Dragon Sourcing is a sourcing consultancy that helps clients leverage suppliers in Asia and Latin America. It outlines a 3-phase sourcing program: 1) Prioritization and supplier identification for product categories. Categories are ranked based on criteria. 2) Supplier qualification through RFI/RFQs, scoring, audits. Top suppliers are identified. 3) Ongoing procurement operations with qualified suppliers. The document provides examples of ranking categories and suppliers for different regions based on cost and risk factors. It describes the qualification process including supplier profiles, audits, and status reporting to select suppliers for long-term sourcing.

1. RAW MATERIALS
CASE STUDY
Dragon Sourcing - 龙 源
Your Tailored Sourcing Approach to Asia

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AGENDA

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DRAGON SOURCING: MISSION
 Dragon Sourcing’s objective is to help our clients create significant and
sustainable value (cost, quality and service) in the procurement of their goods
and services by leveraging the capabilities of LCC’s supply markets in Asia
and Latin America.
 We aim to develop long term relationships based on trust, full transparency
and business integrity with a limited number of Western, Asian, and Latin
American corporations, either:
– To support their procurement departments in the US, Latin America and
Europe identify, qualify, select and manage on an on-going basis Asian and
Latin American suppliers for export purposes
– To support their procurement departments in Asia implement world class
sourcing practices for (1) their local needs, and (2) for their localization
requirements

4. Our teams are located to closely integrate with our clients’ needs

5. Our clients are medium to large size corporations across a wide range of
industries

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Dragon Sourcing service offering covers the end-to-end sourcing process

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SOURCING PROGRAM : 3 PHASES

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SOURCING PROGRAM : PHASE 1

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PRODUCT CATEGORIES

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PHASE 1: 5 STEPS PROCESS

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PHASE 1: STEP 1 - PRIORITIZATION CRITERIA DETERMINATION
AGREED CRITERIA / WEIGHT FOR CATEGORIES RANKING

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PHASE 1: STEP 2 - DEMAND ANALYSIS
Product Specifications Analysis

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PHASE 1: STEP 3 - POTENTIAL SUPPLIERS IDENTIFICATION
SUPPLIER DATA BASE

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Product Spend value
in US$
(20%)
Number of
identified
suppliers
(20%)
Domestic
overall
production
in volume
(10%)
Export
regulations
and
constraints
(10%)
Export
Qty/Value
(5%)
Cost of
transport as
a % (5%)
Import
regulations
and duties
(12.5%)
Logistics
constraints
(12.5%)
Import
Brazilian
Taxes (5%)
Max score
(out of 5)
CATEGORY 1 5.0 5.0 5.0 2.0 0.0 0.0 4.0 2.0 4.0 3.7
CATEGORY 2 5.0 3.0 0.0 0.0 0.0 0.0 5.0 2.0 5.0 2.7
CATEGORY 3 4.0 3.0 5.0 5.0 5.0 5.0 2.0 4.0 4.0 3.9
CATEGORY 4 5.0 5.0 5.0 5.0 5.0 5.0 5.0 4.0 4.0 4.8
CATEGORY 5 5.0 3.0 0.0 3.0 5.0 3.0 5.0 4.0 4.0 3.6
CATEGORY 6 3.0 2.0 0.0 0.0 0.0 0.0 5.0 4.0 4.0 2.3
CATEGORY 7 2.0 5.0 5.0 5.0 5.0 4.0 5.0 4.0 2.0 4.1
CATEGORY 8 4.0 0.0 0.0 2.0 0.0 0.0 3.0 4.0 3.0 2.0
CATEGORY 9 3.0 5.0 5.0 5.0 5.0 3.0 5.0 4.0 3.0 4.3
CATEGORY 10 3.0 4.0 5.0 5.0 5.0 4.0 5.0 4.0 4.0 4.2
PHASE 1: STEP 4 - CATEGORIES RANKING PROCESS
EXAMPLE OF CATEGORIES SCORING IN CHINA

