Case Study-Panel or Louver and Linear sourcing project in China and India

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

Panel / Louver and Linear sourcing project in China and India 2015

Agenda

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1.

Objectives, Approach and Project Planning

2.

Demand Analysis

3.

Progress to date

4.

China RFI/RFQ analysis

5.

India RFI/RFQ analysis

6.

Next Steps

7.

Appendix

2

Objectives and Approach DS Approach consists in the following work steps:

Context

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

Objectives: • To carry sourcing services for Panel / Louver and Linear Geographical scope: • Mainland China • India

Deliverables: • Supplier data base • RFI / RFQ • Score Card • Company profiles • Recommended audit supplier list

© 2015 Dragon Sourcing. All rights reserved.

3

The project is scheduled for a 10 working weeks period before starting suppliers auditing as described below

Steps

W1

W2

W3

W4

W5

W6

W7

W8

W9

W10

Sept 14

Sept 21

Sept 28

Oct 5

Oct 12

Oct 19

Oct 26

Nov 2

Nov 9

Nov 16

1. Demand Analysis RFI/RFQ& Score card approved

2. Supply Market Analysis

Shortlist for recommended Audit

3. Telephone Pre-screening

4. Develop RFI /RFQ

1 week Late

5. Conduct RFI / RFQ Administration

6. Develop the Score card and Analyze RFI /RFQ Responses Today Not started

Š 2015 Dragon Sourcing. All rights reserved.

Started

4

Finished

Late

Milestone

Agenda

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1.

Objectives, approach and Project Planning

2.

Demand Analysis

3.

Progress to date

4.

China RFI/RFQ analysis

5.

India RFI/RFQ analysis

6.

Next Steps

7.

Appendix

5

China: 4 type of products to be addressed by 1 RFI/RFQ Short Text

Reference Picture

Size (LxWxH)

Forecast(pcs)/year

Target Price

27W OP SL 2 Louver (Square)

597*597mm

36W OP SL 2 Louver (Square)

597*597mm

36W OP SL 2 Louver (Rectangular)

297*1197mm

115 RMB

30W LD Panel (Square)

597*597mm

150 RMB

40W LD Panel (Square)

597*597mm

40W LD Panel (Rectangular)

297*1197mm

43W OP Batten

1170mm

Total (approx.)

100 RMB 50K

30K

110 RMB

170 RMB

5.4M RMB

4.9M RMB

170 RMB 15 USD 50K

12.5USD 8.5 USD

22W OP Batten

585mm

0.73M USD

5K

6.5 USD 20W LD Batten

600mm

40W LD Batten

1200mm

90 RMB 100 RMB 30K

3.3M RMB

60W LD Batten

1500mm

120 RMB

80W LD Batten

1500mm

130 RMB

© 2015 Dragon Sourcing. All rights reserved.

6

India : 3 type of products to be addressed by 1 RFI/RFQ Short Text

Reference Picture

Size (LxWxH)

Forecast(pcs)/year

30w LP DC Panel

595*595mm

40w LP DC Panel

595*595mm

8.5w LP LED DL (Round) 4 Inch

D125mm x H 20mm

12w LP LED DL (Round) 6 Inch

D175mm x H 20mm

15w LP LED DL (Round) 6 Inch

D175mm x H 20mm

18w LP LED DL (Round) 6 Inch

D175mm x H 20mm

25w LP LED DL (Round) 8 Inch

D225mm x H 20mm

30w LP LED DL (Round) 8 Inch

D225mm x H20mm

30 w LP Panel

1200x75x60 ( H<70mm)

60w LP Panel

1200x75x60 ( H<70mm)

© 2015 Dragon Sourcing. All rights reserved.

7

Target Price

Total (approx.)

The approved RFI/RFQ overview and the main differences between China and India version Differences

India

• Payment Term

• Can you accept payment terms 75 days end of month after invoice?

• Can you accept payment terms 60 days end of month after invoice?

• Product Certification

• Do you have 3C/CE/CB?

• What products approbation do you have?

