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Dragon Sourcing
Your Tailored Sourcing Approach to Emerging Markets
Global Promotional Items Sourcing - Case Study
25th Aug, 2015
1
© 2015 Dragon Sourcing. All rights reserved.
1. Introduction
2. Annual Spend & Category Demand Analysis
3. Supply Base Response
4. Quotation Analysis
5. Supplier Recommendation
6. Summary
2
Agenda
© 2015 Dragon Sourcing. All rights reserved.
3
1. Introduction
Objectives was to secure savings through consolidating procurement and sourcing direct from
manufacturers in emerging markets for the following categories:
1. Textiles (contains 3 sub - categories)
a) T shirts, Polo Shirts, Shirts
b) Aprons & Table cloths
c) Hats
2. Parasol & Umbrella
3. Unprinted shrink and stretch Film
Scope included: China, Vietnam, Thailand, India, Bangladesh, Turkey
© 2015 Dragon Sourcing. All rights reserved.
4
1. Approach – Phase 1
No. Step Deliverables
1.
Demand Analysis
Work with Client to define and understand the products and requirements (specs, volumes, materials,
production technology requirements)
 Project Requirement
Questionnaire
 Kick-Off Report
2.
Supply Analysis
Identify 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-screening
Selection 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/RFQ
Prepare 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 Administration
The 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 Responses
Analysis 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
Audit
Milestone 2: Shortlist for Audit Agreed
Phase 1: Supplier Pre-Qualification
© 2015 Dragon Sourcing. All rights reserved.
5
1. Approach – Phase 2
No. Step Deliverables
7.
Prepare for Audits
Planning 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 Audits
Distribution of the Audit Questionnaire to suppliers for their self-assessment (and to get them
prepared), followed by onsite audits, with or without Client buyers, of all the suppliers. Focus is
management, logistics, production & quality.
 Completed Audit
Questionnaires
9.
Analyse Audit Results
Analysis 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
Sampling
Milestone 3: Shortlist for Sampling Agreed
10.
Sample Development & Testing
Managing the sample development and testing iterations to determine which suppliers can meet the
quality.
 Samples
 Sample Analysis Reports
11.
Negotiation & Contracting
Conducting final negotiations with the shortlisted suppliers, and facilitating contracting between
selected suppliers and Client.
 Contract(s)
Milestone 4: Contracts Secured
Phase 2: Selection & Contracting
© 2015 Dragon Sourcing. All rights reserved.
Phase 1: Supplier Pre-qualification
Steps
Duration/week
commencing
Week 1
June 8 ~ 12
Week 2
June 15 ~ 19
Week 3
June 22 ~ 26
Week 4
June 29 ~ July 3
Week 5
July 6 ~ 10
Week 6
July 13 ~ 17
Week 7
July 20 ~ 24
Week 8
July 27 ~ 31
Phase1
1. Demand Analysis 1
2. Supply Market Analysis 2
3. Telephone pre-screening 1
4. Develop RFI/RFQ 1
5. Administer RFI/RFQ 4
6. Analyze RFI/RFQ Responses 2
1. Schedule
Not started Done
In process Delay
Phase 1 (Supplier pre-qualification): 8 weeks
1 RFI/RFQ Approved
Shortlist for
Audit Agreed
2
6© 2015 Dragon Sourcing. All rights reserved.
1. Introduction
2. Annual Spend & Category Demand Analysis
3. Supply Base Response
4. Quotation Analysis
5. Supplier Recommendation
6. Project Summary
7
Agenda
© 2015 Dragon Sourcing. All rights reserved.
1.3
0.1
0.5
3
1
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
T-shirts, Polo Shirts Apron & Table Cloth Hats
Textile Parasol & Umbrella Shrink & Stretch Film
MUSD
Sub-Category
Annual Spend per Sub-Category
2. Spend Analysis
Total annual spend for 3 categories (5 sub-categories) is over USD 6 Million.
.
8
Total Annual spend analysis
© 2015 Dragon Sourcing. All rights reserved.
1.9
3
1
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
Textile Parasol &
Umbrella
Shrink and Stretch
Film
MUSD
Category
Annual Spend per Category
© 2015 Dragon Sourcing. All rights reserved.
Category: Textile
Sub-category: T-shirts, Polo shirts, Shirts
Product Specification
Product description T- shirts,
Polo Shirts,
Shirts
Material T-shirts:
100% cotton
95% Cotton / 5% Lycra
50%/25%/25% poly/cotton/rayon
65%/35% poly/cotton - 140gsm
POLO Shirts:
180 GSM/m2 Combed Cotton Single Jersey
95 % Combed Cotton Single jersey / 5 % Elastan
100% Micro Polyester 145 g/m2 (7 oz/linear yd).
Shirts:
35% Cotton 65% Polyester
Packing & Packaging Information
Packaging Description: Each item must be rolled and poly bagged
Each item must be packed separately in PVC plastic bag.
Number of pieces in a
20'container
19,800 pcs / 15,840 pcs …etc.
Number of pieces in a
40'container
41,400 pcs / 33,120 pcs …etc.
Product Picture
T-shirts
POLO Shirts
Shirts
© 2015 Dragon Sourcing. All rights reserved.
Category: Textile
Sub-category: Apron & Table Cloth
Product Specification
Product description Apron – Medium
Apron – Short
Table Cloth Big
Table Cloth Small
Material 100% cotton 240gsm
100% cotton; 180 g/m2,
Packing & Packaging Information
Packaging Description: Each item must be rolled and poly bagged
Each item must be packed separately in PVC plastic bag.
Number of pieces in a
20'container
26,400 pcs for Apron Medium
28,800 pcs for Apron Short
17,600 pcs for Table Cloth Big
158,400 pcs for Table Cloth Small
Number of pieces in a
40'container
55,200 pcs for Apron Medium
72,000 pcs for Apron Short
36,800 pcs for Table Cloth Big
331,200 pcs for Table Cloth Small
Product Picture
Apron Medium Apron Short
Table Cloth Big ( 140 x 140 cm)
Table Cloth Small ( 40 x 40 cm)
© 2015 Dragon Sourcing. All rights reserved.
Category: Textile
Sub-category: Hats
Product Specification
Product description
Flex fit hat
Cowboy hat
Material Flex Fit Hat:
97% Cotton & 3% Spandex for Flex fit hats
Cowboy hat:
Raffia Straw & Paper Straw for Cowboy hats
Packing & Packaging Information
Packaging Description: 24 pcs per polybag for Flex fit hats
50 units per sleeve, 150 units per carton for Cowboy
hats
Number of pieces in a
20'container
32,000 pcs for Flex fit hats
6,400 pcs for Cowboy hats
Number of pieces in a
40'container
72,000 pcs for Flex fit hats
14,400 pcs for Cowboy hats
Product Picture
Flex Fit Hat
Cowboy Hat
© 2015 Dragon Sourcing. All rights reserved.
Category: Parasol & Umbrella
Product Specification
Product description 1.8m Round Parasol,
Plastic Base for 1.8m Umbrella,
3.5 m double roof Telescopic,
3.5 m strong Telescopic,
Concrete Stone Base,
Concrete Base frame
Concrete Base for parasol 3,5 m
Umbrella Wood
Umbrella Steel
Material Frame: Steel, Aluminum, Wood.
Cover: Polyester Cloth ( 165 GRM/M2)
Packing & Packaging Information
Packaging Description: Bagging: packed in individual polybag and per box
Number of pieces in a
20'container
2,640 pcs for 1.8m parasol
81 pcs for 3.5m parasol
784 pcs for Umbrella Steel
480 pcs for Umbrella Wood
Number of pieces in a
40'container
2,880 pcs for 1.8m parasol
243 pcs for 3.5m parasol
1,764 pcs for Umbrella Steel
1,080 pcs for Umbrella Wood
Product Picture
Parasol, Umbrella & Bases
© 2015 Dragon Sourcing. All rights reserved.
