Dragon Sourcing was hired to identify potential suppliers for a European food company's glass bottles and jars sourcing project. Over 8 weeks, Dragon Sourcing identified 88 potential suppliers in target countries, screened 41 suppliers, and received 11 complete responses to their RFI-RFQ. They analyzed suppliers' certifications, production capabilities, pricing and recommended the top suppliers. Next steps proposed were collecting samples from recommended suppliers and conducting on-site audits to select final suppliers.

1. Dragon Sourcing - 龙 源
Your Tailored Sourcing Approach to LCC Sourcing
Glass Bottles and Glass Jars Sourcing Project
Case Study

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

3. Objectives and Approach
Context
 Client Introduction: Leading food company with
operations and headquarters in Europe.
 Project Objectives: To identify and qualify potential
suppliers by running Request for Information/Request
for Quote (RFI-RFQ) process through procurement and
sourcing for category Glass Bottles and Jars.
 Geographical scope:
• China:
• India/UAE
• Poland/Czech Republic
 Supplier key requirement:
 Should be a manufacturer.
 Must have export license and good export experience.
 Must be certified with Global Food Safety Initiative
(GFSI) schemes or any of its food safety standards.
 Quality management and social compliance certification
will be considered as advantage.
 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
recommendation.
 Stage 2: Audits, Selection & Contracting to be finalised
post stage 1 completion.
- Audit Report
- Samples
- Contract(s)
3

4. Example drawings for
bottles,
Example drawings for
Jars,
- Total 12 styles were selected for RFQ with estimated yearly spend about € 4 million,
- In the RFQ process, items highlighted in green are considered important.
4
Class Item Description
ACT VOLUME
C18 FY
DDP PRICE
€/each
Total Spends in Euro
GLBTXXX Fles 180ml XX XX XX
XX XX XX XX XX
XX XX XX XX XX
GLJAXXX Terrine 145ml XX XX XX
XX XX XX XX XX
XX XX XX XX XX
XX XX XX XX XX
XX XX XX XX XX
XX XX XX XX XX
XX XX XX XX XX
XX XX XX XX XX
XX XX XX XX XX
Million 44.05 € XX

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

6. - 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 drawings and other relevant documents 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 from 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, food and safety, quality & CSR
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
sampling and/or audit.
6

7. • Project timeline was same in all the target Countries.
• Weekly progress report was sent every Friday.
Steps
Duration/week
commencing
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8
1. Demand Analysis 1
2. Supply Market Analysis
(Long list supplier database)
2
3. Pre-screening the identified suppliers 2
4. Develop RFI/RFQ template and validate
from customer.
1
5. Administer RFI/RFQ process 3
6. Analyze responses & submit RFQ report 2
7. Pre-audits (optional) -
1
2
7
Not started Done
In process Delay
Project Schedule,
- Stage 1: Supplier Pre-Qualification timeframe.
- Project was completed within 8 weeks as per schedule.
MilestonesFinished

8. 8
• Full sourcing process including building long list of supplier databasewas done online on the DS e-sourcing tool GSP
- An extensive supplier data base as per target country wise was built by
leveraging multiple sources of information & from existing DS database.
Confidential

9. 9
• Full sourcing process including pre-screening the suppliers was done online on the DS e-sourcing tool GSP
- 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

10. 10
• Post pre-screening the suppliers,
• RFI-RFQ process was administered to filter out most capable suppliers,
Supplier Profile example

11. 11
Supplier Profile example
RFI process was administered to filter out most capable suppliers

12. 12
Supplier Profile example
- Category specific technical questions were added in the RFI to understand supplier
capability and capacity.

13. Process Steps China India Poland Czech Republic U.A.E Total
Supplier
Identification
Suppliers identified 55 24 5 2 2 88
Pre-screening
Process
Supplier passed pre-
screening
XX XX XX XX XX 41
Suppliers failed Pre-
screening
XX XX XX XX XX 47
RFI-RFQ
Administration
Process
RFI-RFQ sent XX XX XX XX XX 41
Number of RFI-RFQ
received
XX XX XX XX XX 11
Don’t intend to respond XX XX XX XX XX 30
13
- Supply market analysis country wise was shared in the weekly progress and final
RFI/RFQ report,

14. 14
18
11
6
4
3
3 2
Not certified with Global Food Safety Initiative (GFSI) schemes or any of its food safety standards
Don't produce Glass bottles and Jars for Food Industry
Cannot Export
Stopped production for glass bottles and jars
Traders or distributors only
Duplicate supplier
Cannot meet the technical requirement / quality standard
18
8
3
1
Cannot meet the technical requirement / quality standard
Don't produce machine-made glass bottle
Disclosed now, Traders or Importers only
Small production capacity
Supplier rejection analysis was shared with client for each step,

