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Multi Category Sourcing in China, India, Vietnam and Turkey Case Study Report Dragon Sourcing Your Tailored Sourcing Approach to Best Cost Countries © 2015 Dragon Sourcing. All rights reserved. 1

Multi Category Sourcing in China, India, Vietnam and Turkey

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Page 1: Multi Category Sourcing in China, India, Vietnam and Turkey

Multi Category Sourcing in China, India, Vietnam and Turkey

Case Study Report

Dragon SourcingYour Tailored Sourcing Approach to Best Cost Countries

© 2015 Dragon Sourcing. All rights reserved. 1

Page 2: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

1. Objectives, Approach, and Timeline

2. Demand Analysis of 5 categories

3. RFI/RFQ approach

4. Results Summary

Agenda

2

Page 3: Multi Category Sourcing in China, India, Vietnam and Turkey

3

Objectives

ObjectivesThe objective of this sourcing trial is to prove the approach and benefits of collaboration with Dragon Sourcing.

ScopeThis scope is to conduct sourcing across 5 different categories across a number global markets to secure competitive suppliers

Categories:1. Barrier Fencing

2. Caulking Guns

3. Bulk Bags

4. Scaffolding

5. 150lb Screw Fittings

© 2015 Dragon Sourcing. All rights reserved.

Page 4: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved. 4

Approach – Phase 1

No. Step Deliverables

1.Demand AnalysisWork with client to define and understand the products and requirements (specs, volumes, materials, production technology requirements)

Project Requirement Questionnaire

Kick-Off Report

2. Supply AnalysisIdentify long list of potential suppliers in the selected markets by leveraging B2B Websites, DS Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References.

Supplier Long List

3.

Telephone Pre-screeningSelection of suppliers to be included in the RFI/RFP process by telephone pre-screening based on agreed simple criteria (e.g. capability to make the product, minimum company size, interest in participating)

Shortlist for RFI/RFQ

4.

Develop RFI/RFQPrepare 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, financial, Client and product experience, Quality certification & processes, Social Responsibility, Manufacturing/technology capability, R&D capability

RFI/RFQ Template Balanced Scorecard Introduction Letter NDA

Milestone 1: RFI/RFQ & Scorecard Approved

5.Conduct RFI/RFQ AdministrationThe RFI/RFQ is translated to the local languages as relevant, and distributed to the relevant suppliers, with telephone follow-up to push for maximum participation.

Control Sheet Completed RFI/RFQs

6.

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

RFI/RFQ Report Supplier Profiles Proposed Shortlist for

AuditMilestone 2: Shortlist for Audit Agreed

Phase 1: Supplier Pre-Qualification

Page 5: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved. 5

Approach – Phase 2

No. Step Deliverables

7.Prepare for AuditsPlanning the audit schedule, budget, and drafting the Audit Questionnaire that will be used for the supplier self-assessment and on-site audits.

• Audit Plan• Audit Questionnaire

8.

Conduct AuditsDistribution of the Audit Questionnaire to suppliers for their self-assessment (and to get them prepared), followed by onsite audits, with or without XXX buyers, of all the suppliers. Focus is management, logistics, production & quality.

Completed Audit Questionnaires

9. Analyse Audit ResultsAnalysis of the audit results, together with RFI/RFQ results, and preparation of a report that ranks the suppliers, including a recommendation for those for sample development.

Audit Report Supplier Audit Profiles Proposed Shortlist for

SamplingMilestone 3: Shortlist for Sampling Agreed

10.Sample Development & TestingManaging the sample development and testing iterations to determine which suppliers can meet the quality.

Samples Sample Analysis Reports

11.Negotiation & ContractingConducting final negotiations with the shortlisted suppliers, and facilitating contracting between selected suppliers and XXX.

Contract(s)

Milestone 4: Contracts Secured

Phase 2: Selection & Contracting

Page 6: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved. 6

Schedule Not started DoneIn process Delay

Steps 6 - Oct. 13 - Oct. 20 - Oct. 27 - Oct. 3 - Nov. 10 - Nov. 17 - Nov. 24 - Nov.