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PHASE 1: STEP 4 - CATEGORIES RANKING PROCESS
EXAMPLE OF CATEGORIES SCORING IN INDIA
Product Spend value
in US$ (20%)
Number of
identified
suppliers
(20%)
Domestic
overall
production
in volume
(10%)
Export
regulations
and
constraints
(10%)
Export
Qty/Value
(5%)
Cost of
transport as
a % (5%)
Import
regulations
and duties
(12.5%)
Logistics
constraints
(12.5%)
Import
Brazilian
Taxes (5%)
Max score
(out of 5)
CATEGORY 1 5.0 4.0 0.0 3.0 3.0 0.0 4.0 2.0 4.0 3.2
CATEGORY 2 5.0 4.0 5.0 3.0 2.0 0.0 5.0 2.0 5.0 3.8
CATEGORY 3 4.0 5.0 0.0 3.0 1.0 5.0 2.0 4.0 4.0 3.4
CATEGORY 4 5.0 5.0 0.0 3.0 2.0 4.0 5.0 4.0 4.0 3.9
CATEGORY 5 5.0 3.0 0.0 3.0 3.0 4.0 5.0 4.0 4.0 3.6
CATEGORY 6 3.0 3.0 0.0 5.0 1.0 0.0 5.0 4.0 4.0 3.1
CATEGORY 7 2.0 5.0 0.0 5.0 5.0 5.0 5.0 4.0 2.0 3.6
CATEGORY 8 4.0 5.0 0.0 2.0 0.0 0.0 3.0 4.0 3.0 3.0
CATEGORY 9 3.0 5.0 4.0 3.0 4.0 3.0 5.0 4.0 3.0 3.9
CATEGORY 10 3.0 5.0 0.0 3.0 2.0 0.0 5.0 4.0 4.0 3.3

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PHASE 1: STEP 5 - RECOMMENDATIONS OF 18 CATEGORIES
EXAMPLE OF FIRST 10 CATEGORIES RANKING IN CHINA AND INDIA
CHINA INDIA
Category Score Rank Category Score Rank
CATEGORY A 4.8 1 CATEGORY C 3.9 1
CATEGORY C 4.4 2 CATEGORY E 3.9 2
CATEGORY E 4.3 3 CATEGORY A 3.9 3
CATEGORY D 4.2 4 CATEGORY D 3.9 4
CATEGORY G 4.1 5 CATEGORY H 3.8 5
CATEGORY H 4.1 6 CATEGORY G 3.8 6
CATEGORY I 4.1 7 CATEGORY J 3.7 7
CATEGORY J 4.1 8 CATEGORY I 3.6 8
CATEGORY M 4.0 9 CATEGORY M 3.6 9
CATEGORY B 4.0 10 CATEGORY B 3.5 10

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PHASE 1: STEP 5 - RECOMMENDATIONS OF 18 CATEGORIES
EXAMPLE OF FIRST 10 CATEGORIES RANKING IN CHINA AND INDIA
CHINA INDIA
# Category # Category
CAT 4 SILICON METAL CAT 4 SILICON METAL
CAT 12 REFRACTORIES CAT 12 REFRACTORIES
CAT 19 ROUND STEEL BAR-ANODIC TIP CAT 19 ROUND STEEL BAR-ANODIC TIP
CAT 25 SQUARED STEEL BAR - CATHODE BAR CAT 25 SQUARED STEEL BAR - CATHODE BAR
CAT 1 CAUSTIC SODA CAT 16 SPECIAL LUBRICANT
CAT 5 ALUMINUM FLUORIDE CAT 5 ALUMINUM FLUORIDE
CAT 11 GRINDING MEDIA CAT 11 GRINDING MEDIA
CAT 9 ACTIVATED CARBON CAT 15 SODIUM SULFIDE
CAT 15 SODIUM SULFIDE CAT 2 AMMONIA
CAT 2 AMMONIA CAT 3 MAGNESIUM METAL
CAT 10 MANGANESE OXIDE/DIOXIDE CAT 10 MANGANESE OXIDE/DIOXIDE
CAT 16 SPECIAL LUBRICANT CAT 9 ACTIVATED CARBON
CAT 7 PLASTIC FILMS CAT 7 PLASTIC FILMS
CAT 14 AMMONIUM SULFATE CAT 20 SODA ASH
CAT 18 STEELL WIRE & CORDAGE CAT 8 EXPLOSIVES
CAT 13 FLOCULANT CAT 24 CARBOXY-METHIL-CELLULOSE - CMC
CAT 20 SODA ASH CAT 14 AMMONIUM SULFATE
CAT 3 MAGNESIUM METAL CAT 18 STEELL WIRE & CORDAGE

