Dragon Sourcing was hired to identify new competitive wear plate suppliers in China for a client. They analyzed 114 potential suppliers in China, shortlisted 52 after screening calls, obtained NDAs from 29 and sent RFI/RFQs. 13 responses were received and analyzed using a balanced scorecard. The top suppliers were recommended based on their production capabilities, quality systems, social responsibility and potential 10-43.5% cost savings of $30k-131k on the client's $0.3M annual wear plate spend. One example supplier profile was provided.

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

2. Agenda
1. Objectives , work plan and time line
2. Approach
2

3. Objectives and approach
Context
Objectives:
• Identify new potential competitive suppliers in China
Categories involved
• Wear Plate
Deliverables:
• Supplier database
• NDA signed
• RFI / RFQ report
• Scorecard
• Company profiles
• Recommended audit supplier list
Dragon Sourcing approach
1. Demand Analysis: Work with client 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
China and India 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, interest in participating)
4. Administer NDA: NDA provided by client is distributed to the
suppliers who passed pre-screen , with telephone follow-up to push for
maximum signing.
5. Develop RFI/RFQ & Scorecard template: Prepare an RFI/RFQ
document, with an aligned Balanced Scorecard that has the objective to
pre-qualify the capabilities of the suppliers, including: Background,
Financials, Client and product experience, Quality certification &
processes, Social Responsibility, Manufacturing/technology capability
6. Administer the RFI/RFQ: The RFI/RFQ is distributed to the relevant
suppliers who have signed NDA, with telephone follow-up to push for
maximum participation.
7. Analyze RFI /RFQ Responses: Analysis of RFI/RFQ responses to
objectively rank the suppliers by capability and competitiveness, and to
develop sense for price points
3

4. MilestonesStarted FinishedNot-started Delayed
The project is scheduled to complete in 10 weeks.
Steps Who Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10
0 Kick off Client/ DS
1 Demand Analysis Client/ DS
2 Supply Market Analysis DS
3 Telephone pre-screening DS
4 NDA administration DS
5 Develop the RFI-RFQ
Client/ DS
6 Conduct RFI/RFQ Administration DS
7 Analyze RFI/RFQ Responses Client/ DS
TODAY
4

5. Agenda
1. Objectives , work plan and time line
2. Approach
5

6. Demand analysis ,Total 6 items, RFQ spend 0.3 M USD.
6
# Description Annual Spend
1 WEAR PLATE; 274 skirt 70,137
2 WEAR PLATE, 370MM x 370MM x 20MM WITH 5 HOLES 54,795
3 WEAR PLATE, 370MM x 160MM x 20MM WITH 3 HOLES 16,439
4 WEAR PLATE; DUA PLATE TYPE C BOTTOM SIDE LINER 18,049
5
HOPPER OVERSIZE; TO SUIT DSM SCREEN BOXES C/W 6 ONLY NI-HARD CHUTE
LINER WEAR PLATES;
113,319
6
WEAR PLATE;CONVEYOR HEAD CHUTE IMPACT PLATE LP23S;9 ON 12 DUA
PLATE WITH STUDS
29,142
Total 301,882

7. 7
114 suppliers identified, all called, 52 passed pre-screen，29 NDA signed , total 29
RFI/RFQ sent, 13 RFI/RFQ Received.
Step Wear Plate
Total number of suppliers 114
Supplier called 114
Shortlisted supplier after call 52
NDA sent 52
NDA Received 29
RFI/RFQ sent 29
RFI/RFQ received 13

8. Balance Scorecard used to rank the suppliers
Business information
Weight of
criteria
Scoring Max Score per criteria
Weight of
the section
Year Founded 15%
1=After 2010
2=Between 2000-2010
3=Before 2000
3
30%
Turnover in 2018 in USD 15%
1=Less than 5M
2=5-10M
3=10-20M
4=above 20M
4
Number of employees 15%
1= < 100
2=100-200
3=201-500
4=>500
4
English speaking R&D 5%
0=No
1=Yes
1
Export experience 10%
1=Less than 5 years
2=5-10 years
3=More than 10 years
3
Profile of Top Customers 15%
1=Local customers
2=National customers
3=International customers as
client
3
Mining industry experience 5%
0=No
1=Yes
1
Export experience to Australia 5%
0=No
1=Yes
1
Provide company presentation 5%
0=No
1=Yes
1
Cooperation during RFI/RFQ 5%
1= Poor
2= Satisfactory
3= Excellent
3
Completeness of RFI/RFQ 5%
1= Poor (< 70%)
2= Satisfactory (70-85%)
3= Excellent(>85%)
3
Subtotal 100% 30%
Production
Weight of
criteria
Scoring Max Score per criteria
Weight of
the section
Production of Wear plate (Ton) 20%
1 = < 2000
2= 2001-5000
3 = 5001-10000
4 => 10000
4
35%Experience of Bisalloy steel 10%
0=No
1=Yes
1
Cutting in house 10%
0=No
1=Yes
1
Drilling in house 10%
0=No
1=Yes
1
Subtotal 100% 35%
Casting in house 10%
0=No
1=Yes
1
Bending in house 6%
0=No
1=Yes
1
Heat treatment in house 6%
0=No
1=Yes
1
Welding in house 6%
0=No
1=Yes
1
ERP system 6%
0=No
1=Yes
1
Product/service traceability system 6%
0=No
1=Yes
1
Equipment maintenance program in
place
5%
0=No
1=Yes
1
Formal／documented inventory
management system
5%
0=No
1=Yes
1
Subtotal 100% 35%
Quality system
Weight of
criteria
Scoring Max Score per criteria
Weight of
the section
ISO 9001 25%
0= No
1= Yes
1
35%
ISO 14001 6%
0= No
1= Yes
1
Company-wide quality manual 6%
0= No
1= Yes
1
Incoming material inspection and report 6%
0= No
1= Yes
1
On line quality inspection and report 6%
0= No
1= Yes
1
Final products inspection and report? 6%
0= No
1= Yes
1
Hardness test in house 10%
0= No
1= Yes
1
Chemical composition in house 10%
0= No
1= Yes
1
Proof Stress test in house 7%
0= No
1= Yes
1
Tensile Strength in house 6%
0= No
1= Yes
1
Elongation test in house 6%
0= No
1= Yes
1
Charpy Impact test in house 6%
0= No
1= Yes
1
Subtotal 100% 35%
8