1. Demand Analysis

2. Supplier Identification

3. Telephone pre-screening

4. Develop RFI/RFQ

5. Administer RFI/RFQ

6. Analyze RFI/RFQ Responses

1 RFI/RFQ Approved

2

Shortlist for Audit/Samples Agreed

Page 7: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

1. Objectives, Approach, and Timeline

2. Demand Analysis of 5 categories

3. RFI/RFQ approach

4. Results Summary

Agenda

7

Page 8: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

Demand Analysis - Barrier Fencing

Product Specification

Product description Barrier Fencing, weather resistantColour: OrangeSize: 1m x 50mMesh dimensions 100mm x 40mmWeight: 80GSM SQ/mtr

Material Durable plastic

Other requirement Coloured A4 paper label required.

Destination & Loading Information

Destination: UK

Number of pieces in a 20‘ GP container 2,000 rolls

Number of pieces in a 40‘ GP container 4,000 rolls

Number of pieces in a 40‘ HC container 4,300 rolls

Product Picture

Category: Barrier FencingAnnual Quantity: 3000 rolls

8

Page 9: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

Demand Analysis - Caulking Guns

Product Specification

Product description400ml extra strong trade skeleton caulking gun

400ml professional revolving caulking gun

Material

Other requirement

Destination & Loading Information

Destination: UK

400ml extra strong trade skeleton

400ml professional revolving

Number of pieces in a 20‘ GP container 28,000 16,000

Number of pieces in a 40‘ GP container 56,000 32,000

Number of pieces in a 40‘ HC container 69,000 38,000

Product Picture

Category: Caulking Guns

400ml extra strong trade skeleton caulking gun Annual Quantity: 15,000 pcs

400ml professional revolving caulking gun Annual Quantity: 10,000 pcs

9

Page 10: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

Demand Analysis – Bulk Bags

Product Specification

Product description FLEXIBLE INTERMEDIATE BULK CONTAINERS (FIBC)Safety Factor (SF): 5:1 Safe Working Limit (SWL): 1000kgMaterial: External Dimension: 75 x 85 x 95cmBottom closed

Material Woven Polypropylene, 140 gsmColour: Uncoated redUV Treated

Other requirement Single trip FIBC’s for non hazardous goodsCertified to ISO 21898

Lifting loop detail:Tunnel loops are 60 x 40cm. Corner Loops are 3.8 x 30cm

Destination & Loading Information

Destination: UK

Number of pieces in a 20‘ GP container 7,500 Pcs

Number of pieces in a 40‘ GP container 15,000 PcsNumber of pieces in a 40‘ HC container 17,000 Pcs

Product Picture

Category: Bulk BagsAnnual Quantity: 800,000 pcs

These bags are designed and certified to be used for one filling only. An FIBC of this category cannot be reused.

Printing: Buildbase branding in white font (identical to image)

Label: Label quoting test requirements and safe loading/lifting procedures

10

Page 11: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

Demand Analysis - Quick Stage QS System Scaffolding

Product Specification

Product description Quick Stage QS System Scaffolding, 19 Items

Annual spend: approx. £75K

Material Q235

Other requirementSurface treatment: HDG / Paint / Power coating

Destination & Loading Information

Destination: UK

Number of pieces in a 20‘ GP container 25 Tons

Number of pieces in a 40‘ GP container Not applicable as scaffolding is heavy cargo

Number of pieces in a 40‘ HC container Not applicable as scaffolding is heavy cargo

Product Picture

Category: Quick Stage QS System Scaffolding

11

Page 12: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

Demand Analysis - 150lb Screw Fittings

Product Specification

Product description150lb Screw Fittings

Annual spend £77K, Annual quantity 30,800 pcs for 71 SKUs

Material 316 Stainless Steel

Other requirement

Destination & Loading Information

Destination: UK

Number of pieces in a 20‘ GP container 25 Tons

Number of pieces in a 40‘ GP container Not Applicable as screw fittings are heavy cargo

Number of pieces in a 40‘ HC container Not Applicable as screw fittings are heavy cargo

Product Picture

Category: 150lb Screw Fittings(15 items, 71 SKUs)

