Dragon Sourcing proceeded to perform a audits of top-ranked suppliers, and facilitated supplier discussions with client technologists.

1. 1
Case Study
China RFI/RFQ Report for “Tomato Sauce”
Dragon Sourcing
Your Tailored Sourcing Approach to Emerging Markets
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2. 2
Supplier Market screening in China for “Tomato Sauce”
Context
Our client, an international Food Manufacturer, was looking
to identify capable producers of tomato sauce in China.
Segments involved:
•Tomato Sauce
Approach
• Collect detailed spend information about the categories
such as technical requirements, standards applied,
material specification, volume and current unit prices by
Client’s consuming factories
• Identify list of potential suppliers based in China to
include in the RFI/RFP process by leveraging the web,
external databases, and various networks of experts
• Develop the RFI / RFP – jointly with client – to include all
key supplier qualification criteria (e.g.: financial,
technology, manufacturing capability, corporate
responsibility, quality…)
• Administer RFI / RFP process to ensure as high a return
rate as possible
• Analyze responses, prices and use balance score
carding process to rank suppliers and recommend
suppliers per category which client needs to take through
their auditing process in order to potentially qualify them
• Provide Client with a profile for all of the suppliers
recommended to be audited
© 2013 Dragon Sourcing. All rights reserved.

3. Week No.
Project Activity
1 2 3 4 5 6 7 8 9 10
1. Demand Analysis
2. Supply Market Analysis
3. Telephone Pre-screening
4. Develop RFI/RFQ
5. Conduct RFI/RFQ
Administration
6. Analyze RFI/RFQ Responses
3
Program Schedule: Target was to finalize the program within 9 weeks
Project workflow updated
Done Started Delivery critical Delay
Currently Milestones Not started
© 2013 Dragon Sourcing. All rights reserved.

4. 4
Suppliers for RFI/RFQ Suppliers responding to RFI/RFQ Shortlisted for Audit
For China market, our approach enabled us to shortlist 5 suppliers out
of 33 suppliers that passed telephone pre-screening
Selection of potential
suppliers
Pre-selected suppliers
Sending & follow up of the
RFQ
Analysis of the suppliers’
offer
33 suppliers
11 suppliers
5 suppliers
© 2013 Dragon Sourcing. All rights reserved.

5. © 2013 Dragon Sourcing. All rights reserved. 5
The focus of this project
was on the coastal
provinces.
Province # of Suppliers
Anhui 3
Beijing 4
Fujian 11
Gansu 1
Guangdong 23
Guizhou 1
Hebei 3
Heilongjiang 1
Henan 13
Hongkong 1
Hubei 2
Hunan 1
Jiangsu 9
Jiangxi 7
Liaoning 4
Ningxia 1
Shaanxi 2
Shangdong 19
Shanghai 17
Shanxi 3
Sichuan 1
Tianjin 5
Zhejiang 9
Henan 1
Supplier Distribution:
Key supplier provinces were Guangdong, Shanghai and Shanghai

6. © 2013 Dragon Sourcing. All rights reserved. 6
Category Source from RFI-RFQ Weight of criteria Scoring
Max Score
per criteria
Max point
per criteria
Weight of
Section
Company background
Is your company a manufacturer, trader or both? Company Profile 2-1 4% 0= Trader, 1= Manufacture, 2= Manufacture & Trader 2 0.08
30%
Ownership (State Owned/ Private/Foreign Investments/Joint Venture) Company Profile 2-4 4% 1= State Owned, 2= Private, 3= Foreign Investments, 4= Joint Venture 4 0.16
2011 turnover in USD
(1 US$ = 6.3 CNY)
Company Profile 2-6 4% 1= Less than 1, 2= 1M - 5M, 3= 5M - 10M, 4= More than 10M 4 0.16
Do you have a good English speaker for commercial and/or technical liaison in your factory? Company Profile 2-10 4% 0= No, 1= Yes 1 0.04
Number of Staff in R&D Department? Company Profile 2-11 3% 0= None, 1= 1-2 persons, 2= 3-4 persons, 3= more than 4 persons 3 0.09
Number of Staff in Quality Control? Company Profile 2-11 3% 0= None, 1= 1-2 persons, 2= 3-4 persons, 3= more than 4 persons 3 0.09
Where is your top 5 provinces for Sales? How many provinces for your sales? Company Profile 2-12 4% 1= 1-2 provinces, 2= 3-5 provinces, 3= more than 5 provinces 3 0.12
Does Supplier Adhere to local and international CSR law & Regulations?
Company Profile
2-14/15/16/17 4% 0= No, 1= Yes 1 0.04
Production Ability 30%
Total maximum production capacity (ton / year) in 2011 Production 3-1 10% 1= <1Ktons, 2= 1001-2Ktons, 3= 2001-3Ktons, 4= 3001-4Ktons, 5= >4001tons 5 0.5
40%
Actual annual production (ton /year) in 2011 Production 3-2 4% 1= <1Ktons, 2= 1001-2Ktons, 3= 2001-3Ktons, 4= 3001-4Ktons, 5= >4001tons 5 0.2
Does the supplier have the necessary production equipment? Production 3-6 2% 0= No, 1= Yes 1 0.02
Can the suppliers production process handle all the ingredients? Production 3-7 2% 0= No, 1= Yes 1 0.02
Does the supplier have the necessary packaging equiipment Production 3-8 2% 0= No, 1= Yes 1 0.02
Quality Control 40%
Does the supplier have ISO 9001? Quality Management 4-1 6% 0= No, 1= Yes 1 0.06
30%
Does the supplier have ISO 14000? Quality Management 4-1 6% 0= No, 1= Yes 1 0.06
Does the supplier have other local certification ? Quality Management 4-1 10% No=0, if Yes:, 1= 1 Certificate, 2= 2 Certificates, 3= more than 2 Certificates 3 0.3
Do you manage the traceability in the production process? (Y/N) Quality Management 4-1 2% 0= No, 1= Yes 1 0.02
Do you have formal QC criteria for in-house quality control? (Y/N) Quality Management 4-2 2% 0= No, 1= Yes 1 0.02
Do you accept 3rd party QC? Quality Management 4-3 2% 0= No, 1= Yes 1 0.02
Do you have an on-site lab. If yes, specify whether physical / chemical / microbiological Quality Management 4-4 2% 0= No, 1= Yes 1 0.02
Subtotal 30% 9 0.5 30%
Total scoring 53.00 2.24 100%
Criteria definition for manufacturer suppliers ranking & scoring.

