Dragon Sourcing brings to you a detailed Case Study on Apparels Sourcing from Emerging Markets like China, Bangladesh, Pakistan, Vietnam, Cambodia, Myanmar, Madagascar, Romania, Macedoine, Bulgaria and Serbia!

1. Dragon Sourcing - 龙 源
Delivering sustainable sourcing value from emerging markets
Apparels sourcing from emerging markets
Case Study

2. 222222222
Agenda
1. Sourcing Project Introduction
2. Sourcing Approach
3. Conclusions

3. Client Introduction & Project Objectives,
 Client Introduction: Client is a hip French ready-to-
wear label for women's, men's and children's fashions
owns and operates apparel retail stores that sell
apparel and clothing accessories.
 Project Objectives: Primary objective is to identify
and qualify potential suppliers by running Request for
Information/Request for Quote (RFI-RFQ) process
through procurement and sourcing direct from
manufacturers in 11 emerging markets category wise
for 6 categories:
 Geographical scope: 11 countries in scope:
 6 apparel categories in scope,
3
 Dragon Sourcing approach in 2 stages
Stage 1: Supplier Pre-Qualification
1. Demand Analysis
2. Supply Market Analysis
3. Develop RFI/RFQ
4. Administer RFI/RFQ
5. Analyse RFI/RFQ Responses
 Deliverables: Stage 1
- Supplier database
- RFI-RFQ template & analysis report
- Supplier profiles including factory and product
pictures, suppliers location, price analysis,
supplier ranking & recommendation.
 Stage 2: Audits, Selection & Contracting to be
finalised post stage 1 completion.
- Audit Report
- Samples
- Contract(s)

4. - Following 11 Countries and 6 apparel categories were shortlisted under the
project scope,
Region Countries
Categories
T-shirts Denim Sweaters Jackets Flou Suits
# of categories /
country
East Asia • China X X X X 4
South Asia
• Bangladesh X X X X X 5
• Pakistan X X 2
South East Asia
• Vietnam X 1
• Cambodia X X 2
• Myanmar X X 2
Indian Ocean • Madagascar X X 2
Balkan: South-
eastern Europe
• Romania X X X 3
• Macedoine X X X X 4
• Bulgaria X X X X 4
• Serbia X X X X 4
Number of Countries per category 9 2 7 4 6 5
4
Note: Bulgaria & Serbia has been added additionally by Dragon Sourcing for sweater category.

5. 5
No. T-shirts Denim Sweaters Jackets Flou Suits
1
2
3
4
- Some of the Images of the 6 apparel categories shortlisted under the
project scope

6. 666666666
Agenda
1. Sourcing Project Introduction
2. Sourcing Approach
3. Conclusions

7. Following steps were covered under stage 1: Supplier Pre-Qualification
No. Step Deliverables
1.
Demand Analysis
Work with client to define and understand the Products and requirements (specs, volumes, current unit
prices, delivery destinations of delivery/consumption). Collect samples of the products in order to ensure
potential suppliers fully understand them
• Kick-Off Report
2.
Supply Market Analysis
Identify long list of potential manufacturers in countries in scope by leveraging B2B websites, DS database,
fair catalogues, Chamber of Commerce, magazines, network, references.
• Supplier Long List
3.
Telephone Pre-screening
Selection of manufacturers to be included in the RFI/RFP process by telephone pre-screening based on
agreed simple criteria (e.g. capability to make the product, can export, quality certifications, interest in
participating, etc.
• Shortlist for RFI-RFQ
process
4.
Develop RFI/RFQ document
Prepare an RFI/RFQ document, with an aligned balanced scorecard that has the objective to pre-qualify the
competitiveness and capabilities of the manufacturers, including: background, financial, client and product
experience, quality certification & processes, social responsibility, manufacturing/technology capability, R&D
capability.
• RFI-RFQ Template
• Balanced Scorecard
5.
Administer RFI/RFQ:
The RFI/RFQ is translated to the local languages as relevant, and distributed to the relevant manufacturers,
with telephone follow-up to push for maximum participation.
• Completed RFI-RFQ’s
6.
Analyze RFI/RFQ Responses:
Analysis of RFI/RFQ responses, estimation of logistics costs, and preparation of a report, which profiles &
objectively ranks the manufacturers by capability and competitiveness, including a recommendation for
those to be audited.
• RFI-RFQ Report
• Supplier Profiles
• Proposed Shortlist for
Audit.
7

