Leather Jacket and Garment Case Study – Dragon Sourcing

Dragon Sourcing - 龙 源 Your Tailored Sourcing Approach to Emerging Countries

Leather Jacket&Garment Case Study

Agenda

1.

Project objectives, approach, Schedule and demand analysis

2.

Suppliers responses Key figures

3.

RFI analysis and ranking

4.

RFQ analysis and recommendations

5.

Supplier Profile

© 2022 Dragon Sourcing. All rights reserved.

Project Objectives Context Objectives: • To carry sourcing services : -leather Jacket&Garment Geographical scope: • China • India • Pakistan • Turkey Deliverables: • Supplier data base • RFI / RFQ template • RFI / RFQ analysis report • Supplier profiles &rankings

© 2022 Dragon Sourcing. All rights reserved.

DS Approach consists in the following work steps: 1.Collect detailed spend information about the nature of the products required (supplier capabilities required, specifications, volumes, drawings, and samples when relevant for all references to be included in the RFI-RFQ process) with all spend data to be provided by Client.

Identify list of potential suppliers to include in the RFI process by incorporating existing list of DS potential suppliers, by leveraging the web, external databases and various networks of experts 2.Carry out a phone pre-screening of the suppliers based on maximum 45 screening criteria per category (e.g.: min size, having certain quality certification, experience in relevant industry,…) with these criteria to be provided by Client..

3.Develop the RFI-RFQ jointly with by Client, to include all key supplier qualification criteria (e.g.: financial, technology,, corporate responsibility, quality certification, MOQ, client references…)and quotation requirements 4.Administer the RFI / RFQ process to ensure as high a return rate as 5.Analyze responses based on qualitative criteria and use a balance score card together with by Client to rank suppliers and recommend suppliers which by Client needs to take through a formal qualification process 6.Carry out sampling with pre-selected suppliers together with by Client.

Approach & Schedule The project is scheduled for a 8 working weeks period but may be impacted by the time taken to receive validations/approvals by Client Steps

W1

W2

W3

W4

W5

W6

W7

W8

Sampling

1. Demand Analysis

2. Supply Market Analysis

3. Telephone Pre-screening RFI

/ RFP &Scorecard Approved

4. Develop RFI /RFQ Shortlist

5. Conduct RFI / RFQ Administration

for recommended sampling

6. Develop the Score card and Analyze RFI /RFQ Responses

7. Suppliers Sampling

Milestone

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Not-started

Started

Finished

Leather Jackets & Garment Total spend USD 299K #

Reference No.

Product name

Total 6 sized sizes

Color

No. of Colors

Initial Order qty per color in PCS

Target FOB Price/pc in USD

Spend Value in USD

1

1033053

Biker Sauco

XS to XXL

Dark Blue (28)

1

800

55

44,000

2

1033066

Chaqueta Aviador Amber

XS to XXL

Brown Café (11)

1

800

55

44,000

3

1033071

Chaqueta Romero

XS to XXL

Black Negro (00)

1

800

60

48,000

4

1033079

Chaqueta Biker Azalea

XS to XXL

Brown Café (11)

1

800

49

39,200

5

1033080

Chaqueta Azulum

XS to XXL

Brandy (05)

1

800

49

39,200

6

1033081

CAMISA ML CUERO BASICA

S TO XL

Black Negro (00)

1

350

45

15,750

Subtotal spend in USD

© 2022 Dragon Sourcing. All rights reserved.

230,150

Product Picture

Leather Jackets & Garment Total spend USD 299K Initial Order qty Target FOB Spend Value per color in Price/pc in USD in USD PCS

#

Reference No.