Category: Shrink and Stretch Film
Product Specification
Product description Pallet Stretch Fim E41 23 MU
Unprinted Shrink Film
Material Polyethylene , virgin material.
Approximately 80 % Low Density and 20% Linear
Low Density Polyethylene. The combined density will
be in the range 0.920 – 0.930 kgm-3.
Other specifications Clear film in rolls with cling layer inside
Shrink Film to be centrally wound onto a standard
76mm core without significant edge wander and with
sufficient tension to prevent telescoping.
Optical clarity to be a minimum of Class 2 clarity as
per PIFA standard.
Packing & Packaging Information
Packaging Description: Reel diameter: 500 mm Maximum
Pallet type: 1000 mm x 1200 mm Bule GKN Pallets
Number of pieces in a
20'container
4,000 Kgs for Stretch Film
5,600 Kgs for Shrink Film
Number of pieces in a
40'container
9,000 Kgs for Stretch Film
12,600 Kgs for Shrink Film
Product Picture
Pallet Stretch Film
Unprinted Shrink Film
1. Introduction
2. Annual Spend & Category Demand Analysis
3. Supply Base Response
4. Quotation Analysis
5. Supplier Recommendation
6. Summary
14
Agenda
© 2015 Dragon Sourcing. All rights reserved.
358
196
48 14
284
150
41
12
231
134
40
7
203
93
17
4
295
128
31
8
0
500
1,000
1,500
No. of suppliers identified and
called
No. of suppliers passed phone
screening & included in
RFI/RFQ process
No. of RFI/RFQ responses
received
No. of suppliers recommended
for audit and sampling
#ofsupplier
T-shirts, Polo Shirts, Shirts Apron & Table Cloth Hats Parasol & Umbrella Shrink and Stretch Film
3. Supply Base Response
1,371 suppliers in 6 countries were identified leading to 45 suppliers recommended for audit and sampling.
Supply Base Response chart
1,371
15
701
© 2015 Dragon Sourcing. All rights reserved.
177
45
3. Supplier Geographic Distribution
16
56
23
5
73
4
© 2015 Dragon Sourcing. All rights reserved.
8
13
35
50
Category: Textile – T-shirts, Polo Shirts, Shirts
358 suppliers in 5 countries were identified
Category: Textile – Apron & Table Cloth
284 suppliers in 5 countries were identified
20
62
Category: Textile – Hats
231 suppliers in 5 countries were identified
2
9
37
9
Category: Parasol & Umbrella
203 suppliers in 4 countries were identified
Category: Shrink & Stretch Film
295 suppliers in 5 countries were identified
1. Introduction
2. Annual Spend & Category Demand Analysis
3. Supply Base Response
4. Quotation Analysis
5. Supplier Recommendation
6. Project Summary
17
Agenda
© 2015 Dragon Sourcing. All rights reserved.
18
4. Quotation Analysis: DDP Price Calculation Methodology
FOB Price (supplier) Freight forwarding, customs & duties
DDP Price
+
Cargo Marine Insurance
FOB Price
Sea Freight
+
+
Import Duty
Local charges
+
Inland Truck
Transportation
cost
+ DDP Price=
+
DDP prices to 11 destination countries.
1) Sea Freight: (Sea Freight cost received from DS forwarder on July 22nd, 2015, valid until July 31st 2015)
2) Local charges and Inland truck transportation cost: (Received from DS forwarder on July 22nd, 2015, valid until July 31st 2015)
3) Import duty rate was searched in different government websites:
© 2015 Dragon Sourcing. All rights reserved.
4 Quotation Analysis: Pallet requirement
Loading quantity was calculated based on below pallet requirement.
19
Country Pallet size Pallet Packing Height Limit Max. pallet total weight
Country 1
1200 mm x 800 mm 120 cm 350 kg
Country 2
Country 3
Country 4
Country 5
Country 6
Country 7
Country 8
Country 9
Country 10
1200 mm x 1000 mm,
4-Way Entry,
full perimeter base.
120 cm 350 kg
Country 11 48” x 40” x 52” 52” 2200 Ib / pallet
© 2015 Dragon Sourcing. All rights reserved.
4. Quotation Analysis: Logistic costs
20
China India Bangladesh Vietnam Turkey
20' 40' 20' 40' 20' 40' 20' 40' 20' 40'
Destination
Country
CIF -
FOB
DAP -
CIF
CIF -
FOB
DAP -
CIF
CIF -
FOB
DAP -
CIF
CIF -
FOB
DAP -
CIF
CIF -
FOB
DAP -
CIF
CIF -
FOB
DAP -
CIF
CIF -
FOB
DAP -
CIF
CIF -
FOB
DAP -
CIF
CIF -
FOB
DAP -
CIF
CIF -
FOB
DAP -
CIF
Country 1 750 1,350 1,400 1,350 800 1,350 1,200 1,350 1,700 1,350 2,500 1,350 700 1,350 1,250 1,350 2,750 3,350
Country 2 950 1,350 1,450 1,450 925 1,350 1,425 1,450 1,400 1,350 2,200 1,450 700 1,350 1,250 1,450 2,000 2,750
Country 3 750 850 1,400 850 800 850 1,200 850 1,500 850 2,200 850 700 850 1,250 850 2,750 3,350
Country 4 750 1,100 1400 1,200 600 1,100 1,050 1,200 1,300 1,100 2,000 1,200 750 1,100 1,200 1,200 714 1,100 844 1,200
Country 5 750 1,750 1,400 1,750 600 1,750 1,000 1,750 1,300 1,750 2,000 1,750 750 1,750 1,250 1,750 2,750 3,350
Country 6 850 950 1,600 950 810 950 1,213 950 1,700 950 2,500 950 700 950 1,200 950 2,750 3,350
Country 7 650 1,100 1,300 1,150 750 1,100 1,325 1,150 1,500 1,100 2,200 1,150 700 1,100 1,150 1,150 2,000 2,750
Country 8 750 1,450 1,400 1,450 800 1,450 1,200 1,450 1,600 1,450 2,300 1,450 700 1,450 1,250 1,450 2,000 2,750
Country 9 750 1,250 1400 1,500 600 1,250 1,000 1,500 1,300 1,250 2,000 1,500 750 1,250 1,250 1,500 720 1,250 850 1,500
Country 10 1,200 1,500 1,630 1,550 600 1,500 1,000 1,550 1,500 1,500 2,200 1,550 450 1,500 900 1,550 725 1,500 875 1,550
Country 11 3,560 655 4,320 705 3,130 655 4,250 705 3,700 655 4,600 705 3,200 655 3,600 705 2,850 655 3,600 705
© 2015 Dragon Sourcing. All rights reserved.
4. Quotation Analysis: Import Duty Rates of Textile
21
Country of Destination
# Product Name Country of Origin Country 1 Country 2 Country 3 Country 4 Country 5 Country 6 Country 7 Country 8 Country 9 Country 10 Country 11
1 T-Shirt
China 15% 10% 22% 12% 12% 18%
India 15% 10% 22% 9.6% 9.6% 18%
Bangladesh 15% 10% 22% 0% 0% 0%
Vietnam 15% 10% 22% 9.6% 9.6% 18%
Turkey 15% 10% 22% 0% 0% 18%
2 Polo Shirt
China 15% 12% 12% 12% 12% 18%
India 15% 9.6% 9.6% 9.6% 9.6% 18%
Bangladesh 15% 0% 0% 0% 0% 0%
Vietnam 15% 9.6% 9.6% 9.6% 9.6% 18%
Turkey 15% 0% 0% 0% 0% 18%
3 Shirts
China 15% 12% 12% 12% 12% 10% 12% 22% 12% 12%
India 15% 9.6% 9.6% 9.6% 9.6% 10% 9.6% 22% 9.6% 9.6%
Bangladesh 15% 0% 0% 0% 0% 10% 0% 22% 0% 0%
Vietnam 15% 9.6% 9.6% 9.6% 9.6% 10% 9.6% 22% 9.6% 9.6%
Turkey 15% 0% 0% 0% 0% 10% 0% 22% 0% 0%
4 Apron
China 15% 12% 12% 12% 12% 22% 12% 12%
India 15% 9.6% 9.6% 9.6% 9.6% 22% 9.6% 9.6%
Bangladesh 15% 0% 0% 0% 0% 22% 0% 0%
Vietnam 15% 9.6% 9.6% 9.6% 9.6% 22% 9.6% 9.6%
Turkey 15% 0% 0% 0% 0% 22% 0% 0%
5 Table Cloth
China 12% 12%
India 9.6% 9.6%
Bangladesh 0% 0%
Vietnam 9.6% 9.6%
Turkey 0% 0%
6 Flexi Fit Hat
China 0%
India 0%
Bangladesh 0%
Vietnam 0%
Turkey 0%
7 Cowboy Hat
China 0%
India 0%
Bangladesh 0%
Vietnam 0%
Turkey 0%
© 2015 Dragon Sourcing. All rights reserved.
