The document summarizes a sourcing project conducted by Dragon Sourcing for a major biotechnology company. Dragon Sourcing identified and qualified Chinese suppliers for various medical products including biological materials, packaging, labels, and plasticware. They developed supplier profiles, collected quotes through an RFI/RFQ process, and selected top suppliers based on price and capabilities. The project resulted in competitive quotes from qualified Chinese suppliers that could challenge incumbent Western suppliers.

1. Pharma client case study
May 2010
Dragon Sourcing - 龙 源
Your Tailored Sourcing Approach to Asia

2. © 2010 Dragon Sourcing. All rights reserved. 2
Agenda
A. Context and Products
B. Sourcing Strategy
C. Results & Conclusions
2© 2010 Dragon Sourcing. All rights reserved.

3. © 2010 Dragon Sourcing. All rights reserved. 3
Context
• Major Biotechnology company
– Over 45 years of experience in the field of infectious diseases
– Established in more than 150 countries
– Specialized in in Vitro diagnosis
• Interested in analyzing the market price of Chinese suppliers specialized in the manufacturing
of sterilized & packaging products
• Selected Dragon Sourcing as Procurement Service Provider responsible for identifying,
qualifying and selecting best in class Chinese suppliers.
3© 2010 Dragon Sourcing. All rights reserved.

4. © 2010 Dragon Sourcing. All rights reserved. 4
Products included in the project scope were the following
4© 2010 Dragon Sourcing. All rights reserved.
Biological Cardboard packaging Labels and film Plasticware
Human Serum
Horse serum

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Agenda
A. Context and Products
B. Project Approach
C. Results & Conclusions
5© 2010 Dragon Sourcing. All rights reserved.

6. © 2010 Dragon Sourcing. All rights reserved. 6
• Analyse spend category in detail
– Specifications and quality
requirements
– Volumes
– Deadlines
• Analyse supply market and
identify potential suppliers
• Pre-qualify potential suppliers
through an RFI process
• Manage RFQ process with pre-
qualified suppliers
• Analyse supplier responses and
calculate fully delivered price
(FOB price, logistics, import
duties, ADT,..)
• Shortlist suppliers based on
RFI/RFQ process
• Select 2-3 suppliers/product for
sample development process
• Manage sample development
process
• Audit shortlisted suppliers
• Make a report of audited suppliers
• Build supplier profiles
• Finalise supplier selection
© 2010 Dragon Sourcing. All rights reserved.
The project was focused on qualifying and selecting new Chinese suppliers
capable of challenging western incumbents
Supplier Identification and pre-
qualification
Similar samples acquisition Supplier audits + selection
Keyactivities

7. © 2010 Dragon Sourcing. All rights reserved. 7© 2010 Dragon Sourcing. All rights reserved.
The first step was to develop a comprehensive understanding of the product
requirements, e.g.: Petri dishes
Product Name Petri dish 90mm
Picture
Annual Quantity (pcs) 40,000,000
Measurement Please refer to Technical Drawing CDC/DCP/031
Product technical data Polystyrene choc White, 90 diam, Sterilization required level 100
Color Transparent
Other specifications
• These Boxes are designed to host sterile gelose and study germs-antibacterian products interaction
•Items must be placed in clean Polyethylene bags of 31 items
•The bags are put into 2 bags folded so as to protect them from the dust of the carton
•The Box must be exempt of scratches, stain, solid or Liquid
•The Box must be exempt of Dust and plastic fragment
•The Box must be exempt of Oil Depot from the plastic injection process
•Be sure to avoid any plastic yarn resulting from the injection process and that could create free particles

8. © 2010 Dragon Sourcing. All rights reserved. 8© 2010 Dragon Sourcing. All rights reserved.
Then a comprehensive database of potential suppliers was built
Category Product Name
#
Suppliers
identified
#
Suppliers
pre-selected
#
RFI/RFQ sent
Serum Product A 23 13 13
Plastic
Product B
49 30 30
Product C
Product D
Product E
Cradboard
Product F
35 29 29
Product G
Film and
adhesive
Product H 47 9 9
Product I 48 44 37