Product name

Size

Color

No. of Colors

1

1033075

FALDA EUCALIPTO

XS TO XL

Brown Café (11)

1

200

78

15,600

2

1033083

SHORT CUERO TREBOL

XS TO XL

Honey/miel(02)

1

200

40

8,000

3

1033084

PONCHO CUERO

M

Honey/miel(02)

1

200

70

14,000

4

1033085

PANTALON CUERO CROCO

XS TO XL

Black Negro (00)

1

100

50

5,000

5

1032062

Top_tank_cuero

S TO XL

Black

1

200

26

5,200

6

1031362

chaleco_cuero_obi

S TO XXL

Dark Blue

1

300

50

15,000

7

1031400

Falda Ankara

S TO XL

black

1

150

37

5,550

Subtotal spend in USD

68,350

Total spend of leather Jacket& Garment in USD

298,500

© 2022 Dragon Sourcing. All rights reserved.

Product Picture

Agenda

1.

Project objectives, approach, planning and demand analysis

2.

Suppliers responses Key figures

3.

RFI analysis and ranking

4.

RFQ analysis and recommendations

5.

Supplier Profile

© 2022 Dragon Sourcing. All rights reserved.

Sourcing progress, 93 suppliers identified, 93 called, 50 passed pre-screen, 28 RFI/RFQ received, 3 RFQ received

Step

China

India

Pakistan

Turkey

Total

Total number of suppliers

20

26

25

22

93

Suppliers called

20

26

25

22

93

Suppliers passed prescreen

9

16

14

11

50

RFI/RFQ sent

9

16

14

11

50

RFI/RFQ received

4

11

9

4

28

RFQ received

2

0

0

1

3

© 2022 Dragon Sourcing. All rights reserved.

Not-started

Started

Finished

Supplier rejection analysis: 43 suppliers failed pre-screen, 19 failed in RFI/RFQ process.

Supplier Pre-Screen rejection analysis

Supplier RFI/RFQ rejection analysis

16

7 14

14

6 6

12 10

5

10

5

8 8

4

4

4

6 4 4

3 3

2 2

1

0

1 2

1

0 Consider themselves not competent for this project China

India

Pakistan

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Turkey

Total

Not interested to Contacted by client Need more detailed continue or want to contact drawings / sampels client directly to proceed

China

India

Pakistan

Turkey

Total

Agenda

1.

Project objectives, approach, planning and demand analysis

2.

Suppliers responses Key figures

3.

RFI analysis and ranking

4.

RFQ analysis and recommendations

5.

Supplier Profile

© 2022 Dragon Sourcing. All rights reserved.

© 2022 Dragon Sourcing. All rights reserved.

56

50

Supplier 19 Turkey

61

Supplier 14 China

60

Supplier 26 China

66

Supplier 16 China

68

Supplier 22 China

69

Supplier 21 India

70

Supplier 6 Pakistan

70

Supplier 28 Turkey

70

Supplier 8 India

76

Supplier 12 India

77

Supplier 13 India

77

Supplier 17 India

78

Supplier 4 Pakistan

78

Supplier 25 India

80

Supplier 15 Pakistan

80

Supplier 11 Pakistan

80

Supplier 7 Pakistan

81

Supplier 9 Pakistan

82

Supplier 24 India

82

Supplier 1 Pakistan

83

Supplier 29 Turkey

Supplier 3 Pakistan

83

Supplier 5 India

Supplier 18 India

90

Supplier 20 India

90

Supplier 10 India

91

Supplier 27 Turkey

Supplier 2 Pakistan

Total 28 suppliers scored and ranked: China 4,India 11, Pakistan 9, Turkey 4.

Average RFI score 74.

Supplier RFI Score

100

89 86

75 65 60 55 46

40

30

20

10

0

Agenda

1.

Project objectives, approach, planning and demand analysis

2.

Suppliers responses Key figures

3.

RFI analysis and ranking

4.

RFQ analysis and recommendations

5.

Supplier Profile

© 2022 Dragon Sourcing. All rights reserved.

Supplier FOB price and Total spend comparison (in USD) 13 suppliers quoted all 13 items,15 suppliers quoted 8 to 12 items,3 suppliers quoted less than 6 items.

