Fibreglass Heat – Protection Tubing / Sleeving

Dragon Sourcing - 龙 源 Your Tailored Sourcing Approach to LCC Sourcing

Fibreglass Heat-Protection Tubing/Sleeving sourcing in China – Case Study Shanghai, Oct 06th, 2021

Agenda

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1.

Objectives and Timeline

2.

Approach

3.

Result

2

Objectives and Approach Context Objectives: • To find a Chinese high-quality but low-cost alternative to the Heat Protection / Fibreglass Sleevings of competitors.

• To perform sourcing services for Fibreglass Heat-Protection tubing/sleeving. This includes in the same category such products as: - Silicone Coated Fibreglass Braid - Aluminium Coated Fibreglass Braid - Heavy Silicone Coated Fibreglass Braid - Adhesive Alu / Fibreglass Braid - Silicone Coated Fibreglass Patch Braid - Resin Saturated Fibreglass Braid Geographical scope: • Mainland China Deliverables for stage 1: 1. Supplier database 2. RFI-RFQ template 3. RFI-RFQ analysis report 4. Pricing Benchmark between suppliers for comparison for comparable products 5. Supplier profiles and ranking Deliverables for stage 2: 1. Samples 2. Audit reports 3. Contract(s)

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DS Approach consists in the following work steps: Stage 1: Supplier Pre-Qualification 1. Work with the Company to define and understand the products and requirements (specs, volumes, materials, production technology requirements) 2. Identify long list of potential suppliers in the interested countries by leveraging B2B Websites, DS Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References.

3. 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. 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; prepare pricing benchmark 5. The RFI-RFQ is translated in relevant languages and distributed to the suppliers, with telephone follow-up to push for maximum participation. Dragon Sourcing to make sure the maximum possible numbers participate and Dragon Sourcing to prepare and administer the pricing benchmarking via Excel overview 6. Develop with the Company a balance score card to evaluate suppliers according to RFI/RFQ 7. Analysis of RFI-RFQ responses and preparation of a report which profiles & objectively ranks the suppliers by capability, including a recommendation for those to include in the sample development process Stage 2: Selection & Contracting 8. Managing the sample development (sample collection) and testing iterations to determine which suppliers can meet the quality and decide which supplier(s) to include in the audit process.

9. Organize a consolidation of all needed 3-8 samples from all possible potential suppliers and send them clearly labelled and separated by company along with all needed datasheets to client in Germany for extensive testing and feedback.

10. Planning the audit schedule (based on the feedback from samples by client), budget, and drafting the Audit Questionnaire that will be used for the supplier self-assessment and on-site audits.

11. Distribution of the Audit Questionnaire to suppliers for their self-assessment (and to get them prepared), followed by onsite audits, with or without client’s buyers / management team.

Focus is management, logistics, production & quality.

12. Analysis of the audit results, together with RFI/RFQ results, and preparation of an audit and recommend which supplier(s) to include in final negotiations.

13. Conducting final negotiations with the shortlisted suppliers, and facilitating contracting between selected suppliers and client.

Stage 1 (8 steps) was finished in 7 working weeks.

W1

W2

W3

W4

W5

W6

W7

Aug 16

Aug 23

Aug 30

Sep 6

Sep 13

Sep 20

Sep 27

Steps

1. Demand Analysis

2. Supply Market Analysis

3. Telephone Pre-screening

RFI/RFQ template approved

4. Develop RFI-RFQ

5. Administer the RFI-RFQ

6. Develop a balance score card

7. Analyze RFI-RFQ Responses

Not started

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Started

Finished

Milestone

Agenda

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1.

Objective and Timeline

2.

Approach

3.

