Glass Gourd Sourcing Project Case Study – Dragon Sourcing

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

Case Study Glass Gourd Sourcing Project

Agenda

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1.

Objectives, approach, timeline & team

2.

Demand analysis

3.

RFI/RFQ Analysis and Supplier Recommendations

4.

Company Profiles

2

Objectives and approach Context

Project Objectives: • Identify and recommend new potential competitive suppliers for gourds.

1.

Countries and Scope: • Turkey • Visegrad Countries : -Czech Republic -Hungary -Poland -Slovakia • China

2.

3.

4.

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

5.

6.

7.

8.

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3

DS Approach consists in the following work steps: Demand Analysis: Work with client to define and understand the products and requirements (specs, volumes, materials, production technology, quality testing, certificates, etc.)

Supply Market Analysis: Identify long list of potential suppliers in countries in scope by leveraging B2B Websites, DS Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References 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) 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.

Administer RFI-RFQ: The RFI/RFQ is distributed to the suppliers who signed the NDA, with telephone follow-up to push for maximum participation.

Validate with client the balance score card to evaluate suppliers according to RFI/RFQ Analyze RFI-RFQ: Develop with the client a balance score card to evaluate suppliers and analyze the RFI-RFQ. Prepare the final report which profiles & objectively ranks the suppliers by capability, including a recommendation for those to be audited.

Suppliers' pre-audits (optional)

The project until step 7 will last about 8 working weeks. The time required to perform the pre-audits will depend on how many suppliers need to be audited and their location.

A weekly report will be sent every Friday, not excluding direct communication as needed.

Steps

1. Demand Analysis

2. Supply Market Analysis

In Charge

W1

W2

Client/DS

W3

W4

W5

W6

W7

W8

RFI / RFQ &Scorecard Approved

DS Shortlist for recommended Audit

3. Telephone Pre-screening

DS

4. Develop RFI-RFQ

DS

5. Administer RFI-RFQ

DS

6. Analyze RFI-RFQ and supplier recommendations for pre-audits

DS

7. Supplier Pre-audits (optional)

Client /DS

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4

Agenda

© 2022 Dragon Sourcing. All rights reserved.

1.

Objectives, approach, timeline & team

2.

Demand analysis

3.

RFI/RFQ Analysis and Supplier Recommendations

4.

Company Profiles

5

Demand Analysis

Product Description: Glass gourd (sodocalcique or borosilicate) with; - silicone sleeve - wooden cap with a string A mold for the glass gourd and for the sleeve can be provided to the supplier that will be selected

Category

Colour

Annual Volume

MOQ

Target Price Unit Price

Glass Gourd with silicone sleeve and wooden cap

Coloured silicone sleeve

15.000 pcs

5000 pcs

2,8 Euro

Estimated Yearly Spend:

42.000 Euro

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6

Clarification questions Dragon Sourcing Questions (General) •

Feedback from Client

What are your key MUST have criteria for a suitable supplier selection?

Ex: Quality, environmental and/or product certification .

MUST BE ISO9001 MUST BE ENGLISH SPEAKER MUST MAKE OVER 5M€ YEARLY TURNOVER MUST BE OK FOR PHYSICAL AUDIT IF PRE-QUALIFIED

FYI: Supplier would be disqualified during pre-screening if they don’t have a «MUST have» requirement.

•

Are there any suppliers that should NOT be included in the RFI-RFQ process?

•

The company making caps called *** and https******

•

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

•

Yes

•

Final delivery location, (City-Country) for suppliers to quote transportation?

•

******France

•

Incoterm expected from the suppliers in the RFQ (FOB, CIF, DDP)?

•

DDP

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7

Pre-screening – Used to disqualify unsuitable suppliers from the RFI-RFQ process.

No

1

•

Examples of Pre-screening question

•

Are you manufacturer or trader?

Importance

Traders Discarded

2

• Do you have ISO 9001?

Must Have

3

• ISO14001 ?

Good to Have

4

• French speaking staff ?

Good to Have

5

• Do you have French Speaking Staff?

Good to Have

6

• What is your yearly turnover

Good to be over 5M Euro

7

• Do you accept audits?

Must be Yes

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

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8

Agenda

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1.

Objectives, approach, timeline & team

2.

Demand analysis

3.

RFI/RFQ Analysis and Supplier Recommendations

4.

Company Profiles

9

Supply Market Analysis Process metrics follow up for both the categories Process

Steps

Turkey

China

Czech

Hungary

Poland

Slovakia

Total

Supplier Identification

• Suppliers identified

21

45

5

7

5

3

86

• Supplier passed prescreening

13

11

4

3

3

3

37

• Suppliers failed Prescreening

8

33

1

4

2

0

48

• Pending

0

0

0

0

0

0

1

• RFI-RFQ sent

13

11

4

3

3

3

37

• Intend to respond

0

0

0

0

0

0

0

• Don't intend to respond

12

1

4

3

3

3

26

• Number of both RFIRFQ received

1

10

0

0

0

0

11

Pre-screening

RFI-RFQ Administration

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10

RFI-RFQ Status

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11

Price Summary – DAP Price Analysis

Suppliers below the target price

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12

RFI Results Chart

Suppliers below the target price: >A >D >C >B

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13

Supplier Price vs RFI Score Analysis Table Phone screening Replies

Does the Do you Are you a Do you Do you supplier have manufactu have ISO Yearly Do you accept have ISO communic French FOB Price DAP Price Recommend rer?

