Tapioca Starch Sourcing Case Study by Dragon Sourcing

Dragon Sourcing - éž™ ćş?

Delivering sustainable sourcing value from emerging markets

Tapioca Starch Sourcing in APAC Case Study

Agenda 1.

Introduction

2.

Sourcing Approach

3.

Conclusions

2

Context Background: • Client is one of the world's leading forest industry groups. In 2016, client's sales totaled € 9,8 billion. Client is present in 45 countries and has production plants in 13 countries. The company employs approximately 19,300 people worldwide. Client’s paper product offering ranges from publication and office papers to specialty papers for various end-uses.

Project objectives: • To deliver sustainable procurement savings through identifying and fully qualifying competitive suppliers in Vietnam capable of meeting the quality requirements.

Geographical scope: • Thailand • Vietnam • Cambodia Deliverables: • RFI / RFQ Template • RFI / RFQ report • Balanced Scorecard • Supplier profiles • Recommended audit supplier list

3

Agenda 1.

Introduction

2.

Sourcing Approach

3.

Conclusions

4

Below is the Dragon Sourcing standard 3 stage process

•

Key activities

•

Analyse spend category in detail – Specifications and quality requirements – Volumes – Deadlines Analyse supply market and identify potential suppliers

•

Shortlist suppliers based on RFI/RFP process

•

Manage P/O and agree payment terms and details (L/Cs,..)

•

Audit shortlisted suppliers

•

Check in process production quality

•

Select 2-3 suppliers for sample development process

•

Conduct pre-shipment QC

•

Arrange logistics

•

Manage supplier performance

•

Monitor new sourcing opportunities

Pre-qualify potential suppliers through an RFI process

•

•

Manage RFP process with prequalified suppliers

•

Conduct final negotiations and select suppliers

•

Analyse supplier responses and calculate fully delivered price (logistics, import duties, ADT,..)

•

Finalise Contract

•

Develop Business case and implementation plan

•

Procurement Operations

Supplier Selection and Contracting

Feasibility Analysis

Manage sample development process

For this project, only stage 1: Feasibility Analysis is required by client

•

Key activities

•

Analyse spend category in detail – Specifications and quality requirements – Volumes – Deadlines Analyse supply market and identify potential suppliers

•

Shortlist suppliers based on RFI/RFP process

•

Manage P/O and agree payment terms and details (L/Cs,..)

•

Audit shortlisted suppliers

•

Check in process production quality

•

Select 2-3 suppliers for sample development process

•

Conduct pre-shipment QC

•

Arrange logistics

•

Manage supplier performance

•

Monitor new sourcing opportunities

Pre-qualify potential suppliers through an RFI process

•

•

Manage RFP process with prequalified suppliers

•

Conduct final negotiations and select suppliers

•

Analyse supplier responses and calculate fully delivered price (logistics, import duties, ADT,..)

•

Finalise Contract

•

Develop Business case and implementation plan

•

Procurement Operations

Supplier Selection and Contracting

Feasibility Analysis

Manage sample development process

The first step for feasibility analysis was to develop a comprehensive understanding of the requirements Product Type

Year Volume for RFQ

Order Frequency

Packaging

Wet modified oxidized cook-up tapioca starch for surface sizing • Powder • White • No black specks • pH 6-7 • Brookfield Viscosity 10-30 cps • for Jet Cooking at point of use • Food Contact material (US Food and Drug Administration Regulation 21 CFR 178.3520)

500 tons/year 1,000 tons/year 1,500 tons/year

1 order/month

Bulk Bag, 20’ GP container

Wet End Starch (Cationic, Cross-linked)

Wet modified cationic and cross-linked cook up tapioca starch • Powder • White • No black specks • pH 5-7 • DS 0.030-0.035 • for Jet Cooking at point of use

4,000 tons/year 8,000 tons/year

1 order/month

Bulk Bag, 20’ GP container

Wet End Starch (Cationic)

Wet modified cationic cook up tapioca starch • Powder • White • No black specks • pH 5-7 • DS 0.030-0.035 • for Jet Cooking at point of use

2,000 tons/year 4,000 tons/year 8,000 tons/year

1 order/month

Bulk Bag, 20’ GP container

Wet End Starch (Cationic)

Wet modified cationic cook up tapioca starch • Powder • White • No black specks • pH 5-7 • DS 0.035-0.04 • for Jet Cooking at point of use