15. # Class Item Description Brimful Closure Diameter Height
Weight
(gram)
Color
Estimated
Volumes
in PCS
FOB Price
in
Euro/PC
Mold Cost
in Euro
# of output
PCS from
each
mould
MOQ
Productio
n lead
time
# of PCS
in 20'ft
container
Supplier
Remarks,
1 GLBTXXX Fles 180ml 188 29/21 56,8 139,5 173 Brown: XXX
2 GLBTXXX XXX XXX XXX XXX XXX XXX XXX XXX
3 GLJAXXX XXX XXX XXX XXX XXX XXX
White
Flint
XXX
4 GLJAXXX Terrine 145ml 145 58 63 77,1 137 XXX XXX
5 GLJAXXX XXX XXX XXX XXX XXX XXX XXX XXX
6 GLJAXXX XXX XXX XXX XXX XXX XXX XXX XXX
7 GLJAXXX XXX XXX XXX XXX XXX XXX XXX XXX
8 GLJAXXX XXX XXX XXX XXX XXX XXX XXX XXX
9 GLJAXXX XXX XXX XXX XXX XXX XXX XXX XXX
10 GLJAXXX XXX XXX XXX XXX XXX XXX XXX XXX
11 GLJAXXX XXX XXX XXX XXX XXX XXX XXX XXX
12 GLJAXXX XXX XXX XXX XXX XXX XXX XXX XXX
15
Part of the RFQ sheet,
• Cost sheet with drawings was sent to all the pre-screening passed suppliers
Items highlighted in green are with high potential volumes and more importance for the order.

16. - Price analysis was shared with the client,
- Part of the DDP Spend Analysis.
16
High DDP Spend
Lower DDP Spend
# 1 2 3 4 5 6 7 8 9 10 11
Supplier name XX XX XX XX XX XX XX XX XX XX XX
No. SKU's offered 11 SKU's 12 SKU's 12 SKU's 12 SKU's 8 SKU's 5 SKU's 12 SKU's 12 SKU's 12 SKU's 10 SKU's 10 SKU's
Country India China China China China
Czech/
Austria
China China China China India
# Class Item Description
Estimated
Volumes in
PCS
Clients AVG
Annual DDP
Spends
DDP
Spends in
Euro
DDP
Spends in
Euro
DDP
Spends in
Euro
DDP
Spends in
Euro
DDP
Spends in
Euro
DDP
Spends in
Euro
DDP
Spends in
Euro
DDP
Spends in
Euro
DDP
Spends in
Euro
DDP
Spends in
Euro
DDP
Spends in
Euro
1 GLBTXXX Fles 180ml XX € XXX - € XX € XX € XX - € XX € XX € XX € XX € XX -
2 XX XX XX € XXX € XX € XX € XX € XX € XX € XX € XX € XX € XX - € XX
3 XX XX XX € XXX € XX € XX € XX € XX € XX - € XX € XX € XX € XX € XX
4 GLJAXXX Terrine 145ml XX € XXX € XX € XX € XX € XX € XX - € XX € XX € XX € XX € XX
5 XX XX XX € XXX € XX € XX € XX € XX € XX - € XX € XX € XX € XX € XX
6 XX XX XX € XXX € XX € XX € XX € XX € XX € XX € XX € XX € XX € XX € XX
7 XX XX XX € XXX € XX € XX € XX € XX - - € XX € XX € XX € XX € XX
8 XX XX XX € XXX € XX € XX € XX € XX - € XX € XX € XX € XX € XX € XX
9 XX XX XX € XXX € XX € XX € XX € XX € XX - € XX € XX € XX - -
10 XX XX XX € XXX € XX € XX € XX € XX € XX - € XX € XX € XX € XX € XX
11 XX XX XX € XXX € XX € XX € XX € XX - € XX € XX € XX € XX € XX € XX
12 XX XX XX € XXX € XX € XX € XX € XX € XX - € XX € XX € XX € XX € XX
Total volumes: XX € XXX € XX € XX € XX € XX € XX € XX € XX € XX € XX € XX € XX
Volumes in Million: 44.05
Difference in
Euro
€ XX € XX € XX € XX € XX € XX € XX € XX € XX € XX € XX
Savings% 12% 9.5% 4.5% € XX € XX € XX € XX € XX € XX € XX € XX
Total Mould
Cost in Euro
€ 38,500 € 48,000 € XX € XX € XX € XX € XX € XX € XX € XX € XX
Annual
Spends+Mold
Cost in Euro
€ XX € XX € XX € XX € XX € XX € XX € XX € XX € XX € XX
Price Competitive Suppliers
Annual Spends from the
actual report

