This case study outlines a global sourcing initiative by Dragon Sourcing for a leading digital security company to identify new battery suppliers to decrease costs and ensure manufacturing capabilities. The approach involves several steps, including demand analysis, supplier identification, and the development of a requested for information/quotation (RFI/RFQ) process, all scheduled to be completed in 9 weeks. Progress includes identifying 49 suppliers from various countries, with 7 receiving RFI/RFQ responses, showcasing potential price savings of 3-12% compared to current costs.

1. Battery Global Sourcing Case Study
2019
Dragon Sourcing - 龙 源
Delivering sustainable sourcing value from emerging markets

2. Agenda
1. Objectives , work plan and time line
2. Demand Analysis
3. Progress
2© 2019 Dragon Sourcing. All rights reserved.

3. Client is leading global digital security company, the battery sourced is used in
display card.
© 2019 Dragon Sourcing. All rights reserved. 3

4. © 2019 Dragon Sourcing. All rights reserved.
Objectives and approach
Context
Objectives:
• Identify new potential competitive suppliers worldwide to decrease
price, secure manufacturing capacities, lead-time.
Geographical scope:
• Worldwide
Categories:
• Battery
DS Approach consists in the following work steps:
1. Demand Analysis: define and understand products and requirements
(specs, volumes, materials, production technology requirements)
2. Supply Market Analysis: Identify long list of potential suppliers
worldwide by leveraging B2B Websites, DS Database, Fair
catalogues, Chamber of Commerce, Magazines, Network,
References.
3. Telephone Pre-screening: Selection of suppliers to be included in
the RFI/RFQ process by telephone pre-screening based on agreed
simple criteria (e.g. capability to make the product, minimum company
size, quality certifications)
4. Develop the RFI-RFQ: Document prepared together with client to
pre-qualify the competitiveness and capabilities of the suppliers,
including: Background, Financials, Client references and Product
experience, Quality certification & processes, Social Responsibility,
Manufacturing/technology capability, R&D capability
5. Administer the RFI-RFQ: Distributed to the suppliers who passed
pre-screen, with telephone follow-up to push for maximum
participation.
6. Develop a balance score with client, evaluating suppliers maturity
according to RFI/RFQ
7. Analyze RFI-RFQ Responses: profiling & objectively ranking
suppliers by capability, and recommending those to be audited.
8. Pre-audits (optional): Carry pre-audits of recommended suppliers in
order to identify those to have you audit.
4

5. The project is scheduled to finish in 9 weeks.
© 2019 Dragon Sourcing. All rights reserved. 5
# Step Who Week0 Week 1 Week2 Week 3 Week4 Week 5 Week6 Week 7 Week8 Week 9
0 Kick off Client/DS
1 Demand Analysis Client/DS
2 Supply Market Analysis DS
3 Telephone pre-screening DS
4 Develop the RFI-RFQ Client/DS
5 Administer the RFI/RFQ DS
6
Develop balance score card to evaluate suppliers according to
RFI/RFQ
Client/DS
7 Analyze responses and select suppliers for audit phase Client/DS
MilestonesStarted FinishedNot-started Delayed

6. Agenda
1. Objectives , work plan and time line
2. Demand Analysis
3. Progress
6© 2019 Dragon Sourcing. All rights reserved.

7. Demand analysis – Battery , total annual spend USD 6M
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Description Spec Photo
Annual quantity
(pcs)
12mAh
1..Thickness : 0.45mm MAX；
2.Capacity > 12 mAh ;
3. Smart card application;
4.flexible
4,000,000
14mAh 4,000,000
15mAh 4,000,000

8. Agenda
1. Objectives , work plan and time line
2. Demand Analysis
3. Progress
8© 2019 Dragon Sourcing. All rights reserved.

9. © 2019 Dragon Sourcing. All rights reserved. 9
Total 49 suppliers identified from 8 countries / regions, 13 suppliers passed pre-
screen, 7 RFI/RFQ received .
Supplier headquarter location
China
mainland
Taiwan Japan South Korea India US Germany Austria Total
Suppliers identified 28 2 3 2 1 11 1 1 49
Suppliers passed pre-
screen
11 1 0 0 0 2 0 0 14
RFI/RFQ Sent 11 1 2 14
Need client info and
product detail
1 1
Can’t quote until NDA
signed
1 1
RFI/RFQ Received 7 7
28
2 3 2 1
11
1 1
11
1 21 1
7
0
5
10
15
20
25
30
China mainland Taiwan Japan South Korea India US Germany Austria
Battery supplier RFI/RFQ Progress
Suppliers identified Suppliers passed pre-screen Need client info and product detail
Can’t quote until NDA signed RFI/RFQ Received

10. Xinjiang
Gansu
Jiangxi
Tianjin
Jiangsu
Guangxi
Hunan
Hubei
Qinghai
Ningxia
Shaanxi
Anhui
Fujian
Inner Mongolia
Shanxi
Xizang
Sichuan
Yunan
Guizhou
Henan
Jilin
Liaoning
Guangdong
Gansu
Shanghai
Hong Kong
Taiwan
Heilongjiang
Sichuan
© 2019 Dragon Sourcing. All rights reserved.
7 RFI/RFQ received, the 7 suppliers located in 2 provinces, 6 in Guangdong, 1 in
Hubei.
10
Zhejiang
Shandong
Hebei
No Supplier name Province RFI RFQ
Supplier
Presentation
Spec Product Status
1 Supplier 1 Guangdong Y Y Y Mass production
2 Supplier 2 Guangdong Y Y Y Mass production
3 Supplier 3 Guangdong Y Y Y Trial production
4 Supplier 4 Guangdong Y Y Y Mass production
5 Supplier 5 Hubei Y Y Y Mass production
6 Supplier 6 Guangdong Y Y Y Mass production
7 Supplier 7 Guangdong Y Y Y willing to develop