2,000 tons/year 4,000 tons/year 8,000 tons/year

1 order/month

Bulk Bag, 20’ GP container

Native tapioca starch • Powder • White • No black specks • pH 5-7 • Protein content <0.4%

2,000 tons/year 4,000 tons/year 8,000 tons/year

1 order/month

Bulk Bag, 20’ GP container

Product name

Surface Sizing Starch

Modified tapioca starch

Native tapioca starch

Native tapioca starch

Specifications

Then an extensive supplier data base is built in GSP leveraging multiple sources of information

8

If the category has already existed in GSP, we can add suppliers by product category

9

If the category does not exist in GSP, the external website can be accessed linking from GSP and the relevant suppliers can be added as per project wise

Drag the supplier link and drop

10

After building a supplier long list, a telephone pre-screening process is carried out to select the suppliers to be included in the RFI/RFQ process

No.

Pre-screening question

Reply

1

Are you black listed in the U.S. ?

Must reply “no”

2

Are you manufacturer or trader？

Must “manufacturer”

3

Are you familiar with paper industry or food industry?

Prefer to reply “Yes”

4

Do you have export license?

Must have

Remark •Phone screening process is a filtration stage from large database of suppliers identified to discard the suppliers not able to fit in the minimum key criteria’s.

•Phone screening stage should be limited to key questions only (normally 4-5 questions) •Please note, suppliers not able to answer the question for “Must have” will be considered as disqualified for next step of RFI /RFQ process.

•Please specify if any key question need to be included which should be consider as a MUST criteria for the supplier.

11

After completing the phone pre-screening process, we will begin to administer the RFI/RFQ process I. Company Background 2-1 Is your company a manufacturer, distributor or broker ?

If you are a manufacturer, please describe your commercial approach 2-2 (direct or Indirect Sales, through agents …)

2-3 What date was your company founded?

2-4 Ownership (State Owned/ Priviate/Foreign Investement) 2-5 Registration capital (USD) 2-6 What is the nationality/region of your company?

2-7 What is the workfloor size of your factory and warehouse (m²)?

2-8 How many employees do you have in total?

Do you have a good English speaker and writer in your factory? How 2-9 many are they?

2-10 Do you have an export license ?

2-11 How many years of export experience do you have?

Do you have any representation abroad? (Y/N) If Yes, which countries 2-12 the company is present?

2-13 What's your main products?

Do you have experience of providing Tapioca Starch for food industry 2-14 or paper industry?

2-15 Do your company own Tapioca farm?

III. Production Capacity Can your company produce Modified Tapioca Starch? If yes, what's the 3-1 total maximum production capacity ( tons/ year) in 2016? What's the actual annual production (ton/year) in 2016?

Can your company produce Native Tapioca Starch? If yes, what's the total 3-2 maximum production capacity ( tons/ year) in 2016? What's the actual annual production (ton/year) in 2016?

Company Backgroud

3-3

Do your company produce the Tapioca Starch in the right list? If yes, do you produce by your own or outsourcing?

Wet End Starch Surface (Cationic, Cross-linked) Sizing Starch DS: DS 0.030-0.035

Wet End Starch (Cationic) DS:0.035-0.04

Native tapioca starch

Equipment

Date acquired

Quantity

Production Capacity

Do you know US Food and Drug Administration Regulation 21 CFR 3-4 178.3520? And if your product can meet this regulation?

3-5 3-6 3-7 3-8 3-9

Sales & Management

R&D Lab

2017 Forecast

IV. Quality, Environmental and Product Certification

Quality Factory Control workers

2-16 How many people do you have in these positions?

Please list production equipment that you have Do you have a preventative maintenance programme in place (Y/N)?

Do you have a formal/documented Inventory Management System?(Y/N) Do you use ERP (Enterprise resource planning) system?

Do you follow the FIFO (fisrt input, first output)management with your stock?

Yes / No

4-1 What quality and environmental registrations do you have?

2016

2015

ISO 9001:2008 ISO 14000 Name of Certificate

Expiration date

Expiration date

4-2 Other company certifications do you have?

2-17 Total sales turnover (in USD) US (%)

Western South Others Total (%) EU (%) east Asia (%)

2-18 % Sales exports to the main markets (US, Europe, Japan) Customer Industry Country s 2-19 Please list your Top 3 tapioca starch customers in food industry

2-20 Please list your Top 3 tapioca starch customers in paper industry

II. Corporate Responsibility 2-21 Do you adhere to all rules and regulations in respect to child labor? (Y/N) 2-22 Are the working hours specified in the employment contract? (Y/N) 2-23 Do you adhere to all rules and regulations in respect to environmental issues?