12

Page 13: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

1. Objectives, Approach, and Timeline

2. Demand Analysis of 5 categories

3. RFI/RFQ approach

4. Results Summary

Agenda

13

Page 14: Multi Category Sourcing in China, India, Vietnam and Turkey

120

43

175

46

9

3

22

8

4

2

13

12

3

2

0

30

60

90

120

150

180

210

No. of suppliersidentified and have

been called

No. of supplierspassed phonescreening and

included in RFI/RFQprocess

No. of suppliersresponded to RFI/RFQ

No. of suppliersrecommended

China India Turkey Vietnam Malaysia

Progress Review – Barrier FencingIn total, 204 suppliers has been identified and called; 74 suppliers have passed the phone screening and have been included in RFI/RFQ process, 24 RFI/RFQ response have been received. 7 suppliers are recommended for factory audit and sampling.

© 2015 Dragon Sourcing. All rights reserved. 14

Barrier Fencing – Progress Review

74

204

24

7

204 suppliers were identified initially.

130 suppliers were rejected during phone screening process the following main reasons:• Doesn’t produce the same barrier fencings (some are in other

material like PP, some are with different sizes, different color, different weight, some are knitting, some are metal, some are chain link…etc.)

• Traders, not a manufacturer.• Doesn’t export, or can’t export by themselves.

74 suppliers were included in the RFI/RFQ process,

50 suppliers didn’t respond to RFI/RFQ for several main reasons:• After checking the RFQ specifications, some supplier realized they

can not produce the exactly same product.• Some suppliers are not able to respond to RFI to provide their

factory information as they’re not a real manufacturer or they didn’t produce barrier fencing in their own factory.

• Some promised to respond on time but after a lot of pushing they still didn’t respond.

• Some are not interested and doesn’t want to participate in our selection process.

24 RFI/RFQ supplier responses were secured and after analysis of competitiveness and capability we recommend 7 suppliers for next steps: factory audit and sampling.

Page 15: Multi Category Sourcing in China, India, Vietnam and Turkey

RFI/RFQ Process ‐ Rejection reason No. of suppliers % China India Vietnam Malaysia Turkey

Declare unable to produce the same product after checking the spec. and pictures in RFQ (Some supplier only produce weaving fencing…etc.)

27 55% 8 5 11 1 2

Not interested in participating the selection process after reviewing the RFI/RFQ template 8 16% 8

Too busy to reply or can't respond on time 8 16% 6 1 1

Not manufacturing barrier fencing by their own factory 5 10% 2 1 2

Not intend to produce Orange barrier fencing in next year 1 2% 1

Only produce heavy barrier fencing with 550 GSM 1 2% 1

50 26 6 12 2 4

Barrier Fencing – Supplier Phone screening & RFI/RFQ process rejection reason analysis

© 2015 Dragon Sourcing. All rights reserved.

Phone screening - Failed reason analysis RFI/RFQ process - Rejection reason analysis

Phone Screening ‐ Failed reason No. of suppliers % China India Vietnam Malaysia Turkey

Don't produce required plastic barrier fencing, some are metal, chain link fence, some are other type of fencing…etc. 48 37% 12 23 1 1 11Don’t have export license, but they can export through a Trading

company. 18 14% 18

Traders only, not a manufacturer. 16 12% 4 10 2Don’t produce barrier fencing in orange color, some only produce

green color. 15 12% 15Can’t meet GSM requirement, some producing much heavier

fencing over 120GSM. 14 11% 14

Can’t meet mesh requirement 100xx x 40mm. 6 5% 6

Not reachable 6 5% 5 1

Not interested to participate in the project or selection process. 4 3% 3 1

Doesn’t export, only supply to domestic market. 3 2% 2 1

130 77 37 1 1 14

15

Page 16: Multi Category Sourcing in China, India, Vietnam and Turkey

Barrier Fencing - DDP Price Calculation

© 2015 Dragon Sourcing. All rights reserved.

