This document provides a summary of Dragon Sourcing's sourcing project for roll containers. It outlines the objectives to identify new competitive suppliers in China and other countries. Product specifications and volumes for the roll containers are defined. Dragon Sourcing's approach is to analyze demand and supply markets, conduct supplier screening and administer a request for information/quotation process. Supplier responses are analyzed and the most competitive suppliers are recommended based on their capability, competitiveness, and prices. FOB and DDP prices from 10 suppliers are presented, with DDP prices calculated based on logistics costs from China to the Netherlands. Several pre-screened suppliers provide DDP prices lower than the client's current price.

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

2. 2
1. Objectives
2. Product specifications
3. Approach
4. FOB prices
5. DDP prices
© 2017 Dragon Sourcing. All rights reserved.
Agenda

3. © 2017 Dragon Sourcing. All rights reserved.
Objectives and approach
Context
Objectives:
• Identify new potential competitive suppliers.
Categories:
• Roll Container
Geographical scope:
• China, India, Thailand, Poland, Slovenia, Turkey and Italy
Deliverables:
• Supplier database
• RFI-RFQ template
• RFI-RFQ analysis report
• Supplier Profiles and recommended suppliers for Client to audit
DS Approach consists in the following work steps:
1. Demand Analysis: Work with the Company to define and understand
the products and requirements (specs, volumes, materials, production
technology requirements)
2. Supply Market 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.
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)
4. Administer the NDA: NDA template authorized by Vossloh that will
be distributed to the suppliers who is willing to attend the RFI-RFQ
5. 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.
6. 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.
7. 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.
3

4. 4
1. Objectives
2. Product specifications
3. Approach
4. FOB prices
5. DDP prices
© 2017 Dragon Sourcing. All rights reserved.
Agenda

5. © 2017 Dragon Sourcing. All rights reserved.
Roll Container Specification
Product Name CC-ROLL CONTAINER Product Picture
Weight 30.5kg
Carrying Capacity 500kg UDL
Steel Quality hot-rolled, pickled material in quality
Coating
hot dip galvanized, thickness of zinc according to
DS/ISO 1461 class C.
Annual Volume 10,000 units
Annual Purchasing Spend 690,000 EURO
Dimension
HS code dedicated to customs
clearance
871680000000H
Customs rate (based on CIF value) 1.7%

6. 6
1. Objectives
2. Product specifications
3. Approach
4. FOB prices
5. DDP prices
© 2017 Dragon Sourcing. All rights reserved.
Agenda

7. © 2017 Dragon Sourcing. All rights reserved.
12
3 3
22
18
7
1st Supplier List Selected Supplier for RFQ Collected Quotation
Wire Shelving Supplier Roll Container Supplier
Since wire shelving and roll container are in the same industrial field, we used
our current screened wire shelving database, plus identified 22 additional roll
container suppliers for this project and collected 10 FOB quotations
Selection of
potential suppliers
Pre-selected
suppliers
Sending & follow
up of the RFQ
Analysis of the
suppliers’ offer
Total 10 suppliers’
quotation received
Criteria
Products category
Export experience
Reasons for not responding to the RFQ
No ressources available
No manufacturing capabilities
No interest for this project
34 suppliers
21 suppliers

8. © 2017 Dragon Sourcing. All rights reserved.
Shanghai
Gansu
Jiangxi
Zhejiang: 1 supplier
Jiangsu: 4 suppliers
Guangxi
Hunan
Hubei
Ningxia
Shaanxi
Anhui
Fujian
Neimongu
Shanxi
Shandong
Sichuan
Yunan
Guizhou
Henan
Jilin
Liaoning
Hebei
Guangdong: 1 supplier
Gansu
Heilongjiang
SHANGHAI: 4 suppliers
HONG KONG
BEIJING
The pre-selected suppliers are mainly located in the Jiangsu province (4) and
Shanghai (4), the remaining ones are in Guangdong (1) and Zhejiang (1)
Supplier name Province City
1 Jiangsu Changshu
2 Jiangsu Changshu
3 Shanghai Shanghai
4 Shanghai Shanghai
5 Guangdong Shenzhen
6 Jiangsu Suzhou
7 Zhejiang Yiwu
8 Shanghai Shanghai
9 Shanghai Shanghai
10 Jiangsu Suzhou

9. 9
1. Objectives
2. Product specifications
3. Approach
4. FOB prices
5. DDP prices
© 2017 Dragon Sourcing. All rights reserved.
Agenda

10. © 2017 Dragon Sourcing. All rights reserved.
Synthesis of the collected quotations: FOB EURO price per units
Supplier Name Province City FOB Price in US$ per Unit FOB Price in EURO per Unit
1 Jiangsu Changshu US$82.00 € 64.79
2 Jiangsu Changshu US$67.50 € 53.33
3 Shanghai Shanghai US$66.88 € 52.84
4 Shanghai Shanghai US$77.00 € 60.84
5 Guangdong Shenzhen US$95.00 € 75.06
6 Jiangsu Suzhou US$53.75 € 42.47
7 Zhejiang Yiwu US$37.50 € 29.63
8 Shanghai Shanghai US$47.00 € 37.13
9 Shanghai Shanghai US$31.25 € 24.69
10 Jiangsu Suzhou US$80.75 € 63.80
Average US$63.86 € 50.86