Do you adhere to all rules and regulations in respect to health and safety issues?

2-24 (Y/N)

% of sales

Type of product

V. Quality Control and Testing Equipment 4-3 4-4 4-5 4-6 4-7 4-8 4-9 4-10 4-11

Quality and

Has the Company defined and documented its corporate quality policy, objectives and commitments to certificate Does the personnel responsible for quality have the authority to stop production to correct quality Does the Company investigate the causes of non conforming products and determine the corrective Do you have formal QC criteria for in-house quality control? (Y/N) Do you have daily on line quality inspection? (Y/N) Does your daily on line inspection carry for all batches or just some batches? (Y/N) What percentage do you achieve on average in out going quality measures (% rejected)?

How long do you keep the QC records?

Has the Company established and maintained a training plan to the personnel? (Y/N) Quotation Product Informtion Loading information FOB Price (US$/ton) CIF Changshu,China Price Price Pls Price Produc How many Year Price How many Product Order Packaging based on based provide FOB based on tion bulk Specifications Volume based tons/bulk Type Frequency Requirement Year on your port Year lead bags/20'c (tons) on MOQ bag?

Volume MOQ MOQ Volume time container Native tapioca Native 2,000 RFQ 1 order/ Bulk Bag, 20’ starch tapioca month GP container -Powder starch 4,000 12 -White

And GSP can track all the steps including phone screening process, RFI-RFQ process and so on

13

The RFI-RFQ responses are analyzed using a score card validated by the client Business information

Weight of criteria

Year Founded Registered capital in USD Total empolyees Workfloor size (M2) Business How many employees can communicate in English? information How many years of export experience do you have?

Turnover in 2017 in USD Turnover in 2016 in USD Turnover in 2015 in USD Do you have experience of providing Tapioca Starch for food industry or paper industry?

Do your company own Tapioca farm?

Top 3 tapioca starch customers in food industry Top 3 tapioca starch customers in paper industry Provide factory pictures Cooperation during RFI/RFQ Completeness of RFI/RFQ Subtotal Production

5% 5% 5% 5% 5% 5% 5% 5% 5% 10% 10% 10% 10% 5% 5% 5% 100% Weight of criteria

Total maximum production capacity for Modified Tapioca Starch (in tons)?

5%

Total maximum production capacity for Native Tapioca Starch (in tons)?

5%

Can you produce "Surface Sizing Starch" Production Can you produce "Wet End Starch (Cationic, Cross-linked)" Capacity Can you produce "Wet End Starch" DS:0.030-0.035 Can you produce "Wet End Starch (Cationic)" DS:0.035-0.04 Can you produce "Native tapioca starch" If your product can meet US Food and Drug Administration Regulation 21 CFR 178.3520?

Equipment list available preventative maintenance programme Do you have a formal／documented Inventory Management System?

Do you use ERP? Do you follow the FIFO management with your stock?

Subtotal Quality system ISO 9001 ISO 14001 Others Do you have daily on line quality inspection? (Y/N) Reject ratio Accept 3rd party QC QC records Test equipment available Subtotal

10% 10% 10% 10% 10% 10% 10% 5% 5% 5% 5% 100%

Scoring 1=< 20K tons;2= ≥20K tons and ≤50K tons;3= >50K tons and ≤80K tons 4= >80K tons and ≤100K tons;5= >100K tons 1=< 20K tons;2= ≥20K tons and ≤50K tons;3= >50K tons and ≤80K tons; 4= >80K tons and ≤100K tons;5= >100K tons 0=No;1=Yes but oursource;2=Yes and in house 0=No;1=Yes but oursource;2=Yes and in house 0=No;1=Yes but oursource;2=Yes and in house 0=No;1=Yes but oursource;2=Yes and in house 0=No;1=Yes but oursource;2=Yes and in house 0=No;1=Yes 0=No;1=Yes 0=No;1=Yes 0=No;1=Yes 0=No;1=Yes 0=No;1=Yes

Weight of criteria

Quality and certificate

20% 20% 10% 10% 10% 10% 10% 10% 100%

RFQ

Weight of criteria

Subtotal

20% 20% 20% 20% 20% 100%

Surface Sizing Starch Wet End Starch (Cationic, Cross-linked) Wet End Starch DS:0.030-0.035 Wet End Starch (Cationic) DS:0.035-0.04 Native tapioca starch

