Cleaning Sponge Case Study by Dragon Sourcing

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Delivering sustainable sourcing value from emerging markets

Cleaning Sponge Case Study

Objectives and approach Context

Overall Objectives: Identify and pre-qualify suppliers.

Categories: - Cleaning sponge Countries in scope: - China

Deliverables: - Supplier database - RFI-RFQ template - RFI-RFQ analysis report - Supplier profiles and ranking - Suppliers pre-audit reports (optional)

DS Approach 1. Demand Analysis: Work with Client to define and understand the machine and requirements (specs, volumes, materials, production technology requirements) 2. Supply Market Analysis: Identify long list of potential suppliers in the countries in Scope by leveraging B2B Websites, DS Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References.

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, quality certifications, interest in participating) 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, Financials, Client references and Product experience, Quality certification & processes, Social Responsibility, Manufacturing/technology capability, R&D capability 5. Administer the RFI-RFQ : The RFI-RFQ is translated in relevant languages and distributed to the suppliers, with telephone follow-up to push for maximum participation.

6. Analyze response through a balance score card developed with Client s and preparation of a report which profiles & objectively ranks the suppliers by capability, including a recommendation for those to be audited.

7. Pre-audits (optional): Carry pre-audits of recommended suppliers in order to identify those to have you audit.

Stage 1: Supplier Pre-Qualification No. 1.

2.

3.

4.

5.

Step Demand Analysis Work with IKKS to define and understand the Products and requirements (specs, volumes, current unit prices, delivery destinations of delivery/consumption). Collect samples of the products in order to ensure potential suppliers fully understand them Supply Market Analysis Identify long list of potential manufacturers in countries in scope by leveraging B2B websites, DS database, fair catalogues, Chamber of Commerce, magazines, network, references.

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.

Develop RFI/RFQ document Prepare an 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.

Administer the NDA: Administration and chasing for completion of the NDA with suppliers that have been preselected

Deliverables • Kick-Off Report

• Supplier Long List

• Shortlist for RFI-RFQ process

• RFI-RFQ Template • Balanced Scorecard

• NDA signed by suppliers

6.

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

7.

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.

Stage 2: Audits, Selection & Contracting No. Step Deliverables Similar samples collection: Request selected suppliers in step 6 to send “similar” samples i.e.: samples of products which 8.

• Similar samples. suppliers have off-the-shelf that are not prototypes of IKKS products but products that are as similar as possible to Lillebaby products 9.

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

10.

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

11.

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

Shortlist for Sampling Agreed

12.

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

13.

Negotiation & Contracting Conducting final negotiations with the shortlisted manufacturers.

• Samples • Sample Analysis Reports • 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.

Stage 1 to be completed in 8 weeks. A weekly progress report will be send every Friday

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Apr 23

Apr 30

May 7

May 14

May 21

May 28

June 4

June 11

Steps

1. Demand Analysis

2. Supply Market Analysis

3. Telephone Pre-screening

4. Develop RFI/RFQ

1

RFI/RFQ approved per category

5. Administer RFI/RFQ

6. Analyze RFI/RFQ Responses

Supplier profiles with recommendations.

2 Today

Not-started

Started

Finished

Demand Analysis

#

1

2

SKU

Ref 07-4 Doble Uso

Ref 10-4 Doble Uso AR

Picture

Annual Qty Units/Cart Unit Price Cartons (Unit) on (RMB)

1,082,880 3,760

506,880

1,760

288

288

0.458

Total Amount (RMB)

Packaging Way 1

Packaging Way 2

Quality Requirement

495,959

0.600

304,128

3

Ref 20-4 Doble Uso Slim

826,560

2,870

288

0.365

1 or 3 units per carton card 24 bags of 12 sponges 301,694 each corrugated boxes are doble wall

4

Ref 13-4 Abrasiva

496,800

1,725

288

0.287

142,582

5

Ref 18-4 Abrasiva AR

68,832

239

288

0.467

32,145

a Display box where you have 48 sponges (please see picture attached)

1. The green part must be compact, thick, and when placing the sponge towards the light you can not see through.

2. Yellow part must be of good density and color. Density is important since if not the glue the factory uses will not hold the sponge together.

Clarification questions Dragon Sourcing Questions • What are your key MUST have criteria for a suitable supplier selection?

Feedback from Client

• Manufacture

• What are the minimum (MUST Have) quality, environmental and product certifications that you require? For example, ISO 9001 certified, • Not required BSCI • Are there any suppliers that should NOT be included in the RF-RFQ process?

xxxxxxxx

• Can your company name be used to support the RFI-RFQ process?

YES

• Final delivery location, (City-Country) for suppliers to know

NA

• Incoterm expected from the suppliers (Ex-work, FOB, CIF, DDP) in

case they are shortlisted from the RFI-RFQ process.

FOB

Telephone Pre-screening – Used to disqualify unsuitable suppliers from the selection process.

No

Category/SKUs

Examples of Pre-screening question

1

For all

•

2

For all

• Can you export?

Are you manufacturer for (specific category)

Suppliers not able to answer the question for “Must have” will be considered as disqualified for next step of RFI-RFQ process.

