fish Oil sourcing - Progress review 250

222

# of suppliers

200

150

100

76 50

18 0

No. of suppliers passed phone No. of suppliers identified and called

screening and included in the RFQ

No. of RFQ received

process Fish oil UK

7

2

1

Iceland

12

4

1

Norway

27

18

5

Chile

40

10

4

Peru

40

15

1

Morocco

23

8

0

Denmark

31

9

3

Netherlands

19

7

1

Japan

13

3

2

Vietnam

10

0

0

8

Progress Review - Calcium Ascorbate & MSM Calcium Ascorbate & MSM quick sourcing - Progress review 140 124 120

# of suppliers

100

80

60

40 31

20 5

2

2

No. of suppliers included in

No. of RFI/RFQ received

5

0 No. of suppliers identified

No. of suppliers identified

No. of suppliers included in

RFI/RFQ process

RFI/RFQ process

Calcium Ascorbate

MSM

9

No. of RFI/RFQ received

Progress review - Phone Screening Criteria #

Type

1

Business type

2

Production capability

3

Questions

Phone screening Criteria

Are you a distributors or Manufacture? Or both?

Better to be direct manufacturer.

But not exclude immediately the distributor, in order to see their price level and hope some distributor can cover a lot of items with good prices.

Do you manufacture or able to supply product xxx?

Produce in house or out-sourcing?

Send the Vitamin B / Joint Care / Amino Acid item list to suppliers to check which items they can supply.

Have you exported to US before?

Better to have US export experience, so supplier knows what certificate they need to have in order to export certain products to US. But not to exclude supplier if they’ve never exported to US before.

Export experience / capability 4

Must be able to export to US.

If not, Are you able to export to US?

10

RFI Scorecard – weight per section

Section

weight %

Max. Point

Company Background: 20%

30%

30

Production Capability: 30%

20%

20

Quality Control Management and Certifications: 30%

30%

30

RFQ Completeness: 10%

10%

10

Cooperation Willingness: 10%

10%

10

In total

100%

100

Company Background: 20% 10% 10%

30%

Production Capability: 30%

Quality Control Management and Certifications: 30% 30%

20%

RFQ Completeness: 10%

Cooperation Willingness: 10%

11

RFI Scorecard – Scoring standard Company Background

12

RFI Scorecard – Scoring standard Quality Control Management & Certifications

13

RFI Scorecard – Scoring standard Production Capability & RFQ completeness & Cooperation Willingness

14

RFI Scorecard and Ranking Summary

Supplier RFI scorecard summary 160

39

30 12

44 23

Supplier RFI Score

100

80

71

88

10

3

5

2

1

2

4

1

0

12 6

23 12

8

6

1

6

1

7

3

4

3

1

4

1

2

1

81 80

80 79 78 75

67

16 13

7

2

2

3

2

2

1

1

0

0

0

0

0

1

1

8

1

6

1

1

1

0

1

0

0

0

5

1

1

6

1

1

1

2

4

1

1

1

1

0

0

61

67 49

0 0 -50

58 51

47

46

44

37

33

26

9

74 71 69 68

67 57 56 55

56

1

83

85 75 74 74 73 72 72 68 68 68

50

24

12

-100

37

-150 13

10

China

India

Russia

Poland

Vietnam

China

India

Russia

Poland

Vietnam

Company Background Cooperation Willingness

Production Capability # of items quoted in total

Quality Control Management & Certifications # of items quoted with savings

15

Supplier 41

Supplier 40

Supplier 39

Supplier 38

Supplier 37

Supplier 36

Supplier 35

Supplier 34

Supplier 33

Supplier 32

Supplier 31

Supplier 30

Supplier 29

Supplier 28

Supplier 27

Supplier 26

Supplier 25

Supplier 24

Supplier 23

Supplier 22

Supplier 21

Supplier 20

Supplier 19

Supplier 18

Supplier 17

Supplier 16

Supplier 15

Supplier 14

Supplier 13

Supplier 12

Supplier 11

Supplier 10

Supplier 9

Supplier 8

Supplier 7

Supplier 6

Supplier 5

Supplier 4

Supplier 3

Supplier 2

-200

Supplier 1

0

Indonesia

Indonesia

RFQ Completeness Recommended supplier

RFQ Summary - Total Saving Comparison Chart Supplier Potential Saving Summary 150 88 71