Initia 1 2 3 4 5 6 7 8 9 10 11 l Targ Indi Paki Indi Paki Orde et Pakistan India Pakistan Refere a stan a stan r qty pric # nce per e /pc Sup Sup Sup Sup Sup Sup Su Sup Sup Sup Sup No. colo in plier plier plier plier plier plier ppli plie plier plier plier r in USD 1 2 3 4 5 6 er 7 r 8 9 10 11 PCS 1

103305 3 103306 6 103307 1 103307 9 103308 0 103308 1 103307 5 103308 3 103308 4 103308 5 103206 2 103136 2 103140 0

12

13

India

14

15

16

Chin Pakis Chin a tan a

17

18

India

19 Turk ey

20

21

India

22

23

Chin Turk a ey

24

25

India

26

27

Chin a

28

29

Turkey

30

31

China

Sup Supp Supp Supp Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup Sup plie lier lier lier plier plier plier plier plier plie plier plier plier plier plier plie plier plier plier plie r 12 13 14 15 16 17 18 19 20 r 21 22 23 24 25 26 r 27 28 29 30 r 31

800

55

43

53

55

55

52

53

56

52

67

57

63

68

64

64

76

62

70

79

80

80

85

108

105

129

123

135 135 130

120

78

264

800

55

44

53

59

53

51

60

63

59

54

55

57

60

63

57

70

65

61

71

85

69

97

105

105

108

139

120 140 145

---

70

239

800

60

--

53

49

--

55

--

--

--

--

78

81

--

65

92

--

66

57

68

--

102 112

105

115

140

135

150 125 125

--

--

--

800

49

37

47

42

46

48

52

47

55

58

48

48

51

55

62

58

62

70

78

75

82

81

90

96

92

95

120 135 125

115

64

--

800

49

35

47

46

45

48

52

46

52

50

50

47

52

55

57

54

64

61

68

75

71

78

95

96

85

89

115 130 120

---

--

--

350

45

38

43

46

47

48

43

44

48

47

49

45

52

51

51

67

62

63

61

80

70

77

98

95

86

110

130 140 140

---

--

--

200

78

--

--

--

--

--

--

--

--

--

78

70

75

42

--

--

120

109

--

133 111

50

--

182

175

--

---

--

--

200

40

23

25

42

30

36

31

37

--

34

34

36

38

42

42

46

49

48

51

58

55

53

40

79

78

78

40

85

90

--

--

200

70

34

35

49

--

--

--

63

--

57

80

71

81

63

35

--

70

80

84

95

78

135

92

--

132

149

189 180 375

---

--

--

100

50

35

35

45

44

45

45

45

45

45

46

43

52

68

51

49

55

56

56

70

61

64

45

98

83

99

149 105 115

90

--

--

200

26

30

29

35

30

35

32

37

25

30

38

32

34

56

26

55

49

50

52

40

47

65

66

63

80

85

80

95

75

----

--

--

300

50

42

45

50

38

48

32

48

45

45

46

54

50

36

51

49

76

55

66

67

57

78

85

92

89

88

85

140

95

115

--

--

150

37

28

33

39

33

38

35

44

--

34

38

41

39

50

42

56

50

53

41

58

52

71

40

77

74

86

52

100

95

---

--

--

# items quoted

13

11

12

12

10

11

10

11

8

11

13

13

11

13

13

10

12

13

13

11

13

13

13

11

13

13

12

13

13

5

3

2

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

© 2022 Dragon Sourcing. All rights reserved.

Lower than Target price

140 354 100

The same as Target price

Total spend analysis, 28 suppliers quoted items more than 6 items quote Client Target price was used in calculation).