Importance Traders Discarded Must have

Cleaning Sponge: 40 suppliers identified, all called, 18 passed pre-screen and RFI/RFQ sent, 11 RFI/RFQs received

Process

Supplier Identification

Steps

China

• Suppliers identified

40

• Supplier passed pre-screening

18

• Suppliers failed Pre- screening

22

• Number of RFI-RFQ sent

18

• Intend to respond

11

• Number of only RFI received

0

• Number of both RFI-RFQ received

11

Pre-screening

RFI-RFQ Administration

Supply Market Analysis Process metrics follow up, 40 supplier called, 18 suppliers RFI-RFQ sent and 11 suppliers have replied RFI-RFQ.

A follow up RFI-RFQ feedback chart was created from GSP

Suppliers Long list An extensive supplier data base is built in GSP leveraging multiple sources of information

Building long supplier list in GSP, administration RFI-RFQ in GSP

Agenda

1.

Objectives and approach

2.

Project planning and demand analysis

3.

Progress to date

4.

Reasons not to respond

5.

Suppliers map

6.

Supplier RFI Score and rank

7.

Price Analysis

8.

Next steps

Process metrics follow up The rejection reasons for prescreening Supplier pre-screen rejection analysis

%

Total

Duplicated suppliers

13.6%

3

Traders/distributors or Importers only

27.3%

Don't produce required products Total Rejected

Supplier RFI/RFQ rejection analysis

%

Total

Traders/distributors or Importers only,

14.3%

1

6

Duplicated supplier

14.3%

1

59.1%

13

Capacity full

28.6%

2

100%

22

42.9%

3

100%

7

Consider themselves not competent for this project Total Rejected

The RFI-RFQ rejection analysis was created from GSP

Totally 11 suppliers replied RFI/RFQ. located in 4 province/city, 3 in Jiangsu, 5 in Guangdong, 2 in Zhejiang, 1 in Tianjin.

Supplier Name Chinese Supplier 1 Chinese Supplier 2 Chinese Supplier 3 Chinese Supplier 4 Chinese Supplier 5 Chinese Supplier 6 Chinese Supplier 7 Chinese Supplier 8 Chinese Supplier 9 Chinese Supplier 10 Chinese Supplier 11

The map will be created from GSP

City Yancheng Jiangmen Jinghai Xian Jiangmen Wuxi Ningbo Jiangmen zhongshang Yancheng Dongguan Jinhua

Province Jiangsu Guangdong Tianjin Guangdong Jiangsu Zhejiang Guangdong Guangdong Jiangsu Guangdong Zhejiang

Summary of RFI score, there is totally 11 suppliers replied RFI Rank

1

2

3

4

5

6

7

8

9

10

11

Supplier

Supplier 1

Supplier 2

Supplier 3

Supplier 4

Supplier 5

Supplier 6

Supplier 7

Supplier 8

Supplier 9

Supplier 10

Supplier 11

Business information

27

21

18

17

27

23

20

19

22

18

16

Production

35

35

35

35

26

26

26

26

26

26

26

Quality system

32

32

32

32

32

32

32

32

26

26

26

Total

94

87

85

84

84

81

78

76

75

71

68

Packing Way 1- Unit Packs in Carton FOB unit price summary, total 11 suppliers quoted. There is 5 suppliers quoted all the 5 items, 3 suppliers have lower average price and 8 suppliers quotations are much higher.

Product data

SKU

Purchase Price Purchase Qty in Purchase Price in 2017 2017 PCS in 2017 US$/PC RMB/PC RFI Score

Ref 07-4 Doble Uso Ref 10-4 Doble Uso AR Ref 20-4 Doble Uso Slim Ref 13-4 Abrasiva Ref 18-4 Abrasiva AR Total Amount of item 1-4 Average Price of item 1-4 Total amount of saving item Items Quoted Saving ratio of saving item Original Sample sent (Yes/No) Remark

1,082,880 506,880 826,560 496,800 68,832

Kitchen Sponge FOB price in USD per PC Packing Way 1 - Unit Packs in Carton 4 5 6 7

1

2

3

8

9

10

11

Supplier

Supplier

Supplier

68

71

87

78

76

94

75

81

84

85

84

Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier

¥0.475

$0.075

$0.034

$0.060

$0.064

$0.063

$0.075

$0.087

$0.080

$0.105

$0.087

$0.090

$0.133

¥0.656

$0.103

$0.046

$0.080

$0.065

$0.125

$0.087

$0.092

$0.098

$0.059

$0.120

$0.110

$0.163

¥0.390

$0.061

$0.035

$0.051

$0.061

$0.070

$0.080

$0.084

$0.09

$0.109

$0.100

$0.105

$0.145

¥0.347

$0.055

$0.065

$0.049

$0.090

$0.087

$0.113

$0.116

$0.12

$0.083

$0.140

$0.135

$0.299

¥0.504

$0.079

$0.106

$0.16

$0.134

$0.115

$0.079

$211,280

$121,827

$171,657

$197,384

$232,662 $247,181 $267,903 $269,322 $274,938 $307,244 $307,073 $495,039

$0.074

$0.045

$0.060

$0.070

$0.086

$0.089

$0.095

$0.097

$0.089

$0.112

$0.110

$0.185

$94,432

$39,623

$31,116

$12,781

$8,114

$5,731

$2,690

$22,458

$0

$0

$0

4

4

4

5

4

5

5

4

5

5

4

44.7%

18.8%

14.7%

6.0%

3.8%

2.7%

1.3%

10.6%

0.0%

0.0%

0.0%

NO

YES

NO

NO

YES

YES

YES

NO

YES

NO

YES

3pcs/card

DS recommended Much Higher

5% Slightly Higher

Lower Price

Packing Way 1- Unit Packs in Carton FOB unit price summary, total 11 suppliers quoted. There is 5 suppliers quoted all the 5 items, 3 suppliers have lower average price and 8 suppliers quotations are much higher.