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SOURCING PROGRAM : PHASE 2

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PHASE 2 : 6 STEPS PROCESS

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PHASE 2: STEP 1 - SUPPLIERS QUALIFICATION CRITERIA
AGREED SCORING CRITERIA / WEIGHT FOR EACH CATEGORY

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PHASE 2: STEP 2 - SUPPLIERS QUALIFICATION RFI / RFQ PROCESS
EXAMPLE OF RFI

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PHASE 2: STEP 2 - SUPPLIERS QUALIFICATION RFI / RFQ PROCESS
EXAMPLE OF RFI

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PHASE 2: STEP 2 - SUPPLIERS QUALIFICATION RFI / RFQ PROCESS
EXAMPLE OF RFQ

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PHASE 2: STEP 2 - SUPPLIERS QUALIFICATION RFI / RFQ PROCESS
SUPPLIER DATA BASE

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PHASE 2: STEP 2 - SUPPLIERS QUALIFICATION RFI / RFP PROCESS
EXAMPLE OF COMPANY PROFILE

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PHASE 2: STEP 2 - SUPPLIERS QUALIFICATION RFI / RFP PROCESS
EXAMPLE OF COMPANY PROFILE

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PHASE 2: STEP 3 - SUPPLIERS RANKING
EXAMPLE OF SUPPLIERS SCORING FOR ONE CATEGORY
Rank
Supplier
Name
US$ price /
Ton
Company
background
Business
info
Corporate
responsibility
Production
&
Technology
Quality Mgt Cooperation Price
Score out
of 100
5% 15% 5% 15% 15% 5% 40%
1 NANJING $1680 4.00 15.00 5.00 12.50 10.50 5.00 40.00 92.00
2 WINLIN $1800 4.25 15.00 5.00 12.50 9.00 3.63 40.00 89.38
3 FENLIN $1760 2.83 12.19 5.00 15.00 9.00 0.75 40.00 84.77
4 XINJUN $1800 9.00 13.88 5.00 10.00 10.50 1.25 40.00 84.13
5 BEYLIN $1778 3.10 13.88 5.00 10.00 3.00 3.63 40.00 78.60
6 HUALIN $1810 1.58 12.88 5.00 10.00 1.50 0.00 40.00 70.96

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PHASE 2: STEP 3 - SUPPLIERS RANKING AND AUDIT RECOMMENDATIONS
# Company Region City
1 SUPPLIER FUILIN Anhui Ningguo
2 SUPPLIER BEILIN LU Anhui Ningguo
3 SUPPLIER NANLIN Liaoning Anshan
4 SUPPLIER WUILON LTD Shandong Jinan
5 SUPPLIER BAOLING Shandong Jinan
6 SUPPLIER FUJUIN Shandong Jinan
7 SUPPLIER CHONGLIN Shandong Jinan
8 SUPPLIER NINLAO Anhui Ningguo
9 SUPPLIER JAING JU Anhui Ningguo
10 SUPPLIER XINLI Shandong Jinan
11 SUPPLIER XINJUN Shandong Jinan
12 SUPPLIER XING SHU Henan Zhangqiu
13 SUPPLIER FING SHI Shandong Jinan
14 SUPPLIER FAOLING LU Zhejiang Ningbo
15 SUPPLIER SHUNLIN Anhui Ningguo

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PHASE 2: STEP 4 - SUPPLIERS AUDIT PROCESS
AUDIT CONTENT

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PHASE 2: STEP 4 - SUPPLIERS AUDIT PROCESS
EXAMPLE OF AUDIT REPORT - FINAL SCORING

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PHASE 2: STEP 4 - SUPPLIERS AUDIT PROCESS
EXAMPLE OF AUDIT REPORT - FACTORY PICTURES

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PHASE 2: STEP 4 - SUPPLIERS AUDIT PROCESS
SUPPLIERS AUDIT STATUS REPORT

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PHASE 2: STEP 4 - SUPPLIERS AUDIT PROCESS
SUPPLIERS AUDIT STATUS AND ACTIONS REPORT

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PHASE 3 - NEXT STEPS: PROCUREMENT OPERATIONS

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NEXT STEPS: PHASE 3 - PROCUREMENT OPERATIONS