Download pdf - Case Study- Look for suppliers in India, China etc. Food Sourcing

Food Sourcing Case Study

Shanghai, Mar 2016

Dragon Sourcing - 龙源 Delivering sustainable sourcing value from emerging markets

© 2016 Dragon Sourcing. All rights reserved. 222222222

Agenda

1. Introduction

2. Sourcing Approach

RFI step

RFQ step

- Mushrooms : Quotations & potential savings

- Beans : Quotations & potential savings

3. Results

4. Appendix : suppliers location

3© 2016 Dragon Sourcing. All rights reserved. 3333333

Introduction

Project Objectives

Look for suppliers in India, China, Thailand and Turkey with secure savings through Dragon Sourcing professional sourcing steps for Food categories

Geographical scope China India Thailand Turkey (Turkey is not part of the contract scope but Dragon Sourcing team identified potential suppliers for

both categories in Turkey )

Deliverables: RFI / RFQ and Score Card Supplier profiles


Agenda

1. Introduction


RFI step

RFQ step



3. Conclusions

• Analyse spend category in detail– Specifications and quality

requirements– Volumes– Deadlines

• Analyse supply market and identify potential suppliers

• Pre-qualify potential suppliers through an RFI process

• Manage RFP process with pre-qualified suppliers

• Analyse supplier responses and calculate fully delivered price (logistics, import duties, ADT,..)

• Develop Business case and implementation plan

• Shortlist suppliers based on RFI/RFP process

• Audit shortlisted suppliers

• Select 2-3 suppliers for sample development process

• Manage sample development process

• Conduct final negotiations and select suppliers

• Finalise Contract

Dragon Sourcing ApproachFor this case, only step one – “value discovery” is required by the client

Value DiscoverySupplier Selection and Contracting

Procurement Operations

• Manage P/O and agree payment terms and details (L/Cs,..)

• Check in process production quality

• Conduct pre-shipment QC

• Arrange logistics

• Manage supplier performance

• Monitor new sourcing opportunities

Key

act

ivit

ies

© 2016 Dragon Sourcing. All rights reserved.


Agenda

1. Introduction


RFI step

RFQ step



3. Results



The first step of value discovery was to develop a comprehensive understanding of the requirements: below specifications table are received from client including 16 product references: canned mushrooms (11), canned beans (5)

Category Sub-cat. Specs 　 Product name Refart

workPIC

Samples received

Y QtityCurrent

FOB(USD)

Target price(USD)

Pack SKU Questions

Food

Mushrooms

C 1 Mushrooms whole, 400g 7340011341789 Y 　　 18,480 0.715 can 1 　

H 2 Mushrooms, sliced, 185/115 g 7340011340294 Y 　　 155,965 0.43 can 1

Specs same as HJ 2 Mushrooms, pieces and stems, 170 g.

7340011438885 　 Y =H 673,920 0.52 jar 1

? Y =H 745,920 0.52 can 1

G 5 Mushrooms, sliced, 280/170g 7340011351146 Y 　　 76,923 0.6 jar 1 　

E 6 Mushroom sliced, 185/115g 7340011432449 Y 　　 164,640 1.33 can ? 3 　

B 7 Mushrooms , whole 390g 6415712600655 　 Y 　 134,784 1.05 can 1 　

F 8 Mushrooms, sliced, 390g/185g 6415719429914 　 Y 　 426,384 0.65 can ? 2 　

D 9 Mushrooms, whole, 185/115g 7340011432432 Y 　　 42,336 2.03 can ? 3　Specs same as DK 9 Mushrooms whole, 170 g. 7340011351139 　　 Y =D 45,792 0.78 jar 1

I 10 Canned whole mushrooms MINIS, 185g 6415712600235 　 Y Yes, 6 151,200 0.7 can 1 　

A 11Canned mushrooms, sliced, marinated/sauted in vegetable oil, 180/115g

6415712600129 　 Y Yes, 6 128,520 0.8 can 1 　

Beans

L 13 kidney beans 7340011436829 　 Y 　 130,896 0.59 can 1 　

M 15 Mixed beans 7340011436867 　 Y 　 90,720 0.55 can 1 　

N 14 Kidney beans in chili sauce73400114368367340011442271

Y 　　 54,432 0.63 can 2 　

O 12 brown beans 420g/240g 7340011364214 Y 　　 6,480 0.51 can 1 　

P 16 Brown beans, 420g 6415719415368 Y 　　 250,000 0.53 can 1 　


11 references of canned mushrooms (12 specs)...

