The document provides an overview of a sourcing case study for CNC turned and milled parts. It outlines the objectives, approach, categories being sourced, and progress made in the RFI/RFQ phase. For the CNC turned parts category, 56 suppliers were sent an RFI/RFQ and responses were analyzed. For CNC milled parts, the same process was followed. The document includes demand analysis, supplier locations, rejection reason analysis, RFI scores, RFQ responses summary, and RFQ comparison charts for each category. It also provides an example supplier profile format.

1. CNC Parts Sourcing Case Study
Dragon Sourcing - 龙 源
Your Tailored Sourcing Approach to LCC Sourcing

2. 2
1. Objectives & Approach
2. CNC Turned Parts Category
3. CNC Milled Parts Category
4. Supplier Profiles & RFI Analysis
Agenda

3. Objectives and Approach
Context
Objectives:
• To carry sourcing services for categories:
1. CNC Turned Parts
2. CNC Milled Parts
Geographical scope:
• Turkey
• Slovakia
• Romania
Deliverables:
• Supplier data base
• RFI / RFQ report
• Score Card
• Company profiles
• Recommended audit supplier list
DS Approach consists of the following work steps:
1. Demand Analysis: Collect detailed spend information about the
nature of the products required (supplier capabilities required,
specifications, volumes, drawings, and samples when relevant for
all references to be included in the RFI-RFQ process) with all spend
data to be provided by Client.
2. Supply Market Analysis: Identify list of potential suppliers in
countries in scope to include in the RFI/RFQ process by
incorporating existing list of DS potential suppliers, by leveraging
the web, external databases and various networks of experts.
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, quality certifications, interest in participating) with
these criteria to be provided by Client.
4. Develop the RFI-RFQ – jointly with Client – to include all key
supplier qualification criteria (e.g.: financial, technology, corporate
responsibility, quality certification, MOQ, client references, etc.) and
quotation requirements.
5. Administer the RFI-RFQ process to ensure as high a return rate
as possible.
6. Develop with Client a balance score card to evaluate suppliers
according to RFI/RFQ.
7. Analyze RFI-RFQ Responses based on qualitative criteria and
use a balance score card together with Client team to rank
suppliers and recommend suppliers which Client needs to take
through a formal qualification process.
8. Carry out pre-audits of recommended suppliers jointly with Client
(optional).
3

4. 4
1. Objectives, Approach, Planning and Team Structure
2. CNC Turned Parts Category
3. CNC Milled Parts Category
4. Supplier Profiles & RFI Analysis
Agenda

5. 5
Demand Analysis – CNC Turned Parts
Part Information
Picture Description 2D Drawing Annual quantity (pc)
1 Piston-Pad Yes 738,000
2 Feedback lever Yes 165,000
3 Retaining ball (steel) Yes 49,000
4 Eccentric pin Yes 126,000
5 Brake piston Yes 18,000
6 Control bush Yes 79,000
7 Control piston Yes 106,000

6. Sourcing Progress - RFI/RFQ Phase:
CNC Turned Parts Category
56 NDA’s received and RFI/RFQ sent to all 56 suppliers
6
CNC Turned Parts
Supplier Name Country Status
Supplier 1 Romania RFQ received
Supplier 2 Romania Quoted only for one part
Supplier 3 Slovakia Quoted only for one part
Supplier 4 Slovakia RFQ received
Supplier 5 Turkey RFQ received
Supplier 6 Turkey RFQ Received

7. Suppliers’ Locations
CNC Turned Parts Category
7
CNC Turned Parts
Supplier Name Country Status
Supplier 1 Romania RFI/RFQ
Supplier 2 Romania RFI/RFQ
Supplier 3 Slovakia RFI/RFQ
Supplier 4 Slovakia RFI/RFQ
Supplier 5 Turkey RFI/RFQ
Supplier 6 Turkey RFI/RFQ

8. Sourcing Progress - RFI/RFQ Phase:
CNC Turned Parts Category
RFI/RFQ Rejection Reason Analysis
8
Rejection Reason: RFI/RFQ Administration Total % Turkey Romania Slovakia
Don't want to fill the RFI template 1 2.0% 0 1 0
Can not meet high tolerances 1 2.0% 1 0 0
can not meet the qtys 1 2.0% 1 0 0
Do not reply calls or mails 1 2.0% 1 0 0
Capacity full 3 6.0% 0 3 0
Not interested to continue 5 10.0% 0 2 3
Consider themselves not competent for this project 15 30.0% 3 12 0
Can't meet the technical requirement / quality standard 23 46.0% 7 9 7
Total Rejected 50 100.0% 13 27 10
General Technical and Quality Rejection Reasons of Suppliers:
-The parts are complex
-Qtys are high which is not possible with the machines that suppliers have.
-Suppliers need to make investment but Client makes short term agreements
-Part tolerances are high

