Decorative Pots Case Study by Dragon Sourcing

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Glass and Wood Decorative Pots SE Asia, Eastern Europe & Turkey Sourcing Project Case Study

Agenda

Š 2018 Dragon Sourcing. All rights reserved.

1.

Project Planning and Sourcing Strategy

2.

Progress Reports

3.

RFI Report Example

2

Stage 1: Supplier Pre-Qualification No.

Steps in stage 1

1.

Demand Analysis Work with the client to define and understand the products and requirements (specs, volumes, current unit prices, delivery destinations of delivery/consumption).

2.

Supply Market Analysis Identify long list of potential manufacturers in target countries by leveraging B2B websites, DS database, fair • Supplier Long List catalogues, Chamber of Commerce, magazines, network, references.

3.

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

• Shortlist for RFI-RFQ process

4.

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.

• RFI-RFQ Template • Balanced Scorecard

5.

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

• Completed RFI-RFQ’s

6.

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

• RFI-RFQ Report • Supplier Profiles • Proposed Shortlist for Audit.

© 2018 Dragon Sourcing. All rights reserved.

Deliverables

3

• Kick-Off Report

Objectives and approach DS Approach consists in the following work steps,

Context Project Objectives: • Identify and recommend new potential competitive suppliers

Stage 1 1.

2.

3.

4.

5.

6.

Category and Scope • Wood : SE Asia • Glass: China, East Europe, Turkey Example Products in the Project Scope:

© 2018 Dragon Sourcing. All rights reserved.

4

Demand Analysis Supply Market Analysis Telephone Pre-screening Develop RFI/RFQ Conduct RFI/RFQ Administration Analyze RFI/RFQ Responses

Project Schedule Project is scheduled to be completed in 9 weeks.

Steps

Duration/week commencing

1. Demand Analysis

1

2. Supply Market Analysis (Long list supplier database)

2

3. Pre-screening the identified suppliers

2

4. Develop RFI/RFQ template for validation

1

5. Administer RFI/RFQ process

3

6. Analyze responses & submit report

2

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

1

2

today Not started

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5

Ongoing

Finished

Holiday

Milestone

Demand Analysis, The approximate yearly volumes and estimated yearly spend

#

Category

Number of SKU’s in category

1

Wood

74 (total historical)

units

28967

$391,153.05

2

Glass

229 (total historical)

units

88806

$1,720,766.91

Š 2018 Dragon Sourcing. All rights reserved.

Estimated Yearly Volumes

6

Estimated yearly spend in US$

Pre-screening Stage to filter unsuitable suppliers before the RFI-RFQ process.

No

• •

Examples of Pre-screening question

Importance

1

•

2

• Do you have export license?

3

• Any quality certification like ISO 9001?

Good to Have

5

• Do you have WRAP certification or similar social compliance?

Good to have (RFI)

6

• Do you have LEED or similar certification?

Good to have (l RFI)

7

• ....................

Are you manufacturer or trader?

Traders Discarded

Must have

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

TBC: To be confirmed.

© 2018 Dragon Sourcing. All rights reserved.

7

Agenda

Š 2018 Dragon Sourcing. All rights reserved.

1.

Project planning and Soucing Strategy

2.

Progress Reports

3.

RFI Report Example

8

Supply market analysis table for each project step

Wood Process

Supplier Identification

Glass

Steps

Total SE Asia

China

Turkey

East EU

• Suppliers identified

115

90

9

21

235

• Supplier passed prescreening

45

37

2

12

96

• Suppliers failed Prescreening

73

53

7

9

142

• RFI-RFQ sent

45

37

2

12

96

• Intend to respond

10

15

2

9

36

• Don't intend to respond

35

17

0

3

55

• Number of both RFI-RFQ received

9 +1 RFI

9

1+1 RFI

7+2 RFI

30

Pre-screening

RFI-RFQ Administration

RFI/RFQ finished © 2018 Dragon Sourcing. All rights reserved.