A B C D E F

6415712600129 6415712600655 7340011341789 7340011432432 734001143244964157194299146415719429907

mushroom Sliced in marinade can mushroom whole can X-tra mushrooms whole can Mushroom Whole can mushroom slices can mushroom Pieces & Stems can

G H I K

7340011351146 7340011340294 6415712600235 7340011351139

Mushroom slices 2nd choice glassjar

mushrooms pieces & stems, can mushroom whole small can mushrooms Pieces & stems glass jar Fakta mushrooms Pieces & stems glass jar Mushroom whole glass jar

(= H)Packaging glass Jarr

(= H)Packaging glass Jarr

( = D)Packaging glass Jar

J

7340011438885

9© 2016 Dragon Sourcing. All rights reserved. 9999

...and 5 references of canned beans

L M N

7340011436829 734001143686773400114368367340011442271

canned Kidney beans Canned Bean Mix canned Kidney beans in chilli

O P

7340011364214 6415719415368

Canned Brown beans canned brown beans


then an extensive supplier data base is built leveraging multiple sources of information

Company and contact information

No.Product category

Supplier name

Province City Website SourceContact Person

Email Telephone Mobile

1 Mushrooms Supplier 1 Fujian

2 Mushrooms Supplier 2 Hubei




Sources of Information - China

Website name websites Remark

Alibaba www.alibaba.comB2B for all over the world

Global Sources

www.globalsources.com

B2B for all over the world

Gongchangwww.gongchang.com

B2B for all over the world

Tradekey www1.tradekey.comB2B for all over the world

ECVV www.ecvv.comB2B for all over the world

EC21 www.ec21.comB2B for all over the world

Hellotrade www.hellotrade.comB2B for all over the world

Trade Asia www.etradeasia.com B2B for Asia

Asian Products

www.asianproducts.com B2B for Asia

made in china

www.made-in-china.com BSB for China

Alibaba China china.alibaba.com BSB for China

CHINA.CN www.china.cn BSB for China

CCCME www.cccme.org.cn

China Chamber of Commerce for electrical & mechanical products

Baidu www.baidu.comTOP 1 source engine in China

Next step is to administer the RFI/RFQ process


Production Capacity

Company Profile

Quality and certificate

Contact detailinformation

Company and contact information RFI/RFQ Process follow up

Product category

Supplier name Province

RFI/RFQ sent Intend to respond Last call follow up RFI received RFQ received

Y/N Date Y/NIf no,

reason Date Comment Y/N DateIf no,

reason Y/N DateIf no,

reason

Mushrooms Supplier 1 Fujian

Mushrooms Supplier 2 Hubei




During the RFI/RFQ process, an RFI/RFQ control sheet is used to follow up the whole process



Based on the RFI/RFQ, company profiles are developed- Company and business information

13

GENERAL INFORMATION

Company Name Supplier 1

Address N/A

Town Chengxi

Zip code 363112

Province Fujian

Country China

Company Website N/A

CONTACT INFORMATION

Contact Person N/A

Title Trading manager

Email N/A

Tel N/A

Fax N/A

Mobile phone N/A

BUSINESS INFORMATION

Found Year 2009

Nationality China

Production location Fujian

Ownership Private

Capital in USD 7 Million

Work floor size (m²) 533,360

Years in canned food business 30 years

License for self import/export (Y/N)

Yes

Years of export experience 30 years

Deliver to retailers in Europe (Y/N)