22
4. Quotation Analysis: Potential Saving Summary
Potential savings for Textile and Parasols are exceeding 30% .
© 2015 Dragon Sourcing. All rights reserved.
Category Sub-category
2015 Annual Spend
(in USD)
Max. savings of
recommended supplier
(in USD)
Min. savings of
recommended supplier
(in USD)
Max. saving % Min. saving %
Textile
T-shirts, Polo Shirts 1.3 M 520 K 260 K 40% 20%
Shirts No annual quantity data available, therefore can't quantify saving values.
Out of 7, 5 recommended supplier with savings over
20%, up to 75%.
Apron & Table Cloth 0.1 M 35 K 15 K 35% 15%
Flex Fit Hat 0.1 M 30 K 12 K 30% 12%
Straw Cowboy Hat 0.4 M No potential saving
Parasol & Umbrella Parasol & Umbrella 3 M 900 K 60 K 30% 2%
Shrink and Stretch
Film
Pallet Stretch Film 0.3 M 48 K 9 K 16% 3%
Unprinted Shrink Film 0.7 M Savings calculations more difficult because of index pricing
23© 2015 Dragon Sourcing. All rights reserved.
4. Quotation Analysis: Savings Analysis Example
Sub-category: T-shirts & Polo Shirts
1. Introduction
2. Annual Spend & Category Demand Analysis
3. Supply Base Response
4. Quotation Analysis
5. Supplier Recommendations
6. Summary
24
Agenda
© 2015 Dragon Sourcing. All rights reserved.
79
73 71 69
66
63 63 61 61 60
85
83
76 75 74 74 72
70
68 67 67 66 65 64
63 63
74 73
67 65 64 64 61
59 58 57
50
47
39 37
64
34
14
10
0
10
20
30
40
50
60
70
80
90
100
Supplier27
Supplier25
Supplier23
Supplier29
Supplier26
Supplier22
Supplier24
Supplier20
Supplier28
Supplier21
Supplier19
Supplier17
Supplier5
Supplier14
Supplier4
Supplier15
Supplier13
Supplier2
Supplier6
Supplier10
Supplier18
Supplier1
Supplier3
Supplier9
Supplier8
Supplier7
Supplier32
Supplier35
Supplier31
Supplier30
Supplier36
Supplier40
Supplier41
Supplier34
Supplier38
Supplier43
Supplier33
Supplier42
Supplier39
Supplier37
Supplier48
Supplier44
Supplier45
Supplier47
Bangladesh China India Turkey Vietnam
RFIScore
T-shirts / Polo Shirts / Shirts - Supplier RFI Scorecard summary
Quality Control Management & Certifications Production Capability RFQ Completeness Cooperation Willingness Company Background
25
5. RFI Scorecard and Ranking Summary
Sub-category: T – Shirts, Polo Shirts, Shirts
Recommended for audit and sampling
© 2015 Dragon Sourcing. All rights reserved.
26
5. Supplier Recommendation
Sub-category: T – Shirts, Polo Shirts, Shirts
No.
Country of
Origin
Supplier name RFI Score
# of items
quoted
# of items
with potential
savings
Potential
Saving in USD
Reason for recommending
1 Bangladesh Supplier 25 73 11 7 398 K
• Competitive price & top 2nd RFI scoring among Bangladesh suppliers.
• 100% Export oriented unit with 30% export to Europe & 5% to Canada.
• Leading international experience like US polo and C&A etc.
• All production step in-house, Knitting to packing
• Certified with Oekotex, BSCI, Wrap and Gots.
2 Bangladesh Supplier 23 71 9 7 450 K
• Competitive price & top 3rd RFI scoring among Bangladesh suppliers.
• 100% export oriented with 90% to Europe & 5% to Canada.
• Leading international experience like Espirit and H&M.
• With all production steps in-house Knitting ,Dyeing ,Sewing &Finishing.
• Certified with Oekotex, BSCI and Gots.
3 Bangladesh Supplier 22 63 9 9 479 K
• Competitive price
• Good Industry experience of 16 Years & Export experience of 16 Years.
• 100% export oriented unit 80% of the sale is for exports to Europe
• All production step in-house.
4 Bangladesh Supplier 20 61 11 10 520 K
• Highest potential savings.
• 100% Export oriented unit with 10% export to Europe & 80% to Canada.
• Can offer multiple items, Garments as well Apron and Table Cloth.
5 Bangladesh Supplier 21 60 9 9 507 K
• Competitive price.
• Industry experience of 14Years & Export experience of 14 Years.
• 100% export oriented with 80% of exports to Europe.
• With all production steps in-house.
• Certified with Oekotex &BSCI
6 India Supplier 32 73.54 11 4 260 K
• Competitive price & top RFI scoring among Indian suppliers.
• Very Rich Industry & Export experience, 60 years old Company.
• All production step in-house, cutting, sewing, embroidery, printing, finish/pack.
• 85% of the sale is for exports to Europe
• Can offer multiple items, Garments as well Apron and Table Cloth.
• Certified with ISO 9001, ISO 140001 & Product certification with Oekotex and Gots.
7 India Supplier 31 70.05 11 9 314 K
• Competitive price & top 3 RFI scoring among Indian suppliers.
• Over 10 years Industry & Export experience.
• 100% Export oriented unit with 80% export to Europe & 20% to Canada.
• Can offer multiple items, Garments as well Apron and Table Cloth.
• Good production capacity 125,000 pcs per month only for T-shirts.
8 India Supplier 30 65.28 9 4 352 K
• Competitive price.
• Rich experience in the industry with over two decades.
• 95% of the sales is export with 30% to Europe & 20% to Canada.
• Good production capacity 900,000 pcs per month only for T-shirts.
© 2015 Dragon Sourcing. All rights reserved.
27
5. Supplier Recommendation
Sub-category: T – Shirts, Polo Shirts, Shirts
No.
Country of
Origin
Supplier name RFI Score
# of items
quoted
# of items
with potential
savings
Potential
Saving in USD
Reason for recommending
9 China Supplier 1 66 11 9 493 K
• Competitive price. Have quoted all 9 items, 7 items with potential savings.
• Highest total saving value 498 K USD among all suppliers.
• 30% export to EU & CA,
• SGS & AQF test certified.
10 China Supplier 2 70 11 11 491 K
• Competitive price. Have quoted 7 items, 9 items with potential savings.
• Total saving value 495 K USD, ranked number 2 among all suppliers.
• 6 years production experience in the industry, Produced the similar T-shirt & Polo before.
• Over 90% export to EU & US & CA,.
• All production steps are in house.
• BSCI certified.
11 China Supplier 3 65 9 6 437 K
• Competitive price. Have quoted 9 items, 6 items with potential savings.
• Total saving value 437K USD,
• 8 years production experience in the industry, Produced the similar T-shirt & Polo before.
• Over 90% export to EU & US & CA,.
• All production steps are in house.
• BSCI & BV certified.
12 China Supplier 4 74 11 11 423 K
• Competitive price. Have quoted 7 items, 9 items with potential savings.