Suppliers recommended

Packing Way 2- Display Box FOB unit price summary, total 11 suppliers quoted. There is 5 suppliers quoted all the 5 items, item 1-4: 2 supplier have lower average price and 1 suppliers is slightly higher but seems negotiable and 7 suppliers quotations are much higher.

Product data

SKU

Purchase Price Purchase Qty in Purchase Price in 2017 2017 PCS in 2017 US$/PC RMB/PC RFI Score

Ref 07-4 Doble Uso Ref 10-4 Doble Uso AR Ref 20-4 Doble Uso Slim Ref 13-4 Abrasiva Ref 18-4 Abrasiva AR Total Amount of item 1-4 Average Price of item 1-4 Total amount of saving item Items Quoted Saving ratio of saving item Original Sample sent (Yes/No)

1,082,880 506,880 826,560 496,800 68,832

Kitchen Sponge FOB price in USD per PC Packing Way 1 - Unit Packs in Carton 4 5 6 7

1

2

3

8

9

10

11

Supplier

Supplier

Supplier

68

71

76

87

94

78

75

81

85

84

84

Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier

¥0.458

$0.072

$0.032

$0.065

$0.050

$0.068

$0.083

$0.068

$0.080

$0.110

$0.085

$0.088

$0.135

¥0.760

$0.120

$0.047

$0.085

$0.069

$0.070

$0.081

$0.130

$0.098

$0.066

$0.105

$0.126

$0.170

¥0.399

$0.063

$0.034

$0.053

$0.061

$0.065

$0.069

$0.075

$0.087

$0.114

$0.100

$0.110

$0.150

¥0.356

$0.056

$0.065

$0.049

$0.088

$0.095

$0.105

$0.092

$0.123

$0.086

$0.130

$0.140

$0.305

¥0.513

$0.081

$0.120

$0.084

$0.155

$0.110

$0.140

$211,280

$173,834

$181,175

$210,040

$240,133 $247,228 $269,322 $292,507 $314,418 $318,655 $366,192 $507,866

$0.074

$0.064

$0.063

$0.075

$0.085

$0.091

$0.097

$0.105

$0.103

$0.104

$0.133

$0.190

$104,128

$37,384

$50,850

$29,652

$19,609

$4,468

$10,992

$27,212

$0

$0

$0

47.6%

17.1%

23.3%

13.6%

9.0%

2.0%

5.0%

12.5%

0.0%

0.0%

0.0%

4

4

4

4

5

5

5

4

5

5

4

NO

YES

YES

NO

YES

NO

YES

NO

NO

YES

YES

DS recommended Much Higher

5% Slightly Higher

Lower Price

Packing Way 2- Display Box FOB unit price summary, total 11 suppliers quoted. There is 5 suppliers quoted all the 5 items, item 1-4: 2 supplier have lower average price and 1 suppliers is slightly higher but seems negotiable and 7 suppliers quotations are much higher.

Suppliers recommended

Total 5 suppliers recommended for next step.

1. the RFI score >70, which shows a relatively positive company background 2. there are 1-4 items quotation is lower and other items price is relatively higher which could be negotiated # Item Item with RFI score Quoted saving out of 5

2017 Turnover (M USD)

Workers

Reference Sample Received (Yes/No)

Lead Time Days for a 40feet container

#

Company Name

Country

Province

City

1

Supplier

China

Tianjin

Tianjin

4

1-3

76

nill

100

Yes

35

2

Supplier

China

Jiangmen

Guangdong

4

2-3

87

7.9

90

Yes

30

3

Supplier

China

Zhongshan

Guangdong

4

4

71

5

100

Yes

30

4

Supplier

China

Yanchen

Jiangsu

5

1

94

27.5

280

Yes

30

5

Supplier

China

Jinhua

Zhejiang

5

1

78

7.5

60

No

30

6

Supplier

China

Dongguan

Guangdong

5

1

75

6

70

Yes

25

7

Supplier

China

Yancheng

Jiangsu

5

0

84

10

30

Yes

45

8

Supplier

China

Wuxi

Jiangsu

5

0

85

27

150

Yes

45

9

Supplier

China

Jiangmen

Guangdong

4

3-4

68

nill

95

Yes

30

10

Supplier

China

Ningbo

Zhejiang

4

1

81

8

50

Yes

30

11

Supplier

China

Jiangmen

Guangdong

4

0

84

20.5

170

Yes

45

Finally, the client selected 3 supplier to visit together with DS, there is a audit questionnaire will be fulfilled and checked during the visit.