Yes

Current EUR retailers supplied Yes

TURNOVER IN USD2010 2011 2012 2013

10,000,000 15,000,000 16,000,000 20,000,000% SALES EXPORT TO MAIN MARKETS IN 2013

EU (%) US (%) Others (%) Total (%) export25% 5% 60% 90%

MAIN CUSTOMERS

Customers Industry

Product category Country

Percentage of sales

MARUHA NICHIRO CORPORATION

canned mushroom/lychee JAPAN 15%

S.ISHIMITSU & CO., LTD.

canned mushroom/bamboo shoot

JAPAN 10%

LOVERING FOODS LTD

water chestnut UK 10%

SUN YIK FOOD LTD. mixed mushroom HK,CHINA 5%CANEAST FOOD mushroom CANADA 5%

EXPERIENCE - CANNED BEANS AND MUSHROOMS

PRODUCT CATEGORY Canned Mushrooms Canned Beans

YEAR 2012 2013 2012 2013

% of total sales revenue 60 60 60 60

% exportation 100 100 100 100

Exporting to Europe Yes Yes

Deliver to lead retailers in Europe

Yes No

Producer or reseller Producer Producer

Experience Y/N - Volume Yes Yes

TOP 5 CUSTOMER – CANNED MUSHROOMS

Customers Industry Country% total

turnover

MARUHA NICHIRO

Canned mushroom JAPAN 20

S.ISHIMITSU Canned mushroom JAPAN 10

SUN YIK FOOD

Canned mushroom CHINA 10

CANEAST FOOD

Canned mushroom CANADA 5

PAK SHINE Canned mushroom CHINA 5

TOP 5 CUSTOMER – CANNED BEANS

Customers Industry Country% total

turnover

TIGER Canned bean

SOUTH AFRICA 25

ETECO Canned bean NIGERIA 20

LOVERING Canned bean

UK 10

ALMA Canned bean LEBANON 5

PTCanned

beanINDONESIA 5

HUMAN RESSOURCES

Total # employees 200

Good English speakers (Y/N, #) 2

Production Quality R&D Admin

56 15 10 19

TOP 5 MANUFACTURED PRODUCTS

Product name Yearly Volume produced 2013

MUSHROOM 10,000

LYCHEE 2,000

BAMBOO SHOOT 1,500

MUNG BEAN SPROUT 1,500

BEANS/PEAS 1,500


Based on the RFI/RFQ, company profiles are developed- Production

14

PRODUCTION CAPACITY

Volume 2013 (tons)

Max. prod. capacity

2013 (tons)

% occupation

2013

Planned prod.

capacity 2014 (tons)

Canned Mushrooms

8,000 12,000 67% 8,000

Canned Beans 1,500 2,000 75% 1,000

EQUIPMENT

Equipment nameYear

purchasedBrand/ country

Main characteristics

blanching machine 2010 CHINA 2PCSVacuum machine 2014 CHINA 1PCSGrading machine 2010 CHINA 2PCS

can washing machine 2010 CHINA 2PCSmetal detector 2010 CHINA 4PCSshaking screen 2010 CHINA 4PCS

hair removal machine 2010 CHINA 4PCS

PRODUCTION PROCESS

Canned Mushrooms Canned Beans

Production process

Production process N/A N/A

Washing raw ingredient process

washing in sink with water washing in sink with water

Steeping process steep in special bucket steep in special bucket

Cooking process precook in pot precook in pot

Cooling process cooling with water cooling with water

Final washing process wipe dry the tin wipe dry the tin

Packaging process pack with label and carton pack with label and carton

Shelf life of the finished good

3 years 3 years

Raw MaterialFood

Main raw ingredients origin

China China

Quality control incoming materials

Checking by QC deparment Checking by QC deparment

Ensure products do not contain GMO

have GMO test have GMO test

Raw MaterialWater

QC of the water used for production

Testing in regular Testing in regular

Use chlorinated water in prod. Process

No Yes

Is the waste water treated?