10,000,000

80

75

44

8,000,000

78

79

30

23 21 5

3 23

12 6,648,374 4 6,165,054

2

67

12

26 12

10

6

90

81

74

72

68

75

74

73

80 56

72

57

39 2

12

8 13

10 1 6,346,517 4

3

6

6

3

4

3

16 7

67

71

83

74

69

68

47

58

44

24 1

1

7

3

1

1

2

1

8

1

6

1

1

5

1

6

1

1

1

1

1

4

1

1

1

12

9

2

6,000,000

-50 4,319,529 3,666,950

4,000,000

2,000,000

1,176,786

1,066,775 863,150

866,274728,350727,082 389,197

375,375 10,000 3,019

185,476153,925140,60088,44061,104 12,150 3,469

8,565

781,440 587,784 346,775206,910

610,420 18,258

463

China

India

India

China Annual potential saving

RFI Score

# of items quoted

Note: Suppliers with no score are the ones who didn’t respond to RFI.

16

Russia

Vietnam

Russia

Vietnam

Indonesia Poland

# of items with potential savings

Recommended supplier

Supplier 30

Supplier 29

Supplier 28

Supplier 27

Supplier 26

Supplier 25

Supplier 24

Supplier 23

Supplier 22

Supplier 21

Supplier 20

Supplier 19

Supplier 18

Supplier 17

Supplier 16

Supplier 15

Supplier 14

Supplier 13

Supplier 12

Supplier 11

Supplier 10

Supplier 9

Supplier 8

Supplier 7

Supplier 6

Supplier 5

Supplier 4

Supplier 3

-250 Supplier 2

0 Supplier 1

Potential Annual Saving in USD

12,000,000

Supplier with potential savings but didn’t respond to RFI

Supplier RFI/RFQ Response Summary – China, Vietnam & Indonesia #

Country

Supplier name

Supplier Type

Declare they’re currently supplying to xxx (By their own company or through distributor)

1

China

xxxx

Distributor

No

Y

xx

Y

2

23

12

xxxx

2

China

xxxx

Manufacture

No

Y

xx

Y

3

71

44

xxxx

3

China

xxxx

Manufacture

No

Y

xx

Y

3

5

4

xxxx

4

China

xxxx

Manufacture

No

Y

xx

Y

1

30

24

xxxx

5

China

xxxx

Manufacture

No

Y

xx

Y

1

3

2

xxxx

6

China

xxxx

Manufacture

No

Y

xx

Y

2

12

11

xxxx

7

China

xxxx

Distributor

No

Y

xx

Y

2

12

6

xxxx

8

China

xxxx

Distributor

No

Y

xx

Y

1

2

1

xxxx

9

China

xxxx

Manufacture

No

Y

xx

Y

1

1

0

xxxx

10

Vietnam

xxxx

Manufacturer

Yes, through distributor

Y

xx

Y

1

1

1

xxxx

11

Vietnam

xxxx

Manufacturer

Yes, by their own company

Y

xx

Y

1

5

4

xxxx

12

Vietnam

xxxx

Manufacturer

No

Y

xx

Y

1

1

1

xxxx

13

Vietnam

xxxx

Distributor

No

Y

xx

Y

2

6

1

xxxx

14

Vietnam

xxxx

Manufacturer

No

Y

xx

Y

1

1

1

xxxx

15

Vietnam

xxxx

Manufacturer

No

Y

xx

Y

1

1

0

xxxx

16

Vietnam

xxxx

Manufacturer

No

Y

xx

Y

1

1

0

xxxx

17

Indonesia

xxxx

Distributor

No

Y

xx

Y

3

24

9

xxxx

18

Indonesia

xxxx

Distributor

No

Y

xx

Y

1

1

0

xxxx

19

Indonesia

xxxx

Manufacturer

No

Y

xx

N

0

0

0

xxxx

20

Indonesia

xxxx

Manufacturer

No

Y

xx

N

0

0

0

xxxx

RFI received (Y/N)

RFI Score

RFQ received

# of categories quoted

# of item quoted

# of items with savings

Total annual savings for quoted items with potential savings (USD)

Note: Suppliers with no score are the ones who didn’t respond to RFI. 17

Recommended supplier

Supplier with potential savings but didn’t answer most of the RFI questions

RFQ Summary - Category: Joint Care Annual Minimum potential saving for new identified supplier

16 suppliers have quoted with potential savings for 27 items as below.