Following the brief chart of what will be check/audit during the visit Supplier Name: 供应商名称: Audit Date: 审计日期: Supplier Representative: 供应商代表:

Supplier Name August 30, 2018 Contact Name

Auditors: 审计员:

Kathy Lu

Audit Summary 审计摘要 0. Contents 0. 目录 1. Supplier Information sheet 1. 供应商信息表 2. Supplier Profile & Certificate 2. 供应商简介与证书 3. Overall Management 3. 总体管理 4. Production 4. 生产情况 5. Material Handling 5. 材料装卸 6. Quality Management 6. 质量管理 7. Health & Social Conditions 7. 健康与社会责任 8. Safety, Health & Environment (SHE) management 8. 安全、卫生与环境(SHE)管理 9. Certifications 9. 证书 10. Supplier pictures 10. 供应商图片

Following the example charts of what detail aspects to be check/audit during the visit 1. Supplier Information sheet 2. Supplier Profile & Certificate 3. Overall Management Supplier Name: 供应商名称: Supplier Name Audit Date: 审计日期: August 30, 2018 Supplier Representative: 供应商代表： Contact Name Auditors: 审计员:

Kathy LuSupplier Name

Supplier Name: 供应商名称: Audit Date: 审计日期: Supplier Representative: 供应商代表:

August 30, 2018 Contact Name

Auditors: 审计员:

Kathy LU

Supplier Name: 供应商名称: Audit Date: 审计日期:

Supplier Name August 30, 2018

Supplier Representative: 供应商代表:

Street 街道 City 城市 State / Province 州/省 Country 国家 Zip code 邮编 Telephone 电话 Fax 传真 Contact Person 联系人 Cell No. 手机号码

Contact Name

Facility Name 设施名称

Group Name 集团名称

General information 一般信息 Year of establishment 成立年份 Ownership 所有权 Area in Sq. meter 经营面积（m2） Total number of workers 员工总数 Own brands 自有品牌 OEM brands 代工品牌 Brand Founded year 品牌成立年份 Capital in RMB 固定资产 2017 turnover in RMB 2017年销售额 （人民币）

Auditors: 审计员:

Office Address 办公地址

1994 private enterprise 7200 about 90 xxxx \ 1994 4,500,000 37,000,000

Kathy Lu

Street 街道 Score 分值

Wang Nang Industrial Zone.LianXing,LuocunTown 罗村镇联星旺南工业区

Nanhai Foshan 佛山南海 GuangdongDomestic 广东国内 Sales breakdown per region (%) EU 欧洲 China 中国US 美国 区城销售份额 Australia 澳大利亚 528226 Others 其它 xxxxxx Ref sheet 11, certification pics xxxxxx Business license certificate 营业执照证书 Certificate of Organization Code组织机构代码证 xxxxxx Tax registration 稅務登記 xxxxxx

2014 2% 23% 68% 1% 6%

Main Customers 主要客户 Secrecy Secrecy Secrecy Secrecy Secrecy

Administrative Certification 行政证明 Certificate No. 证书编号 91440605668151685J 91440605668151685J 91440605668151685J Quality Certification 质量证明 (Sheet 9 certification photos) Certificate No. 证书编号 ISO 9001 SEDEX

Date of issue 颁发日期 2016.04.27 2016.04.27 2016.04.27

Date of expiry 到期日 long-term long-term long-term

Date of issue 颁发日期 2014.12.16 2016.11.25

Date of expiry 到期日 update every year update every year

3.1

Phone 电话 0086 13809816901

Sales Manager

Haifeng Lai (赖海锋）

0086 18676501105

Products Manager Finance Manager

Secrecy Secrecy

Insert Company Organization chart 加入组织机构图

General Manager

Products Manager

Finance Manager

Section Importance (%) 部分重要性 (%)

10%

\ jieda168@vip.163.com

Vendor score Vendor supporting comments and/or remarks 供应商得分 供应商支持性评论和/或注释 Please The director of the office is responsible for the comprehensive operation, coordination, contact the general manager, handling disputes.The 4 sales manager is responsible for the sales.Production manager is responsible for production.The finance department is responsible for the payment.

DS auditor score DS审计员得分

DS supporting comments and/or remarks DS支持性评论和/或注释

4

Yes, have org chart

4

All orders will be aggregated to the sales manager except the salesman's own.

4

7 sales rep, receive orders independently and report to sales mgr

15%

4

The production plan shall be formulated and adjusted by the production director.The production process is carried out in strict accordance with the production plan.

3

plan by Excel with workshop responsible for whole planning process, build some inventory in semi-finished good for common thinknesses & width

Does the factory have current specifications for purchased materials? Does the factory have documented processes to ensure incoming raw materials conform to specifications? 工厂是否有购买的材料的规格？工厂是否有记录的过程，以确保入厂原料符 合规格？

15%

4

The purchasing department has dedicated records and contracts with the manufacturer.

4

Yes, outside materials are checked agists specs

Does the QC department operate seperately from the Production department?

QC部门和生产部门是分开的吗？

15%

3

It's separate.The quality supervision department is directly under the charge of the office director.

3

4 QC people, saw them checking work in progress during visit

Regular products have written quality standards.Special custom-made products will be according to the sales department's production notice as the quality standard.

3

Yes, ISO & BSCI, + quality standard for products

4

Yes, have docs need to check record of issue with printing

4

Finance is in charge of costiing,

\ 3.2 \

Is there an order owner (i.e. Account Manager)? \ 是否有订单持有者 \

3.3

Is the production planning made on the basis of the number of products requested, the number of employees and the available resources? Is the production planning regularly reviewed with responsible people? 生产计划在所需产品数量, 员工人数和可用资源的基础上制定. 生产计划应由相关负责人员经常回顾.