Yes Yes

PACKAGING PROCESS

Primary Packaging Secondary Packaging

Can originFrom the cans'

factoryProduce shelf ready packaging

No

Can Material composition TinplateUse Slipsheet for shipment

Yes

Ability to customize outer can printing

YesFamiliar with slip sheet use

YesAble to analyze tin (Sn) content in finished goods

Yes

Able to analyze Heavy metal (Cd, Pb) and pesticides in raw materials

YesSecondary packaging usually offered

We pack with label

and carton


Based on the RFI/RFQ, company profiles are developed- Quality Management

15

QUALITY CERTIFICATION

Certificate NameDate of

Certificate Certifying

Organization

IFS 2014.02.12ECOCERT FRANCE

SAS

BRC 2014.01.10 MICRON 2 LTD

HALAL 2014.04.15SHANDONG ISLAMIC ASSOCIATION CHINA

HACCP 2014.01.20CHINA QUALITY CERTIFICATION

CENTER

Product manufactured and controlled in accordance with...

Y/N Comment

Relevant EU Regulation Yes N/A

Allergen Documentation (EU regulation 1169/2011, annex II

Yes N/A

Heavy metal Commission regulation (EC) No 1881/2006 of 19 Dec 20166 setting max levels off contaminants

Yes N/A

Results of pesticides in accordance with Regulation (EC) No.396/2005 of EU Parliament

Yes N/A

HACCP (Codex Alimentarius) N/A N/A

IN-HOUSE QUALITY CONTROL EQUIPMENT

Metal detector

X-ray machine

N/A

N/A

N/A

N/A

QUALITY PROCESSES

Y/N Process description

Incoming material quality inspection - raw ingredient Yes　 test shape, colour, foreign body, pesticide residues

Incoming material quality inspection – pckg material Yes test the layout,size,color texture

In-process quality inspection Yes test the goods every day

Finished goods quality inspection Yes test the goods based on requirement

Process for supplier selection Yes N/A

Process for supplier evaluation Yes N/A

Long term contracts with your suppliers Yes N/A

Performance achieved in out-going quality (% rejected) 3%

Traceability measureYes, customers order number - find packaging lot -

date, specification, quantity - validation effect

Data available upon request Yes

Measures in place for record tracking using the relevent sheet to record t

Handling and treatment of solid waste signed the dealing contract

Handling and treatment of liquid waste treat the liquid waste into disposal

CORPORATE & SOCIAL RESPONSIBILITY

Implemented BSCI - (Business Social compliance initiative)

Yes　 Working hours/week excl. OT 8-10 hrs

Adhere to all rules and regulations in respect to child labor (Y/N)

Yes Max. no of working hours/week 48

Adhere to all rules and regulations in respect to environmental issues (Y/N)

YesPersonal attendance records for all workers

Yes

Adhere to all rules and regulations in respect to health and safety issues (Y/N)

Yes If Y, punching machine or handwritten Punching

Minimum age policy 18 Emergency exits on all floors Yes

Minimum wage paid1,800 RMB

Chemicals used in the production No


…and factory pictures collected

FACTORY PICTURES & PRODUCTS

Production Weight of

criteriaScoring

Max Score per criteria

Weight of the section

Score Supplier's answer

Monthly production capacity

10%

0= 0-9 Tons1 = 10-100 Tons2 = 101-200 Tons3 = 201-999 Tons4 = 1000-1500 Tons5 =.> 1500 Tons

5

30%

Production 5%1 = produce only bean or only mushrroms2 = product beans AND Mushrooms

