More Related Content Similar to Case Study-Industry Rotary Dryer Sourcing (20) More from John William (18) Case Study-Industry Rotary Dryer Sourcing2. Supplier Market screening in China and India for “Rotary Dryer”
Context
The client’s overall objectives
• To identify new potential competitive suppliers in
China and India.
Segment involved:
Rotary dryer
DS Supplier Market analysis
Objectives
• Develop the RFI/RFQ document – jointly with the Client
– to include all key qualification criteria.
• Identify list of potential suppliers to include in the
RFI/RFQ process by leveraging the web, external
databases, DS knowledge, databases and various
networks of experts.
• Conduct first phone screening of supplier database to
identify potential suppliers.
• Administer RFI/RFQ process to ensure as high a return
rate as possible.
• Analyze responses and use balance score card process
to rank and recommend suppliers.
• Audit suppliers to check their capability to meet the
Client’s requirements.
© 2013 Dragon Sourcing. All rights reserved. 2
3. 3
MilestonesStarted FinishedNot-started Delayed
Program Schedule: Target was to finalize the program within 10 weeks
Steps Who W1 W2 W3 W4 W5 W6 W7 W8 W9 W10
0 Kick off meeting. Client/ DS
1
Analyze the demand and define criteria allowing to
qualify potential suppliers.
DS
2
Develop the RFI/RFQ to include all key qualification
criteria.
Client/ DS
3
Identify a list of potential suppliers to include in the
RFI/RFQ process.
Client/ DS
4
Conduct first phone screening of supplier database
to send RFI/RFQ.
DS
5
Administer RFI/RFQ process to ensure as high a
return rate as possible.
DS
6
Develop balance score card to evaluate suppliers
according to RFI/RFQ.
Client/ DS
7
Analyze responses and recommend suppliers to
take through the auditing process.
Client / DS
8 Supplier auditing schedule. Client / DS
© 2013 Dragon Sourcing. All rights reserved.
4. © 2013 Dragon Sourcing. All rights reserved. 4
Rotary Dryer
The scope of work included Rotary Dryer to be produced according to drawings
Product Name Rotary Dryer
Drawings SD EG2 SKC 15202-D 2012 07 03 LC, PSD EG2 SKC 15203-D 2012 07 03 LC, PSD EG2 SKC 15205-D
2012 07 03 LC
Functions and
Specifications
Provided by the Client
Product picture
Destination Austria
Shipment Shell shipped 2-3 parts in bulk, the others in wooden box
HS Code 8419.39
Customs Duty 1.7%
5. Sourcing Response
Analysis of suppliers’ RFI/RFQ
55© 2013 Dragon Sourcing. All rights reserved.
China India Total
Total number of suppliers 181 68 249
Suppliers called 181 68 249
Shortlisted suppliers after call 132 41 173
RFI/RFQ Sent 132 41 173
Not willing to participate 98 37 135
Intend to respond 34 4 38
RFI received 28 5 33
RFQ received 34 4 38
0
20
40
60
80
100
120
140
160
180
200
Total of
suppliers
Supplier
called
Shortlisted
suppleir
RFI/RFQ
Sent
Not willing
to
participate
Intend to
respond
RFI
received
RFQ
received
China
India
RFI/RFQ Process – Suppliers from China and India
6. 38 quotations were received (26 with cost breakdown) including one year warranty.
Prices in China are more competitive than in India.