FOB Price (supplier) Freight forwarding, customs & duties

DDP Price

+Cargo Marine Insurance

FOB Price Sea Freight

++

Import Duty

UK Local charges

+Inland Truck

Transportation cost

+ DDP Price=+

1) Sea Freight: from different ports to Southampton (New freight rate received from forwarder on Nov. 6th, 2014)

2) UK local charges with Inland truck transportation cost: (New rate received from forwarder on Nov. 6th, 2014.) Destination address: xxxx UK

3) Import duty rate: was searched in European commission Taric websiteChina: 6.5%, Vietnam: 0%, India: 0%, Turkey: 0%

16

Page 17: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

Barrier Fencing - RFQ Summary

Category Pictures Annual Qty. No. RFI Score Supplier name Country of

Origin FOB Port FOB price In US$

CIF price In US$ DDP Price In US$ Annual Spend20' GP 40' GP 40' HC 20' GP 40' GP 40' HC

Barrier Fencing 3,000 rolls

1 84 Supplier 1 China Ningbo $8.066 $8.657 $8.657 $8.641 $9.919 $9.569 $9.528 $28,7082 86 Supplier 2 China Ningbo $8.200 $8.791 $8.791 $8.775 $10.063 $9.713 $9.671 $29,1393 80 Supplier 3 China Ningbo $8.310 $8.902 $8.902 $8.886 $10.180 $9.830 $9.789 $29,4914 79 Supplier 4 China Tianjin $9.100 $9.694 $9.694 $9.678 $11.025 $10.675 $10.633 $32,0245 81 Supplier 5 China Tianjin $9.440 $10.036 $10.036 $10.019 $11.388 $11.038 $10.996 $33,1136 Supplier 6 China Tianjin $10.500 $11.099 $11.099 $11.083 $12.520 $12.170 $12.129 $36,5117 83 Supplier 7 China Qingdao $10.600 $11.199 $11.199 $11.183 $12.627 $12.277 $12.236 $36,8328 70 Supplier 8 China Tianjin $10.700 $11.300 $11.300 $11.284 $12.734 $12.384 $12.343 $37,1529 49 Supplier 9 Turkey Istanbul $12.000 $12.611 $12.363 $12.341 $13.311 $12.713 $12.666 $38,13910 84 Supplier 10 Turkey Izmir $12.500 $13.113 $12.865 $12.842 $13.813 $13.215 $13.168 $39,64411 87 Supplier 11 China Tianjin $11.850 $12.453 $12.453 $12.437 $13.963 $13.613 $13.571 $40,83912 57 Supplier 12 China Guangzhou $12.400 $13.005 $13.005 $12.989 $14.551 $14.201 $14.159 $42,60213 Supplier 13 India N/A $13.990 $14.591 $14.389 $14.364 $15.291 $14.739 $14.690 $44,21614 Supplier 14 China Tianjin $13.000 $13.607 $13.607 $13.591 $15.192 $14.842 $14.800 $44,52515 67 Supplier 15 India Mumbai $14.500 $15.103 $14.901 $14.876 $15.803 $15.251 $15.201 $45,75216 Supplier 16 China Shanghai $13.400 $14.009 $14.009 $13.993 $15.619 $15.269 $15.228 $45,80717 Supplier 17 China Tianjin $13.500 $14.109 $14.109 $14.093 $15.726 $15.376 $15.334 $46,12818 51 Supplier 18 China Tianjin $13.500 $14.109 $14.109 $14.093 $15.726 $15.376 $15.334 $46,12819 Supplier 19 China Tianjin $13.900 $14.510 $14.510 $14.494 $16.153 $15.803 $15.762 $47,41020 55 Supplier 20 Turkey Istanbul $16.000 $16.625 $16.376 $16.354 $17.325 $16.726 $16.679 $50,17921 Supplier 21 China Tianjin $15.000 $15.614 $15.614 $15.598 $17.329 $16.979 $16.937 $50,93622 Supplier 22 China Ningbo $16.000 $16.617 $16.617 $16.601 $18.397 $18.047 $18.006 $54,14223 48 Supplier 23 India Mumbai $18.800 $19.417 $19.215 $19.190 $20.117 $19.565 $19.516 $58,69424 33 Supplier 24 Turkey Izmir $21.500 $22.143 $21.895 $21.872 $22.843 $22.245 $22.198 $66,734

17

NOTE: Suppliers marked in blue color are the recommended suppliers to proceed with next steps (audits/sampling).