2

Production equipment 5%0 = not listed1 = listed 1

Maintenance program 5%0 = don't have1 = have 1

Production process description

5%0 = not desribed1 = described but incomplete2 = Yes, clearly described

2

Control raw materials - FOOD


2

Control raw materials - WATER


2

Control raw materials - PACKAGING CAN


2

Product shelf life 5%0 = not given1 = 1-2 Y2 = > 2Y

2

Able to provide shelf ready packaging

25%0 = no1 = Yes

1

Able to pack using slip sheets

25%

0 = no1 = yes ready to do it2 = yes, ability and experience to do it

2

Subtotal 100% 30% 0

Supplier 1

Mushrooms and beans

Business informationWeight of

criteriaScoring

Max Score per criteria



Year Founded 5%

1=After 20102=Between 2006 to 20103=Between 2000 to 20054=Between 1995 and 19995=Before 1995

5

10%

Registered capital in USD 5%

1=Less than 100,0002=100,000 - 500,0003=500,000 -1M4= >1M

4

Turnover in 2013 in USD 7%

1=Less than 1M2=Between 1 to 3M3=Between 3 to 5M4=More than 5M

4

Workfloor area 5%

1=Less than 1,000m2

2=1,000m2-5,000m2

3=5,000m2-10,000m2

4=Above 10,000m2

4

No. of employee 3%

1=Less than 50 employees2=50-100 employees3=100-300 employees4=300-500 employees5=Above 500 employees

5

English speaking employees

2%0 = don't have1 = have

1

Export experience 15%

0= no export, no license1=Less than 5 years2=5-10 years3=More than 10 years

3

Number of years in the canned food business

10%1=Less than 5 years2=5-10 years3=More than 10 years

3

Profile of Top Customers 20%

0=Not provided 1=Local customers2=National customers3=International customers 4= Lead European retailers customers

4

Canned food place in their core business% of their total revenue

5%

0 = < 5%1 = 5% - 20%2 = 20% - 50%3 = >50%

3

Canned Food export experience

15%0 = not export1 = export but not to Europe2 = export and to Europe

2

Manufacturer or retailer 10%0 = retailer1 = Manufacturer

1

Subtotal 102% 10% 0


The RFI responses are analyzed using a score card validated by the client

Company Profile

Production Capacity

Social responsibility

Weight of criteria

ScoringMax Score per

criteria

Weight of the

sectionScore

Supplier's answer

BSCI implemented 40%0= No1= Yes

1

5%

Adhere to all rules and regulations in respect to child labor

30%0= No1= Yes

1

Adhere to all rules and regulations in respect to health and safety

30%0= No1= Yes 1

Subtotal 100% 5% 0

RFI products capacity

Weight of criteria

Scoring Max Score per criteria

Weight of the

sectionScore Supplier's

answer

Able to produce Mushrooms specifications given

25%0 = No1 = Yes, partly2 = Yes, all of mushrooms

2

25%

Able to produce Beans specifications given

25%0 = No1 = Yes, partly2 = Yes, all of beans

2

For products they can offer - ability to meet the demand

30%0 = No1 = Yes but not for all2 = Yes, no issue

2

Ability to meet requirements specifications

10%0 = No answer1 = Answer and understand (with Questions possibly)

1

Ability to read/understand and meet additional quality requirements in appendix

10%0 = No answer1 = Answer and understand (with Questions possibly)

1

Subtotal 100% 25% 0

Cooperation Weight of criteria

ScoringMax Score per

criteria

Weight of the

sectionScore

Supplier's answer

Cooperation during RFI

50%1= Poor2= Satisfactory3= Excellent

3

5%

Completeness of RFI 50%1= Poor2= Satisfactory3= Excellent

3

Subtotal 100% 5% 0


The RFI responses are analyzed using a score card validated by the client

Quality and certificate

Cooperation

Quality system Weight of criteria

Scoring Max Score per criteria



ISO 9001 10%0= No1= Yes

1

25%

ISO 14001 10%0= No1= Yes

1

Others 7% 0= No1= Yes

1

Relevant EU Regulation 5%0= No1= Yes 1

Allergen Documentation - EU regulation 1169/2011, annex II

10%0= No1= Yes 1

Heavy metal Commission regulation

5% 0= No1= Yes

1

Results of pesticides in accordance with regulations

5%0= No1= Yes

1

HACCP (Codex Alimentarius)