9. © 2010 Dragon Sourcing. All rights reserved. 9© 2010 Dragon Sourcing. All rights reserved.
An RFI/RFQ process was administered to filter out the most capable suppliers
To 收件人: Mr Dragon sourcing employee
Email 电子邮件: Laszlo.XXX@dragonsourcing.com
Tel 电话: 021-6141XXXX
Fax 传真: 021-6141XXXX
Company Name
公司名称
Address
地址
Town
城市
Province
省份
Company Website
公司网址
Contact Person
联系人
Title
职位
Email
电子邮件地址
Tel
电话
Fax
传真
Mobile phone
手机
Dragon Sourcing Ltd. 龙源有限公司
CONTACT INFORMATION
联系信息
COMPANY INFORMATION
公司信息
Company Background
公司规模
Are you a producer or distributor?
贵司是生产商还是经销商？
When your company was founded?
贵司是在哪一年成立的？
What is the nationality/region of your company?
贵司的投资主体是来自哪个国家/地区？
What is your capital amount (in RMB)?
贵司的资产总额是多少？（元/人民币）
What is the workfloor size (m²)?
贵司工厂面积有多少平方米？
How many employees do you have?
贵司员工总数有多少？
Do You Have Western Clients?
Customers
客户名称
Industry
行业
Country
国家
% of sales
百分比
2008 207
Revenue/Turnover (in RMB)
收入/销售额 (人民币)
Who are your top 5 Customers（including China buyers)?
销售额排前5名的客户( 包括中国买家)
Company Profile
公司概况
2009
How many years have you been in laboratory Plasticware for
medical application business?
贵司从事实验室防护服类产品行业有几年的经验？
Do you have real production experience of the products listed?
Y/N
贵司对右列产品是否有实际生产经验？(是/否)
Name
名称
Y/N
是/否
Annual production
volumn in 2008
2008年产量
UoM
单位
Item A
Item B
Item C
Item D
Production capacity
生产能力
ISO 9001
ISO 14000
Others
What quality and environmental registrations do
you have?
贵司目前已通过何种质量/环境体系认证?
Quality, Environmental and Product Certification
质量,环境与产品认证
Name of
证书
What international/domestic product certification do
you have?
贵司目前已拥有何种国际/国内产品认证?
Item name
产品名称
Description/ Use
(描述)
Product picture
产品照片
Annual Qty.
年需求量
Dimension
尺寸
Material type
原料
Flute Grade
楞型
Thickness
tolerance
厚度公差
Weight per
unit (Kg)
重量/一件
Surface per
unit (m2)
重量/一件
Printing 印刷
Aspect
(品质)
Ex-work price
(出厂价) RMB
VAT amount
(含增值税价格)
RMB
Transportation
cost to
Shanghai
(China) 货送上海
运费 RMB
Delivered price
SHANGHAI
货到上海价格
(ex-work price + VAT +
transport price) RMB
Packing requirement
包装要求
Number of units per
pallet
每托数量
Item A
(036 84266)
-Corrugated cardboard box
used to pack Petri dish with
cell culture (medical
application).
-The use requires high
cleanliness
2 million pieces
per year
- cfr sheet 6 drawing
- Tolerance +/- 1mm
- Internal dimension mm: 183 X 93 X 150
- Flat dimension mm: 520 X 281
Fold lock pre-cut :
- Allows flat folding after use
- Flexion tolerance: max 3%
- Pre cut s marked enough to allow easy manual
rip off, resist without breaking to mechanical
operations of shaping
PURE VIRGIN PULP
Starch glue
E
(NF Q 03030)
1,60 mm
(+/- 0.05 mm)
E flute
0.06 0.15
- FLEXOGRAPHY
- PANTONE COLOR: BLUE 281 U
- Ink: heavy metals content conform to -directive EN71
(CONEG), 94/62 CE
- Printing centered: +/- 3mm
- Biomerieux provides elements for photogravure ; logo
calibration, position, code number, recycled logo
- No deformation of the characters
- No irregularities
- High resistance to abrasion (no stain when used)
- Grammage
- Average
thickness
- Pressure
- Spreading
- Flat compression
- COBB (30min)
368 gr/m2
1.7mm
550KPa
3.9 KN/m
>=155KPa aux 100/can
Recto < 155 gr/m2
Verso > 400 gr/m2
No dirt, fat trace, finger
trace, ink trace, No impact,
tearing on exterior
￥0.0000
- Packed side/reverse
- Plastic film around for protection
- Polyethylene insulating sheet placed between
the pallet and the first layer to avoid humidity
going up.
- Piece of carton on the top of the pallet
- Clean pallet (no contaminant), no stackable
pallet
- Label with information (supplier, reference,
quantity, batch number, order number, …)
Technical and Mechanical properties
技术和物理性能
Price (报价)(RMB/piece)
Packing requirement
包装要求
Corrugated cardboard specifications
瓦楞板要求
Contact
information &
company
information
Company
background
Production capacity
Quality management
Packaging
information
PricingProduct information