7. © 2013 Dragon Sourcing. All rights reserved. 7
Supplier name
Sections
Total
Company background Production Capability Quality Management
30% 40% 30% base 10
MAX SCORE 3 4 3 10
Supplier #1 2.85 3.58 2.04 8.47
Supplier #2 2.31 3.58 2.04 7.93
Supplier #3 2.27 3.17 2.28 7.72
Supplier #4 1.77 3.67 2.28 7.72
Supplier #5 2.00 3.42 2.28 7.70
Supplier #6 2.69 3.67 0.84 7.20
Supplier #7 2.15 3.58 1.08 6.82
Supplier #8 2.58 2.42 1.44 6.43
Supplier #9 2.38 2.42 1.44 6.24
Supplier #10 1.77 2.17 1.68 5.62
Supplier #11 1.77 1.25 2.04 5.06
8.47
7.93 7.72 7.72 7.70
7.20 6.82
6.43 6.24
5.62
5.06
Results of the suppliers ranking & scoring
Shortlisted for Audits

8. 8
Results
• Dragon Sourcing proceeded to perform a audits of top-ranked suppliers, and facilitated
supplier discussions with client technologists.
• The project was a success and the Food manufacturer proceeded to request samples for
testing.
© 2013 Dragon Sourcing. All rights reserved.

9. © 2013 Dragon Sourcing. All rights reserved. 9
Company Profile
Example Supplier Tomato Industry Co., Ltd. (1/3)
COMPANY INFORMATION
Company name Example Supplier Tomato Industry Co., Ltd.
Town Xiamen
Province Fujian
Company website http://www.ExampleSuppliercom
Contact person Mr. Xiao
Title Sales
Email sales@ExampleSuppliercom
Telephone number 0592-5555-5555
Fax 0592-5555-55555
Mobile phone +86-5555-55555-55555
COMPANY BACKGROUND
Manufacturer, trader or both Manufacture
Own brands Yes,
Found Year 2008
Ownership Private
Capital in USD 40 million
2011 turnover in USD 12 million
Work floor size (m²) More than 20000
Number of employees in total 200
Can your commercial / technical liaison speak English? Yes
EXPORT % OF 2011 TURNOVER
Category % Sales Exported Countries
NUMBER OF PEOPLE IN THE POSITIONS
Sales & management R&D staff QC Production supervision Logistics
15 6 2 159 2
TOP 5 PROVINCES FOR SALES
Province % of sales
TOP 5 CUSTOMERS
Customer Industry Location % of sales Type of product

10. © 2013 Dragon Sourcing. All rights reserved. 10
ACCEPTABLE RAW MATERIAL INPUTS
Raw Materials Handed Yes/No Dry/Fresh/Frozen Description
PACKING TECHNOLOGY
Packaging Technology Yes/No Specify Instructions Description
Packaging in Modified Atmosphere (Y/N) If yes, please describe
Automated Packaging (Y/N) If yes, please describe
Other Packaging Technology 1 If yes, please describe
Other Packaging Technology 2 If yes, please describe
Other Packaging Technology 2 If yes, please describe
QUALITY, ENVIRONMENTAL & PRODUCT CERTIFICATION
What certificates do you have? Yes / No Date of Certificate Certifying Org.
Manufacturing
ISO 9001 Yes
ISO 14000 No
Other local food
certifications
HACCP Yes
FDA Yes
ISO22000 Yes
KOSHER Yes
HALAL Yes
QUALITY CONTROL & TESTING EQUIPMENT
Yes / No Description
Do you manage the
traceability in the production
process? (Y/N)
If yes, please describe.
Yes
Do you have formal QC
criteria for in-house quality
control? (Y/N)
If yes, please describe your
QC process.
Yes
Do you accept 3rd party QC? Yes
Do you have an on-site lab. If
yes, specify whether
physical / chemical /
microbiological.
Yes
PRODUCTION CAPACITY
Total maximum production capacity (ton / year) in 2011 40000
Actual annual production (ton /year) in 2011 20000
How many production lines do you have ? 4
What is the daily production capacity per day per line ?
How many shifts per day do you operate ? 1
PRODUCTION EQUIPMENT
Production Equipment Yes/No Equipment & Producer Year acquired Quantity
NA
NA
Yes 4
Yes 4
Yes 4
NA
Company Profile
Example Supplier Tomato Industry Co., Ltd. (2/3)

11. © 2013 Dragon Sourcing. All rights reserved. 11
FACTORY PICTURES
Company Profile
Example Supplier Tomato Industry Co., Ltd. (3/3)