Categor y

Sub-category

CHONDROITIN SULFATE

5-LOXIN

GLUCOSAMINE Joint Care

Item Description

2016 Annual Quantity (Kgs)

# of China China Russia Vietnam India supplier 2016 Annual # of quoted Spend supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier1 Supplier1 Supplier1 Supplier1 Supplier1 Supplier1 with Supplier1 Supplier2 (USD) quoted 3 4 5 6 7 8 9 10 1 2 3 4 5 6 potential savings

CHONDROITIN SULFATE USP

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

CHONDROITIN SULFATE PWDR 90% BOVINE UK

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

CHONDROITIN SULFATE UK

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

CHONDROITIN SULFATE SODIUM GRANULAR

xxxx

xxxx

xxxx

xxxx

xxxx

CHONDROITIN SULFATE 81% - DOMESTIC

xxxx

xxxx

xxxx

xxxx

xxxx

5-LOXIN (REVISED)

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

GLUCOSAMINE HCL 80 MESH

xxxx

xxxx

xxxx

xxxx

xxxx

GLUCOSAMINE HCL (UK)

xxxx

xxxx

xxxx

xxxx

GLUCOSAMINE HCL GRAN - NON SHELLFISH

xxxx

xxxx

xxxx

xxxx

GLUCOSAMINE SULF 2KCL@91% GRAN - GG

xxxx

xxxx

xxxx

GLUCOSAMINE SULFATE KCL (UK)

xxxx

xxxx

xxxx

GLUC SULF POTAS CHLOR 95% GR

xxxx

xxxx

xxxx

xxxx

GLUCOSAMINE HCL NON-ANMLPOWDER(60995)

xxxx

xxxx

xxxx

xxxx

xxxx

GLUCOSAMINE HCL NON-ANMLPOWDER

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

MSM @ 98% US - GG

xxxx

xxxx

xxxx

xxxx

xxxx

MSM (METHYL SULFONYL METHANE)

xxxx

xxxx

xxxx

xxxx

*BIOCELL FINE POWDER COLLAGEN

xxxx

xxxx

xxxx

xxxx

BIOCELL COLLAGEN II PDR HD

xxxx

xxxx

xxxx

xxxx

BIOCELL FINE POWDER COLLAGEN

xxxx

xxxx

xxxx

xxxx

SODIUM HYALURONATE 88%

xxxx

xxxx

xxxx

xxxx

SODIUM HYALURONATE

xxxx

xxxx

xxxx

xxxx

METHYL SULFONYL METHANE

METHYL SULFONYL METHANE

xxxx

xxxx

xxxx

xxxx

*CHITOSAN

*CHITOSAN

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

SODIUM HYALURONATE

xxxx

5-LOXIN

MSM

COLLAGEN

xxxx xxxx

*5-LOXIN

OPTI-MSM

MSM

xxxx

xxxx xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx xxxx

xxxx

xxxx

xxxx xxxx

xxxx

xxxx

xxxx xxxx

xxxx

18

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

RFQ Summary - Category: Vitamin B Annual Minimum potential saving for new identified supplier

9 suppliers have quoted with potential savings for 16 items as below.

Category

# of supplier 2016 Annual 2016 Annual # of supplier quoted with Quantity Spend quoted potential (Kgs) (USD) savings

Sub-category

Item Description

COENZYME B-12

COENZYME B-12

xxxx

METHYLCOBALAMIN 100%

xxxx

METHYLCOBALAMIN 5% ON MANNITOL

xxxx

METHYL COBALAMIN 1% TRIT

METHYLCOBALAMIN

INOSITOL PYRIDOXINCE Vitamin B RIBOFLAVIN

NIACINAMIDE CHOLINE BITARTRATE CYANOCOBALAMIN

China Supplier1

Supplier2

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

INOSITOL 95% GRANULAR KOSHER

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

INOSITOL N.F.