3.4

3.5

10%

Does the factory have a documented company-wide quality program? 工厂是否有成文的全公司范围的质量计划？

15%

4

3.7

Are there clear and systematic procedures for collecting, registering, handling and solving customer complaints? 是否有明确的和有系统的收集程序，登记，处理和解决客户的投诉？

10%

4

File records.

3.8

Does the company have a full understanding of its cost structure (cost breakdown)? 是否完全明了成本结构. ( 成本分解 )

10%

4

The sales manager is in charge of the cost price accounting, which is very clear about the cost.

Section sub-total 部分小计

100%

3.6

Sales Manager

4 Excellent: The requirement is met to an excellent standard, and there is no room for improvement. 优秀: 供应商达到优秀标准要求，无需作出改进。 City 城市 Nanhai Foshan 佛山南海 State / 3Province Guangdong 广东 Good: 州/省 The requirement is met at a good standard, and there is limited room for improvement. 良好: 供应商达到良好标准要求，需改进的空间有限。 Country 国家 China 中国 Acceptable: The requirement is met at the minimum acceptable level & there is room for improvement. 合格: 2 邮编 Zip code 528226 供应商仅满足最低合格标准要求，仍有较大改进空间。 Telephone 电话 xxxxxx 1 Poor: The requirement is only partially met and significant improvement is required. 较差：供应商仅部分满足了要求，有很大改进空间。 Fax 传真 xxxxxx Please make comment on why you give this No: The requirement is not met at all.

Contact0 Person 联系人 xxxxxx 极差: 供应商完全未达到要求。 score, answers beyond Yes/No are Cell No. 手机号码 xxxxxx

Are the functions, responsibilities, reporting lines transparent and well defined? Are key positions defined in an organization chart? 功能、责任和汇报机制是否透明和正确定义？ 在组织结构图中，主要的职位是否明确定义了？ Email 邮件

Organization chart 组织机构图 Name 姓名 Shaoyi Lu (卢少毅）

Designation 名称 General Manager

Description 说明

Facility Address 工厂地址 Wang Nang Industrial Zone.LianXing,LuocunTown 罗村镇联星旺南工业区旺达路厂房2号楼

Proof (supporting documents) or additional comments 证明 (支持性文件) 或附加评论。

88.8%

Following the example charts of what detail aspects to be check/audit during the visit 5. Material Handling 6. Quality Management 7. Health & Social Conditions 8. Safety, Health & Environment (SHE) management Supplier Name: 供应商名称: Audit Date: 审计日期:

Supplier Name: 供应商名称: Contact Name Audit Date: 审计日期:

Supplier Name

Supplier Name: 供应商名称: Audit Date: 审计日期: Supplier Representative: 供应商代表:

Supplier Representative: Supplier 供应商代表: Name: 供应商名称:

Contact Name

Auditors: 审计员:

Supplier Name

Supplier Representative: 供应商代表:

Audit Date: 审计日期: Supplier Representative: 供应商代表:

Auditors: 审计员:

Auditors: 审计员:

Auditors: 审计员: Score 分值

Supplier Name

Supplier Name: 供应商名称: Contact Name Audit Date: 审计日期: Supplier Representative: 供应商代表:

Supplier Name Contact Name

Supplier Name Score 分值

Contact Name

Description 说明

4

Excellent: The requirement is met to an excellent standard, and there is no room for improvement. 优秀: 供应商达到优秀标准要求，无需作出改进。

3

Good: The requirement is met at a good standard, and there is limited room for improvement. 良好: 供应商达到良好标准要求，需改进的空间有限。

2

Acceptable: The requirement is met at the minimum acceptable level & there is room for improvement. 合格: 供应商仅满足最低合格标准要求，仍有较大改进空间。

Description 说明

Score 分值 Auditors:

Description 说明 审计员:

Excellent: The requirement is met to an excellent standard, and there is no room for improvement. 优秀: 供应商达到优秀标准要求，无需作出改进。 Excellent: The requirement is met to an excellent standard, and there is no room for improvement. 优秀:

4

4

供应商达到优秀标准要求，无需作出改进。

Good: The requirement is met at a good standard, and there is limited room for improvement. 良好: 供应商达到良好标准要求，需改进的空间有限。

3

Score 分值

Description 说明

Excellent: The requirement is met to an excellent standard, and there is no room for improvement. 优秀: Poor: The requirement is only partially met and significant improvement is required.

Good: The requirement is met4at a good standard, and there is limited room for improvement.

1 Description 说明 3 较差：供应商仅部分满足了要求，有很大改进空间。 供应商达到优秀标准要求，无需作出改进。 Score 分值 良好: 供应商达到良好标准要求，需改进的空间有限。 Acceptable: The requirement is met at the minimum acceptable level & there is room for improvement. 合格: Excellent: The requirement is met to an excellent standard, and there is no room for improvement. 优秀: Good: The requirement is met at a good standard, and 4 there is limited room for improvement.

No: The requirement is not met at all.