10. © 2010 Dragon Sourcing. All rights reserved. 10© 2010 Dragon Sourcing. All rights reserved.
Suppliers’ quotation were collected and validated
Average
0.31 RMB
Aberrant data should not
be considered

11. © 2010 Dragon Sourcing. All rights reserved. 11
Company and Contact Information
Company Name Supplier 32
Main Industry Packaging
Town
Province Shanghai
Website
Contact Person Fred
E-mail Fred _XX@XXXXXx.com
Tel 86-021-591XXXXX
Fax 86-021-591XXXXX
Company Background
Year Founded 1994
Company structure Foreign Investment
Company activity Manufacturer
Main factory locations Shanghai
Company nationality America
Capital (USD) 75.7 million RMB
Work Floor Size (m2) 20,000sqm
Turnover (in RMB)
2007 N/A
2008 N/A
2009 N/A
A
Export (Y/N) Yes
% sales export to main markets in 2009
US (%) N/A
EU (%) N/A
Japan (%) N/A
Others(%) N/A
Total (%) N/A
Top 5 Customers
1 Panasonic
2 Nestle
3 Carrefour
4 NSN
5 Wyeth
Human Resources
Employees 380
People in each position
Quantity
Sales & management 6
R&D staff 8
Quality control 12
Production Supervision 4
Factory worker 260
Logistics 43
Corporate Responsibility
Adhere to all rules and
regulations in respect to
(Y/N)
Child labor Yes
Environmental issues Yes
Health and safety issues Yes
Willing to sign a confidentiality agreement (Y/N) Yes
Medical Packaging Client
Have or not Yes
% production 10%
And detailed supplier profiles were developed

12. © 2010 Dragon Sourcing. All rights reserved. 12
Production Capacity
Total maximum production capacity
in 2009 (m2
/year)
54 Million
m²/year
Actual annual production in 2009
(m2
/year)
48 Million
m²/year
Equiped with fire protection Yes
Printing 4 colors
Flute produced
E Yes
Origin of Paper
Kraft Testliner
Country (%) Country (%)
China 90 China 90
USA 10 USA 10
Paper supplier Quantity
Kraft Testliner
5 5
Quality & Environmental Registration
Certificate Date of certificate Certifying organization
ISO 9001 21/02/2001
BSI Management
Systems
ISO 14000 01/03/2002
BSI Management
Systems
Others 10/05/2004
BSI Management
Systems
Quality Control equipment
Grammage Yes
COBB Yes, absorption detector
Others
Compression Testing Machine Computer
Control compression testing machines
tensile testing machine paper, cardboard)
bursting strength tester
Puncture strength
Constant Temperature and Humidity
Printing Equipments
Name Type Producer Date Acquired Qty.
Seven lines
Width 1100-2200,
Speed 150M/min
United States 1995 1
Four-color printing press Speed 3000pcs / h
Taiwan, Shanghai,
Guangdong
2004 4
Automatic Cut Prototype Size 2000 * 3500mm Shanghai 2005 1
Semi-automatic die-cutting machine Speed 2000pcs / h Shanghai 2007 1
Automatic stick box machine Speed 9000pcs / h Japan 2009 1
Automatic round molding machines Speed 3000pcs / Guangdong 2007 1
And detailed supplier profiles were developed (cont’d)

13. © 2010 Dragon Sourcing. All rights reserved. 13
Factory pictures
And detailed supplier profiles were developed (cont’d)

14. © 2010 Dragon Sourcing. All rights reserved. 14
Agenda
A. Context and Products
B. Sourcing Strategy
C. Results & Conclusions
14© 2010 Dragon Sourcing. All rights reserved.

15. © 2010 Dragon Sourcing. All rights reserved. 15
The process resulted in the reception of many reliable and competitive
quotes from several qualified suppliers
Category Product Name
# Suppliers
identified
#
Suppliers
pre-selected
#
RFI/RFQ sent
# intend to
respond
Filled in
RFI/RFQ
received
Average
price
(RMB/piece)
Quotes per
item
Serum Product A 23 13 13 11 9 908 9
Plastic
Product B
49 30 30 15 10
0.81 4
Product C 1.32 4
Product D 34,5 10
Product E 0.087 8
Cradboard
Product F
35 29 29 13 6
0.30 6
Product G 1.42 6
Film and adhesive
Product H 47 9 9 3 3 0.39 3
Product I 48 44 37 20 14 0.37 14
TOTAL 202 125 118 62 42 N/A N/A