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

Supplier3

Russia

Indonesia

India

Supplier4

Supplier5

Supplier6

Supplier7

xxxx

xxxx

xxxx

Sub-category

xxxx xxxx

PYRIDOXINE HYDROCHLORIDE (VIT B6), USP

xxxx

xxxx

RIBOFLAVIN HIGH FLOW 100 FINE GRANULAR

xxxx

xxxx

xxxx

xxxx

RIBOFLAVIN R TG

xxxx

xxxx

xxxx

xxxx

RIBOFLAVIN R POWDER

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

VITAMIN B-2 RIBOFLAVIN USP

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

RIBOFLAVIN (VITAMIN B2), USP KOSHER

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

NIACINAMIDE (NIACIN), USP

xxxx

xxxx

xxxx

xxxx

xxxx

CHOL BITARTRATE-COND

xxxx

xxxx

xxxx

xxxx

xxxx

CHOLINE BITARTRATE

xxxx

xxxx

xxxx

xxxx

xxxx

CYANOCOBALAMIN (VITAMIN B12), USP

xxxx

xxxx xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

THIAMINE

BIOTIN

Item Description

xxxx xxxx

xxxx xxxx xxxx

xxxx xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

THIAMINE HYDROCHLORIDE USP

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxx 2016 paid price (USD) xxxx

China

Indonesia

Supplier1

Supplier2

xxxx

xxxx

xxxx

xxxx

THIAMINE MONONITRATE (VITAMIN B1), USP

xxxx

xxxx

xxxx

xxxx

THIAMINE MONONITRATE USP

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

D-BIOTIN, FCC (100%)

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

D-BIOTIN USP

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

METHYLCOBALAMIN 100%

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

INOSITOL

INOSITOL NICOTINATEPOWDER(50001623)

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

PYRIDOXINE HCL

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

PYRIDOXINCE

PYRIDOXINE HYDROCHLORIDE (VIT B6), USP

xxxx

xxxx

xxxx

xxxx

xxxx

CALCIUM PANTOTHENATE

D-CA PANTOTHENATE USP

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

CAL. PANTOTHENATE COATED

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

19

xxxx

India Supplier3

Supplier4

Supplier5

xxxx

xxxx

METHYLCOBALAMIN

Vitamin B

xxxx

Supplier FOB price

# of supplier quoted # of supplier 2016 Annual 2016 Annual # of supplier between xxx paid quoted same as Quantity Spend quoted highest and lowest 2016 xxx paid (Kgs) (USD) price in 2016 price

THIAMINE MONONITRATEPWDR USP ((50001086)

Supplier9

xxxx

5 suppliers have quoted between or same as xxx prices for 12 items as below: Category

Supplier8

xxxx

xxxx

xxxx xxxx

xxxx

xxxx xxxx

xxxx xxxx

RFQ Summary - Category: Amino Acid

16 suppliers have quoted with potential savings for 47 items as below.

Annual Minimum potential saving for new identified supplier (USD)

Category

Sub-category

ALPHA LIPOIC ACID L-CARNITINE 5HYDROXYTRYPTOPHA N L-LYSINE N-CAP +BLEND L-THEANINE L-ARGININE L-LEUCINE L-GLUTATHIONE N-ACETYL CYSTEINE L-TYROSINE L-CYSTINE L-ISOLEUCINE

ACETYL CARNITINE Amino Acid L-SELEN0METHIONINE L-PROLINE L-VALINE L-ORNITHINE GABA CREATINE L-METHIONINE L-CYSTEINE GLYCOCYAMINE GLYCINE TAURINE L-PHENYLALANINE DL-PHENYLALANINE BETA ALANINE (CARNOSYN) L-CITRULLINE DL-MALIC ACID L-THREONINE DL-METHIONINE KOSHER L-ASPARTIC ACID L-GLUTAMIC ACID

# of # of supplier supplier with quoted potential savings xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

Item Description

2016 Annual Quantity (Kgs)

2016 Annual Spend (USD)

ALPHA LIPOIC ACID ALPHA LIPOIC ACID (88%) GRAN L-CARNITINE L-TARTRATE 5-HYDROXYTRYPTOPHAN

xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx

5-HYDROXYTRYPTOPHAN KOSHER

xxxx

xxxx

xxxx

xxxx

L-LYSINE HCL USP GRAN. NON-GMO L LYSINE HCL POWDER N-CAP +BLEND L THEANINE (SUN THEANINE) L-THEANINE HEAVY DENSITY L-ARGININE HYDROCHLORIDE L-ARGININE ALPHA-KETOISOCAPROATE L-LEUCINE, USP L-LEUCINE L-GLUTATHIONE N-ACETYL CYSTEINE (VEGETARIAN) L-TYROSINE L-CYSTINE FREE BASE L-ISOLEUCINE, USP ACETYL CARNITINE HCL ACETYL-L-CARNITINE HCL GRAN ACETYL L-CARNITINE TAURINATE ACETYL L-CARNITINE ARGINATE ACETYL L-CARNITINE HCL 03125 L-SELENOMETHIONINE 5MMCG/G L-PROLINE L-VALINE, USP L-VALINE L-ORNITHINE HCL POWDER GABA CREATINE MONOHYDRATE L-METHIONINE L-CYSTEINE HCL ANHYD (VEGETARIAN) L-CYSTEINE GLYCOCYAMINE GLYCINE POWDER USP/FCC(RM7372) TAURINE GRANULATION(95% TAURIN(50001797) L-PHENYLALANINE DL-PHENYLALANINE GR. (93.5%)