• Total saving value 427K USD, ranked number 5 in RFI scorecard,
• Over 80% export to EU & US & CA,.
• All production steps are in house.
• BV certified.
13 China Supplier 5 76 11 8 413 K
• Competitive price. Have quoted 9 items, 7 items with potential savings.
• 16 years production experience in the industry, Produced the similar T-shirt & Polo
before.
• Ranked number 3 in RFIRFQ scorecard.
14 China Supplier 6 68 11 11 403 K
• Competitive price. Have quoted 9 items, 9 items with potential savings.
• Over 60% export to EU & US & CA,.
• BSCI certified.
© 2015 Dragon Sourcing. All rights reserved.
© 2015 Dragon Sourcing. All rights reserved. 28
Supplier Profile: T-Shirts, Polo Shirts & Shirts
RFI/RFQ rank: 1
Score: 85
COMPANY BACKGROUND
Year Founded 2003
Ownership
(State Owned/ Private/ Foreign Invested)
Private
Business Type: Manufacturer, or trader ? Manufacturer and Trader
Registered Capital (in US$) 2,000,000
Export License ? (Y/N) Y
Able to export to EU or Canada ? (Y/N) Y
Export Experience (in Years) 10
Work Floor Size ( Square meters) 16,000
Total Employee Number 400
No. of English speaker and writer 10
Main products Cotton cloths, Jacket, Sports wear, T shirt, Hoodie
CORPORATE SOCIAL RESPONSIBILITY
Declare to adhere to all rules and regulations in respect to child labor? (Y/N) Y
Working hours specified in the employment contract? (Y/N) Y
Declare to adhere to all rules and regulations in respect to environmental issues? (Y/N) Y
Declare to adhere to all rules and regulations in respect to health and safety issues? (Y/N) Y
Declare able to comply with Molson Coors supplier standard (Social compliance). (Y/N) Y
HUMAN RESOURCES
Factory Workers
Quality Control
staff
Mold designer
Sample making
staff
Sales &
Management and
Other staff
Employee No. 380 15 2 8 45
6
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
2015 Forecast 2014 2013
Total Sales Turnover (in M USD) 25 22.3 21.5
MAIN MARKET
Europe (%) Canada (%) US (%) Asia (%)
Rest of the world
(%)
% of Sales 20 5 50 10 15
TOP 3 CUSTOMER
Customer Name Industry Country % of Sales Type of Product
Top 3
Customers
Southpole Cloths USA 30 Knitwear
Cintas Uniform USA 20 Uniform
Bodyshape Sports wear Germany 10 Sports wear
© 2015 Dragon Sourcing. All rights reserved. 29
Supplier Profile: T-Shirts, Polo Shirts & Shirts
PRODUCTION CAPABILITY
Able to
Produce
(Y/N)
Manufacturer In-
house or
outsourcing?
Production
experience
(years)
Monthly Production
Capacity
(Pcs / Month)
Actual annual
production in
2014
(Pcs / year)
Briefly specify the production process
All production
steps are
In-house?
(Y/N)
Which production steps are
outsourcing?
T-shirt Man / Woman Y In-house Over 10 years 1,000,000 800,000 cuting-printing-sewing -ironing-packing Yes 3
Polo Shirt Man / Woman Y
In-house Over 10 years
8,000,000 700,000 cuting-printing-sewing -ironing-packing Yes 3
Shirt Man / Woman Y
In-house Over 10 years
8000000 700,000 cuting-printing-sewing -ironing-packing Yes 3
Apron Y
In-house Over 10 years
1,200,000 1,000,000 cuting-printing-sewing -ironing-packing yes 3
Table Cloth N
Beach Towel N
Flex Fit Hat
N
Cowboy Hat N
DESIGN CAPABILITY & PRODUCTION CUT OFF PERIOD
Have design capability in-house, able to propose a design based on client brief. (Y/N) Y
Have prototyping / sample production capability in-house (Y/N) Y
Production cut off period for Chinese New Year. (From which date to which date) Around 20days
Order cut-off date for order to be shipped before Chinese new year. (Date) TBD
RFI/RFQ rank: 1
Score: 85
© 2015 Dragon Sourcing. All rights reserved. 30
Supplier Profile: T-Shirts, Polo Shirts & Shirts
PRODUCTION EQUIPMENT
Equipment name Quantity Brand / Type
Usage of the
Equipment
Overlock machine Sewing
Plain stitch Pressing
Five wire machine Sewing
Yarn machine(four pin six
line)
Pressing
Cutting off Car Edgefolding
Flat eyed machine
CERTIFICATIONS
Certificate Y/N
Date of
Certificate
Date of
Expire
Certificate
number.
Certifying
Organization
ISO 9001:2008
Quality management systems
Y 3/11/2014 3/10/2017
0070014Q10
651R0S
ZhongJian
Certification
Co.Ltd
ISO 14001
Environmental management systems
N
SA 8000 N
Euro 1 Certificate N
QUALITY CONTROL MANAGEMENT
Able to comply AQL Standard: Critical 0, Major 1.0, Minor 2.5 (Y/N) Y
Able to comply AQL Standard: Critical 0, Major 2.5, Minor 4.0 (Y/N) Y
General Production Defective Rate (% rejected)? 0.9
Time to keep QC records? (in Month) 96
Accept 3rd party QC? (Y/N) Y
Have product recall system in place (Y/N) N
Customer Satisfaction Survey in place (Y/N) Y
Internal rule regarding maximum reaction time of quality claim (hours) 48hrs
PRODUCT CERTIFICATIONS
Product Certificate Y/N
Date of
Certificate
Date of
Expire
Certificate
number.
Certifying
Organization
N
N
N
N
RFI/RFQ rank: 1
Score: 85
© 2015 Dragon Sourcing. All rights reserved. 31
Supplier Profile: T-Shirts, Polo Shirts & Shirts
FACTORY PHOTOS
Factory Overview Office R&D room
Workshop Workshop Warehouse
Machinery Machinery Showroom
RFI/RFQ rank: 1
Score: 85
1. Introduction
2. Annual Spend & Category Demand Analysis
3. Supply Base Response
4. Quotation Analysis
5. Supplier Recommendations
6. Summary
32
Agenda
© 2015 Dragon Sourcing. All rights reserved.
6. Summary: 45 suppliers to be audited from 1371 suppliers identified
33© 2015 Dragon Sourcing. All rights reserved.
China
Sourcing
India
sourcing
Bangladesh
sourcing
Vietnam
sourcing
Turkey
sourcing
Thailand
sourcing
6 Countries
In Total
# Sub - Category
SupplierIdentifiedandcalled
#ofsupplierpassedphonescreening
RFI/RFQreceived
Supplierrecommendedforauditandsampling
SupplierIdentifiedandcalled
#ofsupplierpassedphonescreening
RFI/RFQreceived
Supplierrecommendedforauditandsampling
SupplierIdentifiedandcalled
#ofsupplierpassedphonescreening
RFI/RFQreceived
Supplierrecommendedforauditandsampling
SupplierIdentifiedandcalled
#ofsupplierpassedphonescreening
RFI/RFQreceived
Supplierrecommendedforauditandsampling
SupplierIdentifiedandcalled
#ofsupplierpassedphonescreening
RFI/RFQreceived
Supplierrecommendedforauditandsampling
SupplierIdentifiedandcalled
#ofsupplierpassedphonescreening
RFI/RFQreceived
Supplierrecommendedforauditandsampling
SupplierIdentifiedandcalled
#ofsupplierpassedphonescreening
RFI/RFQreceived
Supplierrecommendedforauditandsampling
1
T-shirts, Polo
Shirts, Shirts
131 72 19 6 75 58 14 3 73 37 10 5 56 20 4 0 23 9 1 0 358 196 48 14
2
Table Cloth &
Apron
157 82 17 5 64 43 16 5 35 12 5 2 20 10 2 0 8 3 1 0 284 150 41 12
3 Hats 105 73 31 6 41 17 1 0 35 14 3 1 30 24 4 0 20 6 1 0 231 134 40 7
4
Parasol &
Umbrella
124 59 18 13 32 16 5 1 30 10 3 1 17 8 5 1 203 93 17 4
5
Shrink &
Stretch Film
130 43 12 0 70 42 9 3 31 14 3 0 37 17 3 3 27 12 4 2 295 128 31 8
5 Sub - categories
In Total
647 329 97 30 282 176 45 12 143 63 18 8 167 78 16 1 105 43 11 4 27 12 4 3 1371 701 177 45

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Global Promotional Items Sourcing

  • 1. Dragon Sourcing Your Tailored Sourcing Approach to Emerging Markets Global Promotional Items Sourcing - Case Study 25th Aug, 2015 1 © 2015 Dragon Sourcing. All rights reserved.