17. 17
Supplier
1
Supplier
2
Supplier
3
Supplier
4
Supplier
5
Supplier
6
Supplier
7
Supplier
8
Supplier
9
Supplier
10
Supplier
11
Suppliers Assessment,
- Suppliers were assessed and ranked based on their Company profile,
- Scoring and ranking of the suppliers were done on the e-sourcing tool GSP,

18. 18
- Executive summary with key information was shared with the client,
# Supplier Country
RFI
Scor
e %
Export
licens
e
Main
Producing
items
Industry
mainly serve
Customer
Reference
Daily
production
capacity (Tons
per day)
Can offer
wax
emulsion
concentra
tes for
high
performa
nce
coatings
Have
CNC
machines
for mould
designs
RFQ: total 12 SKU's
Certification - food safety
standards
Certification - CSR and
Quality management
Glass
bottles
Glass
Jars
Number
of SKU's
offered in
RFQ
willing to
amortize the
mold cost
for X number
of PCS
Certified
with GFSI or
any of its
food safety
standards
Certified
with any
other food
safety
standards
Social
compliance
certification
Quality
Management
Certification,
Others,
1 Supplier 1 China 84 Yes
• Glass bottle &
Jars
• Glass Bottle
• Heinz
• Carlsberg
• Budweiser
• Tsingtao
1400 1200 Yes No 8 Yes FSSC 22000 HACCP ISO 14001 ISO 9001
2 Supplier 2 China 78 Yes
• tablet bottle •
food bottles •
syrup bottles •
cosmetic bottles
•Pharmaceutic
al glass
packaging
• cosmetic •
food bottles
• NBTY
• Mccormick
• Blackmore
• Silver Spur
Cooperation
1000 600 No n/a 10 Yes FSC 22000
• ISO 22000
• ISO 15378
• ISO 14001
• OHSAS
18001
ISO 9001
3 Supplier 3 India 69 Yes • Liquor Bottles • Liquor
• Pernod Ricard
• Diageo Ltd
• Amul Ltd.
480 120 No No 11 Yes None ISO 22000 ISO 14001 ISO 9001
4 Supplier 4
Czech
Republic
67 Yes XXX XXX XXX XX XX XX XX XX XX XX XX XX XX
5 Supplier 5 China XXX Yes XXX XXX XXX XX XX XX XX XX XX XX XX XX XX
6 Supplier 6 China XXX Yes XXX XXX XXX XX XX XX XX XX XX XX XX XX XX
7 Supplier 7 China XXX Yes XXX XXX XXX XX XX XX XX XX XX XX XX XX XX
8 Supplier 8 China XXX Yes XXX XXX XXX XX XX XX XX XX XX XX XX XX XX
9 Supplier 9 China XXX Yes XXX XXX XXX XX XX XX XX XX XX XX XX XX XX
10 Supplier 10 India XXX Yes XXX XXX XXX XX XX XX XX XX XX XX XX XX XX
11 Supplier 11 China XXX Yes XXX XXX XXX XX XX XX XX XX XX XX XX XX XX

19. 19
- Suppliers company profiles as per ranking wise was shared in the final report.
RFI Score 84%
RFI Ranking 1

20. 20
- Suppliers location was shown on the map
Example for China and India supplier location

21. Next Steps was suggested to the client
Actions Responsible Deadline Remarks
1. Collect similar samples from recommended
suppliers
DS/Client - Process to start immediately.
2. Send original samples to recommended
suppliers
Client - Process to start immediately.
3. On site audit
(Technical/ Social/ or Hybrid model)
DS and/or
Client
- To be confirmed
4. XX
DS and/or
Client
- XX
5. XX
DS and/or
Client
- XX
6. XX
DS and/or
Client
- XX
Below are the proposed next steps with responsibilities.
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Agenda
1. Sourcing Project Introduction
2. Sourcing Approach
3. Conclusions

23. Conclusions
 Whole project was carried out in 8 weeks with 88 suppliers identified & 11 complete RFI-RFQ
received.
 All the recommended suppliers are certified with food and safety standards and quality management
certification.
 All the recommended suppliers had key production process in-house.
 Suppliers were willing to amortize the mould cost for X number of PCS
 Eastern European supplier will offer production from two different facilities within Europe.
 Sampling process was initiated with the recommended suppliers.
 A plan was framed to audit the recommended suppliers as a next step post sampling.
 Overall based on our report, It helped client to identify potential suppliers with some substantial
savings
** Dragon Sourcing has experienced team for performing Technical and Social Corporate Responsibility
(CSR) audit or hybrid model combing both.
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