Page 18: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

Barrier Fencing - Price Comparison Chart

P.S. Supplier 9 was recommended but with low score is because they are considered strong however they’re not willing to disclose some of their company information at early stage. Once they are shortlisted, they’re willing to provide more of their company information.

Barrier Fencing - Unit price comparison

$8.07  $8.20  $8.31 $9.10  $9.44 

$10.50  $10.60  $10.70 $11.85 

$12.40 $13.00  $13.40  $13.50  $13.50  $13.90 

$15.00 $16.00 

$13.99 $14.50 

$18.80 

$12.00 $12.50 

$16.00 

$21.50 

$9.53 $9.67 $9.79$10.63 $11.00

$12.13 $12.24 $12.34

$13.57$14.16

$14.80 $15.23 $15.33 $15.33 $15.76$16.94

$18.01

$14.69$15.20

$19.52

$12.67$13.17

$16.68

$22.20

84 86 80 79 81

0

83 70 8757

0 0 0

51

0 0 0 0

6748 49

8455

33

‐500

‐400

‐300

‐200

‐100

0

100

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Supp

lier 1

Supp

lier 2

Supp

lier 3

Supp

lier 4

Supp

lier 5

Supp

lier 6

Supp

lier 7

Supp

lier 8

Supp

lier 1

1

Supp

lier 1

2

Supp

lier 1

4

Supp

lier 1

6

Supp

lier 1

7

Supp

lier 1

8

Supp

lier 1

9

Supp

lier 2

1

Supp

lier 2

2

Supp

lier 1

3

Supp

lier 1

5

Supp

lier 2

3

Supp

lier 9

Supp

lier 1

0

Supp

lier 2

0

Supp

lier 2

4

China India Turkey

Sum of Price ‐ FOB Sum of Price ‐ DDP Average of RFI Score ‐ FOBFOB Price DDP Price RFI Score

Unit price / Roll RFI Score

Recommended suppliers

18

Page 19: Multi Category Sourcing in China, India, Vietnam and Turkey

36  32  32  39 29  28  29  34 

25  24  20 13 

30 22  19  15 

30 29  25 

23 

24  25  24  14 

13  11  21 

13 

30 

15 9 

12 16  17  14 

18  17  16 14 

13 11 

17 

12 

17 

11 13 

9  10  10  8  10  10  10 

6 5 

10 

10 

7 8 

0

10

20

30

40

50

60

70

80

90

100

Supplier 11 Supplier 2 Supplier 1 Supplier 7 Supplier 5 Supplier 3 Supplier 4 Supplier 8 Supplier 12 Supplier 18 Supplier 15 Supplier 13 Supplier 10 Supplier 20 Supplier 9 Supplier 24

87 86 84 83 81 80 79 70 57 51 67 48 84 55 49 33

China India Turkey

Company Background Production Capability Quality Control Management & Certifications Cooperation Willingness

RFI Score

1919

Barrier Fencing - Supplier RFI scorecard summary24 RFQ responses were secured, however only 16 suppliers completed the RFI section.

RFI Score summary – Barrier Fencing

Recommended suppliersP.S. Supplier 9 was recommended but with low score is because they’re not willing to disclose some of their company information at early stage, once they are shortlisted, they’re willing to provide more of their company information.

© 2015 Dragon Sourcing. All rights reserved.

Page 20: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

Barrier Fencing - Supplier Recommendation

No. Country Supplier name RFI Score

Sampleavailable

Samplecost

Sample Lead time

Recommend for factory 

AuditReason for recommending

1 China Supplier 2 86 Y Free 10 days Y

• Competitive price.• Rich experience in the industry, have produced the same barrier fencing before.• 30% export to Europe with 11 years of export experience, especial good experience export to UK.• Good production capacity 3,650 Tons per year.

2 China Supplier 1 84 Y Free 15 days Y

• Competitive price.• Rich experience in the industry, have produced the same barrier fencing before.• 70% export to Europe with 7 years of export experience.• Production capacity 2,000 Tons per year.

