The document summarizes a sourcing project to identify suppliers in China to manufacture the "Breeze Chair" for XXX. An initial list of 80 potential suppliers was identified, which was narrowed down to 4 shortlisted suppliers through an RFP and scoring process. The scoring evaluated suppliers on various criteria such as production capabilities, quality certifications, design ability, and cost competitiveness. It is recommended that XXX conduct on-site audits of the 4 shortlisted suppliers to further evaluate their capabilities before selecting a supplier.

2. 1. Executive Summary
2. Approach & Schedule
3. Demand Analysis
4. Sourcing Response
5. RFP Analysis
6. Supplier Scorecard
7. Recommendations and Next steps
AGENDA

3. Project Background:
• As Part of the core XXX offerings the Air Comfort range of chairs and beds, are designed to minimize, reduce and
relieve patient high pressure areas
• Since introduction of the Air Comfort range, a number of competitors have entered the market with similar products
at lower cost. As a result, XXX have commenced a two-tiered strategy;
o Design a superior product, the ‘Breeze Chair,’ with extra benefits and features to what is currently available
o Establish manufacturing of the ‘Breeze Chair’ in China with an experienced, capable supplier that is able to
manufacture to XXX’s standards whilst maintaining cost competitiveness
Program Objectives:
• Support XXX to establish manufacturing of the ‘Breeze Chair’ in China with an experienced and highly capable
supplier
• Identify and qualify a supplier that is able to manufacture the newly designed deluxe “Breeze Chair” to XXX’s high
quality standards while maintaining cost competitiveness now and in the future
Sourcing Summery:
• A supplier qualification process was conducted in the Chinese Market for Breeze Chair over a period of 7 weeks
• From an Initial 80 suppliers identified 4 suppliers were shortlisted
• We have determined that only a limited number of suppliers in China are able to produce the Breeze Chair
• We recommend that XXX reveals their identity to the 4 shortlisted supplier to convince them to participate fully in an
audit process to evaluate the supplier capabilities in audits to be conducted in September
EXECUTIVE SUMMARY

4. 4
No. Step Deliverables
1.
Demand Analysis
Work with XXX to define and understand the products and requirements (specs, volumes, materials,
production technology requirements)
 Project Requirement Questionnaire
 Product Requirement Sheet
 Kick-Off Report
2.
Supply Analysis
Identify long list of potential suppliers in China by leveraging B2B Websites, Fair catalogues, Chamber of
Commerce, Magazines, Network, References.
 Supplier Long List
3.
Telephone RFP Pre-screening
Selection of suppliers to be included in the RFP process by telephone pre-screening based on agreed
simple criteria (e.g. capability to make the product, minimum company size, interest in participating)
 Shortlist for RFP
4.
Develop RFP
Prepare an RFP document, with an aligned Balanced Scorecard that has the objective to pre-qualify the
capabilities of the suppliers, including: Background, financial, Client and product experience, Quality
certification & processes, Social Responsibility, Manufacturing/technology capability, R&D capability
The request for quotation will be for a standard item and also include a request for product proposal to
measure competitiveness, innovation and to increase the level of supplier response.
 RFP Template
 Balanced Scorecard
 Introduction Letter
 NDA
Milestone 1: RFP & Scorecard Approved
5.
Conduct RFP Administration
The RFP is translated to Chinese and distributed to the relevant suppliers, with telephone follow-up to
push for maximum participation.
 Control Sheet
 Completed RFPs
6.
Analyse RFP Responses
Analysis of RFP responses and preparation of a report which profiles & objectively ranks the suppliers by
capability and competitiveness (EXW), including a recommendation for those to be audited and potentially
included in the sample development.
 RFP Report
 Supplier Profiles
 Proposed Shortlist for Audit
 Product Proposal Summary
Milestone 2: Shortlist for Audit Agreed
APPROACH & SCHEDULE
Stage 1: Supplier Identification & Qualification