• Product datasheet

• 4 types of product

• 3 types of product

• RMB@ DAP Guangzhou/Shanghai domestic warehouse

• C&F Gurgaon domestic warehouse

• USD@ DAP Guangzhou Bonded Warehouse

• C&F Mumbai domestic warehouse

• 165K

• 70K

RFI

RFQ

China

• Delivery Term

• Total demand/year

© 2015 Dragon Sourcing. All rights reserved.

8

Agenda

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1.

Objectives, approach and Project Planning

2.

Demand Analysis

3.

Progress to date

4.

China RFI/RFQ analysis

5.

India RFI/RFQ analysis

6.

Next Steps

7.

Appendix

9

Telephone Pre-Screening Criteria 1.

What concrete products you are making? Do you have office lighting luminaires such as linear/panel/louver lights?

2.

How many production experience do you have to make LED lights ? (MUST >3 years)

3.

Do you have experience on merchandising and ODM business ?

4.

Do you have business license for both domestic & export business ? (India no need export license)

5.

Do you have ISO9001 certificate and ROHS compliance ? (India no need)

6.

How about your company annual turnover ? (China suppliers must >10million Euro and India must>3million Euro but not public company)

7.

Are you 3C qualified factory ? (India no need)

8.

SMT and Assembly line in house or not ?

9.

LED Driver design in house or not ?（power<=50w）

10. Thermal, Optical, mechanical design in house or not ? © 2015 Dragon Sourcing. All rights reserved.

10

39 LED Luminaries suppliers in China have passed the pre screening phase

Heilongjiang

Short List Suppliers Location

Nb Jilin Liaoning

Guangdong

19

Zhejiang

7

Jiangsu

5

Shanghai

5

Xinjiang

Beijing

1

Hunan

1

Shanxi

1

Total

39

Gansu

Tianjin

Shanxi

Ningxia Qinghai

Beijing

Inner Mongolia

Gansu

Shaanxi

Jiangsu

Henan Anhui

Xizang Sichuan Sichuan

Hubei

Shanghai Zhejiang

Jiangxi Hunan Guizhou Yunan

Guangxi

Guangdong

Taiwan

Hong Kong

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11

Location of the suppliers passed

14 LED Luminaries suppliers in India have passed the pre screening phase

Short List Suppliers Location

Nb

Maharashtra

6

Andra Pradesh

2

West Bengal

1

Tamil Nadu

1

Rajasthan

1

Karnataka

1

Haryana

1

Gujarat

1

Total

14

Š 2015 Dragon Sourcing. All rights reserved.

Pradesh

12

Location of the suppliers passed

Pre-screening rejection reason analysis China #

Pre-screening failure reason

1

India No of suppliers

%

#

Pre-screening failure reason

No similar products

19

26%

1

2

Turnover is less than 10 Million Euro

13

18%

3

No interest

10

4

No ISO certificate

5

No of suppliers

%

Turnover is less than 3 Million Euro

17

29%

2

No responding

11

19%

14%

3

Not a manufacturer

6

10%

10

14%

4

Discarded by the client

5

8%

Not responding

8

11% 5

Production experience less than 3 years

5

8%

6

No export licence

5

7%

7

Single product line

2

3%

6

No in house SMT and assembly line

5

8%

8

Public company

2

3%

7

Not interested

4

7%

9

Lacking for inhouse design capability

1

1% 8

No experience in Merchandising &ODM business

3

5%

10

11 12

No flexibility on small volumn order

1

1%

Not a manufacturer

1

1%

9

Capacity full for this year

1

2%

No ODM and merchandise experience

1

1%

10

Duplicate supplier

1

2%

TOTAL

73

100%

TOTAL

58

100%

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13

Total 53 suppliers were shortlisted for China/India and 14 RFIRFQ received Step

China

India

Total

Total number of suppliers

112

72

184

Supplier called

112

72

184

Shortlisted supplier after call

39

19

58

Suppliers discarded by Client

0

5

5

Final Shortlisted Suppliers

39

14

53

RFI/RFQ Sent

39

14

53

Intend to respond

8

6

14

RFI/RFQ received from potential suppliers

8

6

14

RFI received for Client existing suppliers

4

2

6

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14

Reason Analysis for short listed suppliers not intending to respond RFIRFQ China #

Reason of "not intending to feedback on RFIRFQ"

1

Big spec differences

India No of suppliers

%

11

35%

2

No interest without providing specific reasons

10

32%

3

Not willing to give any company information at this stage

4

13%

4

No ISO

2

6%

5

Contract with the second biggest distributor in Germany

1

3%

6

No interest unless knowing customer name

1

3%

7

Prepared to be launched

1

3%

8

No in house assembly line and no ODM experience

1

3%

TOTAL

31

100%

Š 2015 Dragon Sourcing. All rights reserved.