8. Approximate yearly volumes and spend was collected at the project kick off stage,
8
# Category
Number of styles to be included for
RFQ process
Estimated Yearly Volumes
In K - PCS
Estimated Yearly
Spend in M
(in Euro)
1 T-shirts
• Adult : 3
• Kid : 3
units
Adult : 560
KID : 600
ADULT : xx
KID : xx
2 Denim
• Adult : 2
• Kid : 2
units
Adult : 275
KID : 380
ADULT: XXX
KID : XXX
3 Sweaters
• Adult : 2
• Kid : 2
units
Adult : 410
KID : 390
ADULT: XXX
KID: XXX
4 Jackets
• Adult doudoune : 1
• Adult coat : 2
• Adult Parka : 1
• Kid jacket : 4
units
Adult : 170
KID : 350
ADULT: XXX
KID: 4,7
5 Flou
• Adult dress : 2
• Adult shirt : 2
• Adult blouse : 2
units
Adult : 315
KID : 140
ADULT: XXX
KID: XXX
6 Suits
• Adult women jacket : 2
• Adult men jacket : 2
Units Adult : 170 ADULT: XXX
Total 34 styles for costing Total: EUR XXX M

9. Steps
Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Week
10
Week
11
Week
12
Jan
15
Jan
22
Jan
29
Feb
5
Feb
12
Feb
19
Feb
26
March
5
March
12
March
19
March
26
April
2
1. Demand Analysis
2. Supply Market Analysis
3. Telephone Pre-screening
Extended
Week
4. Develop RFI/RFQ
5. Administer RFI/RFQ
Extended
week
6. Analyze RFI/RFQ Responses
1RFI/RFQ approved
2
- Stage 1: Supplier Pre-Qualification timeframe.
- Project was delivered within 12 weeks as per schedule.
Supplier profiles with
recommendations.
9
Not started Done
Inprocess Delay
Couple of steps were extended by a week to receive maximum response from the suppliers.

10. Documentation progress was fully tracked to ensure on-time progress,
# Category Kick off
Supplier
database
validation by
client
Client data
collection
Data
questions
Client clarify
Pre-
screening
questions
draft
Client
validation
RFI/RFQ
template
draft
Client
validation
Score card
draft
Client
validation
1 T-shirts
Sent on Jan 30th
,
Validated on Feb
5th
,
Received for
adults Jan 26,
Kids: Feb 12
Sent with
kick off
Received
Jan 26
Sent with
kick off
Validated
Jan 26
RFI-RFQ
sent on
Feb 9
Feb 16
2 Denim
Sent on Jan 30th
,
Validated on Feb
5th
Received for
adults Jan 26,
Kids: Feb 12
Sent with
kick off
Received
Jan 26
Sent with
kick off
Validated
Jan 26
RFI-RFQ
sent on
Feb 9
Feb 16
3 Sweaters
Sent on Jan 30th
,
Validated on Feb
5th
Received for
adults Jan 26,
Kids: Feb 12
Sent with
kick off
Received
Jan 26
Sent with
kick off
Validated
Jan 26
RFI-RFQ
sent on
Feb 9
Feb 16
4 Jackets
Sent on Jan 30th
,
Validated on Feb
5th
Received for
adults Feb 8,
kids: Feb 12
Sent with
kick off
Received
Jan 26
Sent with
kick off
Validated
Jan 26
RFI-RFQ
sent on
Feb 9
Feb 16
5 Flou
Sent on Jan 30th
,
Validated on Feb
5th
Received on
Feb 8 & 12.
Sent with
kick off
Received
Jan 26
Sent with
kick off
Validated
Jan 26
RFI-RFQ
sent on
Feb 16
Feb 19
6 Suits
Sent on Jan 30th
,
Validated on Feb
5th
Received on
Feb 12
Sent with
kick off
Received
Jan 26
Sent with
kick off
Validated
Jan 26
RFI-RFQ
sent on
Feb 16
Feb 19
10 Started FinishedNot-started

11. 11
- As a first step, Supplier database was identified category wise and added in each
target Country. An extensive supplier data base was built leveraging multiple
sources of information & from existing DS database.