9

RFQ Results of Wood Category showed savings ranging from 15 to 25% THAILAND Supplier 9 Original FOB Wood Wood Type price Type USD/pc

INDONESIA

Supplier 4 FOB Wood price Type USD/pc

Supplier 8 FOB Wood price Type USD/pc

Supplier 1 FOB Wood price Type USD/pc

VIETNAM

Supplier 10 FOB Wood price Type USD/pc

Supplier 6 FOB Wood price Type USD/pc

Supplier 7 FOB Wood price Type USD/pc

Supplier 5 FOB Wood price Type USD/pc

Supplier 2 FOB Wood price Type USD/pc

#

Product Code

1

31771

Teak

NA

NA

$21.36

Teak

$11.00

Teak

$12.55

Teak

$24.35

Teak

$13.50

Teak

NA

NA

NA

NA

$30.00

Acasia

2

032908

Teak

NA

NA

$15.06

Teak

$9.00

Teak

$8.60

Teak

$14.75

Teak

$12.00

Teak

NA

NA

NA

NA

$13.00

Acasia

3

034868

Teak

NA

NA

$15.06

Teak

$7.00

Teak

$6.85

Teak

$9.35

Teak

$10.00

Teak

NA

NA

NA

NA

$10.00

Acasia

4

031770

Teak

NA

NA

$15.06

Teak

$6.50

Teak

$9.55

Teak

$22.75

Teak

$12.00

Teak

NA

NA

NA

NA

$10.00

Acasia

$4.99

Alocasia Wood

$3.20

rubber wood

$2.55

nacreou s wood or rubber wood

$2.50

Acasia

$2.50

Teak

$3.75

Teak

$2.95

Teak

$3.50

Teak

$1.50

Rubber wood

$1.10

nacreou s wood or rubber wood

$2.00

Acasia

5

Picture

7451-027

Alocasia

6

7451-028

Paulownia Wood

$2.30

Acasia

$3.37

Paulown ia Wood

7

4938-134

Teak

NA

NA

$1.99

Teak

$4.00

Teak

$5.30

Teak

$2.60

Teak

$9.00

Teak

NA

NA

NA

NA

$3.00

Acasia

8

8897-029

Plywood

NA

NA

$9.73

Ply wood

$6.00

Ply wood

NA

NA

$2.75

Ply wood

$10.00

Teak

NA

NA

$1.91

Pine veneer covered plywood

$4.50

Acasia

© 2018 Dragon Sourcing. All rights reserved.

$3.70

Acasia

$4.50

Teak

$4.85

10

Teak

$3.65

Teak

$5.00

Teak

Highest Price

Lower Price but different features

Best Price

RFI Scoring of Wood Category Suppliers

Rank 1 2 3 4 5 6 7 8 9 10

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11

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

Market Total Score Indonesia 81% Vietnam 74% Thailand 63% Thailand 60% Vietnam 59% Indonesia 57% Vietnam 57% Indonesia 53% Thailand 49% Indonesia 44% 60% Av

Recommended Suppliers for Wood Category

RFI Rank 1 2 3 4 5 6 7 8 9 10

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

Market Indonesia Vietnam Thailand Thailand Vietnam Indonesia Vietnam Indonesia Thailand Indonesia

Total Total Score Rate 81% 80% 74% 75% 63% 65% 60% 83% 59% 68% 57% 90% 57% 70% 53% 68% 49% 78% 44% 60% 1st Group Suppliers 2nd Group Suppliers

Š 2018 Dragon Sourcing. All rights reserved.

12

# of Quoted Items 7 8 0 8 3 8 2 8 2 8

RFQ Results of Glass Category showed savings of 16% to 28% CHINA

#

Project Code

Supplier 7 Supplier 12 Supplier 8 Supplier 5 Supplier 13Supplier 18

Supplier Supplier 20 Supplier 9 19

FOB USD/pc

FOB FOB USD/pc USD/pc

Picture FOB USD/pc

FOB USD/pc

FOB USD/pc

FOB USD/pc

FOB USD/pc

FOB USD/pc

TURKEY

SLOVAKIA

Supplier 6

Supplier 1

FOB USD/pc

EXWNotes USD/pc

POLAND Supplier 15 EXWUSD/pc

Notes

Supplier 10 FOB USD/pc

Notes

Supplier 16 EXWUSD/pc

Notes

Supplier 4 FOB USD/pc

Notes

1

8898-011

1.90

0.95

1.25

0.98

1.22

1.91

1.43

0.79

1.11

3.10

5.83

clear glass, no holes, ind.pack.