#

15

Reason of "not intending to feedback No of on RFIRFQ" suppliers

%

1

Not willing to give any company information at this stage

3

37%

2

Capacity Full

2

25%

3

Not interested in this project

2

25%

4

Supplier named "MF Electricals Pvt. Ltd " is Client's existing supplier

1

13%

TOTAL

8

100%

For China and India, very similar RFI Scoring Criteria were selected measuring existing and potential suppliers’ maturity

Score card weight of each section of the RFI measuring the maturity

Scoring Area

Weight

• Business Information

15%

• Design Capability

25%

• Technology & Process

20%

• Material Supply Management

15%

• Quality System and Testing

25%

Total

© 2015 Dragon Sourcing. All rights reserved.

100%

16

Agenda

Š 2015 Dragon Sourcing. All rights reserved.

1.

Objectives, approach and Project Planning

2.

Demand Analysis

3.

Progress to date

4.

China RFI/RFQ analysis

5.

India RFI/RFQ analysis

6.

Next Steps

7.

Appendix

17

China: RFI Score from the 8 potential suppliers seems in line with existing Client suppliers

Total RFI score 100

96

95

94

94

93

93

91

90

90

Average: 90 87

83 73

Score

75

50

25

0 ZJ YANKON

SH CH

SZ PEPNICE

NJ Handson

Nexus JX

Kindwin SZ

SZ Syhdee

JZ DotLighting

SZ HENSEL

NB longer

Potential Suppliers

© 2015 Dragon Sourcing. All rights reserved.

SZ SNC

ZJ Mingyang

Client Existing Suppliers

China: Specification Variation Analysis highlight that although looking for “on the shelf” products, most of the criteria are “NOGO”

RFI Score

83

93

91

93

73

95

94

87

S2

S3

S4

S5

S6

S7

S8

# of Criteria

# of NO GO Criteria

Supplier 1

OP SL 2

35

20 (57%)

• Not quoted

• 4 variations out of 35

• 6 variations out of 35

• 9 variations out of 35

• 5 variations out of 35

• 2 variations out of 35

• 1 variation out of 35

• Not quoted

LD Panel

37

19 (50%)

• 9 variations out of 37

• 5 variations out of 37

• 7 variations out of 37

• 10 variations out of 37

• 10 variations out of 37

• 2 variations out of 37

• 2 variations out of 37

• 6 variations out of 37

30

Not Provided

• Not quoted

• 3 variations out of 30

• Not quoted

• 4 variations out of 30

• Not quoted

• Quoted but not the exact product as required

22 (63%)

• Quoted but not the exact product as we required

• 2 variations out of 35

• 6 variations out of 35

• 7 variations out of 35

• Not quoted

• Quoted but not the exact product as required

Product

OP Batten

LD Batten

35

© 2015 Dragon Sourcing. All rights reserved.

19

• Not quoted

• Not quoted

• Not quoted

• Not quoted

China: Unit Price Comparison – OP SL2. None of the suppliers quoted price is in line with target price

¥500

100

100

93

93

91

¥450

95

¥500

100 100

94 90

83 73

¥350

367

¥300 ¥250

221

80

¥400

70

¥350

60

¥300

50

¥250

¥500

100

94

93

91

¥450

90

87

83 73

381

230 189

¥200

100

95

93

87 80

¥400

70

¥350

60

¥300

50

¥250

40

¥200

30

¥150

83

80 73

388

70 60

230

213 40

Score

RMB

36W OP SL 2 Louver (Rectangular)