  • 2. 1. Introduction 2. Annual Spend & Category Demand Analysis 3. Supply Base Response 4. Quotation Analysis 5. Supplier Recommendation 6. Summary 2 Agenda © 2015 Dragon Sourcing. All rights reserved.
  • 3. 3 1. Introduction Objectives was to secure savings through consolidating procurement and sourcing direct from manufacturers in emerging markets for the following categories: 1. Textiles (contains 3 sub - categories) a) T shirts, Polo Shirts, Shirts b) Aprons & Table cloths c) Hats 2. Parasol & Umbrella 3. Unprinted shrink and stretch Film Scope included: China, Vietnam, Thailand, India, Bangladesh, Turkey © 2015 Dragon Sourcing. All rights reserved.
  • 4. 4 1. Approach – Phase 1 No. Step Deliverables 1. Demand Analysis Work with Client to define and understand the products and requirements (specs, volumes, materials, production technology requirements)  Project Requirement Questionnaire  Kick-Off Report 2. Supply Analysis Identify 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-screening Selection 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/RFQ Prepare 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 Administration The 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 Responses Analysis 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 Audit Milestone 2: Shortlist for Audit Agreed Phase 1: Supplier Pre-Qualification © 2015 Dragon Sourcing. All rights reserved.
  • 5. 5 1. Approach – Phase 2 No. Step Deliverables 7. Prepare for Audits Planning 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 Audits Distribution of the Audit Questionnaire to suppliers for their self-assessment (and to get them prepared), followed by onsite audits, with or without Client buyers, of all the suppliers. Focus is management, logistics, production & quality.  Completed Audit Questionnaires 9. Analyse Audit Results Analysis 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 Sampling Milestone 3: Shortlist for Sampling Agreed 10. Sample Development & Testing Managing the sample development and testing iterations to determine which suppliers can meet the quality.  Samples  Sample Analysis Reports 11. Negotiation & Contracting Conducting final negotiations with the shortlisted suppliers, and facilitating contracting between selected suppliers and Client.  Contract(s) Milestone 4: Contracts Secured Phase 2: Selection & Contracting © 2015 Dragon Sourcing. All rights reserved.
  • 6. Phase 1: Supplier Pre-qualification Steps Duration/week commencing Week 1 June 8 ~ 12 Week 2 June 15 ~ 19 Week 3 June 22 ~ 26 Week 4 June 29 ~ July 3 Week 5 July 6 ~ 10 Week 6 July 13 ~ 17 Week 7 July 20 ~ 24 Week 8 July 27 ~ 31 Phase1 1. Demand Analysis 1 2. Supply Market Analysis 2 3. Telephone pre-screening 1 4. Develop RFI/RFQ 1 5. Administer RFI/RFQ 4 6. Analyze RFI/RFQ Responses 2 1. Schedule Not started Done In process Delay Phase 1 (Supplier pre-qualification): 8 weeks 1 RFI/RFQ Approved Shortlist for Audit Agreed 2 6© 2015 Dragon Sourcing. All rights reserved.
  • 7. 1. Introduction 2. Annual Spend & Category Demand Analysis 3. Supply Base Response 4. Quotation Analysis 5. Supplier Recommendation 6. Project Summary 7 Agenda © 2015 Dragon Sourcing. All rights reserved.
  • 8. 1.3 0.1 0.5 3 1 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 T-shirts, Polo Shirts Apron & Table Cloth Hats Textile Parasol & Umbrella Shrink & Stretch Film MUSD Sub-Category Annual Spend per Sub-Category 2. Spend Analysis Total annual spend for 3 categories (5 sub-categories) is over USD 6 Million. . 8 Total Annual spend analysis © 2015 Dragon Sourcing. All rights reserved. 1.9 3 1 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 Textile Parasol & Umbrella Shrink and Stretch Film MUSD Category Annual Spend per Category
  • 9. © 2015 Dragon Sourcing. All rights reserved. Category: Textile Sub-category: T-shirts, Polo shirts, Shirts Product Specification Product description T- shirts, Polo Shirts, Shirts Material T-shirts: 100% cotton 95% Cotton / 5% Lycra 50%/25%/25% poly/cotton/rayon 65%/35% poly/cotton - 140gsm POLO Shirts: 180 GSM/m2 Combed Cotton Single Jersey 95 % Combed Cotton Single jersey / 5 % Elastan 100% Micro Polyester 145 g/m2 (7 oz/linear yd). Shirts: 35% Cotton 65% Polyester Packing & Packaging Information Packaging Description: Each item must be rolled and poly bagged Each item must be packed separately in PVC plastic bag. Number of pieces in a 20'container 19,800 pcs / 15,840 pcs …etc. Number of pieces in a 40'container 41,400 pcs / 33,120 pcs …etc. Product Picture T-shirts POLO Shirts Shirts
  • 10. © 2015 Dragon Sourcing. All rights reserved. Category: Textile Sub-category: Apron & Table Cloth Product Specification Product description Apron – Medium Apron – Short Table Cloth Big Table Cloth Small Material 100% cotton 240gsm 100% cotton; 180 g/m2, Packing & Packaging Information Packaging Description: Each item must be rolled and poly bagged Each item must be packed separately in PVC plastic bag. Number of pieces in a 20'container 26,400 pcs for Apron Medium 28,800 pcs for Apron Short 17,600 pcs for Table Cloth Big 158,400 pcs for Table Cloth Small Number of pieces in a 40'container 55,200 pcs for Apron Medium 72,000 pcs for Apron Short 36,800 pcs for Table Cloth Big 331,200 pcs for Table Cloth Small Product Picture Apron Medium Apron Short Table Cloth Big ( 140 x 140 cm) Table Cloth Small ( 40 x 40 cm)
  • 11. © 2015 Dragon Sourcing. All rights reserved. Category: Textile Sub-category: Hats Product Specification Product description Flex fit hat Cowboy hat Material Flex Fit Hat: 97% Cotton & 3% Spandex for Flex fit hats Cowboy hat: Raffia Straw & Paper Straw for Cowboy hats Packing & Packaging Information Packaging Description: 24 pcs per polybag for Flex fit hats 50 units per sleeve, 150 units per carton for Cowboy hats Number of pieces in a 20'container 32,000 pcs for Flex fit hats 6,400 pcs for Cowboy hats Number of pieces in a 40'container 72,000 pcs for Flex fit hats 14,400 pcs for Cowboy hats Product Picture Flex Fit Hat Cowboy Hat
  • 12. © 2015 Dragon Sourcing. All rights reserved. Category: Parasol & Umbrella Product Specification Product description 1.8m Round Parasol, Plastic Base for 1.8m Umbrella, 3.5 m double roof Telescopic, 3.5 m strong Telescopic, Concrete Stone Base, Concrete Base frame Concrete Base for parasol 3,5 m Umbrella Wood Umbrella Steel Material Frame: Steel, Aluminum, Wood. Cover: Polyester Cloth ( 165 GRM/M2) Packing & Packaging Information Packaging Description: Bagging: packed in individual polybag and per box Number of pieces in a 20'container 2,640 pcs for 1.8m parasol 81 pcs for 3.5m parasol 784 pcs for Umbrella Steel 480 pcs for Umbrella Wood Number of pieces in a 40'container 2,880 pcs for 1.8m parasol 243 pcs for 3.5m parasol 1,764 pcs for Umbrella Steel 1,080 pcs for Umbrella Wood Product Picture Parasol, Umbrella & Bases
  • 13. © 2015 Dragon Sourcing. All rights reserved. Category: Shrink and Stretch Film Product Specification Product description Pallet Stretch Fim E41 23 MU Unprinted Shrink Film Material Polyethylene , virgin material. Approximately 80 % Low Density and 20% Linear Low Density Polyethylene. The combined density will be in the range 0.920 – 0.930 kgm-3. Other specifications Clear film in rolls with cling layer inside Shrink Film to be centrally wound onto a standard 76mm core without significant edge wander and with sufficient tension to prevent telescoping. Optical clarity to be a minimum of Class 2 clarity as per PIFA standard. Packing & Packaging Information Packaging Description: Reel diameter: 500 mm Maximum Pallet type: 1000 mm x 1200 mm Bule GKN Pallets Number of pieces in a 20'container 4,000 Kgs for Stretch Film 5,600 Kgs for Shrink Film Number of pieces in a 40'container 9,000 Kgs for Stretch Film 12,600 Kgs for Shrink Film Product Picture Pallet Stretch Film Unprinted Shrink Film
  • 14. 1. Introduction 2. Annual Spend & Category Demand Analysis 3. Supply Base Response 4. Quotation Analysis 5. Supplier Recommendation 6. Summary 14 Agenda © 2015 Dragon Sourcing. All rights reserved.