3 China Supplier 5 81 N US$ 250 15 days Y

• Competitive price.• Good experience, have produced the same barrier fencing before, but didn’t keep samples, so they 

will charge for sample cost.• 10% export to Europe with 14 years of export experience.• Production capacity 2,000 Tons per year.

4 China Supplier 3 80 Y Free 15 days Y

• Competitive price.• Rich experience in the industry, have produced the same barrier fencing before.• 45% export to Europe with 4 years of export experience.• Production capacity 2,000 Tons per year.

5 China Supplier 4 79 Y Free 15 days Y

• Competitive price.• 25% export to Europe with 4 years of export experience.• Good experience in the industry, have produced the same barrier fencing before.• Production capacity 2,000 Tons per year.

6 Turkey Supplier 10 84 Y Free Immediately Y• Very promising company with wide product range.• 44% export to Europe with 7 years of export experience.• They produce barrier fencing and also bulk bags, paper bag, plastic cutlery.

7 Turkey Supplier 9 49 Y Free Immediately Y• Supplier 9 is the only big manufacturer who only does this business in Turkey.• 10% export to Europe with 10 years of export experience.• Very professional firm, easy to communicate in English.

20

Page 21: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved. 21

Company name: supplier 2Company Background

RFI/RFQ rank 2

Score: 86

Country: China

COMPANY BACKGROUND

Year Founded 2003Ownership (State Owned/ Private/ Foreign Investment) Private

Business Type: Manufacturer, or trader ? Manufacturer

Registered Capital (in US$) 1M

Export License ? (Y/N) Yes

Be able to export to UK / Europe? (Y/N) 11

Export Experience (Years) Yes

Work Floor Size ( Square meters) 3,000

Total Employee Number 50

No. of English speaker and writer 5

CORPORATE SOCIAL RESPONSIBILITY

Declare to adhere to all rules and regulations in respect to child labor? (Y/N) Yes

Working hours specified in the employment contract? (Y/N) Yes

Declare to adhere to all rules and regulations in respect to environmental issues? (Y/N) Yes

Declare to adhere to all rules and regulations in respect to health and safety issues? (Y/N) Yes

HUMAN RESOURCES

Factory Workers Quality Control staff

Technical Staff / R&D Engineer

Sales & Management Others

Employee No. 18 6 5 15 3

COMPANY INFORMATION

Company Name

Factory Address

City

Province

Country

Company Website

CONTACT PERSON INFORMATION

Contact Person

Title

Email Address

Telephone Number

Mobile Number

ANNUAL TURNOVER

2014 Forecast 2013 2012

Total sales turnover (in M USD) 4.5M 3.5M 2.5M

MAIN MARKET

Europe (%) US (%) Asia (%) Domestic (%) Rest of the world (%)

% of Sales 30% 30% 20% 0% 0%

TOP 3 CUSTOMER

Customer Name Industry Country % of Sales Type of Product

Top 3 Customers

Midwest Air N/A US 30% N/A

Signet N/A Australia 10% N/A

TIENHUI N/A South Africa 10% N/A

Commercial terms

Payment terms 30% deposit in advance and the balance to be paid against the fax copy of the shipping documents.

Page 22: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved. 22

Company name: Supplier 2Production Capability & Quality Control Management

RFI/RFQ rank 2

Score: 86

Country: China

PRODUCTION CAPABILITY

Main Products plastic grids and geosynthetics

Main materials Plastics

Number of production lines 6

Maximum Production Capacity (Tons/ year) 2,000

Actual Production Capacity of 2013 (Tons / year) 1,800

No. of Shifts Per Day 2

Working Hours Per Shift 8 hours

International Standards Applied Ali certification

Standard lead time after first order 20days

Lead time for repeat orders 15days

PRODUCTION EQUIPMENT

Equipment name Quantity Brand / Type Usage of the Equipment

N/A N/A N/A N/A

N/A N/A N/A N/A

N/A N/A N/A N/A

N/A N/A N/A N/A

N/A N/A N/A N/A

INVENTORY MANAGEMENT

Formal Documented Inventory Management System in place? (Y/N) Yes

Use ERP (Enterprise resource planning)? (Y/N) No

Follow the FIFO management with the stock? (Y/N) Yes

CERTIFICATIONS

Certificate Y/N Date of Certificate

Date of Expire

Certificate number.