11. Battery RFI Scorecard
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Business information
Weight
of
criteria
Scoring
Max Score per
criteria
Year Founded 10%
1=After 2010
2=Between 2000 to 2010
3=Before 2000
3
Net sales (USD) 20%
0=Not provided
1=Less than 10M
2=10-20M
3=20-50M
4=above 50M
4
Profit (USD) last 3 years 15%
0 = not provided
1 = negative
2 = positive
2
Business trend over the last three
years
15%
0=not provided
1 = negative
3 = stable or growing
3
Employee numbers 10%
1=Less than 100
2=100-200
3=200-500
4=above 500
4
Profile of Top Customers 15%
0=Not provided
1=Local customers
2=National customers
3=International customers
3
Provide company presentation 5%
0=No
1=Yes
1
Cooperation during the RFI/RFQ
process
10%
1= Poor
2= Satisfactory
3= Excellent
3
Subtotal 100%
Production & Quality
Weight
of
criteria
Scoring
Max Score per
criteria
Product already in production 15%
0= In development
1= In test
2= Yes
2
Time to develop solution as per client
requirement
10%
0 = more than 6 months
1= 3 - 6 months
2= 1-3 months
3= within 1 month
3
Internal laboratory for the product
10%
0= No (only in line control)
1 = Basic equipment
2= Full range (e.g Reliability /
aging testing, chemical, X-
Ray…)
2
Experience of smart card / display
card
10%
0=No
1=Yes
1
Any part of the process subcontracting
?
10%
0 = more than 1 process
1 = 1 process maximum
2 = no subcontracting
2
ISO 9001 & ISO14001 5%
0= none
1=ISO14001
2= ISO9001
3=Both
3
Certificate for battery 5%
0=No
1=Yes
1
Component / product warranty term 10%
0= no warranty
1= 1 year
2= over 2 years
2
Intellectual property 10%
0= no IP
1= no IP - licence to use
2= IP locally applicable
3= own IP - no risk
3
Intention to compete in the same
market (display card)
15%
0 = intent to go on the
segment market
2 = OEM - component
focused
2
Subtotal 100%
Capacity
Weight
of
criteria
Scoring
Max Score per
criteria
Annual capacity of thin battery 50%
1= <5M
2= 5M-20M
3= >20M
3
CAPEX investment capacity 20%
0= no
1= yes
1
Standard Lead-time 30%
0 = higher than current one
1= similar
2= better
To compare with current BOM
2
Subtotal 100%

12. Unit price comparison, three suppliers have saving 3%-12%.
© 2019 Dragon Sourcing. All rights reserved. 12
0.88
0.79
0.82
0.85
0.93
0.97
0.99
1.04
1.23
0
0.5
1
1.5
Current price Supplier 3 Supplier 5 Supplier 2 Supplier 7 Supplier 2 Supplier 1 Supplier 4 Supplier 6
Unit Pirce Comparison (USD)
Current priceQuotations lower than current price

13. Battery RFI Score and potential saving, 7 suppliers scored and ranked , 6 suppliers
score are above 70, 3 have potential saving.
© 2019 Dragon Sourcing. All rights reserved. 13
RFI Score
Criteria Weight Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7
Business information 25% 23 23 24 19 21 19 7
Production 35% 29 32 28 28 27 27 29
Capacity 40% 40 33 33 33 27 27 33
Total 100% 91 88 86 81 75 73 69
91 88 86
81
75 73
69
0%
3%
12%
0%
7%
0% 0% 0%
2%
4%
6%
8%
10%
12%
14%
0
10
20
30
40
50
60
70
80
90
100
Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7
RFI Score and Battery Unit Price comparison
RFI Score Potential saving

14. Company profile
Supplier 1
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COMPANY INFORMATION
Company Name XXX
Address XXX
Town Dongguan
Province Guangdong
Country China
Company Website XXX
CONTACT PERSON INFORMATION
Contact Person Raymond Lau
Title Sales Manager
Email XXX
Tel XXX
Fax XXX
Mobile phone XXX
BUSINESS INFORMATION
What date was your company founded? 2000
What is your turnover in million USD?
2018 2017 2016 2015
60 55 40 37
How many employees do you have? 600
What is the percentage of turnover
distributed to:
China Europe US
Rest of the
World
N/A N/A N/A N/A
Who are your top 3 Clients? Clients Industry Country % of sales
1 XXX
Digital
products
China N/A
2
XXX
IT Japan N/A
3 XXX Computer American N/A
ULTRA THIN BATTERY PRODUCTION below 0.45mm
Monthly production capacity( pcs )
12 mAh ultra
thin battery
14 mAh ultra
thin battery
15 mAh
ultra thin
battery
Others
300K 200K 200k 300K
Experience of smart card / display card Yes
Factory location XXX
Can your company develop according
to client's requirement?
Yes
How long will it take to develop new
design?
Not fixed, usually 30-45 days, depend on the battery
configuration
How much will it cost to develop new
design? (USD)
Not fixed, just depend on the customer's requests(cells,
sample quantity etc)
Quality
What quality and environmental
registrations do you have?
Yes / No
Date of
Certificate
Certifying
Org
Date of
Expiry
ISO 9001 Yes 2/17/2015
QA
International
ISO 14001 Yes 3/1/2015
QA
International
Others (please list) OHSAS18001 2/1/2015
QA
International
Please list the certificate your
company has for battery. (product and
transportation)
SGS, UL, CE,
PSE,FCC etc
Product failure rate (ppm) 170
What's the warranty term of your
product?
1 year
What is your internal rule regarding
maximum reaction time of quality
claim?
48 hours response