  • 15. 358 196 48 14 284 150 41 12 231 134 40 7 203 93 17 4 295 128 31 8 0 500 1,000 1,500 No. of suppliers identified and called No. of suppliers passed phone screening & included in RFI/RFQ process No. of RFI/RFQ responses received No. of suppliers recommended for audit and sampling #ofsupplier T-shirts, Polo Shirts, Shirts Apron & Table Cloth Hats Parasol & Umbrella Shrink and Stretch Film 3. Supply Base Response 1,371 suppliers in 6 countries were identified leading to 45 suppliers recommended for audit and sampling. Supply Base Response chart 1,371 15 701 © 2015 Dragon Sourcing. All rights reserved. 177 45
  • 16. 3. Supplier Geographic Distribution 16 56 23 5 73 4 © 2015 Dragon Sourcing. All rights reserved. 8 13 35 50 Category: Textile – T-shirts, Polo Shirts, Shirts 358 suppliers in 5 countries were identified Category: Textile – Apron & Table Cloth 284 suppliers in 5 countries were identified 20 62 Category: Textile – Hats 231 suppliers in 5 countries were identified 2 9 37 9 Category: Parasol & Umbrella 203 suppliers in 4 countries were identified Category: Shrink & Stretch Film 295 suppliers in 5 countries were identified
  • 17. 1. Introduction 2. Annual Spend & Category Demand Analysis 3. Supply Base Response 4. Quotation Analysis 5. Supplier Recommendation 6. Project Summary 17 Agenda © 2015 Dragon Sourcing. All rights reserved.
  • 18. 18 4. Quotation Analysis: DDP Price Calculation Methodology FOB Price (supplier) Freight forwarding, customs & duties DDP Price + Cargo Marine Insurance FOB Price Sea Freight + + Import Duty Local charges + Inland Truck Transportation cost + DDP Price= + DDP prices to 11 destination countries. 1) Sea Freight: (Sea Freight cost received from DS forwarder on July 22nd, 2015, valid until July 31st 2015) 2) Local charges and Inland truck transportation cost: (Received from DS forwarder on July 22nd, 2015, valid until July 31st 2015) 3) Import duty rate was searched in different government websites: © 2015 Dragon Sourcing. All rights reserved.
  • 19. 4 Quotation Analysis: Pallet requirement Loading quantity was calculated based on below pallet requirement. 19 Country Pallet size Pallet Packing Height Limit Max. pallet total weight Country 1 1200 mm x 800 mm 120 cm 350 kg Country 2 Country 3 Country 4 Country 5 Country 6 Country 7 Country 8 Country 9 Country 10 1200 mm x 1000 mm, 4-Way Entry, full perimeter base. 120 cm 350 kg Country 11 48” x 40” x 52” 52” 2200 Ib / pallet © 2015 Dragon Sourcing. All rights reserved.
  • 20. 4. Quotation Analysis: Logistic costs 20 China India Bangladesh Vietnam Turkey 20' 40' 20' 40' 20' 40' 20' 40' 20' 40' Destination Country CIF - FOB DAP - CIF CIF - FOB DAP - CIF CIF - FOB DAP - CIF CIF - FOB DAP - CIF CIF - FOB DAP - CIF CIF - FOB DAP - CIF CIF - FOB DAP - CIF CIF - FOB DAP - CIF CIF - FOB DAP - CIF CIF - FOB DAP - CIF Country 1 750 1,350 1,400 1,350 800 1,350 1,200 1,350 1,700 1,350 2,500 1,350 700 1,350 1,250 1,350 2,750 3,350 Country 2 950 1,350 1,450 1,450 925 1,350 1,425 1,450 1,400 1,350 2,200 1,450 700 1,350 1,250 1,450 2,000 2,750 Country 3 750 850 1,400 850 800 850 1,200 850 1,500 850 2,200 850 700 850 1,250 850 2,750 3,350 Country 4 750 1,100 1400 1,200 600 1,100 1,050 1,200 1,300 1,100 2,000 1,200 750 1,100 1,200 1,200 714 1,100 844 1,200 Country 5 750 1,750 1,400 1,750 600 1,750 1,000 1,750 1,300 1,750 2,000 1,750 750 1,750 1,250 1,750 2,750 3,350 Country 6 850 950 1,600 950 810 950 1,213 950 1,700 950 2,500 950 700 950 1,200 950 2,750 3,350 Country 7 650 1,100 1,300 1,150 750 1,100 1,325 1,150 1,500 1,100 2,200 1,150 700 1,100 1,150 1,150 2,000 2,750 Country 8 750 1,450 1,400 1,450 800 1,450 1,200 1,450 1,600 1,450 2,300 1,450 700 1,450 1,250 1,450 2,000 2,750 Country 9 750 1,250 1400 1,500 600 1,250 1,000 1,500 1,300 1,250 2,000 1,500 750 1,250 1,250 1,500 720 1,250 850 1,500 Country 10 1,200 1,500 1,630 1,550 600 1,500 1,000 1,550 1,500 1,500 2,200 1,550 450 1,500 900 1,550 725 1,500 875 1,550 Country 11 3,560 655 4,320 705 3,130 655 4,250 705 3,700 655 4,600 705 3,200 655 3,600 705 2,850 655 3,600 705 © 2015 Dragon Sourcing. All rights reserved.
  • 21. 4. Quotation Analysis: Import Duty Rates of Textile 21 Country of Destination # Product Name Country of Origin Country 1 Country 2 Country 3 Country 4 Country 5 Country 6 Country 7 Country 8 Country 9 Country 10 Country 11 1 T-Shirt China 15% 10% 22% 12% 12% 18% India 15% 10% 22% 9.6% 9.6% 18% Bangladesh 15% 10% 22% 0% 0% 0% Vietnam 15% 10% 22% 9.6% 9.6% 18% Turkey 15% 10% 22% 0% 0% 18% 2 Polo Shirt China 15% 12% 12% 12% 12% 18% India 15% 9.6% 9.6% 9.6% 9.6% 18% Bangladesh 15% 0% 0% 0% 0% 0% Vietnam 15% 9.6% 9.6% 9.6% 9.6% 18% Turkey 15% 0% 0% 0% 0% 18% 3 Shirts China 15% 12% 12% 12% 12% 10% 12% 22% 12% 12% India 15% 9.6% 9.6% 9.6% 9.6% 10% 9.6% 22% 9.6% 9.6% Bangladesh 15% 0% 0% 0% 0% 10% 0% 22% 0% 0% Vietnam 15% 9.6% 9.6% 9.6% 9.6% 10% 9.6% 22% 9.6% 9.6% Turkey 15% 0% 0% 0% 0% 10% 0% 22% 0% 0% 4 Apron China 15% 12% 12% 12% 12% 22% 12% 12% India 15% 9.6% 9.6% 9.6% 9.6% 22% 9.6% 9.6% Bangladesh 15% 0% 0% 0% 0% 22% 0% 0% Vietnam 15% 9.6% 9.6% 9.6% 9.6% 22% 9.6% 9.6% Turkey 15% 0% 0% 0% 0% 22% 0% 0% 5 Table Cloth China 12% 12% India 9.6% 9.6% Bangladesh 0% 0% Vietnam 9.6% 9.6% Turkey 0% 0% 6 Flexi Fit Hat China 0% India 0% Bangladesh 0% Vietnam 0% Turkey 0% 7 Cowboy Hat China 0% India 0% Bangladesh 0% Vietnam 0% Turkey 0% © 2015 Dragon Sourcing. All rights reserved.