NA

NA

2.35

no holes, no frosting, ind.pack

1.81

cold cut, no holesfrostingaccessori es,

2

7453-002

1.70

2.50

3.40

1.60

1.21

NA

3.73

2.23

2.61

3.80

NA

NA

NA

NA

NA

NA

NA

NA

2.72

hot cut, no accss, ind.

Pack

NA

NA

1.60

cold cut, no accessori es, individual packing

2.80

hot cut, no accss, ind.pack.

NA

NA

NA

NA

Supplier 3 FOB USD/pc

Notes

Supplier 11 FOB USD/pc

Notes

1.10

Machine Madesized-10h20cm, clear

3.20

no holes and frosting, no accss

NA

NA

NA

NA

0.90

MachineM. size:d-10, h-17cm, clear glass, no accss,

NA

NA

3

8896-029

2.30

1.20

1.70

NA

0.70

NA

0.78

0.79

NA

3.10

5.83

only glass, individual packing

4

7449-035

1.60

0.90

2.25

1.10

2.10

1.73

1.37

0.96

1.04

3.80

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

5

7453-020

0.85

0.90

1.45

1.05

NA

1.58

1.69

1.19

0.65

2.90

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

6

7452-007

0.85

1.20

1.60

1.00

1.75

1.64

1.19

0.99

0.86

2.40

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

1.13

hot cut, size h10cm, d12cm, opening – 7cm, no base, ind.pack

5.80

hot cut, no accessori es, ind.pack

NA

NA

2.95

only glass

2.15

hot cut, no base, only glass, ind.pack.

7

8896-015

1.65

3.50

2.60

NA

1.90

NA

2.11

NA

NA

3.50

6.51

no base

9.27

hot cut, no accsss, ind.pack

8

7446-004

1.20

0.85

1.70

1.09

1.05

1.87

1.76

1.21

1.11

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

9

8896-028

0.90

0.65

1.20

0.88

1.52

1.69

1.52

1.21

1.26

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

10

8896-018

1.20

2.75

2.70

NA

3.50

2.48

2.72

1.62

2.33

3.50

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

Best Price © 2018 Dragon Sourcing. All rights reserved.

13

Lower Price but different features

Highest Price

RFI Scoring of Glass Category Suppliers

Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

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14

Supplier Name Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 Supplier 10 Supplier 11 Supplier 12 Supplier 13 Supplier 14 Supplier 15 Supplier 16 Supplier 17 Supplier 18

Market

Total Score

Slovakia Turkey Poland Poland China Turkey China China China Poland Poland China China Czech Rep Poland Poland Poland China

87% 86% 83% 79% 75% 75% 74% 74% 73% 73% 73% 71% 70% 66% 65% 65% 57% 54%

Recommended Suppliers for Glass Category

Rank

Supplier Name

1 2 3 4 5 6 7 8 9 10 11 12 13

Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 Supplier 10 Supplier 11 Supplier 12 Supplier 13

14

Supplier 14

15 16 17 18 19 20

Supplier 15 Supplier 16 Supplier 17 Supplier 18 Supplier 19 Supplier 20

Market

Total Score

# of quoted Items in RFQ

RFI available?

Slovakia Turkey Poland Poland China Turkey China China China Poland Poland China China Czech Republic Poland Poland Poland China China China

87% 86% 83% 79% 75% 75% 74% 74% 73% 73% 73% 71% 70%

3 Alternative Items Quotation 3 Actual Products+ Catalogues 3 9 15 20 20 11 2 Actual Products + Alternative Items quote+ catalogue 4 Actual Products + Alternative Items quote+ catalogue 20 13

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Alternative Items Quotation 5 4 Actual Products + Alternative Items quote+ catalogue Alternative Items Quotation 10 14 16

Yes Yes Yes Yes Yes No No

66% 65% 65% 57% 54% 0% 0%

1st Group Suppliers 2nd Group Suppliers Š 2018 Dragon Sourcing. All rights reserved.

15

Agenda

Š 2018 Dragon Sourcing. All rights reserved.

1.

Project planning and Soucing Strategy

2.

Progress Reports

3.

RFI Report Example

16

RFI Report Example : The company reports for each supplier have been delivered in pdf form including the documents (certificates, forms etc) from the suppliers.

Š 2018 Dragon Sourcing. All rights reserved.

17

RFI Report Example

Š 2018 Dragon Sourcing. All rights reserved.

18

RFI Report Example

Š 2018 Dragon Sourcing. All rights reserved.

19