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

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China

Russia

Poland

Indonesi a

India

Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplie Supplie Supplier1 Supplier1 Supplier Supplier Supplier Supplier1 2 3 4 5 6 7 8 9 r10 r11 2 3 14 15 16 xxxx xx

xxxx xxxx

xxxx

xxxx xxxx

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

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19,530 xxxx xxxx xxxx xxxx

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xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

xxxx

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BETA ALANINE (CARNOSYN)

xxxx

xxxx

xxxx

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L-CITRULLINE 99% GRANULAR DL-MALIC ACID DL-MALIC ACID FOOD GRADE L-THREONINE

xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx

xxxx xxxx xxxx

xxxx xxxx xxxx xxxx

DL-METHIONINE KOSHER

xxxx

xxxx

xxxx

xxxx

L-ASPARTIC ACID L-GLUTAMIC ACID

xxxx xxxx xxxx

xxxx xxxx xxxx

xxxx xxxx xxxx

xxxx xxxx xxxx

xxxx

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20

xxxx

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Price Comparison- Fish Oil

Supplier 1

Supplier 1

Supplier 2

Supplier 2

Supplier 3

Supplier 3

Supplier4

Quoted better quality product than xxx requirement

Supplier1

Supplier2

Supplier3

Supplier4

Supplier1

Can meet xxx spec. requirement completely

21

Splr1

Splr2

Supplier1

Splr3

Supplier2

Splr4

Splr5

Supplier3

Splr6

Supplier4

Can not 100% meet xxx spec. requirement

RFQ summary- Fish Oil Norway

Country # 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

Raw Oracle Item Material No. No. xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

2016 Annual Qty (kg) xxxx MARINE CONC. 50% EPA 20% DHA EE xxxx MARINE LIPID CONCENTRATE MEG-3 30%-VAL xxxx FISH OIL 30% OMEGA 3 xxxx MARINE LIPID 30% EPA / 20% DHA EE xxxx EPA4E1600 MEG-3 FISH OIL xxxx FISH OIL (360/240EE) MEG-3 xxxx RM 51185 WILD ALASKAN SALMON OIL xxxx MARINE CONCENTRATE 40% EPA 30% DHA EE xxxx FISH OIL 30% OMEGA CHOL FREE xxxx MARINE LIPID 34%EPA/24% DHA TG xxxx FISH OIL 10/50 xxxx PURE COD LIVER OIL 1000A/100D xxxx PURE COD LIVER OIL A 5M D 500 IU/G xxxx RM 51078 FISH OIL 18% EPA 12% DHA xxxx SALMON OIL 9% EPA 11% DHA xxxx FISH LIVER OIL 30,000 A/2,400 D xxxx FISH OIL VITAMIN D 50,000 IU ENRICHED xxxx FISH OIL EE 50% 20%DHA xxxx SHARK LIVER OIL, 20% ALKOXYGLYCEROLS xxxx OMEGA-3 400 300 EE xxxx COD LIVER OIL(NOR)2500 IU/G A-250 IU xxxx MARINE LIPID 33/22 EE xxxx SHARK SQUALENE 99% xxxx TUNA OIL 6% EPA 25% DHA xxxx DHA-S Item Description

2016 # of Annual Supplier Supplier suppliers Spend 1 2 quoted (M USD) xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

# of items quoted per supplier

2

1

Supplier declared that they not only can meet the spec. requirement, but have better quality for some parameters.