5. No. Step Deliverables
Milestone 2: Shortlist Audit Agreed
7.
Prepare for Audits
Planning the audit schedule, budget, and drafting the Audit Questionnaire that will be used for the supplier
self-assessment and on-site audits.
 Audit Plan
 Audit Questionnaire
8.
Conduct Audits
Distribution of the Audit Questionnaire to suppliers for their self-assessment (and to get them prepared),
followed by onsite audits of all the suppliers. Focus is management, logistics, production, quality and
includes photos & videos where allowed.
9.
Analyse Audit Results
Analysis of the audit results together with RFP results and preparation of a report that ranks the suppliers,
including a recommendation for those for XXX’s visit.
 Audit Reports
Milestone 3: Sample Development & Approval
10.
Manage Sample Development
Planning and facilitating the development of samples with approved shortlisted suppliers.
 Samples
11.
Final Assessment , Selection, & Sample Approval
Support in China as required (clarification of outstanding questions about suppliers) to conduct the final
assessment
12.
Finalize Commercial Negotiations and Trial Order Support
Support in China as required to complete the Feasibility Cost Assessment for the selected suppliers.
 Supplier Contract
13.
Additional Support as required
Ongoing Commercial, Production, Logistics, & QC support as needed
Stage 2: Audits, Selection & Contracting (up to 6 billable days included*)
5
Note: Current scope of work includes the cost for 6 billable days of Audit Prep, Auditing, Audit reporting, Selection, Contracting, Sample
Development, Negotiations support, trial order management, Logistics, QC, etc). Additional days will be billed at a standard daily rate
APPROACH & SCHEDULE

6. 6
DEMAND ANALYSIS
Breeze Chair Functional Description Dimensions
Min
(mm)
Max
(mm)
Yearly
Volume (Pcs)
Designed for aged care and
disabled patients who require an
adjustable and comfortable seating
solution or pressure care.
Features
• Air Comfort Seating System
• Infinite positioning seat tilt, back
recline and leg rest raising.
• Adjustable seat depth, seat &
back width, footrest and headrest
height .
• 125mm Castors (3 Total Lock & 1
Directional)
• Removable upholstery.
• Can be fitted with electric
actuators or gas struts.
• Maximum Weight 180kg
Exterior
Height 1300 1450
300 Units 2013
700 Units 2014
900 Units 2015
Width 690 750
Interior
Back Height 650 650
Seat Depth 400 550
Seat Width 400 500
Seat Height 600 600
Breeze chair requirements

7. Drawing Name
BREEZE - ADJUSTABLE SEAT FRAME.PDF
BREEZE - BACK REST.PDF
BREEZE - BASE.PDF
BREEZE - FOOTREST.PDF
BREEZE - HEAD REST SLIDE.PDF
BREEZE - HEAD REST LEVER.PDF
BREEZE - HEAD REST WING .PDF
BREEZE - LEG REST SLIDE.PDF
BREEZE - LEG REST .PDF
BREEZE - MAIN SEAT FRAME-2.PDF
Drawing Name
BREEZE - MEAL TRAY jvk.PDF
BREEZE - RIGHT WING.PDF
BREEZE - MEAL TRAY TOP.PDF
BREEZE - MEAL TRAY UNDERSIDE jvk.PDF
BREEZE - WING LOWER PADDING.PDF
BREEZE - WING PLASTIC COVER.PDF
BREEZE - WING RIGHT LOWER PADDING.PDF
BREEZE - BACK REST COVER.PDF
Breeze Head Cushion.doc
Breeze Overlay Upholstery.doc
7
DEMAND ANALYSIS: COMPONENTS
Breeze Chair Frame Designs drawings selected for the RFP

8. 8
DEMAND ANALYSIS
3 components for reference prices
Item Photo Name Process related
Back Rest
Subassembly
Cutting, Welding, Laser Cutting, Bending
Vacuum Formed
Plastic back cover
Vacuum Forming Plastic
Upholstered Foam
Headrest
Cutting & Sewing

9. SOURCING RESPONSE
Our market research has identified 80 suppliers after an investigation of the Chinese manufacturing
market
18 Failed
60 Passed
52 Dropped
out of the
Process
8 Participated
Suppliernumber