5% 0= No1= Yes

1

In house test equipment 8%0= No1= 1-3 test equipment 2= >3 test equipment

2

Quality control process 20%

0= No1= Yes to 12 = Yes to 23 = Yes > 2

2

Supplier management process 5%

0= No1= Yes 1

Tracability 5%0= No1= Yes

1

Waste management 5% 0= No1= Yes

1

Subtotal 100% 25% 0

RFI products capability



For this case: 14 suppliers who replied the RFI were scored and ranked

CN IN TH TR

Supplier score out of 100

87 8784

8179 78 76

74 72 71

60

47

35

11

0

10

20

30

40

50

60

70

80

90

100

CN1. S

uppli

er 1

CN2. S

uppli

er 2

CN3. S

uppli

er 3

TR1. S

uppl

ier 4

CN4. S

uppli

er 5

CN5. S

uppli

er 6

CN6. S

uppli

er 7

TR2. S

uppl

ier 8

CN7. S

uppli

er 9

CN8. S

uppl

ier 1

0

IN1.

Sup

plier

11

IN2.

Sup

plier

12

TH1. S

uppl

ier 1

3

TH2. S

uppli

er 1

4

Supplier score out of 100 by section breakdown

0

10

20

30

40

50

60

70

80

90

100

CN1. Supplier 1

CN2. Supplier 2

CN3. Supplier 3

TR1. Supplier 4

CN4. Supplier 5

CN5. Supplier 6

CN6. Supplier 7

TR2. Supplier 8

CN7. Supplier 9

CN8. Supplier 10

IN1. Supplier 11

IN2. Supplier 12

TH1. Supplier 13

TH2.Supplier 14

Cooperation

RFI products capacity


Quality system

Production

Business information


Average scoring for 14 suppliers reaches 67 out or 100. 10 suppliers were above this score, 4 from India and Thailand are below

Average 67.2

10 suppliers scoring above average

Suppliers do not match client sourcing criteriaPoor scoring results

Little export experience and limited capacity

We suggest to include them in RFQ step for reference

Potential suppliersWe Recommend to move forward for RFQ with TOP 10 Suppliers

1. RFQ2. Samples3. On-site Audit


Based on scoring results, we recommended to go further with TOP 10 suppliers for RFQ

• Based on scoring results, Indian and Thailand suppliers have very little experience exporting. They do not meet the requirements in order to be considered as a potential supplier for client Trading products. Nevertheless, for benchmarking, we would suggest to ask them for quotation in the next step

• We recommend to go further with TOP 10 suppliers who obtained a score above average

• Suggested Next steps : 1. Request for Quotation2. Request for samples3. On-site visit/ On-site Audit

RankSection

Businessinfo

Prod QMSSocial resp.

RFI cap. Cooper. Total

Section weight 10% 30% 25% 5% 25% 5% 100%

1 CN1. Supplier 1 9.0 19.8 24.0 5.0 25.0 4.2 86.9

2 CN2. Supplier 2 5.8 22.5 25.0 5.0 25.0 3.3 86.6

3 CN3. Supplier 3 7.6 20.4 22.5 5.0 25.0 3.3 83.8

4 TR1. Supplier 4 9.4 22.8 21.3 5.0 18.8 3.3 80.5

5 CN4. Supplier 5 7.2 26.6 21.8 5.0 15.6 2.5 78.6

6 CN5. Supplier 6 6.1 28.7 21.5 5.0 13.1 3.3 77.7

7 CN6. Supplier 7 7.2 20.1 21.8 5.0 18.1 4.2 76.4

8 TR2. Supplier 8 7.1 28.1 20.3 3.0 11.9 3.3 73.6

9 CN7. Supplier 9 8.9 17.7 25.0 5.0 11.9 3.3 71.8

10 CN8. Supplier 10 8.1 9.6 25.0 3.0 22.5 2.5 70.7

11 IN1. Supplier 11 4.9 7.5 15.3 3.0 25.0 4.2 59.8

12 IN2. Supplier 12 2.7 5.3 11.3 3.0 22.5 2.5 47.2

13 TH1. Supplier 13 5.3 11.3 0.0 0.0 16.3 2.5 35.3

14 TH2. Supplier 14 2.1 1.5 0.0 0.0 6.3 1.7 11.5

Average 6.5 17.3 18.2 3.7 18.3 3.2 67.2


Agenda

1. Introduction


RFI step

RFQ step



3. Conclusions



Based on scoring results, we recommended to go further with TOP 10 suppliers

Rank SectionScore out

of 100 (RFI)