94 90

50

217

195

40

151

149 ¥150

30 100

95

93

91

198

189

¥200

93

¥450

87 ¥400

Score

36W OP SL 2 Louver (Square)

RMB

Score

RMB

27W OP SL 2 Louver (Square)

¥150

112

119

110

115

122

30

¥100

20

¥100

20

¥100

20

¥50

10

¥50

10

¥50

10

¥-

0

¥-

0

RFI Score

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20

Potential Suppliers Price

¥-

0

Supplier with better price than target

Client Target Price

China: Unit Price Comparison – LD Panel. Two suppliers quoted price is close to the target price

¥500

100 100

93 93

91

¥450

95

90

73

¥300

93

¥450 ¥400

70

¥350

60

¥300

222

¥200

50

231

221 170

40

178

150 ¥150 ¥100 ¥50 ¥-

77

90

83 73

170

Score

RMB

93

¥450

95

93

91

94 90

80

¥400

70

¥350

60

¥300

87

83

80 73

50

60

180

191

40

¥200

30

¥150

254

241

¥250

165

70

279

250

241

50 191

170

203 40

171 144

30

¥150

20

¥100

20

¥100

20

10

¥50

10

¥50

10

0

126

¥-

0

RFI Score

© 2015 Dragon Sourcing. All rights reserved.

100 465

87

¥250 ¥200

¥500

94

409 80

40W LD Panel (Rectangular)

100

95

93

91

248 ¥250

Score 100

100

87

395

¥350

¥500

94

83

¥400

40W LD Panel (Square)

RMB

Score

RMB

30W LD Panel (Square)

21

¥-

Potential Suppliers Price

30

0

Supplier with better price than target

Client Target Price

China: Dragon sourcing consider prices as coherent when Sigma ([(Max-Min)/Average] for best 3 prices) is below 35% – OP SL 2 Average: 153.13 Sigma: 46%

¥200

91 94

90

¥180

80

¥160

70

¥140

189.04

94

91

100

36W OP SL 2 Louver (Rectangular)

RMB

RMB

RMB

100

Score

36W OP SL 2 Louver (Square)

¥200 ¥180

Average: 178 Sigma: 54%

Score

27W OP SL 2 Louver (Square) Score

Average:150.06 Sigma: 51%

¥250 94

95

100

217.15

90

91

90

189.04 ¥160

73

¥140

70

¥120

60

¥100

50

¥100

50

¥80

40

¥80

40

¥60

30

¥60

30

¥40

20

¥40

20

¥20

10

¥20

10

¥0

0

¥0

0

© 2015 Dragon Sourcing. All rights reserved.

80 70

118.94 60

112.33

195.14

¥200

151.40

148.80 ¥120

80

73

22

¥150

60 121.73

¥100

50 40 30

¥50

20 10

¥0

0

RFI Score

Minimum Three Unit Price

China: Minimum Three Unit Price Analysis – LD Panel

87

¥250 ¥200 91

91 90

180.40 90

¥160

80

100

100

90

169.80

Score

RMB

100 94

¥180

40W LD Panel (Rectangular)

RMB

RMB ¥200

Average:168.28 Sigma: 28%

40W LD Panel (Square)

Score

Average:157.02 Sigma: 35%

30W LD Panel (Square) Score

Average:141.67 Sigma: 71%

87 ¥200

87

190.60

80

80 ¥140

73

177.80

70

170.74

¥150 73 164.66

126.00 ¥120

73

70

70

60

¥150

143.50

60

60 ¥100

¥80

50 77.40

¥100

50

50

40

40

¥60

30

¥40

20

20

¥20

10

10

¥0

0

¥100

40

30

30 ¥50

© 2015 Dragon Sourcing. All rights reserved.

¥0

0

23

¥50

20

10

¥0

0

RFI Score

Minimum Three Unit Price

Total Spend - OP SL 2 100

Millions RMB

100

94 91 9.55

¥10

¥6

90 ¥5

80

60 5.88

5.42

50 40

¥4

30 20

¥2

100

100 87

4.90

5.41

90 80

73

70

¥8 ¥6

Total Spend - LD Panel

Millions RMB

¥12

Score

Score

China: Total Spend per supplier when quoted all the products in a group with best 3 prices

¥4

70

3.47

60

¥3

50 40

¥2

30 20

¥1

10

100

93

93

100 2.63

¥12

70 1.63

$1.5

60 50 40

$1.0 0.58 $0.5

100

90

30 20

93

© 2015 Dragon Sourcing. All rights reserved.