10. 10
SOURCING RESPONSE: LOCATION ANALYSIS
Xinjiang
Gansu
Jiangxi
Zhejiang
Jiangsu
Guangxi
Hunan
Hubei
Qinghai
Ningxia
Shaanxi
Anhui
Fujian
Neimongu
Shanxi
Shandong
Xizang
Sichuan
Yunan
Guizhou
Henan
Jilin
Liaoning
Hebei
Guangdong
Gansu
Taiwan
Heilongjiang
Beijing
1
23
4
5
6
7
8
Shanghai
Shenzhen
Supplier name Location Website
(1) Supplier 1 Jiangsu www
(2) Supplier 2 Guangdong www.
(3) Supplier 3 Guangxi www.
(4) Supplier 4 Fujian www.
(5) Supplier 5 Shangdong www.
(6) Supplier 6 Anhui www.
(7) Supplier 7 Guangdong www.
(8) Supplier 8 Beijing www.

11. 28
22
1
0
5
10
15
20
25
30
No Interest Cannot Produce Duplicate Supplier
(Likely Trader)
Suppliers reasons
for not participating
SOURCING RESPONSE: NON-RESPONSE ANALYSIS
11
Reasons for suppliers deciding not to respond to RFQ
Description Comment
Cannot produce
• Design too complex for them to
produce
• No in house Engineering ability
to develop the product
Not interested
• Annual Quantity is too small
• No Capacity for new product
line/customers
• Too different form current
products
• Not willing to do highly
customized OEM work
Duplicate • Identification of trader

12. 3,182 3,030
9,091
0
8,485
2,273
152 0
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Supplier
1
Supplier
2
Supplier
3
Supplier
4
Supplier
5
Supplier
6
Supplier
7
Supplier
8
Back Rest Tooling Cost
12
RFP ANALYSIS - Back Rest Subassembly
PendingQuote
PendingQuote
Note: Exchange rate 1 AUD = 6.6 RMB
40
227
174
0
157
38 36
56
0
50
100
150
200
250
Supplier
1
Supplier
2
Supplier
3
Supplier
4
Supplier
5
Supplier
6
Supplier
7
Supplier
8
Back Rest EXW Price

13. 15,455
3,030
9,091
0
15,152
10,606
227
3,788
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Supplier
1
Supplier
2
Supplier
3
Supplier
4
Supplier
5
Supplier
6
Supplier
7
Supplier
8
Back Cover Tooling Cost
13
RFP ANALYSIS - Vacuum Formed Back Cover
PendingQuote
PendingQuote
Note: Exchange rate 1 AUD = 6.6 RMB
79
61
147
0
235
20
11
42
0
50
100
150
200
250
Supplier
1
Supplier
2
Supplier
3
Supplier
4
Supplier
5
Supplier
6
Supplier
7
Supplier
8
Back Cover EXW Price

14. 37
42
41
0
24
9
8
4
0
5
10
15
20
25
30
35
40
45
Supplier
1
Supplier
2
Supplier
3
Supplier
4
Supplier
5
Supplier
6
Supplier
7
Supplier
8
Headrest EXW Price
RFP ANALYSIS - Foam Headrest
PendingQuote
PendingQuote
Note: Exchange rate 1 AUD = 6.6 RMB
0 0 0 0
682
0 0 0
0
100
200
300
400
500
600
700
800
Supplier
1
Supplier
2
Supplier
3
Supplier
4
Supplier
5
Supplier
6
Supplier
7
Supplier
8
Headrest Tooling Cost)

15. 39.55
227.27
173.86
0.00
156.67
37.88 35.64
55.92
3.18
3.03
9.09
0.00
8.48
2.27 0.15
0.00
79.09
60.61 147.27
0.00
235.30
19.70
11.03
42.42
15.45
3.03
9.09
0.00
15.15
10.61
0.23
3.79
37.27
42.42
40.91
0.00
24.24
9.09
7.64
4.20
0.00
0.00
0.00
0.00
0.68
0.00
0.00
0.00
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
500.00
Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8
Total Cost of Three Components & Amortized Tooling Cost
Back Rest EXW Price (AUD) Back Rest Mould & Fixtures Cost (AUD) Back Cover EXW Price (AUD)
Back Cover Mould & Fixtures Cost (AUD) Headrest EXW Price (AUD) Headrest Mould & Fixtures Cost (AUD)
RFP ANALYSIS –Cost of Three Components & Amortized Tooling
79.55
54.68
380.23
106.33
440.53
336.36
Note: Exchange rate 1 AUD = 6.6 RMB Tooling Amortized over 1,000 units
174.55
PendingQuote