11. © 2017 Dragon Sourcing. All rights reserved.
Synthesis of the collected quotations: FOB EURO price per units
Wire Shelving pre-selected suppliers
Already visited plant and audited by DS
Provided samples for the wire shelving project
Pre-selected Suppliers

12. 12
1. Objectives
2. Product specifications
3. Approach
4. FOB prices
5. DDP prices
© 2017 Dragon Sourcing. All rights reserved.
Agenda

13. © 2017 Dragon Sourcing. All rights reserved.
The DDP price is calculated by adding to the FOB price, the transportation costs, the
customs duties, the CIF ROTTERDAM value and the inland transportation (Holland)
EXW
Pric
e
 Loading on container on
manufacturing site
 Container transportation
to Port
 Export documents
expenses, transporation
& other taxes
 Handling & loading of
the container on the
vessel
 Loading cost on
truck
 Transportation
cost to final
destination
 Fuel taxes
 Port handling cost
 Port taxes
 Customs clearance
fees
 Sea freight from
Shanghai (China) to
Le Havre (France)
 Additional fees (BAF
& CAF)
 Insurance cost based
on the FOB value,
plus the
transportation cost
DDP
Pric
e
FOB
Price
Logistics flow from FOB CHINA port to DDP ZAANDAM (THE NETHERLANDS)Suppliers’ quotation

14. © 2017 Dragon Sourcing. All rights reserved.
Roll Container Packing Information
Product Name CC-ROLL CONTAINER
Number of pieces per box 1
Carton box size LxDxW (mm) 1800*200*850
Pallet size (mm) 1100*850
Number of pieces in a 20' container with
pallet (approximate)
100
Number of pieces in a 40' container with
pallet (approximate)
200
HS code dedicated to customs clearance 871680000000H
Customs rate (based on CIF value) 1.7%

15. © 2017 Dragon Sourcing. All rights reserved.
Logistics cost from FOB CHINA (Port) to DDP ZANDAAM storage (HOLLAND)
Description of the different logistics operations from FOB CHINA Port to ZAANDAM
warehouse (HOLLAND)
Container 20’
Sea freight cost from FOB SHANGHAI to CIF ROTTERDAM (HOLLAND) €735
BAF cost (Bunker Adjustment Fee) €240
CAF tax (Currency Adjustment Fee) 6.10% to apply on the freight cost of a container €44
Administrative, Handling & Security charges at the Port of Origin (CHINA) €84
Total freight cost from FOB SHANGHAI to CFR ROTTERDAM (FRANCE) €1,103
Handling fees & administrative costs at the container arrival at ROTTERDAM (HOLLAND)
International Ship & Port Facility Security Surcharge €15
Documentation Fee & Administrative cost at Destination €40
ROTTERDAM Terminal Handling Charge €138
Total cost of the port & administrative taxes at ROTTERDAM Port (HOLLAND) €193
Freight cost from ROTTERDAM to ZANDAAM (storage) €270
Total transportation from FOB CHINA Port to ZANDAAM (storage) €1,566
Quantity of Roll Container per container (in units) 100

16. © 2017 Dragon Sourcing. All rights reserved.
Synthesis of the collected quotations: DDP ZAANDAM EURO price, based on
20’ container freight cost
Supplier Province
City
US$ FOB
price / unit
EURO FOB
price / unit
Freight cost based on
a 20’ container / unit
CIF price Customs duties
based on CIF value
Inland
transport
DDP unit
price
1 Jiangsu Changshu US$82.00 €64.79 €11.03 €75.82 €1.29 €4.63 €81.74
2 Jiangsu Changshu US$67.50 €53.33 €11.03 €64.36 €1.10 €4.63 €70.09
3 Shanghai Shanghai US$66.88 €52.84 €11.03 €63.87 €1.09 €4.63 €69.59
4 Shanghai Shanghai US$77.00 €60.84 €11.03 €71.87 €1.22 €4.63 €77.72
5 Guangdong Shenzhen US$95.00 €75.06 €11.03 €86.09 €1.46 €4.63 €92.18
6 Jiangsu Suzhou US$53.75 €42.47 €11.03 €53.50 €0.91 €4.63 €59.04
7 Zhejiang Yiwu US$37.50 €29.63 €11.03 €40.66 €0.69 €4.63 €45.98
8 Shanghai Shanghai US$47.00 €37.13 €11.03 €48.16 €0.82 €4.63 €53.61
9 Shanghai Shanghai US$31.25 €24.70 €11.03 €35.73 €0.60 €4.63 €40.96
10 Jiangsu Suzhou US$80.75 €63.80 €11.03 €74.83 €1.27 €4.63 €80.73
Average US$63.86 €50.46 €11.03 €61.49 €1.04 €4.63 €67.16
Current price €4.63 €69.00
1 US$ = 0.7901 Euro dated September 11th 2006
Quotation from pre-selected wire shelving suppliers Quotation lower than current AHOLD DDP price

17. © 2017 Dragon Sourcing. All rights reserved.
Synthesis of the collected quotations: DDP ZAANDAM EURO price, based on 20’
container freight cost