  • 22. 22 4. Quotation Analysis: Potential Saving Summary Potential savings for Textile and Parasols are exceeding 30% . © 2015 Dragon Sourcing. All rights reserved. Category Sub-category 2015 Annual Spend (in USD) Max. savings of recommended supplier (in USD) Min. savings of recommended supplier (in USD) Max. saving % Min. saving % Textile T-shirts, Polo Shirts 1.3 M 520 K 260 K 40% 20% Shirts No annual quantity data available, therefore can't quantify saving values. Out of 7, 5 recommended supplier with savings over 20%, up to 75%. Apron & Table Cloth 0.1 M 35 K 15 K 35% 15% Flex Fit Hat 0.1 M 30 K 12 K 30% 12% Straw Cowboy Hat 0.4 M No potential saving Parasol & Umbrella Parasol & Umbrella 3 M 900 K 60 K 30% 2% Shrink and Stretch Film Pallet Stretch Film 0.3 M 48 K 9 K 16% 3% Unprinted Shrink Film 0.7 M Savings calculations more difficult because of index pricing
  • 23. 23© 2015 Dragon Sourcing. All rights reserved. 4. Quotation Analysis: Savings Analysis Example Sub-category: T-shirts & Polo Shirts
  • 24. 1. Introduction 2. Annual Spend & Category Demand Analysis 3. Supply Base Response 4. Quotation Analysis 5. Supplier Recommendations 6. Summary 24 Agenda © 2015 Dragon Sourcing. All rights reserved.
  • 25. 79 73 71 69 66 63 63 61 61 60 85 83 76 75 74 74 72 70 68 67 67 66 65 64 63 63 74 73 67 65 64 64 61 59 58 57 50 47 39 37 64 34 14 10 0 10 20 30 40 50 60 70 80 90 100 Supplier27 Supplier25 Supplier23 Supplier29 Supplier26 Supplier22 Supplier24 Supplier20 Supplier28 Supplier21 Supplier19 Supplier17 Supplier5 Supplier14 Supplier4 Supplier15 Supplier13 Supplier2 Supplier6 Supplier10 Supplier18 Supplier1 Supplier3 Supplier9 Supplier8 Supplier7 Supplier32 Supplier35 Supplier31 Supplier30 Supplier36 Supplier40 Supplier41 Supplier34 Supplier38 Supplier43 Supplier33 Supplier42 Supplier39 Supplier37 Supplier48 Supplier44 Supplier45 Supplier47 Bangladesh China India Turkey Vietnam RFIScore T-shirts / Polo Shirts / Shirts - Supplier RFI Scorecard summary Quality Control Management & Certifications Production Capability RFQ Completeness Cooperation Willingness Company Background 25 5. RFI Scorecard and Ranking Summary Sub-category: T – Shirts, Polo Shirts, Shirts Recommended for audit and sampling © 2015 Dragon Sourcing. All rights reserved.
  • 26. 26 5. Supplier Recommendation Sub-category: T – Shirts, Polo Shirts, Shirts No. Country of Origin Supplier name RFI Score # of items quoted # of items with potential savings Potential Saving in USD Reason for recommending 1 Bangladesh Supplier 25 73 11 7 398 K • Competitive price & top 2nd RFI scoring among Bangladesh suppliers. • 100% Export oriented unit with 30% export to Europe & 5% to Canada. • Leading international experience like US polo and C&A etc. • All production step in-house, Knitting to packing • Certified with Oekotex, BSCI, Wrap and Gots. 2 Bangladesh Supplier 23 71 9 7 450 K • Competitive price & top 3rd RFI scoring among Bangladesh suppliers. • 100% export oriented with 90% to Europe & 5% to Canada. • Leading international experience like Espirit and H&M. • With all production steps in-house Knitting ,Dyeing ,Sewing &Finishing. • Certified with Oekotex, BSCI and Gots. 3 Bangladesh Supplier 22 63 9 9 479 K • Competitive price • Good Industry experience of 16 Years & Export experience of 16 Years. • 100% export oriented unit 80% of the sale is for exports to Europe • All production step in-house. 4 Bangladesh Supplier 20 61 11 10 520 K • Highest potential savings. • 100% Export oriented unit with 10% export to Europe & 80% to Canada. • Can offer multiple items, Garments as well Apron and Table Cloth. 5 Bangladesh Supplier 21 60 9 9 507 K • Competitive price. • Industry experience of 14Years & Export experience of 14 Years. • 100% export oriented with 80% of exports to Europe. • With all production steps in-house. • Certified with Oekotex &BSCI 6 India Supplier 32 73.54 11 4 260 K • Competitive price & top RFI scoring among Indian suppliers. • Very Rich Industry & Export experience, 60 years old Company. • All production step in-house, cutting, sewing, embroidery, printing, finish/pack. • 85% of the sale is for exports to Europe • Can offer multiple items, Garments as well Apron and Table Cloth. • Certified with ISO 9001, ISO 140001 & Product certification with Oekotex and Gots. 7 India Supplier 31 70.05 11 9 314 K • Competitive price & top 3 RFI scoring among Indian suppliers. • Over 10 years Industry & Export experience. • 100% Export oriented unit with 80% export to Europe & 20% to Canada. • Can offer multiple items, Garments as well Apron and Table Cloth. • Good production capacity 125,000 pcs per month only for T-shirts. 8 India Supplier 30 65.28 9 4 352 K • Competitive price. • Rich experience in the industry with over two decades. • 95% of the sales is export with 30% to Europe & 20% to Canada. • Good production capacity 900,000 pcs per month only for T-shirts. © 2015 Dragon Sourcing. All rights reserved.
  • 27. 27 5. Supplier Recommendation Sub-category: T – Shirts, Polo Shirts, Shirts No. Country of Origin Supplier name RFI Score # of items quoted # of items with potential savings Potential Saving in USD Reason for recommending 9 China Supplier 1 66 11 9 493 K • Competitive price. Have quoted all 9 items, 7 items with potential savings. • Highest total saving value 498 K USD among all suppliers. • 30% export to EU & CA, • SGS & AQF test certified. 10 China Supplier 2 70 11 11 491 K • Competitive price. Have quoted 7 items, 9 items with potential savings. • Total saving value 495 K USD, ranked number 2 among all suppliers. • 6 years production experience in the industry, Produced the similar T-shirt & Polo before. • Over 90% export to EU & US & CA,. • All production steps are in house. • BSCI certified. 11 China Supplier 3 65 9 6 437 K • Competitive price. Have quoted 9 items, 6 items with potential savings. • Total saving value 437K USD, • 8 years production experience in the industry, Produced the similar T-shirt & Polo before. • Over 90% export to EU & US & CA,. • All production steps are in house. • BSCI & BV certified. 12 China Supplier 4 74 11 11 423 K • Competitive price. Have quoted 7 items, 9 items with potential savings. • Total saving value 427K USD, ranked number 5 in RFI scorecard, • Over 80% export to EU & US & CA,. • All production steps are in house. • BV certified. 13 China Supplier 5 76 11 8 413 K • Competitive price. Have quoted 9 items, 7 items with potential savings. • 16 years production experience in the industry, Produced the similar T-shirt & Polo before. • Ranked number 3 in RFIRFQ scorecard. 14 China Supplier 6 68 11 11 403 K • Competitive price. Have quoted 9 items, 9 items with potential savings. • Over 60% export to EU & US & CA,. • BSCI certified. © 2015 Dragon Sourcing. All rights reserved.