9. Sourcing Progress - RFI/RFQ Phase:
CNC Turned Parts Category
RFI Scores & Items Quoted
9

10. Sourcing Progress - RFI/RFQ Phase:
CNC Turned Parts Category
RFQ Responses Sum and Chart /PN – Raw Material Costs not included
10
CNC TURNED PARTS Romania Romania Slovakia Turkey Slovakia Turkey
Product data Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6
# Description
Annual quantity
(pcs)
FCA Price
(Eur/pc)
Price
without
Raw Mat
Cost
FCA Price
(Eur/pc)
Price
without
Raw Mat
Cost
FCA Price
(Eur/pc)
Price
without
Raw Mat
Cost
FCA
Price
(Eur/pc)
Price
without
Raw Mat
Cost
FCA Price
(Eur/pc)
Price
without
Raw Mat
Cost
FCA Price
(Eur/pc)
Price
without
Raw Mat
Cost
1 Piston-Pad 738,000 3.492 2.893 12.620 11.270 2.370 1.770 1.376 2.141 1.751
2 Feedback lever 165,000 2.660 2.060
3 Retaining ball (steel) 49,000 9.720 3.780
4 Eccentric pin 126,000
5 Brake piston 18,000 6.080 2.350
6 Control bush 79,000
7 Control piston 106,000 0.910 0.680

11. 11
1. Objectives, approach, planning and team structure
2. CNC Turned Parts Category
3. CNC Milled Parts Category
4. Supplier Profiles & RFI Analysis
Agenda

12. 12
Demand Analysis – CNC Milled Parts
Part Information
# Picture Description 2D Drawing (English) Annual quantity (pc)
1
A4 BR40 Pump Flange raw part
Yes
3732
A4 BR40 Pump Flange machined part
Yes
2
A4 BR40 Motor Flange raw part
Yes
3536
A4 BR40 Motor Flange machined part
Yes
3
A4 BR40 Housing raw part
Yes
3739
A4 BR40 Housing machined part
Yes

13. Sourcing Progress – RFI/RFQ Phase:
CNC Milling Parts Category
56 NDA’s received and RFI/RFQ sent to all 56 suppliers
13
CNC Milled Parts Category
Supplier Name Country Status
Supplier 1 Turkey RFQ received
Supplier 2 Slovakia RFQ received
Supplier 3 Slovakia RFQ received

14. Suppliers’ Locations
CNC Milling Parts Category
14
CNC Milled Parts Category
Supplier Name Country Status
Supplier 1 Turkey RFQ received
Supplier 2 Slovakia RFQ received
Supplier 3 Slovakia RFQ received

15. Sourcing Progress – RFI/RFQ Phase:
CNC Milling Parts Category
RFI/RFQ Rejection Reason Analysis
15
Rejection Reason: RFI/RFQ Administration Total % Turkey Romania Slovakia
Don't want to fill the RFI template 1 1.9% 0 1 0
Tolerances are too tight 1 1.9% 0 1 0
Do not reply calls or mails 1 1.9% 1 0 0
Not in their product range 2 3.8% 1 1 0
Capacity full 3 5.7% 0 2 1
The qtys are too high 3 5.7% 1 2 0
Not interested to continue 7 13.2% 0 5 2
Consider themselves not competent for this project 10 18.9% 3 7 0
Can't meet the technical requirement / quality standard 25 47.2% 3 16 6
Total Rejected 53 100.0% 9 35 9
General Technical and Quality Rejection Reasons of Suppliers:
-The parts are complex
-Qtys are high which is not possible with the machines that suppliers have.
-Suppliers need to make investment but Client makes short term agreements
-Part tolerances are high

16. Sourcing Progress – RFI/RFQ Phase:
CNC Milling Parts Category
RFI Scores and Items Quoted
16

17. Sourcing Progress – RFI/RFQ Phase:
CNC Milling Parts Category
RFQ Responses Summary - Raw Mat Costs not included
17
CNC MILLED PARTS Slovakia Slovakia Turkey
Product data Supplier 1 Supplier 2 Supplier 3
# Description Annual quantity (pcs) FCA unit price
FCA Price wo
RAW MAT
FCA unit price
FCA Price wo
RAW MAT
FCA unit price
FCA Price wo RAW
MAT
1 A4 BR40 Pump Flange 3,732 76.00 51.00 14.33 13.65
2 A4 BR40 Motor Flange 3,536 76.00 51.00 10.69 17.45 16.62
3 A4 BR40 Housing 3,739 207.00 57.00 70.00 40.74 38.80

18. Sourcing Progress – RFI/RFQ Phase:
CNC Milling Parts Category
RFQ Comparison Charts /PN - Raw Mat Costs not included
18

19. 19
1. Objectives, Approach, Planning and Team Structure
2. Aluminum Die Cast Parts Category
3. CNC Turned Parts Category
4. CNC Milled Parts Category
5. Supplier profile example
Agenda

20. 20
Supplier Profiles Sample

21. 21
Supplier Profiles Sample