12. 12
- Pre-screening process was initiated after receiving client validation,
- This process was to filter the long list of suppliers prior moving them to the RFI-RFQ step

13. 351
158 193
99
38
61
177
79
98
223
74
149
254
124
130
124
65
59
Identified Suppliers Passed pre-screening Failed pre-screening RFI-RFQ Received RFI-RFQ Rejected
T-shirts Denim Sweaters Jackets Flou Suits
13
1228
538
690
• Pre-screening process completed
• RFI-RFQ doc sent to all the suppliers passed pre-screening.
- Supply Market Analysis: Process metrics follow up for all categories / countries.
- Weekly progress reports was sent to the client for review and validations.

14. 14
• Post pre-screening the suppliers,
• RFI process was administered to filter out most capable suppliers,
Supplier Profile example

15. 15
RFI process was administered to filter out most capable suppliers
Supplier Profile example
Supplier Profile example few slides

16. 16
- Category specific technical questions were added in the RFI to understand supplier
capability and capacity.
Supplier Profile example

17. 17
No. Style # Product Pictures Line Age Group Category
Pilot/Average Order
Quantity in (Pcs)
1 XXX Women Adult Sweater XXX
2 XXX Women Adult Sweater XXX
3 XXX Girls Kids Sweater XXX
4 XXX Girls Kids Sweater XXX
RFQ process,
- Total 4 styles were selected for sweater RFQ, 2 adult and 2 kids styles.

18. - Price analysis was done for the 30 suppliers responded to the RFQ.
China 14, Bangladesh 12, Serbia 2, Bulgaria 1 & Madagascar 1.
Price Analysis
Minimum
Below Average
Above Average
Maximum
Category Sweater Sweater Sweater Sweater
Line Women Women Girls Girls
Sr.no Supplier Name Country RFI score Style # xxx Style # xxx Style # xxx Style # xxx
1 Supplier xxx xxx 76 € 12.55 € 17.63 Not in Scope
2 Supplier xxx xxx 75 € 6.70 € 6.80 Not in Scope
3 Supplier xxx xxx 75 € 6.28 € 11.43 - -
4 Supplier xxx xxx 71 € 8.75 € 23.50 Not in Scope
5 Supplier xxx xxx 71 € 6.05 € 11.50 Not in Scope
6 Supplier xxx xxx 70 € 3.95 € 4.05 € 5.50 € 5.67
7 Supplier xxx xxx 68 € 6.70 € 6.80 Not in Scope
8 Supplier xxx xxx 68 € 7.70 € 7.70 Not in Scope
9 Supplier xxx xxx 67 € 6.30 € 6.75 € 5.40 € 5.65
10 Supplier xxx xxx 66 € 11.12 € 18.30 Not in Scope
11 Supplier xxx xxx 66 € 5.29 € 9.75 - -
12 Supplier xxx xxx 66 € 6.35 € 6.75 - -
13 Supplier xxx xxx 66 € 5.00 € 5.00 € 6.15 € 6.15
14 Supplier xxx xxx 65 € 4.58 € 5.47 € 5.15 € 5.25
15 Supplier xxx xxx 65 € 5.80 € 7.95 - -
16 Supplier xxx xxx 64 € 6.10 € 6.35 Not in Scope
17 Supplier xxx xxx 62 - € 9.20 Not in Scope
18 Supplier xxx xxx 62 € 5.35 € 5.60 - -
19 Supplier xxx xxx 61 € 7.40 € 6.40 Not in Scope
20 Supplier xxx xxx 60 € 6.80 € 24.00 Not in Scope
21 Supplier xxx xxx 60 € 15.50 € 19.40 Not in Scope
22 Supplier xxx xxx 60 € 4.60 € 8.26 - -
23 Supplier xxx xxx 59 € 5.75 € 13.35 - -
24 Supplier xxx xxx 59 € 12.00 € 13.00 € 9 € 9
25 Supplier xxx xxx 55 - € 14.00 - -
26 Supplier xxx xxx 54 € 5.15 € 11.75 Not in Scope
27 Supplier xxx xxx 53 € 9.59 € 22.65 Not in Scope
28 Supplier xxx xxx 49 € 5.05 € 5.50 - -
29 Supplier xxx xxx 39 - € 17.00 - -
30 Supplier xxx xxx 35 € 17.90 € 19.90 - -
Average Price € 7.57 € 11.52 € 6.24 € 6.34
Chinese suppliers were not invited to offer price for kids style.