Scoring 1=After 2010; 2=from 2006 to 2010; 3=from 2000 to 2005; 4=before 2000 1= < 0.5M; 2= ≥ 0.5M and ≤ 1M;3= >1 M and ≤ 2M; 4= >2M 1=< 100 2= ≥100 and ≤200 3= >200 and ≤300 4= >300 1= < 5000m2;2= ≥ 5000 and ≤10000m2;3= >10000 and ≤ 15000m2;4= >15000m2 1= < 3 staff;2= ≥3 and ≤10 staff;3= >10 and ≤20 staff;4= >20 staff 1=Less than 5 years;2=5-10 years;3=More than 10 years 1= < 5M;2= ≥5 and ≤10M;3= >10 and ≤20M;4= >20M 1= < 5M;2= ≥5 and ≤10M;3= >10 and ≤20M;4= >20M 1= < 5M;2= ≥5 and ≤10M;3= >10 and ≤20M;4= >20M 0=No;1=only food or only paper;2=Both food and paper 0=No;1=Yes 0=No or Not provided;1=Local customers;2=National customers;3=International customers 0=No or Not provided;1=Local customers;2=National customers;3=International customers 0=No;1=Partly;2=All 1= Poor;2= Satisfactory;3= Excellent 1= Poor;2= Satisfactory;3= Excellent

RFQ

Scoring 0= No;1= Yes 0= No;1= Yes 0= No;1= Yes 0= No;1= Yes 0= Reject ratio>3%;1= Reject ratio 1-3%;2= Reject ratio <1% 0= No;1= Yes 0= No;1= Yes, less than 1 year;2= Yes, 1 to 3 years;3= Yes, above 3 years 0= No;1= Yes Scoring 0= above 15% higher than average price;1= From 5% to 15% higher than average price 2= From 0% to 5% higher than average price;3=From 0% to -5% lower than average price 4= From -5% to -15% lower than average price;5= Lower than -15%;

14

Max Score per criteria 4 4 4 4 4 3 4 4 4 2 1 3 3 2 3 3 3 Max Score per criteria

Weight of the section

30%

30% Weight of the section

5 5 2 2 2 2 2 1 1 1 1 1 1 2 Max Score per criteria 1 1 1 1 2 1 3 1 1 Max Score per criteria 5 5 5 5 5 5

40%

40% Weight of the section

20%

20% Weight of the section

10%

10%

RFI Score card analysis 19 suppliers’ RFI have been ranked, the maximum score is 72 points, the lowest score is 6 points, some suppliers’ scores are below 10 is because they only provide RFQ or very limited RFI information, 6 suppliers are recommended to visit and 8 suppliers maybe can be visited, most of suppliers only quoted for native tapioca starch Items quoted No.

Country

Supplier

Business Quality Total Production information system points Capability (max 30 (max 20 (max 100 (max 40 points) points) points) points)

No. of items quoted

Rank by RFI

Native Tapioca Starch

Surface Sizing Starch

Wet End Starch (Cationic, Cross-linked)