3 供应商仅满足最低合格标准要求，仍有较大改进空间。 0 供应商达到优秀标准要求，无需作出改进。 良好: 供应商达到良好标准要求，需改进的空间有限。 极差: 供应商完全未达到要求。

2

2 1

Poor: The requirement is only partially met and significant improvement is required. 较差：供应商仅部分满足了要求，有很大改进空间。

0

No: The requirement is not met at all. 极差: 供应商完全未达到要求。

1

Acceptable: The requirement is met at the minimum acceptable level & there is room for improvement. 合格: Good: met at a good standard, and there is limited room for improvement. 合格: is room forisimprovement. thererequirement & The Acceptable: The requirement is met at the minimum3acceptable level 供应商仅满足最低合格标准要求，仍有较大改进空间。

2

供应商仅满足最低合格标准要求，仍有较大改进空间。

良好: 供应商达到良好标准要求，需改进的空间有限。

Section Acceptable: The requirementVendor is met at the minimum acceptable level & remarks there is room for improvement. 合格: comments and/or remarks is required. improvement partially met and significant is only The requirement Poor: score Vendor supporting comments and/or DS auditor score DS supporting Poor: The requirement is only1partially met and significant improvement is required.

2 Importance (%) 供应商得分 供应商支持性评论和/或注释 DS审计员得分 DS支持性评论和/或注释 供应商仅满足最低合格标准要求，仍有较大改进空间。 较差：供应商仅部分满足了要求，有很大改进空间。 较差：供应商仅部分满足了要求，有很大改进空间。 部分重要性 (%)

Poor: The requirement is only partially met and significant improvement is required.

No: The requirement is not met at all.

1 较差：供应商仅部分满足了要求，有很大改进空间。 极差: 供应商完全未达到要求。 Does the QC department operate separately from the Production 6.1 department?

10% is not met at 4 all.

3 Yes No: The requirement Vendor supporting comments and/or remarks DS auditor score DS supporting comments and/or remarks QC部门和生产部门是分开的吗？ 0 Vendor score 极差: 供应商完全未达到要求。 Section 供应商支持性评论和/或注释 DS审计员得分 DS支持性评论和/或注释 供应商得分 remarks DS supporting comments and/or score auditor DS remarks and/or comments supporting Vendor Vendor score The sales department will verify all the Importance (%) Section DS支持性评论和/或注释details and make the production DS审计员得分 供应商得分 Vendor supporting comments and/or remarks DS供应商支持性评论和/或注释 auditor score Are product DSspecifications supportingand comments and/or remarks Vendor score approval samples reviewed prior to Section 部分重要性 (%) notification.All departments strictly Importance (%) Equipment maintenance is performed every 6.4 5% comments and/or 4 3 productionDS支持性评论和/或注释 or at the pre-production remarks auditororder.The score sample DS supporting comments and/or remarks 供应商支持性评论和/或注释 DS审计员得分 Vendor scoremeeting? Vendor supporting 4 3 供应商得分 follow the DS production Importance (%) 部分重要性 (%) quarter. 在生产或在预生产会议之前，产品的规格和批准样品会经受审查吗？ will be DS审计员得分 sent to the production 供应商支持性评论和/或注释 DS支持性评论和/或注释 Does the company have proper sign boards earmarking the area of 供应商得分 There is no special laboratory, but 部分重要性 time after at any(%) Yes.It will be visible department for confirmation separately.

3 4 personnel to 15%will be specialized 7.1 lab for testing the incoming goods? operations?

Do you have your own there Lighting is adequate in accordance with factory. the entering Is there a written Safety, Health & Environment (SHE) policy, communicated to 20% 3 3 4 3 公司是否有正确的标志牌，指示操作区域？ 是否拥有自己的实验室对到厂原材料进行检测？ conduct on-site testing of raw There are no written documents, but SEDEX and ISO9001 safety standards.

QC is spot check, not all products are and understood by staff?

Does the QC ensure all finished products3meet clients Standards and howare trained in safety, hygiene tested one by one.Since materials.

8.1 20.0% 2 the product will workers Lighting is adequate in from accordance witheasily identifiable? 公司是否制定了书面的安全卫生与环境（SHE）政策，并已进行内部沟通使员工 6.5 is this ensured?

20% 3 3 be damaged after the inspection, QC can the facility Are exits 4 3 and environmental requirements. only make a few sample checks in the The10% specialist will issue 3 Yes. QC能确保所有的成品都能达到客户的标准吗？怎样确保的？ 4 the invoice SEDEX and of ISO9001 safety standards.

Is there a procedure7.2 for the acceptance incoming goods? 对其含义有了充分的理解？ 工厂的出口是否容易辨认？ 20% 4 3 and receive the goods after confirming production process.

0

0

Section Importance (%) 部分重要性 (%) Does the equipment appear to be clean and in good condition? 机器设备是否保持清洁并处于良好状态？ Is there adequate lighting in the production area? 生产区域的照明设备是否充足？ Is there adequate lighting in the finishing / inspection area? 加工区和检查区的照明是否充足？

12%

5.1

8% 8%

5.2

Is there adequate lighting in the packing / storage area? 包装区和存储区的照明是否充足？

对到厂原材料是否有一个专门的确认接收程序？

8%

5.3 Is there a standard work instruction (preparation)? 有标准的工作指令吗（准备）？

What tests are performed in order to validate compliance to the specs prior to expediting the goods to the client: 有何种确认生产要求的测试来加快货物运往客户 What controls are performed during production and recorded for traceability purposes: 在生产和跟踪记录中采取什么控制方法： Good standard of housekeeping on the production floor? 生产车间地面是否有良好的整理标准？ Section sub-total 部分小计

4

7.3

Lighting is adequate in accordance with 3 have a clean canteen? the facility Does SEDEX and ISO9001 safety standards.