9. The 6 RFQ items total spend is USD 0.3M , the 13 suppliers have potential savings
ranging from 10% to 43.5%， USD 30k-131k.
9
0
20
40
60
80
100
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8 Supplier 9 Supplier 10Supplier 11Supplier 12Supplier 13
RFIscore
Potentialsaving
Suppliers potential saving and RFI score
Potential Saving(USD) RFI score

10. Supplier profile
XXX
10
Supplier Information
Company Name XXX
City XXX
Country China
Website XXX
Contact Name XXX
Contact Phone XXX
Contact Mobile XXX
Contact Email XXX
1. Business information
Your company's type? Manufacturer
Which year was your
company founded? 2001
Ownership Private
Your company's
business
registration
number
XXX
How many employees
does your company
have?
138
How many square
meters(m²) does your
workshop occupy?
20000
What industry does your
company mainly serve? mining industry,agriculture industry,transportation industry,oil&gas industry,building
industry,etc.
Employee structure Manage
ment
Sales
Qua
lity
Con
trol
R&D Production Finance Purchasin
g
How many people does
your company have in
these positions?
6 14 4 4 200 4 4
How many people can
speak English in each
department?
2 12 1 1 0 1 2
Does your company
have export license? Yes
How many years
of export
experience do
you have?
18
What Incoterms can
your company quote
and operate?
FOB, CIF
Sales revenue 2018 2017 2016
Turnover (in Million USD) 12 10 8
Sales distribution Domestic Euro
pe
Nort
h
Ame
rica
Japan
and
Korea
Sout
h
Ame
rica
Afric
a
Austra
lia
Rest of
the
world
% Sales exports to the main
markets
4 15 35 2 4 10 25 5
Customer reference Customer
name
Industry Country
Main
supplied
product
% of sales
Top 1 client Bradken transporta
tion
Australia railway parts 40
Top 2 client Highland agriculture Canada tillage parts 60
Top 3 client Hensly mining America mining parts 80
Top 4 client
Top 5 client
2. Production
Does your company
have production
operating instruction on
site?
Yes
Does your company
have production and
safety training for each
worker?
Yes
Does your company use ERP system?
Yes
Which ERP system does your company use?
Intersky
Does your company have product/service
traceability system? Yes
Does your company have an equipment maintenance
program in place? Yes
Does your company have a formal／ documented
inventory management system? Yes
Have any western companies conducted a social audit
of your company during the last two years? Yes

11. Supplier profile
XXX
11
3. Quality management
Does your company have
below certificates? Yes / No Certifying Org. Expiry date
ISO 9001 Yes NSF-ISR 2018/7/24
TS 16949 Yes NSF-ISR 2018/7/24
Does your company have a
documented company-wide
quality manual?
Yes
Does your company have
incoming material inspection
and report?
Yes
Does your company have daily
on line quality inspection and
report?
Yes
Does your company have
final products inspection and
report?
Yes
Does your company have clear
and systematic procedure to
collect, register, handle and
solve customer complaints?
Yes
What performance does your
company achieve on average in
out going quality measures (%
rejected)？
10
4.Social responsibility
Does your company have
below certificated? Yes/No Certifying Org. Expiry date
ISO 14001 No
SA 8000 No
BSCI No
OHSAS 18001 No
Have any western companies
conducted a social audit of your
company during the last two
years?
Yes
If yes, which companies have
conducted such audits? Does
your company pass the audit?
KALTEST BILISIM A.S. No.
Production
Production capability Wear plate
Annual capacity in 2018 (Ton) 12000
Production in 2018 (Ton) 6000
What's your company's
current capacity utilization?
(%)
75%
How many production lines
does your company have? 3
Does your company supply
wear plate to any mining
company? (Y/N)
Yes
Does your company export
wear plate to Australia?
(Y/N)
Yes
Does your company ever
use Bisalloy steel? Yes
Does your company make
wear plate by below
hardness steel?
None
Production equipment
Does your company
have below
equipment in house?
(Yes/No)
How many
machine
/production line
does your
company have?
Details ( Brand,
speed, years
acquired，etc )
Cutting Yes 1
Drilling Yes 1
Casting Yes 3
Bending Yes 1
Heat treatment Yes 2
Welding No 0
2. Quality management
Test in house Does your company do below test
in house? (Yes/No)
Can your company provide test
report? (Yes/No)
Hardness Yes Yes
Chemical composition Yes Yes
Proof Stress Yes Yes
Tensile Strength Yes Yes
Elongation Yes Yes
Charpy Impact Yes Yes

12. Supplier profile
XXX
12
5. Certificate, documents and pictures
Please upload your
company's business
registration certificate.
Please upload your
company's ISO 9001
certificate.
Please upload your
company's TS 16949
certificate.
Please upload your
company's ISO 14001
certificate.
No selected files
Please upload your
company's SA 8000
certificate.
No selected files
Please upload your
company's
presentation.
Please upload your
company's
equipment list.
No selected files
Please upload your
company's pictures of
entrance, workshop,
machine, test lab,
warehouse and office.
Please upload
pictures of your
company's main
products.