19. 19
€ 3.95€ 4.58 € 4.60 € 5.00 € 5.05 € 5.15 € 5.29 € 5.35 € 5.75 € 5.80 € 6.05 € 6.10 € 6.28 € 6.30 € 6.35 € 6.70 € 6.70 € 6.80 € 7.40 € 7.70 € 8.75 € 9.59 € 11.12€ 12.00€ 12.55€ 15.50€ 17.90
7900
9160 9200
10000 10100 10300 10580 10700
11500 11600 12100 12200 12560 12600 12700 13400 13400 13600
14800 15400
17500
19180
22240
24000
25100
31000
35800
Bangladesh
XXX
XXX
XXX
XXX
China
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Suppleir
1
Suppleir
2
Suppleir
3
Suppleir
4
Suppleir
5
Suppleir
6
Suppleir
7
Suppleir
8
Suppleir
9
Suppleir
10
Suppleir
11
Suppleir
12
Suppleir
13
Suppleir
14
Suppleir
15
Suppleir
16
Suppleir
17
Suppleir
18
Suppleir
19
Suppleir
20
Suppleir
21
Suppleir
22
Suppleir
23
Suppleir
24
Suppleir
25
Suppleir
26
Suppleir
27
Women Sweater - Style # XXX
FOB Price and spend in Euro
FOB Price in Euro Spend in Euro
Above average
price € 7.57
- Price analysis was done for each of the styles,
- 27 suppliers offered price for style # XXX
- FOB price in Euro per PC.

20. Process Steps China Bangladesh Cambodia Madagascar Macedonia Bulgaria Serbia Total
Supplier
Identification
• Suppliers identified 55 68 17 8 3 1 25 177
Pre-
screening
• Supplier passed pre-
screening
XXX XXX XXX XXX XXX XXX XXX 79
• Suppliers failed Pre-
screening
XXX XXX XXX XXX XXX XXX XXX 98
RFI-RFQ
Administration
• Number of RFI-RFQ sent XXX XXX XXX XXX XXX XXX XXX 79
• RFI-RFQ rejected XXX XXX XXX XXX XXX XXX XXX 46
• Number of only RFI
received
XXX XXX XXX XXX XXX XXX XXX 3
• Number of both RFI-RFQ
received
XXX XXX XXX XXX XXX XXX XXX 30
20
- Supply market analysis category wise was shared in the weekly progress and
final RFI reports,

21. 10
35
17
12
14
7 3
Traders/distributors or Importers only,
Not certified with any of the social compliance certification
Not interested / produce CMT basis / only for in-house production
Unable to contact them/ Company shutdown
Discarded by client
Do not produce sweater or stop producing
Duplicate supplier from same group
Supply Market Analysis,
Supplier rejection analysis were shared to client for each step,
Pre-screening & RFI -RFQ administration.
21
Example for Pre-screening rejection analysis
25
9
4
3
2
1 1
1
Cannot meet the technical specification as doing very basic styles
Consider themselves small for this project
Capacity full
Produce CMT basis / only for in-house production
Traders/distributors or Importers only,
Not certified with any of the social compliance certification
Previously have worked with client and the order volumes are very small
Cannot meet blended yarn requirement
Example for RFI-RFQ rejection analysis

22. 22
Shortlisted
Could be considered
Not shortlisted
Sr.no Supplier Name City Province
1 XXX XXX Guangdong
2 XXX XXX Guangdong
3 XXX XXX Guangdong
4 XXX XXX Guangdong
5 XXX XXX Guangdong
6 XXX XXX Zhejiang
7 XXX XXX Zhejiang
8 XXX XXX Zhejiang
9 XXX XXX Zhejiang
10 XXX XXX Zhejiang
11 XXX XXX Zhejiang
12 XXX XXX Hebei
13 XXX XXX Anhui
14 XXX XXX Shanghai
15 XXX XXX Shandong
Suppliers with only RFI received
Suppliers location – CHINA.
Manufacturer locations’ of all the suppliers as per category/Country wise were highlighted in the
map,