Mushrooms(Y/N)

Beans(Y/N)

QuotedRFQ filled in

1 CN1. Supplier 1 86.9 Y Yes Mushrooms 11/11

2 CN2. Supplier 2 86.6 No - Out of season, not available to provide an estimated

quote as this is their first time to make the product.

3 CN3. Supplier 3 83.8 No - Out of season, not willing to take time to provide an

estimated quote upon on previous season price.

4 TR1. Supplier 4 80.5 No - Not able to quote at the moment as they hold

suspended production for private label.


6 CN5. Supplier 6 77.7 Y Yes Beans 5/5


8 TR2. Supplier 8 73.6 Y Yes Mushrooms 3/11

9 CN7. Supplier 9 71.8 No - Out of season, not available to provide an estimated

quote as this is their first time to make the product.

10 CN8. Supplier 10 70.7 Y Yes Beans 3/5


Agenda

1. Introduction


RFI step

RFQ step



3. Results

4 suppliers submitted their quotation for Mushrooms, 3 from China and 1 from Turkey


Most quotation are below current prices (23/33). By combining different suppliers, all items have potential savings


Ref 6415712600129 6415712600655 7340011341789 7340011432432 7340011432449 64157194299146415719429907 7340011351146 7340011340294 6415712600235 7340011438885 7340011351139

Product mushroom Sliced in marinade can

mushroom whole can

mushrooms whole can

Mushroom Whole can

mushroom slices can

mushroom Pieces & Stems can

Mushroom slices 2 choice glass jar

mushrooms pieces & stems,can

mushroom whole small can

mushrooms Pieces & stems glass jar

Mushroom whole glass jar

Annual Volume (#Cans)

128,000 135,000 18,500 42,000 164,640 426,384 76,923 156,000 151,000 746,000 46,000

Current Price

Curent spend (Qtity * CP)

$102,400 $141,750 $13,228 $85,260 $218,971 $277,150 $46,154 $67,080 $105,700 $387,920 $35,880

Supplier 1 (CN) 1 $0.450 $0.900 $0.900 $0.500 $0.420 0.38 $0.600 $0.380 $0.500 $0.550 $0.700

Supplier 7 (CN) 7 $0.310 $0.790 $0.820 $0.520 $0.310 $0.350 $0.600 $0.350 $0.520 $0.550 $0.630

Supplier 5(CN) 5 　　 $0.692 $0.371 $0.317 $0.288 $0.483 $0.288 　 $0.458 $0.600

Supplier 8 (TR) 8　　　　　　　 $1.200 　　 $1.200 $1.200

Minimum price quoted $ 0.3100 $ 0.7900 $ 0.6920 $ 0.3710 $ 0.3100 $ 0.2880 $ 0.4830 $ 0.2880 $ 0.5000 $ 0.4580 $ 0.6000

Percentage price difference

-61% -25% -3% -82% -77% -56% -20% -33% -29% -12% -23%

Max potential saving/items

$ 62,720 $ 35,100 $ 426

$ 69,678 $ 167,933 $ 154,351 $ 9,000 $ 22,152 $ 30,200 $ 46,252 $ 8,280

The Turkish supplier is not competitive. Chinese supplier 7 has the highest potential savings (USD 504k) while max potential savings with combined suppliers would reach USD 606K.