工厂是否有清洁的餐厅？ Is there a testing procedure for incoming goods?will The sales department issue the 20% 对到厂原材料是否有一个专门的检测程序？ production notice, and then the

8.2

have atoclean changing room?

Does the facility purchasing department will start 7.4 14% 4 maintained 4 Are adequate records to show thethe quantity and工厂是否有清洁的更衣室？ the status of and purchase auxiliary materials, 5.4 non-conforming materials? then carry out production after it is in 10% 8.3 place. 是否留存有充足的记录来显示未被确认材料的数量和状态？ 7.5 20%

5.5

4

No: The requirement is not met at all. 极差: 供应商完全未达到要求。

isSHE no problem the materials.

Are there clearlythere defined roles andwith responsibilities, communicated to and The workers will be responsible for the The workers have no objection to the 3 Yes. 20.0% 10%raw materials Our not complex understood are by4staff?

4 3 process and will Do workers perform quality inspection at each operation? products in their own 6.6 clear 10% definition of4 SHE. 工人会在每个生产环节进行质量检查吗？ be fined if quality problems are 3 products, and the testing is very 3 公司是否清楚定义了SHE的角色与职责，并使其在员工内部得到沟通和理解？

3

detected.

simple.

2 Non-flammable 4 (e.g. smoke, heat, solvent vapor, Yes. 10% Facilities are fitted with automatic fire detection and explosive items, with The front-line staff has the Do production operators and/or in-line inspectors have the ability to stop responsibility to report to the superior 6.7 10% 3 production due to quality concern? break system.

The systems are regularly maintained basic fire extinguishing facilities.And immediately, and the superior leader 3 glass) linked to a fire alarmNo records.

3 由于质量问题，作为一线生产操作人员或检查人员有能力停止生产吗？ 15.0% 3 2 judges how to operate.The damaged and tested.

24 hours will be workers in the factory, Does the company have statistics about work accidents? first signs of fire will be put out 车间装配与火警报警系统相连的自动火警检测设备（例如烟雾、热量、溶剂蒸气 all quality/inspection records identified, indexed,3 filed,the collected, so far. accidents There have been no Are 3 15% Sample test.The 公司是否有工伤事故的有关统计数据？ production director in time.

6.8 stored, and maintained (traceability)?

5% 4 Material is simple product, quality is Yes 、 易碎玻璃）。系统需定期进行维护和测试。 3

shall the 是否所有的质检记录都被归类, 编索, 归档, 收集, 存储和保养？ Is material clearly labeled with identity and calculate is it possible to delivery determine time. it’s constant and unified.It's not a There is a secure source of water for fire fighting available, a hydrant system 3needs, 3 and quality status? diversified product.So as long as sanitary and hygienicfixed to basic 10% access company theis Does The supplier has audited their suppliers and all incoming materials are If there a paper provide tube, the company's hose reels.

For high to riskthe areas there shouldstored be an automatic fixed fire according requirements in 材料是否有明显的标识符来辨明它的品质状况？ Inat accordance with SEDEX and ISO9001 traceable upstream. Audits of their suppliers are on3file either the Yes. 4 20% facilities. maintained bathroom properlythe and inside as drinking such code 7.6 internal will bewater affixed Upstream 8.4 15.0%location on this survey or4another location. fighting system sprinklers, foam).

20% 4 3 the database are(e.g. qualified products.

6.11 5% 3 management standards. tube, through the code can know when and 公司是否能满足基本的清洁卫生需求，如饮用水、维护良好的洗浴设施？ 厂区有用于消火栓系统和固定式软管卷盘用来灭火的可靠水源。对于高风险地区 供应商审核其上游供应商和所有来料可追溯其来源。审计文档在审计发生地 which workers produced.

Direct container loading products will 或其他地点应该有备案。

3

3

suppliers3 are legitimate enterprises and long-term partners.

3

Yes.There will be contract records between us and the supplier, and the supplier can trace the source of raw materials through the internal 3 information of their factory.

3

Suppliers are long-term partners

3

，需要安装全自动固定消防系统（例如喷水装置、泡沫灭火器）。

be supervised in the factory.LCL In accordance with SEDEX and ISO9001 Raw materials are traceableto through the process into a given finished Is any system in place to verify the age of employees 10% 4 3 through identity the factory Yes,when workers enter products made on pallets and management standards.

All staff are trained in20% basicare fire usually precautions and Evacuation drills are product lot and its effectiveness is tested.

Do you avoid contamination transportation and how?

4 4 evacuation.

7.7in the process ofdocumentation their id sign contracts, passports, etc.)? 4 certificates,10% (birth 5.6 3 6.12 they copy Traceability film.The domestic performance is documented. practiced. There protected is a trained by on wrapping site auxiliary fire team with nearby municipal fire keep them.