Result

5

Demand Analysis - 5 products requested by client #

Product Name

Photo

Construction

Quote Volume (m)

1

Reflectsleeve 1451 – Aluminum / Glass Fiber Sleeve

Outer Layer: Aluminum Inner Layer: Fiberglass multifilament

85,000

2

ReflexWrap 1463 / 1466 – Aluminium / Glass Fiber Wrap

Outer Layer: Aluminum Inner Layer: - Warp Yarn: Fiberglass multifilament - Fill Yarn: Polyester (PET) monofilament

53,000

3

Textalu 1202 – Silicone Coated Fiberglass Sleeve

Aluminized silicone coating and fiberglass multifilament

272,000

4

ThermFlex 1210 – Heat treated and saturated braided fiberglass sleeve

Braided Fiberglass multifilament

248,000

5

ThermFlex® 1226

Knitted Fibreglass

248,000

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Supplier identification: 42 suppliers were identified from China, leveraging multiple sources of information & from existing DS database.

Confidential •

Full sourcing process including building long list of supplier databasewas done online on the DS e-sourcing tool GSP

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7

Supplier pre-screening: This process was to filter the long list of suppliers prior moving them to the ‘Administer RFI/RFQ’

No

Pre-screening questions

Criteria

1

Is your company a manufacturer or trader?

Must a manufacturer to produce at least 1 product out of 5

2

Does your company have ISO9001?

3

Does your company have IATF 16949?

Preferred but not a Must.

4

Does your company have experience exporting this type of product to Europe?

Preferred but not a Must.

Must Yes

• Pre-screening process is a filtration stage to discard the suppliers not able to meet the minimum key criteria from a large database.

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

• Phone screening stage should be limited to key questions only.

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8

RFI/RFQ administration process: Online RFI created and sent to suppliers from DS GSP platform.

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Online score card created according to RFI and used to rank suppliers

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10

Agenda

© 2021 Dragon Sourcing. All rights reserved.

1.

Objectives and Timeline

2.

Approach

3.

Result

11

Total 42 suppliers identified, 31 suppliers passed pre-screening, 11 suppliers feedback on RFI/RFQ.

Step

China

# of suppliers identified

42

# of shortlisted suppliers after pre-screening

31

# of suppliers failed in pre-screening

11

# of suppliers submitted RFI & RFQ

11

# of suppliers rejected to submit RFI & RFQ

20

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12

Unit price comparison - 11 suppliers quoted.

RFI Score

#

1

2

3

4

5

Reference Products Name

Reflectsleeve 1451

ReflexWrap 1463

Textalu 1202

Thermflex 1210

Thermflex 1226

67

75

72

90

63

82

64

60

62

86

76

Diameter

Target price

12.7mm

XXX

30,000

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

25.4mm

XXX

20,000

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

31.8mm

XXX

35,000

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

12.7mm

XXX

35,000

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

19.1mm

XXX

18,000

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

6mm

XXX

120,000

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

10mm

XXX

84,000

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

18mm

XXX

68,000

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

27mm x 450mm Saturated Glass Fibre "EGR“ Sleeve (with Acrylic coating or 27mm x 100mm Acrylic/Silicone mixed coating) 27mm x 80mm

XXX

82,000

XXX

XXX

XXX

XXX

XXX

XXX

82,000

XXX

XXX

XXX

XXX

XXX

XXX

84,000

XXX

XXX

XXX

XXX

XXX

27mm x 450mm

XXX

82,000

XXX

XXX

XXX

27mm x 100mm

XXX

82,000

XXX

XXX

XXX

27mm x 80mm

XXX

84,000

XXX

XXX

XXX

Products Description

Alu. coated Glass Fibre sleeve

Alu. coated Glass Fibre wrap

Silicone Coated Glass Fibre Sleeve (Silicone emulsion that contains Aluminium powder)

Knitted fibreglass

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Quote Vol. Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier (m) 1 2 3 4 5 6 7 8 9 10 11

Price below the target

Reflectsleeve 1451 – Aluminum / Glass Fiber Sleeve - 5 suppliers quoted below the ‘target price’ and 3 were recommended for qualification stage

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Matrix of recommended suppliers for sampling

Supplier 4

1

Reflectsleeve 1451

yes

2

ReflexWrap 1463

yes

3

Textalu 1202

4

ThermFlex 1210

5

Thermflex 1226

© 2021 Dragon Sourcing. All rights reserved.

Supplier 6

Supplier 2

Yes

Supplier 3

Supplier 1

yes

yes

yes

yes

Supplier 5

yes

yes

yes

yes

yes

Supplier 8