1 #

Client Target

2

3

4

5

Pakistan

6

India

7

8

9

10

11

12

Pakista Pakista India India n n

Pakistan

13

14

15

16

17

Pakista China China n

India

18

19

India

20

Turkey

(for items supplier didn’t

21 India

22

23

24

China Turkey

25

26

India

27

China

28

Turkey

Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli Suppli er 1 er 2 er 3 er 4 er 5 er 6 er 7 er 8 er 9 er 10 er 11 er 12 er 13 er 14 er 15 er 16 er 17 er 18 er 19 er 20 er 21 er 22 er 23 er 24 er 25 er 26 er 27 er 28

USD

Total 298,50 241,80 272,45 283,05 286,00 288,40 298,12 301,96 305,32 310,55 317,65 321,00 323,53 331,75 336,30 355,65 362,93 366,22 401,80 418,00 440,74 502,60 522,30 553,80 613,80 649,90 683,10 751,50 797,05 spend 0 0 4 0 0 0 5 8 0 0 0 0 8 0 0 0 1 0 0 0 4 0 0 0 0 0 0 0 0 in USD # items 13 11 12 12 10 11 10 11 8 11 13 13 11 13 13 10 12 13 13 11 13 13 13 11 13 13 12 13 13 quoted Potential 56,700 26,046 15,450 12,500 10,100 375 -3,468 -6,820 -12,050 -19,150 -22,500 -25,038 -33,250 -37,800 -57,150 -64,431 -67,720 103,30 119,50 142,24 204,10 223,80 255,30 315,30 351,40 384,60 453,00 498,55 saving in USD 0 0 4 0 0 0 0 0 0 0 0 Saving% 19.0% 8.7% 5.2% 4.2% 3.4% 0.1% -1.2% -2.3% -4.0% -6.4% -7.5% -8.4% -11.1% -12.7% -19.1% -21.6% -22.7% -34.6% -40.0% -47.7% -68.4% -75.0% -85.5% 105.6% 117.7% 128.8% 151.8% 167.0%

Supplier Total Spend and RFI Score

900000

100 91

800000

89

700000

83

82

81

80

78

76

600000

78

77 70

69

66

500000

80

75

70

65

60

55

90

90

86

83

80

77

61

68 70 60

56

50

46

400000

40

300000 200000

30 13

11

12

12

10

11

10

11

100000

8

11

13

13

11

13

13

10

12

13

13

11

13

13

13

11

13

13

12

13

13

20

10

Total Spend

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RFI Score

# items quoted Lower than Target price

Higher than Target Price

Supplier 28 Turkey

Supplier 27 Turkey

Supplier 26 China

Supplier 25 India

Supplier 24 India

Supplier 23 Turkey

Supplier 22 China

Supplier 21 India

Supplier 20 India

Supplier 19 Turkey

Supplier 18 India

Supplier 17 India

Supplier 16 China

Supplier 15 Pakistan

Supplier 14 China

Supplier 13 India

Supplier 12 India

Supplier 11 Pakistan

Supplier 10 India

Supplier 9 Pakistan

Supplier 8 India

Supplier 7 Pakistan

Supplier 6 Pakistan

Supplier 5 India

Supplier 4 Pakistan

Supplier 3 Pakistan

Supplier 2 Pakistan

Supplier 1 Pakistan

0

Client Target

0

4 suppliers recommended for Supplier Profile which will require samples to be sent to them in order to get quote confirmation #

Supplier name

Supplier Country

RFI Score

Annual # items Saving(%) turnover (M quoted USD)

Famous customer reference

1

Supplier 1

Pakistan

81

19%

12.4

11

TAURO,INDITEX, G-III GROUP,MANGO

2

Supplier 2

Pakistan

91

8.7%

10.7

12

GIII Apparel Group, FMC, H&M,ZARA

Industry supplied • • • • • • Manufacturing of Leather, • • PU & Denim Garments, Leather • Gloves, Belts and Accessories •

Fashion leather jackets, Motorbike jackets&leather Garments

3

Supplier 3

Pakistan

82

5.2%

2.9

12

INDITEX,JOFAMA, TORRAS,CLOVER

Leather Garments

4

Supplier 4

Pakistan

76

4.2%

2.3

10

HM MODEN,MDK, TASI E.K

Fashion leather jackets and Garments

© 2022 Dragon Sourcing. All rights reserved.