100% 在运输途中你们会采取措施来避免货物收到污染吗？如何做到？ 78.5% cardsand 公司是否有制度通过身份证件（身份证、护照等）对员工年龄进行核实？

transportation association and the brigade response. transportation company guarantee the 所有员工都接受基本的火灾预防和疏散训练。需进行火灾疏散演习。厂区现场训 Proof (supporting documents) or additional comments 证明 (支持性文件) 或附加评论。 100% Section sub-total 部分小计 price. 练的辅助消防队得到市政消防队的快速反应支持。 6.13 There are specialized cooperative Factory and warehouse equipped with material handling equipment? (fork companies to provide forklift and 5.7 4 3 lift, Proof pallet truck) 或附加评论。 (支持性文件) comments 证明Storage (supporting documents) or additional10% of flammable and hazardous materials is assessed trailer service at any time.It won'tand precautions are 工厂和仓库是否配有材料处理设备？（如叉车和拖车） 6.14 delay the company's use.

8.6 documented and implemented.

Section sub-total 部分小计 100% 75.0% 需对易燃和危险材料的储存进行评估，并制定和执行相关预防措施。

8.5

Proof (supporting documents) or additional comments 证明 (支持性文件) 或附加评论。

Section sub-total 部分小计

6.15

任何一个产品批次的原料可追溯其来源，其有效性是测试过的。 15.0% 4 可追溯的结果有存档。

There is an approved supplier’s list and all goods77.5% are bought only from approved suppliers. 有经批准的供应商的名单，只能从核准的供应商购买所有商品。

10%

3

2 times per years 5%

4

No hazardous materials.Flammable are also stored Yes,the warehouse management will keep 3 3 the records. vents and other Settings.

The warehouse management will strictly

A release system exists for all incoming materials and release criteria auxiliary materials 5% have been established for each raw 15.0% 4 and packaging material. separately, with air 所有原材料有一个释放程序，每种原料和包装材料都建立有释放标准。

Who 100% has the authority to reject non-conforming purchased material?

Explain 有专人拒绝不合格的外购材料吗？请解释

5%

4

Proof (supporting documents) or additional comments 证明 (支持性文件) 或附加评论。 6.16

Do you have daily on line quality inspection(Y/N)? 贵司是否有现场日常品质检验？

10%

Section sub-total 部分小计

100%

Proof (supporting documents) or additional comments 证明 (支持性文件) 或附加评论。

4

verify the incoming materials according to the notice. If 66.3% there are any quality problems, they will directly return to the supplier and refuse to enter the warehouse.

The factory doesn't have much in common.If there is any quality problem of daily products, the workers will report it in time and then check it.

2

3

3

73.8%

Following the example charts of what detail aspects to be check/audit during the visit 9. Certifications 10. Supplier pictures

And an Audit Summery will be created automatically based on the scoring which will give a total score and detail score per aspect to support the client to evaluate the supplier Business license 营业执照

Tax register license 税务登记证

Factory Entrance

Organization license 组织机构代码证

Factory Entrance

Supplier Name: 供应商名称: Audit Date: 审计日期: Audit Lead: 审计主管:

Supplier Name August 30, 2018 Kathy Lu

Supplier Representative: 供应商代表:

Contact Name

Auditors:审计员:

Kathy Lu

Factory Entrance

Audit Summary Graph 审计摘要

Audit Scoring审计

100

Scoring Level 评分等级

Description 说明

Score 得分

Excellent 优秀

Supplier meets the requirements to an excellent standard with no improvement required. 供应商达到优秀标准要求，无需作出改进。

> 90

Good 良好

Supplier meets the requirements to a good standard with some room for improvement. 供应商达到良好标准要求，需改进的空间有限。

71 - 90

Acceptable 合格

Supplier meets the minimum acceptable standards and there is room for improvement. 供应商仅满足最低合格标准要求，仍有较大改进空间。

55 - 70

Poor 较差

Supplier is below the minimum acceptable standard and there is significant room for improvement. 供应商未满足最低合格标准要求，改进空间很大。

< 55

75

75

Show Room

Show Room

Show Room

50

Standard certificate 标准证书

Standard certificate 标准证书 Office

Standard certificate 标准证书 Office

Office

25

Weight 权重

26

10% 15% 12

11

10

9

15% Overall score 总分

8. SHE Management 8. 安全、卫生与环境管理

7. Health & Safety Conditions 7. 卫生与安全条件

6. Quality Management 6. 质量管理

Warehouse

Equipment

5. Material Handling 5. 材料装卸

Warehouse

Equipment

3. Overall Management 3. 总体管理

Equipment

8 4. Production 4. 生产情况

0

Workshop

10% 15% 100%

Score 得分 9 12 11 26 8 10 75

Warehouse

Overall Comments 总体评价 This supplier has more than 15 years experience in cleaning sponge industry and their main product is cleaning sponge/cloth. They had SEDEX since 2 years ago.

Workshop

35%

Audit Area 审计领域 3. Overall Management 3. 总体管理 4. Production 4. 生产情况 5. Material Handling 5. 材料装卸 6. Quality Management 6. 质量管理 7. Health & Safety Conditions 7. 卫生与安全条件 8. SHE Management 8. 安全、卫生与环境管理 Overall score 总分

Workshop

DS Recommendations: ★★★★ This supplier obivously has a lot of experience producing various cleaning sponges. As no certification is needed and it's risk free for client and DS, they are recommended for client products.

Recommendations for Improvement 改进建议 Separate QC/lab room should be set up performing whole QC on more aspects instead of checking in the workshop.