RFI Score

24

90 80 70

¥8

60 ¥6

50 40

¥4

3.30

30 20

¥2

10 ¥0

0

100 11.27

10 $0.0

93

10.26

¥10

80

$2.0

0

Total Spend - LD Batten

Millions RMB

Millions USD

$2.5

¥0

Score

Total Spend - OP Batten $3.0

10

0

Score

¥0

Potential Suppliers Spend

0

Suppliers with spend savings

Client Target Spend per year

Agenda

Š 2015 Dragon Sourcing. All rights reserved.

1.

Objectives, approach and Project Planning

2.

Demand Analysis

3.

Progress to date

4.

China RFI/RFQ analysis

5.

India RFI/RFQ analysis

6.

Next Steps

7.

Appendix

25

India: RFI Score from the 6 potential suppliers seems in line with existing Client suppliers

100

94

Total RFI score 86

84

82

Average: 79 77

75

74 70

Score

65

50

25

0

Potential Suppliers

Š 2015 Dragon Sourcing. All rights reserved.

Client Existing Suppliers

India: Specification Variation Analysis

RFI Score

86

84

82

77

74

65

S2

S3

S4

S5

S6

# of Criteria

# of NO GO Criteria

S1

LP LED DL

35

Not Provided

• 6 variations out of 35

• 4 variations out of 35

• 5 variations out of 35

• 16 variations out of 35

• 4 variations out of 35

• 17 variations out of 35

LP DC Panel

35

• 5 variations out of 35

• 3 variations out of 35

• 2 variations out of 35

• 13 variations out of 35

• 3 variations out of 35

• 13 variations out of 35

LP Panel

35

• 5 variations out of 35

• 3 variations out of 35

• 3 variations out of 35

• 15 variations out of 35

• 4 variations out of 35

• Not quoted

Product

Not Provided

Not Provided

© 2015 Dragon Sourcing. All rights reserved.

27

India: Unit Price Comparison – LP DC Panel. None of the suppliers quoted price is in line with target price

100

100 11,287

₹ 11,700 86

₹ 10,400

84

90

82 77

₹ 9,100

100

100

12,187 90 86

84

82

₹ 10,500

70

77

80 74

₹ 9,000

65 ₹ 7,800

₹ 13,500 ₹ 12,000

80 74

Prices confirmed

Score

Score

INR ₹ 13,000

40w LP DC Panel

Prices confirmed

INR

30w LP DC Panel

70 65

60

6,950

60 ₹ 7,500

₹ 6,500

6,950

50

50 ₹ 6,000

₹ 5,200

4,840

40

4,320

₹ 3,900

₹ 4,500

30 2,695

2,730 2,111

₹ 2,600

₹-

30

3,030 2,246

20

1,500 ₹ 1,500

10 0

10

₹-

RFI Score

© 2015 Dragon Sourcing. All rights reserved.

2,935

₹ 3,000

20

1,300 ₹ 1,300

40

0

Potential Suppliers Price

28

Supplier with better price than target

Client Target Price

India: Unit Price Comparison – LP LED DL (8.5W and 12W). None of the suppliers quoted price is in line with target price

12w LP LED DL (6 Inch)

₹ 800

100

750 700

₹ 700 86

82

84

₹ 600

74 65

₹ 500 405

₹ 400

100

₹ 3,600

90

₹ 3,200

425

471

100

Score 90

82

84

₹ 2,800

70

100

3,312 86

80

77

Prices confirmed

INR

INR

Score

8.5w LP LED DL (4 Inch)

80

77

74 65

₹ 2,400

60

60 ₹ 2,000

50

50

320 ₹ 300

₹ 1,600 40

40 ₹ 1,200

30 ₹ 200

₹-

30 875

400

645 472

₹ 400

10 0

20

0

Potential Suppliers Price

29

700

10

₹-

RFI Score

© 2015 Dragon Sourcing. All rights reserved.