Supplier declared that they can completely meet the spec. requirement

22

Denmark

Supplier3

Netherlands

Japan

Chile

Supplier4 Supplier5 Supplier6 Supplier7 Supplier8 Supplier9

xxxx

xxxx xxxx xxxx

xxxx xxxx

xxxx xxxx xxxx xxxx xxxx

xxxx

xxxx xxxx

xxxx xxxx xxxx xxxx

4

6

xxxx

xxxx

xxxx xxxx xxxx 7

1

1

3

Price comparison- MSM & Calcium Ascorbate

xxx

Supplier1

xxx

Supplier2

xxx

23

Supplier1

Supplier2

Supplier3

Supplier4

Supplier5

RFQ summary - Calcium Ascorbate & MSM Produce in-house FOB price / Kilo or outsourcing? (in USD)

Raw Material No.

Item Description

Supplier

xxxxx

CALCIUM ASCB. GRAN. DC ( 97% VIT (RM 7127)

xxxxx

outsourcing

xxxxx

VIT C - CALCIUM ASCORBATE 99% 2H20

xxxxx

xxxxx

MSM

MOQ (kg)

Port of Loading

Payment Term

xxxxx

xxxxx

Shanghai

TT in advance

In-house

xxxxx

xxxxx

Shanghai

100% T/T in advance

xxxxx

in house

xxxxx

xxxxx

Shanghai

T/T PAY IN ADVANCE

xxxxx

in house

xxxxx

xxxxx

Tianjin

100%TT againest BL copy

xxxxx

in house

xxxxx

xxxxx

Tianjin

TT or LC

xxxxx

in house

xxxxx

xxxxx

Shanghai

40%TT in advance,the balance60% t/t upon the copy of B/L.

xxxxx

in house

xxxxx

xxxxx

Shanghai

T/T100% IN ADVANCE

P.S. Due to the continuous shortage of supply for Ascorbic Acid in Chinese market, according to supplier the market prices has been increased up to xx at the highest point.

Since xxx Calcium are the derivative products of Ascorbic Acid, so the supply is difficult as well.

For the moment, it’s difficult to find suppliers to quote for these two items, either supplier doesn’t want to quote, or doesn’t have any storage for supply, so they can’t quote.

24

Supplier Recommendation – Chinese suppliers No. Country Supplier name Business Type

1

2

China

China

RFI Score

# of items

Potential

# of item with potential Annual Saving quoted savings in USD

xxxx

• • • •

Have quoted xx items，xx items with potential annual saving xx USD. xx years production experience in the industry, Customers around the world.

Over xx export to North America and Europe, with xx years export experience.

ISO9001 certified, ISO 14001 certified

xxxx

• • • •

Have quoted xx items, xx items with potential annual saving xxUSD. Over xx export to North America and Europe, with xx years export experience.

Excellent and quick response with competitive prices.

ISO9001 certified.

• • • • • • • • •

Have quoted xx items, xx items with potential saving xx USD. xx years production experience in the industry with xx professional R&D Staffs.

Over xx years export experience, able to quote xx incoterm: FOB, CIF and DAP or DDP. ISO9001 certified.

Have quoted xx items, xx items with potential annual saving xxxx USD. Professional in L-THEANINE xx years production experience in the industry, with KOSHER certification Over xx export to North America and Europe, with xx years export experience.

ISO9001 certified. KOSHER certified.

• • • •

Have quoted xx items with annual potential saving xxxx USD. competitive price. xx years production experience in the industry, with over xxxx Factory size.

Over xxx years export experience, with strong local industry background ISO9001 certified.

xxxx

Direct manufacturer

xxxx

Direct manufacturer

xx

12

10

xxxx

xx

3

2

xxxx

xx

xx

71

30

44

23

Reason for recommending

3

China

xxxx

Direct manufacturer

4

China

xxxx

Direct manufacturer

xx

5

4

xxxx

5

China

xxxx

Direct manufacturer

6

China

xxxx

Distributor

xx

12

6

xxxx

7

China

xxxx

Distributor

xx

23

12

xxxx

• Have quoted xx items，xx item with potential annual saving xxxx USD. • Over xxx years export experience, with several strong suppliers, quoted competitive price.

• Have quoted xxxx items，xx item with potential annual saving xxxx USD. • Have several strong suppliers, quoted competitive price.