Items with savings / items quoted 0/3 8/11 8/8 8/11 ALL 11

Total % savings % 0% 29% 32% 34% 41%

Supplier 8 (TR) Supplier 1 (CN) Supplier 5 (CN) Supplier 7 (CN)


Agenda

1. Introduction


RFI step

RFQ step



3. Results

2 Chinese suppliers offered quotation for the beans references. All prices received are below current prices


Supplier 10 Supplier 6

Supplier 6 quoted all 5 references with lower price than current price. Their quotation is the most attractive with 53% potential savings on total spend value (USD 157K over USD 297K)


Ref Product Annual Volume (#Cans)

Current Price Curent spend (Qtity * CP)

Supplier 10Rank 10

Supplier 6Rank 6

COMBINED SUPPLIERS

Quote Potential Savings Quote Potential Savings

　 Potential savings

7340011436829 canned Kidney beans 131,000 $77,290 $0.383 ($27,117.000) $0.329 ($34,191.000) $34,191.000

7340011436867 Canned Bean Mix 91,000 $50,050 　　 $0.279 ($24,661.000) $24,661.000

7340011436836 7340011442271

Kidney beans in chilli 54,500 $34,335 　　 $0.363 ($14,551.500) $14,551.500

7340011364214 Canned Brown beans 6,500 $3,315 $0.317 ($1,254.500) $0.200 ($2,015.000) $2,015.000

6415719415368 canned brown beans 250,000 $132,500 $0.321 ($52,250.000) $0.200 ($82,500.000) $82,500.000

current spend $297,490 # items below current price 3 5 5　

total potential savings $80,622 $157,919 $ 157,919

Total % savings 27% 53% 53%

Consequently, Supplier 6 has the best offer, however Supplier 10 also offers potential savings


Qugu is less expensive on all items

Supplier 10 Supplier 6


Agenda

1. Introduction


RFI step

RFQ step



3. Results


7 Chinese suppliers were selected for auditing and sampling

• For Mushrooms:

– 3 Chinese suppliers (Supplier 1, Supplier 5, Supplier 7) offer potential savings and have a high RFI ranking

– The Turkish supplier Supplier 8 is far from being competitive and is probably not worth going further– +1 Chinese supplier (Supplier 3) who has a very high RFI ranking (No.2) but is only willing to quote when

the product is “in season”

• For Beans:

– Supplier 6 and Supplier 10 are good potential suppliers with high score and attractive savings possibilities– +1 Chinese supplier (Supplier 2) who has a very high RFI ranking (No.3) but is only willing to quote when

the product is “in season”



Agenda

1. Introduction


RFI step

RFQ step



3. Results



8 suppliers in China submitted RFI for FOOD category

Xinjiang

Gansu

Jiangxi

Zhejiang

BEIJING

Jiangsu

Guangxi

Hunan

Hubei

Qinghai

Ningxia

Shaanxi

Anhui

Fujian

Neimongu

Shanxi Shandong

Xizang

Sichuan

Yunan

Guizhou

Henan

Jilin

Liaoning

Hebei

Guangdong

Gansu

Shanghai / DS

Hong Kong

Taiwan

Heilongjiang

CHONGQING

①

②

No. Supplier Province

CN1 Supplier 1 Fujian

CN2 Supplier 2 Hubei




CN6 Supplier 7 Beijing

CN7 Supplier 9 Liaoning

CN8 Supplier 10 Hubei

③

④⑤⑥⑦

⑧


2 suppliers in India submitted RFI for FOOD category

No. Supplier name Province

IN1 Supplier 11(manufacture)

Uttarakhand

IN2Supplier 12(manufacture) Punjab

IN3

Supplier 15(trader)Supplier filled in contact info but not full RFI

Tamil Nadu


2 suppliers in Thailand submitted RFI for FOOD category


TH1 Supplier 13 Chiang mai

TH2 Supplier 14 Bangkok

2

1



TR1 Supplier 4 Izmir

TR2 Supplier 8 Antalya

2

1

2 suppliers in Turkey submitted RFI for FOOD category