9001?

Turnover audits?

RFI Score 14001? ate in Speaking Eur Eur ed Suppliers (Yes/No) (Yes/No) in M EUR (Yes/No) (Yes/No) English Staff?

(Must) (Must) (Yes/No) (Yes/no)

#

Supplier Name

Country

1

A

China

Yes

Yes

No

4 M EUR

Yes

No

Yes

75

1,10

1,7

Yes

2

B

China

Yes

Yes

No

4.7 M EUR

Yes

No

Yes

0 (no RFI)

1,93

2,53

Yes

3

C

China

Yes

Yes

No

Yes

No

Yes

85

2,00

2,6

Yes

4

D

China

Yes

No

No

Yes

Yes

Yes

39

2,18

2,78

5

E

China

Yes

No

No

1.34 M EUR

Yes

No

No,because the factory is moving

61

2,29

2,89

6

F

China

Yes

Yes

No

18 M EUR

Yes

No

Yes

84

2,30

2,9

7

G

China

Yes

No

No

0.67 M EUR

Yes

No

Yes

0 (No RFI)

2,45

3,05

8

H

China

Yes

Yes

Yes

2.6 M EUR

Yes

No

Yes

63

2,61

3,21

9

I.

China

Yes

Yes

No

Yes

78

3,08

3,68

10

J

Turkey

Yes

Yes

No

Yes

34

3,30

4,32

11

K

China

Yes

Yes

No

Yes

83

4,63

5,24

NO, we NO, we 10.76 EUR have BSCI have BSCI Below 5M Yes Yes EURO Yes

Yes

Recommended Suppliers Secondary Recommended Suppliers

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10.72 M EUR 1.35 M EUR

14

NA

Yes

Supplier Recommendation Reasons No.

Supplier name

RFI Manufacturer Score or Trader?

ISO9001

ISO14001

French speaking staff ?

English speaking staff ?

Yearly Turnover (M EUR)

Accept Audits?

Reason for recommending

• • • • 1

A

75

Manufacturer

Yes

No

No

Yes

4M

• • • • • • • •

DAP price is 1.7 (EUR/pcs), lower than target price.

12 years of industry experience 2020 annual turnover 4 M EUR. 8 years of export experience, with 10% sales export to EU, 15% to North America.

300 employees, work floor size 18,000 square meters and warehouse size 10,000 square meters.

ISO9001 certified.

English speaking staff available.

DAP price is 2.60 (EUR/pcs) , lower than target price.

23 years of industry experience 2020 annual turnover 11 M EUR. 18 years of export experience, with 20% sales export to EU, 25% to North America.

300 employees, work floor size 6,000square meters.

ISO9001 certified English speaking staff available.

DAP price is 2.53 (EUR/pcs), lower than target price.

Did not fill in RFI but accepted audits Turnover is close to 5M EUR ISO9001 certified.

English speaking staff available.

• • • • •

DAP price is 2,90 (EUR/pcs) , close to target price.

20% sales export to EU, 30% to North America.

500 employees, work floor size 15,000 square meters.

ISO9001 certified English speaking staff available.

Yes •

2

3

4

C

B

F

85

0

84

Manufacturer

Manufacturer

Manufacturer

Yes

Yes

Yes

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No

No

No

No

No

No

Yes

Yes

Yes

11 M

4,7 M

18 M

15

Yes

Yes

Yes

• • • • • •

Recommended Supplier Quotes A FOB Price/pc DDP Price/pc - Euro - Euro

1,10 €

1,70 €

MOQ

Mold Cost

5000 pcs

EUR 650

Payment Term

Supplier Comments

T/T 30% mold fee can't deposit,70% refund before delivery

C FOB DDP Price/pc - Price/pc Euro Euro

2,00 €

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2,60 €

MOQ

Mold Cost

Payment Term

5000 pcs

Don't need mold fees, quote their mold

30% deposit in advance and 70% balance seeing B/L COPY

16

Supplier Comments

Recommended Supplier Quotes B FOB Price/pc - DDP Price/pc Euro Euro

1,93 €

2,53 €

MOQ

10000 pcs

Mold Cost

Payment Term

Supplier Comments

bottle :€1500 sleeve:€15000. mold cost for wood cap is unpredictable, for reference, Mold cost for plastic cap is about TT Western Unin EUR 3000. But if you use our current cap mold, material is bamboo, then there is no mold fee of cap.

F

FOB Price/pc - DDP Price/pc Euro Euro

2,30 €

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2,90 €

MOQ

5000 pcs

Mold Cost

€1380.95 For silicone sleeve

17

Payment Term

Supplier Comments

For Bottle and cap we can use our molds. Only do not Despoit 30%, have the Groove in the center 70% before between glass and sleeve delivery

Agenda

© 2022 Dragon Sourcing. All rights reserved.

1.

Objectives, approach, timeline & team

2.

Demand analysis

3.

RFI/RFQ Analysis and Supplier Recommendations

4.

Company Profiles

18

Company Profiles

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19