25

Recommended supplier

Supplier with potential savings but didn’t answer most of the RFI questions

Supplier Recommendation – Indian suppliers No. Country

Supplier name

RFI Business Type Score

# of item quoted

# of items with potential savings

Potential Annual Saving in USD

8

India

xxxx

Direct manufacturer (Current Supplier)

9

India

xxxx

Trader

xx

39

13

xxxx

10 India

xxxx

Direct manufacturer

xx

6

4

xxxx

11 India

xxxx

Direct manufacturer

xx

6

3

xxxx

12 India

xxxx

Service provider

xx

16

7

xxxx

xxxx

Direct manufacturer

13 India

xx

8

4

xxxx

xx

1

1

xxxx

Reason for recommending • • • • • • • • • • • • • • • • • • • • • •

Have quoted xx items, xx items with potential annual saving xxxxx USD. Top xx RFI ranking among Indian suppliers.

Over xxx years production experience in the industry.

Over xxx years export experience, over xxx export to North America and Europe.

Excellent and quick response with so much competitive price.

ISO9001 certified, ISO 14001 certified, GMP certified.

Have quoted xx items, xx items with potential annual saving xxxx USD. Over xx years production experience in the industry.

Over xxx export to North America and Europe.

GMP certified, HALAL certified.

Have quoted xx items, xx items with potential annual saving xxxx USD. Excellent and quick response with so much competitive price.

Over xx years export experience.

ISO9001 certified, GMP certified, HACCP certified, HALAL certified.

Have quoted xxx items,xxx items with potential annual saving xxxx USD. TOP RFI ranking. xxx years production experience in the industry, over xxx years export experience.

Excellent and quick response with so much competitive price.

ISO9001 certified, GMP certified, HACCP certified, HALAL certified, KOSHER certified.

Have quoted xx items, xx items with potential annual saving xxxx USD. Excellent and quick response with so much competitive price.

ISO9001 certified, GMP certified, HALAL certified.

• • • •

Have quoted xx item with potential annual saving xxx USD. Over xx years production experience in the industry.

Over xx years export experience, over xx export to North America and Europe.

ISO9001 certified, GMP certified.

26

Recommended supplier

Supplier with potential savings but didn’t respond to RFI

Supplier Recommendation – Indian, Russia & Poland suppliers No Country .

RFI Score

# of item quoted

# of items with potential savings

Potential Annual Saving in USD

Supplier name

Business Type

xx

1

1

xxxx

Reason for recommending • • • • • • • • • • • •

Have quoted xx item with potential annual saving xxxx USD. Over xx years production and export experience in the industry.

Excellent and quick response with so much competitive price.

ISO9001 certified, ISO14001 certified, GMP certified.

Have quoted xx items, xx items with potential annual saving xxxx USD. Over xx years production and export experience in the industry.

Able to quote with 3 incoterms (FOB, CIF and DDP) GMP certified, KOSHER certified.

Have quoted xx items, xx items with potential annual saving xxxx USD. Highest Total saving value among Indian suppliers.

They declared they’re currently supplying to xxx through distributor.

Didn’t respond to RFI questions.

14

India

xxxx

Direct manufacturer

15

India

xxxx

Direct manufacturer

xx

7

2

xxxx

16

India

xxxx

Direct manufacturer

xx

12

10

xxxx

17

India

xxxx

Direct manufacturer

xx

3

3

xxxx

• •

Have quoted xx items with potential saving xxxxUSD. Didn’t respond to RFI questions.

xxxx

• • • •

Have quoted xx items, xx items with annual potential saving xxxx USD. xxx years export experience in related.

Annual turnover xxxx USD. able to quote with 3 incoterms (FOB, CIF and DDP)

• • • • • • • • • • •

Have quoted xxx items, xx items with potential annual saving xxxx USD. Capability to supply directly from China to USA, avoiding additional costs.

Wide capabilities to widen collaboration in direction of herbal extracts, amino acids etc.

Xx years on the market, Able to quote with 3 incoterms (FOB, CIF and DDP) The only, direct manufacturer of collagen in Russia.

Have quoted xx item with potential annual saving xxxx USD. Founded in xxxx, has great experience on the market.

HACCP certified, HALAL certified Have quoted xx items, xx items with potential annual saving xxx USD. The only supplier from Poland with potential items for savings. xx years export experience, able to quote with 3 incoterms (FOB, CIF and DDP)

18 Indonesia

xxxx

Distributor

xx

81

8

xxxx

xx

24

9

19

Russia

xxxx

Distributor in Russia but has offered supplies from its direct manufacturers in China

20

Russia

xxxx

Direct manufacturer

xx

1

1

xxxx

21

Poland

xxxx

Distributor

xx

12

2

xxxx

27

Recommended supplier

Supplier with potential savings but didn’t respond to RFI

Supplier profile (example)

28