Wet End Starch (Cationic) DS 0.0300.035

Wet End Starch (Cationic) DS 0.0350.04

Recommend to visit

1

Supplier 1

27

16

30

72

1

1

Yes

No

No

No

No

Yes

2

Supplier 2

27

14

23

63

1

2

Yes

No

No

No

No

Yes

3

Supplier 3

23

17

16

56

1

3

Yes

No

No

No

No

Yes

4

Supplier 4

15

9

14

38

1

4

Yes

No

No

No

No

Maybe

5

Supplier 5

18

8

9

36

1

5

Yes

No

No

No

No

Maybe

Supplier 6

10

17

9

36

1

5

Yes

No

No

No

No

Maybe

7

Supplier 7

10

11

14

34

1

7

Yes

No

No

No

No

8

Supplier 8

17

6

12

34

1

7

Yes

No

No

No

No

9

Supplier 9

11

14

9

34

1

7

Yes

No

No

No

No

Maybe

10

Supplier 10

10

6

7

23

1

10

Yes

No

No

No

No

Maybe

11

Supplier 11

11

6

2

20

1

11

Yes

No

No

No

No

12

Supplier 12

2

4

0

6

1

12

Yes

No

No

No

No

13

Supplier 13

15

32

18

65

4

1

Yes

Yes

No

Yes

Yes

Yes

Supplier 14

18

21

18

57

3

2

No

No

Yes

Yes

Yes

Yes

Supplier 15

12

11

16

38

1

3

Yes

No

No

No

No

16

Supplier 16

0

4

0

4

1

4

Yes

No

No

No

No

Maybe

17

Supplier 17

4

6

0

10

1

1

Yes

No

No

No

No

Yes

18

Cambodia Supplier 18

1

7

0

8

1

2

Yes

No

No

No

No

Maybe

19

Supplier 19

1

5

0

6

1

3

Yes

No

No

No

No

Maybe

6

14 15

Vietnam

Thailand

15

RFI Score card analysis 19 suppliersâ&#x20AC;&#x2122; RFI have been ranked the maximum score is 72 points, the lowest score is 6 points, some suppliersâ&#x20AC;&#x2122; scores are below 10 is because they only provide RFQ or very limited RFI information, 6 suppliers are recommended to visit and 8 suppliers maybe can be visited, most of suppliers only quoted for native tapioca starch

(Total Points Max 100 points)

(No.of items quoted Total 5 items)

Recommend to audit

Maybe can be audited

16

RFQ analysis We received RFQs from 19 suppliers:16 suppliers only quoted for native tapioca starch, 1 supplier only quoted for 3 items of modified tapioca starch and 1 supplier quoted for native tapioca starch and 3 items of modified tapioca starch, 1 supplier quoted for native and 1 item of modified tapioca starch, below tables shows the detailed quotation for each supplier Quotations (US$/ton) No.

Country

1

Supplier 1

2

Supplier 2

3

4

Supplier

Vietnam

RFI total points Rank (max 100 by RFI points)

72 63

1

Native Tapioca Starch

Surface Sizing Starch

Wet End Starch (Cationic, Cross-linked

Wet End Starch (Cationic) DS 0.030-0.035

FOB

CIF

FOB

CIF

FOB

CIF

FOB

CIF

$300

$315

n/a

n/a

n/a

n/a

n/a

Wet End Starch (Cationic) DS 0.035-0.04

Recommend to visit

FOB

CIF

n/a

n/a

n/a

Yes

n/a

Yes

2

$335

n/a

n/a

n/a

n/a

n/a

n/a

n/a

$610 for Alpha modified starch

Sam brand: $350 another brand but same group: $325

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Yes

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Maybe

Supplier 3

56

3

Sam brand: $335 another brand but same group: $315

Supplier 4

38

4

$315

Supplier 5

36

5

$344

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Maybe

Supplier 6

36

5

$304

$305

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Maybe

Supplier 7

34

7

$375

$390

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Supplier 8

34

7

$320

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

5

Supplier 9

34

7

n/a

$335

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Maybe

10

Supplier 10

23

10

$308

$317

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Maybe

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

11

Supplier 11

20

11

2,000 tons:$340 4,000tons:$330 8,000 tons:$320

12

Supplier 12

6

12

$320

$320

n/a

n/a

n/a

n/a

13

Supplier 13

65

1

$353

n/a

$527

n/a

n/a

n/a

$527

n/a

$556

n/a

Yes

n/a

2,000tons:$545 4,000tons:$540 8,000 tons:$534

n/a

Yes

Supplier 14

57

2

n/a

n/a

n/a

n/a

4,000tons:$536 8,000 tons:$531

n/a

2,000tons:$541 4,000tons:$536 8,000 tons:$531

15

Supplier 15

38

3

$325

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

16

Supplier 16

4

4

$335

$340

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Maybe

17

Supplier 17

10

1

$323

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Yes

Supplier 18

8

2

$335

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Maybe

Supplier 19

6

3

$305

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Maybe

14 Thailand

18 19

Cambodia

17

Quotation summary for native tapioca starch 18 suppliers quoted for native tapioca starch, the lowest average FOB price is Cambodia US$321/ton, the highest average FOB price is Thailand US$338/ton (US$/ton)

Recommend to audit

Maybe can be audited Average FOB price for Thailand is $338/ton

Average FOB price for Vietnam is $327/ton

another brand but same group: FOB$315 CIF$325

18

If take off this highest price, the average price for Vietnam will be similar to Cambodia: $322/ton

Average FOB price for Thailand is $321/ton

Quotation summary for modified tapioca starch 3 suppliers quoted for modified tapioca starch, supplier 2 from Vietnam only quoted for 1/4 item, 2 Thailand suppliers quoted for 3/4 items

Quotation Summary for Modified Tapioca Starch

(US$/ton) $650

4

$610 $556

$550

$450

(No.of items quoted Total 4 items)