Reason for recommended

• • • • • • • • • •

Good capability and RFI score Price lower than Client Target ISO 9001 &BSCI Supply to international clients Not capable of making non-quoted items Excellent capability and RFI score Price lower than Client Target ISO 9001 &ISO14001,BSCI,WRAP Supply to international clients Capable of making non-quoted items after samples received Good capability and RFI score Price lower than Client Target BSCI&SEDEX Supply to famous clients Not capable of making non-quoted items Good capability, RFI score above average Price lower than Client Target BSCI Supply to famous clients Not capable of making non-quoted items

Agenda

1.

Project objectives, approach, planning and demand analysis

2.

Suppliers responses Key figures

3.

RFI analysis and ranking

4.

RFQ analysis and recommendations

5.

Supplier Profile

© 2022 Dragon Sourcing. All rights reserved.

Supplier Profile Example

Supplier name - Country Section: Business information& Social Responsibility

RFI Score

91

RFI Ranking

1

BUSINESS INFORMATION

COMPANY INFORMATION Company Name

Sales Distribution

City

%sales exports to the main markets

Country Company Website CONTACT PERSON INFORMATION

Domestic

Europe

North America

Customers

Industry

Country

South America

Rest of the world

Main supplier % of sales product

Top 3 Customers

Contact Person Contact Phone

SOCIAL RESPONSIBILITY

Contact Mobile

Company certificates

Email

ISO 14001

BUSINESS INFORMATION

BSCI

Company type

WRAP SEDEX BASC The numbers of Western companies conduct social audit during the last 2 years If yes, which western company Pass the social audit Follow US OFAC compliance Clean drinking water accessible to all employees(Yes/No) All the workers have a labor contract(Yes/No)

Year Founded Ownership

Registration number Total number of employees The number of employees in R&D department Overall factory occupy(sqm) Workshop(sqm) The mainly serve industry

All the workers have a social insurance included in their labor contract(Yes/No)

Export directly or via export agent

Waste management arranged in a way that does not lead to pollution of the environment(Yes/No) Chemicals properly and separately disposed off(Yes/No)

Years of export experience Incoterms quote and operate The district of Main bank account

Emissions in legal conformity(Yes/No) 2021

Sales Turnover (in Million USD)

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Yes/No

2020

Accidents and injuries log (daily / detailed): pls fill the numbers

Certifying Org

Expiry date

Supplier Profile Example

Supplier name - Country Section: Production &Quality Management PRODUCTION MANAGEMENT

QUALITY MANAGEMENT Quality certificate

The leather products should be " First leather"

Yes/No

Certifying Org

ISO 9001

OEM or ODM

TS16949

The principal source of raw material (China or other)

The Finished leather Analysis Report(Yes/No)

Tannery under factory (Yes /No) Documented company-wide quality manual Types of real leather in jacket& garment

Daily on line quality inspection and report

Production capability

Leather jacket /garment

Producing in house(Yes/No)

Final products inspection and report Clear and systematic procedure to collect, register, handle and solve customer complaints

Monthly production capacity in PCS Fabric blends can offer?(Yes/No) Production Process

In house (Yes / The number of No) machine

Sewing Trimming, shading, tagging and packing process Printing Embroidery Sample production line or equipment(Yes/No)

The type of machine

The formal QC criteria and procedure for in-house quality control( Yes/No)if Yes, what is it ?

Accept 3rd party QC or testing Automated and computerized CAD CAM system Finished Goods defect rate(PPM/%)

Test in house GSM tester

The approval sample lead time (days) Average production lead time (days)

PH Meter

The company operating instruction on site

Crock Meter

The company production and safety training for each worker ERP system The company product/service traceability System

Abrasion tester

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Color fastness tester Fatigue test of fastener: Buttons, zippers, snaps, etc

Yes/No

Expiry date

Supplier Profile Example

Supplier name - Country Section: Certificates, Factory Pictures Business Registration

Certificates

Factory Entrance

Office

Machine

Test lab

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Certificates

Workshop

Warehouse