Certifying Organization

ISO 9001:2008Quality management systems Yes Yes N/A N/A N/A N/A

ISO 14001Environmental management

systemsNo N/A N/A N/A N/A N/A

Other current certificates:

(Please specify)

Ali certification Yes Yes N/A N/A N/A Alibaba

N/A N/A N/A N/A N/A N/A N/A

QUALITY CONTROL MANAGEMENT

General Production Defective Rate (% rejected)? 0.01%

Time to keep QC records? (in Month) 3

Accept 3rd party QC? (Y/N) Yes

Customer Satisfaction Survey in place? (Y/N) Yes

Rules for maximum reaction time to deal with quality claim from client? (Hours) 24

Inspection?(Y/N)

Inspection report

available? (Y/N)

Frequency or

testing %QC Criteria Testing Method Testing

Equipment

Incoming Raw material quality control

Yes Yes N/A N/A N/A N/A

In-process / On-line quality control

Yes Yes N/A N/A N/A N/A

Finished product quality control Yes Yes N/A N/A N/A N/A

Page 23: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved. 23

Company name: Supplier 2 Factory Photos

Country: China

FACTORY PHOTOS

Factory Overview Office R&D room

Workshop Workshop Warehouse

Machinery Machinery Lab / test center

RFI/RFQ rank 2

Score: 86

Page 24: Multi Category Sourcing in China, India, Vietnam and Turkey

© 2015 Dragon Sourcing. All rights reserved.

1. Objectives, Approach, and Timeline

2. Demand Analysis of 5 Categories

3. RFI/RFQ approach

4. Results Summary

Agenda

24

Page 25: Multi Category Sourcing in China, India, Vietnam and Turkey

Across all 5 categories, DS have identified 639 China suppliers, 278 India suppliers,149 Turkey suppliers and 53 Vietnam and Malaysia suppliers; resulting in 128 RFI/RFQ received, 29 suppliers recommended for audit and sampling.

25© 2015 Dragon Sourcing. All rights reserved.

China sourcing India sourcing Vietnam & Malaysia sourcing Turkey sourcing 5 Countries In Total

# Category

Supp

lier Ide

ntified

 

Tel Pre‐screen called

# of su

pplier p

assed ph

one screen

ing

RFI / RFQ

 received

 

Supp

lier recom

men

ded

Supp

lier Ide

ntified

 

Tel Pre‐screen called

# of su

pplier p

assed ph

one screen

ing

RFI / RFQ

 received

 

Supp

lier recom

men

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Supp

lier Ide

ntified

 

Tel Pre‐screen called

# of su

pplier p

assed ph

one screen

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RFI / RFQ

 received

 

Supp

lier recom

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Supp

lier Ide

ntified

 

Tel Pre‐screen called

# of su

pplier p

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one screen

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RFI / RFQ

 received

 

Supp

lier recom

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Supp

lier Ide

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Tel Pre‐screen called

# of su

pplier p

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one screen

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RFI / RFQ

 received

 

Supp

lier recom

men

ded

1 Barrier Fencing 120 120 43 17 5 46 46 9 3 0 16 16 14 0 0 22 22 8 4 2 204 204 74 24 7

2 Caulking Guns 107 107 22 21 4 47 47 6 1 0 0 0 0 0 0 14 14 5 2 0 168 168 33 24 4

3 Bulk Bags 111 111 64 17 0 56 56 34 12 6 16 16 5 5 0 42 42 26 4 0 225 225 129 38 6

4 Scaffolding 128 128 34 14 5 61 61 33 5 1 9 9 0 0 0 26 26 16 2 0 224 224 83 21 6

5 Screw Fittings 173 173 45 13 5 68 68 31 6 0 12 12 1 0 0 45 45 7 2 1 298 298 84 21 6

5 Categories In Total 639 639 208 82 19 278 278 113 27 7 53 53 20 5 0 149 149 62 14 3 1119 1119 403 128 29