970

₹ 800

20 ₹ 100

70

Supplier with better price than target

Client Target Price

India: Unit Price Comparison – LP LED DL (15W and 18W). None of the suppliers quoted price is in line with target price

100

₹ 1,500

90

86 82

84 1,140

74

65

950

₹ 1,200

579

728

1,260

82

84

80

77

74

1,050

70

65

60 680

90

86

80

77

₹ 900

₹ 600

100

100

₹ 900

60

50

656

40

₹ 600

70

530

787

710

50 Score

100

₹ 1,200

INR

Score

₹ 1,500

Score

18w LP LED DL (6 Inch)

INR

15w LP LED DL (6 Inch)

40

460 30 ₹ 300

30

20

₹ 300

20

10

₹-

10

0

₹-

RFI Score

© 2015 Dragon Sourcing. All rights reserved.

0

Potential Suppliers Price

30

Supplier with better price than target

Client Target Price

India Dragon sourcing consider prices as coherent when Sigma ([(Max-Min)/Average] for best 3 prices) is below 35%– LP DC Panel

Average: 2,737 Sigma: 29%

30w LP DC Panel INR

INR ₹ 3,000

100 2,695

Score

40w LP DC Panel Score

Average: 2,512 Sigma: 25%

₹ 3,500

100

2,730 2,935

90

3,030

90

₹ 3,000

₹ 2,500

80

82 2,111 ₹ 2,000 65 ₹ 1,500

74

₹ 2,500

70 60

₹ 2,000

₹ 500

74

2,246

50 ₹ 1,500

30

40 30

₹ 1,000

20

20 ₹ 500

10 ₹0

© 2015 Dragon Sourcing. All rights reserved.

70 60

65

50 40

₹ 1,000

80

82

10

0

₹0

31

0

RFI Score

Minimum Three Unit Price

India: Minimum Three Unit Price Analysis – LP LED DL (8.5W and 12W)

Average: 606 Sigma: 38%

471

₹ 450 405

INR

INR ₹ 500

100

₹ 800

₹ 400

₹ 700

80 82

₹ 350 ₹ 300

100 700

90

425

₹ 600 65

₹ 250

50

₹ 200

40

₹ 150

30

80

82 74

₹ 500

60

90

645

70

74

12w LP LED DL (6 Inch) Score

8.5w LP LED DL (4 Inch) Score

Average: 434 Sigma: 15%

70 65

472

₹ 400

60 50 40

₹ 300

30 ₹ 200

₹ 100

20

₹ 50

10

₹0

0

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20 ₹ 100

10

₹0

32

0

RFI Score

Minimum Three Unit Price

India: Minimum Three Unit Price Analysis – LP LED DL (15W and 18W)

Average: 683 Sigma: 8%

INR

INR ₹ 800

100

787

₹ 800

728 680

₹ 700

82

₹ 600

579

18w LP LED DL (6 Inch) Score

15w LP LED DL (6 Inch) Score

Average: 662 Sigma: 23%

710

90

₹ 700

90

656

80

₹ 500 ₹ 400 ₹ 300

80 ₹ 600

70

74 65

82

₹ 500

60 50

65

₹ 400

40

40

₹ 300

30 ₹ 200

20

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60 50

30

₹0

70

74

₹ 200 ₹ 100

100

20 ₹ 100

10 0

10

₹0

33

0

RFI Score

Minimum Three Unit Price

India: Minimum Three Unit Price Analysis – LP LED DL ( 25W and 30W)