16. SUPPLIER SCORECARD
The supplier scorecard used to rank the suppliers
Company Background Source from RFP Weight of criteria Weight of Section Max Score
Manufacturer or trader Company profile 2-1 50% 10% 1
Turnover in 2011 in Million USD Company profile 2-5 30% 3
Capital (in Million USD) Company profile 2-4 20% 3
Subtotal 100% 10% 7
Export experience Weight of criteria Weight of Section Max Score
Export license Company profile 2-6 10%
20%
1
% of the turnover dedicated to Export Company profile 2-11 40% 3
Main Export Market Company profile 2-12 15% 4
Who are the main customers Company profile 2-12 35% 3
Subtotal 100% 20% 11
Production capabilities Weight of criteria Weight of Section Max Score
How many employees do you have? Company profile 2-8 25%
25%
3
How many RD workers Company profile 2-15 25% 3
How many processes do you have in house (total 15)? Company profile 2-16-33 25% 3
What's your main product category? 25% 3
Subtotal 100% 25% 12
Design Ability Weight of criteria Weight of Section Max Score
Do you have ability to develop the product according to
customer requirement/design?
Company profile 2-41 40%
20%
1
How many designers people do you have? Company profile 2-42 30% 3
Do you have R/D person or designer speak in English? Contact Information 1-18 30% 1
Subtotal 100% 20% 5
Quality Weight of criteria Weight of Section Max Score
Does the supplier have ISO 9001? Company profile 2-43 30%
10%
1
Does the supplier have ISO 14001? Company profile 2-43 30% 1
Does the supplier have other certification ? Company profile 2-43 40% 2
Subtotal 100% 10% 4
Saving Potential Weight of criteria Weight of Section Max Score
Able to quote all 3 reference items Quote 40%
10%
1
Average Quotation Competitiveness Quote 60% 1
Subtotal 100% 10% 4
Cooperation Weight of criteria Weight of Section Max Score
Cooperation during RFP 100% 5% 2
Subtotal 100% 5% 2
Total scoring 100%

17. 0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 Supplier 8
Company Background Export Experience Production Capabilities Design Ability Quality Control Saving Potential Cooperation
SUPPLIER SCORECARD: SCORING
Sections
10% 20% 25% 20% 10% 10% 5% Base 100
# Supplier name
Company
Background
Export
Experience
Production
capabilities
Design
Ability
Quality
Control
Saving
Potential
Cooperation Total
1 Supplier 1 9.0 14.9 25.0 20.0 5.0 4.7 2.5 81.1
2 Supplier 2 8.0 14.9 18.8 12.5 7.9 10.0 2.5 74.5
3 Supplier 3 5.0 17.6 16.7 16.3 5.0 10.0 2.5 73.0
4 Supplier4 6.0 17.6 18.8 12.5 7.9 6.5 2.5 71.7
5 Supplier 5 6.5 12.9 18.8 12.5 5.0 10.0 2.5 68.1
6 Supplier 6 6.0 17.6 14.6 8.8 7.9 2.9 2.5 60.3
7 Supplier 7 6.5 17.6 12.5 8.8 5.7 2.9 2.5 56.5
8 Supplier 8 5.0 14.9 14.6 12.5 2.1 2.9 2.5 54.6
81.1
74.5 73.0 71.7
68.1
56.5 54.6
60.3
4 Suppliers Shortlisted for Audits

18. Recommendations
• We have determined that only a limited number of suppliers in China are willing and able to produce
the Breeze Chair and we suggest that we shortlist and audit/visit 4 suppliers
Next Steps
1. Review RFP, Supplier Scorecard and Supplier profiles
2. Decide witch supplier to Audit
3. Prepare Supplier Audit document for self assessment & Audit of shortlisted suppliers
4. Send & Collect Supplier Audit document for self assessment
5. Plan and conduct Audit
6. Analysis Audit results
7. Select Supplier for Sampling
8. Test Samples and request additional rounds of sampling as necessary
9. Approve Samples and select supplier(s) for final negotiation
RECOMMENDATIONS AND NEXT STEP