  • 28. © 2015 Dragon Sourcing. All rights reserved. 28 Supplier Profile: T-Shirts, Polo Shirts & Shirts RFI/RFQ rank: 1 Score: 85 COMPANY BACKGROUND Year Founded 2003 Ownership (State Owned/ Private/ Foreign Invested) Private Business Type: Manufacturer, or trader ? Manufacturer and Trader Registered Capital (in US$) 2,000,000 Export License ? (Y/N) Y Able to export to EU or Canada ? (Y/N) Y Export Experience (in Years) 10 Work Floor Size ( Square meters) 16,000 Total Employee Number 400 No. of English speaker and writer 10 Main products Cotton cloths, Jacket, Sports wear, T shirt, Hoodie CORPORATE SOCIAL RESPONSIBILITY Declare to adhere to all rules and regulations in respect to child labor? (Y/N) Y Working hours specified in the employment contract? (Y/N) Y Declare to adhere to all rules and regulations in respect to environmental issues? (Y/N) Y Declare to adhere to all rules and regulations in respect to health and safety issues? (Y/N) Y Declare able to comply with Molson Coors supplier standard (Social compliance). (Y/N) Y HUMAN RESOURCES Factory Workers Quality Control staff Mold designer Sample making staff Sales & Management and Other staff Employee No. 380 15 2 8 45 6 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 2015 Forecast 2014 2013 Total Sales Turnover (in M USD) 25 22.3 21.5 MAIN MARKET Europe (%) Canada (%) US (%) Asia (%) Rest of the world (%) % of Sales 20 5 50 10 15 TOP 3 CUSTOMER Customer Name Industry Country % of Sales Type of Product Top 3 Customers Southpole Cloths USA 30 Knitwear Cintas Uniform USA 20 Uniform Bodyshape Sports wear Germany 10 Sports wear
  • 29. © 2015 Dragon Sourcing. All rights reserved. 29 Supplier Profile: T-Shirts, Polo Shirts & Shirts PRODUCTION CAPABILITY Able to Produce (Y/N) Manufacturer In- house or outsourcing? Production experience (years) Monthly Production Capacity (Pcs / Month) Actual annual production in 2014 (Pcs / year) Briefly specify the production process All production steps are In-house? (Y/N) Which production steps are outsourcing? T-shirt Man / Woman Y In-house Over 10 years 1,000,000 800,000 cuting-printing-sewing -ironing-packing Yes 3 Polo Shirt Man / Woman Y In-house Over 10 years 8,000,000 700,000 cuting-printing-sewing -ironing-packing Yes 3 Shirt Man / Woman Y In-house Over 10 years 8000000 700,000 cuting-printing-sewing -ironing-packing Yes 3 Apron Y In-house Over 10 years 1,200,000 1,000,000 cuting-printing-sewing -ironing-packing yes 3 Table Cloth N Beach Towel N Flex Fit Hat N Cowboy Hat N DESIGN CAPABILITY & PRODUCTION CUT OFF PERIOD Have design capability in-house, able to propose a design based on client brief. (Y/N) Y Have prototyping / sample production capability in-house (Y/N) Y Production cut off period for Chinese New Year. (From which date to which date) Around 20days Order cut-off date for order to be shipped before Chinese new year. (Date) TBD RFI/RFQ rank: 1 Score: 85
  • 30. © 2015 Dragon Sourcing. All rights reserved. 30 Supplier Profile: T-Shirts, Polo Shirts & Shirts PRODUCTION EQUIPMENT Equipment name Quantity Brand / Type Usage of the Equipment Overlock machine Sewing Plain stitch Pressing Five wire machine Sewing Yarn machine(four pin six line) Pressing Cutting off Car Edgefolding Flat eyed machine CERTIFICATIONS Certificate Y/N Date of Certificate Date of Expire Certificate number. Certifying Organization ISO 9001:2008 Quality management systems Y 3/11/2014 3/10/2017 0070014Q10 651R0S ZhongJian Certification Co.Ltd ISO 14001 Environmental management systems N SA 8000 N Euro 1 Certificate N QUALITY CONTROL MANAGEMENT Able to comply AQL Standard: Critical 0, Major 1.0, Minor 2.5 (Y/N) Y Able to comply AQL Standard: Critical 0, Major 2.5, Minor 4.0 (Y/N) Y General Production Defective Rate (% rejected)? 0.9 Time to keep QC records? (in Month) 96 Accept 3rd party QC? (Y/N) Y Have product recall system in place (Y/N) N Customer Satisfaction Survey in place (Y/N) Y Internal rule regarding maximum reaction time of quality claim (hours) 48hrs PRODUCT CERTIFICATIONS Product Certificate Y/N Date of Certificate Date of Expire Certificate number. Certifying Organization N N N N RFI/RFQ rank: 1 Score: 85
  • 31. © 2015 Dragon Sourcing. All rights reserved. 31 Supplier Profile: T-Shirts, Polo Shirts & Shirts FACTORY PHOTOS Factory Overview Office R&D room Workshop Workshop Warehouse Machinery Machinery Showroom RFI/RFQ rank: 1 Score: 85
  • 32. 1. Introduction 2. Annual Spend & Category Demand Analysis 3. Supply Base Response 4. Quotation Analysis 5. Supplier Recommendations 6. Summary 32 Agenda © 2015 Dragon Sourcing. All rights reserved.
  • 33. 6. Summary: 45 suppliers to be audited from 1371 suppliers identified 33© 2015 Dragon Sourcing. All rights reserved. China Sourcing India sourcing Bangladesh sourcing Vietnam sourcing Turkey sourcing Thailand sourcing 6 Countries In Total # Sub - Category SupplierIdentifiedandcalled #ofsupplierpassedphonescreening RFI/RFQreceived Supplierrecommendedforauditandsampling SupplierIdentifiedandcalled #ofsupplierpassedphonescreening RFI/RFQreceived Supplierrecommendedforauditandsampling SupplierIdentifiedandcalled #ofsupplierpassedphonescreening RFI/RFQreceived Supplierrecommendedforauditandsampling SupplierIdentifiedandcalled #ofsupplierpassedphonescreening RFI/RFQreceived Supplierrecommendedforauditandsampling SupplierIdentifiedandcalled #ofsupplierpassedphonescreening RFI/RFQreceived Supplierrecommendedforauditandsampling SupplierIdentifiedandcalled #ofsupplierpassedphonescreening RFI/RFQreceived Supplierrecommendedforauditandsampling SupplierIdentifiedandcalled #ofsupplierpassedphonescreening RFI/RFQreceived Supplierrecommendedforauditandsampling 1 T-shirts, Polo Shirts, Shirts 131 72 19 6 75 58 14 3 73 37 10 5 56 20 4 0 23 9 1 0 358 196 48 14 2 Table Cloth & Apron 157 82 17 5 64 43 16 5 35 12 5 2 20 10 2 0 8 3 1 0 284 150 41 12 3 Hats 105 73 31 6 41 17 1 0 35 14 3 1 30 24 4 0 20 6 1 0 231 134 40 7 4 Parasol & Umbrella 124 59 18 13 32 16 5 1 30 10 3 1 17 8 5 1 203 93 17 4 5 Shrink & Stretch Film 130 43 12 0 70 42 9 3 31 14 3 0 37 17 3 3 27 12 4 2 295 128 31 8 5 Sub - categories In Total 647 329 97 30 282 176 45 12 143 63 18 8 167 78 16 1 105 43 11 4 27 12 4 3 1371 701 177 45