INR

INR ₹ 1,400

100

1,400 ₹ 1,400

90

₹ 1,000

1,092

₹ 1,200

1,111

82

70

82 ₹ 1,000

60

65

₹ 800

90

1,222

80 74

100

1,305

1,280 ₹ 1,200

30w LP LED DL (8 Inch) Score

Average: 1,264 Sigma: 7%

25w LP LED DL (8 Inch) Score

Average: 1,161 Sigma: 16%

65

70

74

60

₹ 800

50 ₹ 600

50 ₹ 600

40 30

₹ 400

80

40 30

₹ 400

20

20

₹ 200

₹ 200 10

₹0

10

0 Ready

Leo

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₹0

Laaj

0 Leo

34

Laaj

RFI Score

Ready

Minimum Three Unit Price

India: Minimum Three Unit Price Analysis – LP Panel

4,200

90

₹ 4,000 3,520

₹ 3,000

100

3,430 74

86

Score 6,140

₹ 6,400 ₹ 5,600

70 60

100 90

82

80

₹ 4,800 82

60w LP Panel

INR

INR ₹ 4,500

₹ 3,500

Average: 5,207 Sigma: 27%

30w LP Panel Score

Average: 3,717 Sigma: 21%

4,730

86 4,750 74

₹ 4,000

80 70 60

₹ 2,500 50

₹ 3,200

50

₹ 2,000 40 ₹ 1,500 ₹ 1,000 ₹ 500 ₹0

© 2015 Dragon Sourcing. All rights reserved.

40

₹ 2,400

30

30 ₹ 1,600

20 10

20 ₹ 800

0

10

₹0

35

0

RFI Score

Minimum Three Unit Price

Sigma ([(Max-Min)/Average] for best 3 prices) overview for both China and India Country

Product Name

Sigma

27W OP SL 2 Louver (Square)

51%

36W OP SL 2 Louver (Square)

46%

36W OP SL 2 Louver (Rectangular)

54%

30W LD Panel (Square)

71%

40W LD Panel (Square)

35%

40W LD Panel (Rectangular)

28%

43W OP Batten 1

45%

43W OP Batten 2

45%

22W OP Batten 1

51%

22W OP Batten 2

51%

20W LD Batten

115%

40W LD Batten

64%

60W LD Batten

5%

80W LD Batten

4%

30w LP DC Panel

25%

40w LP DC Panel

29%

8.5w LP LED DL (4 Inch)

15%

12w LP LED DL (6 Inch)

38%

15w LP LED DL (6 Inch)

23%

18w LP LED DL (6 Inch)

8%

25w LP LED DL (8 Inch)

16%

30w LP LED DL (8 Inch)

7%

30w LP Panel

21%

60w LP Panel

27%

China

India

© 2015 Dragon Sourcing. All rights reserved.

India: Total Spend per suppliers when quoted all the products in a group with best 3 prices

100

100

₹ 45

100

100 41.82

₹ 30

₹ 40

80

₹ 35

90

₹ 50

70

65

86 82

80

₹ 30

74

60 ₹ 20

65

51.70

70

70 41.25

₹ 40

28.17

28.15

80

74

82

74

₹ 25

100

90

28.80

82

100

42.04

38.37 90

₹ 60

Score

Score

Millions INR

Score

Millions INR ₹ 35

Total Spend - LP Panel Millions INR

Total Spend - LP LED DL

Total Spend - LP DC Panel

60

40.90

60

₹ 25

21.79

50

50

₹ 30

50

₹ 20 ₹ 15

14.00

40

40 ₹ 15

₹ 10

₹ 20 30

30 ₹ 10

© 2015 Dragon Sourcing. All rights reserved.

0

20 ₹ 10

₹5

10

₹0

0

10

₹0

30

20

20 ₹5

40 19.50

RFI Score

Potential Suppliers Spend

37

10

₹0

Suppliers with spend savings

0

Client Target Spend per year

Agenda

Š 2015 Dragon Sourcing. All rights reserved.

1.

Objectives, approach and Project Planning

2.

Demand Analysis

3.

Progress to date

4.

China RFI/RFQ analysis

5.

India RFI/RFQ analysis

6.

Next Steps

7.

Appendix

38

Next Steps Below are the proposed next steps with responsibilities and deadlines.

Actions

Responsible

Deadline

1. Suppliers Audit

DS/Client

TBD

2. Samples Test

DS/Client

TBD

3. Review the BOM with potential suppliers to understand their quotation structure and methodology

Client

TBD

4. Provide contact person who will be copied in the email communication with potential suppliers

Client

TBD

Š 2015 Dragon Sourcing. All rights reserved.

39

Remarks