© 2013 Dragon Sourcing. All rights reserved. 6
Supplier Country CE RFI USD FOB price Supplier Country CE RFI USD FOB price
1 Supplier 1 China No Yes $170,322 20 Supplier 20 China No Yes $265,822
2 Supplier 2 China No Yes $176,193 21 Supplier 21 China No Yes $268,600
3 Supplier 3 China No Yes $180,000 22 Supplier 22 China No Yes $269,800
4 Supplier 4 China No No $193,523 23 Supplier 23 China Yes Yes $289,600
5 Supplier 5 China No No $206,700 24 Supplier 24 China No Yes $299,013
6 Supplier 6 China No Yes $212,798 25 Supplier 25 China No Yes $301,200
7 Supplier 7 China No No $215,428 26 Supplier 26 China No No $302,532
8 Supplier 8 China No Yes $220,635 27 Supplier 27 China No Yes $327,281
9 Supplier 9 China No Yes $222,753 28 Supplier 28 China No Yes $333,350
10 Supplier 10 China No Yes $224,573 29 Supplier 29 China No Yes $352,859
11 Supplier 11 China No No $230,000 30 Supplier 30 China No No $361,538
12 Supplier 12 China No Yes $234,422 31 Supplier 31 China No Yes $498,000
13 Supplier 13 China No Yes $236,300 32 Supplier 32 China No Yes $525,225
14 Supplier 14 China No Yes $237,920 33 Supplier 33 India No Yes $548,400
15 Supplier 15 China No Yes $250,000 34 Supplier 34 China No Yes $578,136
16 Supplier 16 China No Yes $253,176 35 Supplier 35 India No Yes $647,360
17 Supplier 17 China Yes Yes $254,025 36 Supplier 36 India Yes Yes $820,000
18 Supplier 18 China No Yes $265,150 37 Supplier 37 India No Yes $1,476,000
19 Supplier 19 China Yes Yes 265485 38 Supplier 38 India No Yes $2,200,000
7. Suppliers Prices List
38 suppliers’ (China 34, India 4) USD FOB prices with one year warranty
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$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
China and India USD FOB prices
China India
8. Score Cards and Ranking
32 suppliers were ranked
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Rank Supplier Name Country
30% 30% 20% 10% 10% 100%
Business Information
Production and
Technology
Quality
Management
Corporate
Responsibility
Cooperation Total
1 Supplier 27 China 77 70 90 100 100 82
2 Supplier 36 India 82 80 70 100 89 82
3 Supplier 24 China 70 80 90 100 80 81
4 Supplier 23 China 77 85 70 100 80 81
5 Supplier 17 China 64 85 80 100 100 81
6 Supplier 31 China 80 75 70 100 100 80
7 Supplier 34 China 76 65 90 100 100 80
8 Supplier 28 China 68 70 90 100 100 79
9 Supplier 32 China 78 70 70 100 100 79
10 Supplier 2 China 68 80 70 100 100 78
11 Supplier 15 China 72 80 70 100 80 77
12 Supplier 19 China 51 85 90 100 80 77
13 Supplier 38 India 76 80 50 100 89 76
14 Supplier 16 China 72 80 60 100 80 75
15 Supplier 29 China 69 65 70 100 100 74
16 Supplier 14 China 68 65 70 100 100 74
17 Supplier 12 China 65 75 60 100 80 72
18 Supplier 3 China 51 65 90 100 80 71
19 Supplier 20 China 47 80 70 100 80 70
20 Supplier 8 China 61 65 70 100 80 70
21 Supplier 2 China 51 65 80 100 80 69
22 Supplier 6 China 54 65 70 100 80 68
23 Supplier 1 China 35 75 90 100 59 67
24 Supplier 22 China 59 55 70 100 80 66
25 Supplier 9 China 47 65 70 100 80 66
26 Supplier 13 China 50 55 80 100 80 65
27 Supplier 18 China 68 55 50 100 80 65
28 Supplier 33 China 64 65 40 100 80 65
29 Supplier 10 China 68 65 30 100 80 64
30 Supplier 35 India 88 45 20 100 83 62
31 Supplier 21 China 53 45 30 100 59 51
32 Supplier 37 India 51 20 0 100 83 40
9. DS recommended to select 11 suppliers ranked over 75, combined with a DDP price
below USD 750,000.
Indian suppliers’ quotations were too high and were thus disqualified.
© 2012 Dragon Sourcing. All rights reserved. 9
China India Supplier previously shortlisted by Client
82 82 81 81 81 80 80 79 79 78 77 77 76 75 74 74
72 71 70 70 69 68 67 66 66 65 65 65 64
62
51
40
0 0 0 0 0 0
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
0
10
20
30
40
50
60
70
80
90
Profile scores and DDP price chart
Profile scores
DDP price in USD
Profile score DDP price in USD
10. 10
Current status
• DS identified and recommended top-ranking suppliers to be audited by the Client.
• The Client preformed an audit on 5 suppliers and selected one supplier and a backup
supplier for their order.
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11. © 2013 Dragon Sourcing. All rights reserved. 11
Company Profile
Example Supplier Rotary Dryer Co., Ltd. (1/3)
Profile rank out of 32 1
Profile score 82
Prince rank out of 38 27
DDP Price $ xxx
12. © 2013 Dragon Sourcing. All rights reserved. 12
Company Profile
Example Supplier Rotary Dryer Co., Ltd. (2/3)
13. © 2013 Dragon Sourcing. All rights reserved. 13
FACTORY PICTURES
Company Profile
Example Supplier Rotary Dryer Co., Ltd. (3/3)