$610 for Alpha modified starch

$527

$536

$527 3

$536

$540

3

3

$350 2 $250

$150 1

1 $50

-$50

Viet Ma2 Supplier

SWI 13 Supplier

Vietnam

Piraab Supplier 14 Thailand

modified tapioca starch Surface Sizing Starch

modified tapioca starch Wet End Starch (Cationic, Cross-linked)

modified tapioca starch Wet End Starch (Cationic) DS 0.035-0.04

No of items quoted

19

modified tapioca starch Wet End Starch (Cationic) DS 0.030-0.035

0

Recommended reasons and locations for can be audited and maybe can be audited suppliers - Vietnam Map Recommend location to visit 1

Yes

RFI Rank by total points RFI

Supplier

City

Province

Supplier 1

Huyện Châu Thành

Tỉnh Tây Ninh

Tỉnh Tây Ninh

63

2

72

1

Recommended reasons • •

Top 1 ranking supplier for RFI Good price for RFQ

• •

Good scoring for RFI, and accepted price for RFQ Produce both native and modified Tapioca starch but the modified specifications seems different from client required Good scoring for RFI and good price for RFQ

1

Yes

Supplier 2

Huyện Tân Châu

1

Yes

Supplier 3

Tân Biên

Tỉnh Tây Ninh

56

3

•

1

Maybe

Supplier 4

Huyện Châu Thành

Tỉnh Tây Ninh

38

4

• Good price • Has experience for both paper and food industry

Supplier 5

Huyện Anh Sơn

5

• Accepted price • Has experience for both paper and food industry • Seems large factory but a lot of information not provided that’s why low scoring

Supplier 6

Huyện Tân Châu

5

• Good price and good production capability but not good ranking due to limited information provided for company business section • From their website, the company seems good • Can meet FDA regulation

7

• Accepted price • The company is large and experienced company for both paper and food industry • Not good ranking due to limited information provided for company business section and QC section

10

• Top 4 best price among all 3 countries price • The company seems good, not good ranking due to limited information

3

1

2

1

Maybe

Maybe

Maybe

Maybe

Supplier 9

District 1

Supplier 10

Huyện Tân Châu

Tỉnh Nghệ An

Tỉnh Tây Ninh

Ho Chi Minh

Tỉnh Tây Ninh

36

36

34

23

20

3

1 2

Recommended reasons and locations for can be audited and maybe can be audited suppliers - Thailand Map location

Recommend to visit

1

Yes

Amphoe Supplier 13 Mueang Nakhon Ratchasima

2

Yes

Supplier 14

2

Maybe

Supplier

City

Khet Suan Luang

Supplier 16 Khet Bang Rak

Province

RFI Rank by RFI total points

Recommended reasons

Changwat Nakhon Ratchasima

65

1

• Good scoring for RFI • Provide quotation both for native and modified Tapioca starch • Claimed they have supplied to client already

Krung Thep Mahanakhon

57

2

• Accepted RFI scoring and can produce modified Tapioca starch

4

• Accepted price • Not provided RFI • From website seems a good company can produce both native and modified Tapioca starch for both paper and food industry • Belong to Keng Seng Group

Krung Thep Mahanakhon

4

1

2

21

Recommended reasons and locations for can be audited and maybe can be audited suppliers - Cambodia Map Recommend to Supplier location visit

City

Province

RFI total points

Rank by RFI

Recommended reasons

1

Yes

Supplier Phnom Penh Krŏng Phnum Pénh 17

10

1

• Although they only provide quotations for native Tapioca starch but they claimed they can also produce modified • Seems a large company with experience for food industry from their website

2

Maybe

Supplier Bătdâmbâng Khétt Bătdâmbâng 18

8

2

• Good price and good production capability but not good ranking due to limited information provided for company business section • From their website, the company seems good

2

Maybe

Supplier Bătdâmbâng Khétt Bătdâmbâng 19

6

3

• Best price among all Cambodia suppliers and top 3 best price among all 3 countries suppliers • Not provided RFI

2

1

22

Agenda 1.

Introduction

2.

Sourcing Approach

3.

Conclusions

23

Conclusions • Compare to Thailand and Cambodia, more manufacturers are identified in Vietnam with lower price but most of them only produce modified tapioca starch • Thailand have more suppliers who can produce both modified and native tapioca starch but with higher price, one of client’s current supplier is in Thailand, but most of the Thailand suppliers would like to cooperate with client directly that’s why DS only receive 3 RFI-RFQ • Finally, 3 Vietnam suppliers are audited by client

24