23. 23
Suppliers Assessment,
- Suppliers were assessed and ranked based on the Company profile,
- Scoring and ranking of the suppliers are done on the GSP,

24. 24
- Suppliers company profiles as per ranking wise were shared in the final report.
RFI Score 76
RFI Ranking 1

25. 351
158 193
117
99
38
61
18
177
79
98
46
223
74
149
57
254
124
130
101
124
65
59
54
0
200
400
600
800
1000
1200
1400
Identified Suppliers Passed pre-
screening
RFI-RFQ Received Ony RFI received Failed pre-
screening
RFI-RFQ Rejected
T-shirts Denim Sweaters Jackets Flou Suits
25
- Process metrics follow up for all categories / countries was sent to the client in
progress and final reports.
1228
538
690
28
393
117
These suppliers need original samples to submit
RFQ and Balkan: South-eastern Europe suppliers
have also requested client to visit them first.

26. 262626262626262626
Agenda
1. Sourcing Project Introduction
2. Sourcing Approach
3. Conclusions

27. - Global view on the number of suppliers shortlisted and could be considered per
category and country wise.
- Total 88 suppliers were recommended for the next steps.
27
Region Countries
T-shirts Denim Sweaters Jackets Flou Suits
# of
suppliers
per
country
# of
suppliers
per
country
Shortlisted
Could be
considered
Shortlisted
Could be
considered
Shortlisted
Could be
considered
Shortlisted
Could be
considered
Shortlisted
Could be
considered
Shortlisted
Could be
considered
East Asia China # # # # # # # # # #
South
Asia
Bangladesh # # # 0 # # # 0 3 0 # #
Pakistan # 0 # 5 # #
South
East Asia
Vietnam 0 # 0 #
Cambodia # 0 0 0 # 0
Myanmar # 0 0 0 # 0
East
Africa
Madagascar 0 # 0 # 0 #
Balkan:
South-
eastern
Europe
Romania # 0 # # # # # #
Macedonia # 0 0 0 0 # # 0 # #
Bulgaria # # 0 0 # # # # # #
Serbia 0 # 0 # 0 0 0 0 0 #
Number of Suppliers
per category
30 10 15 5 18 12 9 7 8 15 8 3 88 52
Countries not in scope

28. 28
Result & Recommendation
- Executive summary
Please note, The sorting of suppliers was done based on following criteria’s,
.
• Green (Shortlisted): These suppliers are certified with Social Compliance certificate,
• and in addition, their scoring are high or above average and/or they are vertical integrated mills.
• Price competitiveness was not a criteria used for the recommendation
• Orange (Could be considered): Most of these suppliers hold social compliance certification in the
past but not currently certified. These suppliers may be high score ranking but does not fulfil the
must have criteria for holding social compliance certificate.
• Red (not shortlisted): They are not certified with any social compliance certification as well no
other quality certification and very low RFI scoring. Only handful of suppliers in each category are
marked in red as they seem to be least potential for client.
Shortlisted
Could be considered
Not shortlisted

29. 29
Sr.
No.
Category name
No. of suppliers
shortlisted
1 T-Shirts 2
2 Sweaters 8
3 Jackets 8
4 Flou 5
11
1
4
1
1
4
1
Suppliers location – China for example,
- 23 suppliers are shortlisted from 4 categories,
- 11 suppliers are from Guangdong, 4 from Fujian, 4 from Zhejiang & 4 from others.

30. Conclusions
 Whole project was carried out in 12 weeks with 1228 suppliers identified with 117 complete
RFI-RFQ received and 28 suppliers responded with only RFI document.
 All the recommended suppliers are certified with social compliance and quality management
certification.
 Most of the recommended suppliers are vertical integrated mails having all the production process in
house.
 Procurement Intelligence report was shared with the client giving insight on the logistic cost and import
duties based on the HS codes.
 DS recommended # of suppliers for sample development & supplier visit/auditing as a next step.
 As a successful completion of stage 1 – supplier qualification, client awarded DS with stage 2 process,
a. On-site audit to verify their production capability, quality and management
b. Sample making to ensure supplier meet client requirements.
 Overall based on the DS Report, It helped client to shortlist and possibly partner with most potential
suppliers from the emerging markets.
15