Here is a case study by Dragon Sourcing on Electric Motors and Iron Castings from the Industrial Products sector for the year 2018 covering Russia. For details contact: www.dragonsourcing.com

1. Dragon Sourcing - 龙 源
Delivering sustainable sourcing value from emerging markets
Electric Motors and Iron Castings
Case Study

2. Client Introduction: Our client is a global leader in advanced pumps solutions and trendsetter in water
technologies, presented in 56 countries and with the decades of company’s history on the market.
 Project Objectives:
 Identify manufacturers in supply market of Russia for below categories:
1) Low Voltage Electric Motors;
2) Grey and Nodular Iron Castings.
 Final deliverables:
Client Introduction & Project Objectives:
- To cover 2 categories in targeted Country.
2
STAGE 1 STAGE 2 STAGE 3
• Supplier database
• RFI analysis report
• Supplier profiles and ranking
• NDA Analysis
• Signed NDA’s from the
shortlisted suppliers.
• Quotes from the suppliers,
• Ex works, DDP price analyses
Russia

3. 3
Approach & Schedule.
Supplier Pre-Qualification: Stage 1 - RFI process only.
No. Steps Deliverables
1.
Demand Analysis
Work with client to define and understand the products and requirements (volumes, materials, production
technology requirements, Quality tests, Standards, etc.)
 Kick-Off Report
2.
Supply Market Analysis
Identify long list of potential suppliers in the selected markets (Russia) by leveraging B2B Websites, DS
Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References.
 Supplier Long List
3.
Telephone Pre-screening
Selection of suppliers to be included in the RFI 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, innovations etc to be defined by the client).
 Shortlist for RFI
process
4.
Develop RFI document
Prepare an RFI template, 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.
 RFI Template
 Balanced Scorecard
5.
Conduct RFI Administration
The RFI is translated to the local languages as relevant, and distributed to the relevant suppliers, with
telephone follow-up to push for maximum participation.
• Completed RFI’s
6.
Analyze RFI Responses
Analysis of RFI responses and preparation of a report which profiles & objectively ranks the suppliers by
capability including a recommendation for those to be audited.
 RFI Report
 Supplier Profiles
 Proposed Shortlist for
Audit.

4. 4
Approach & Schedule,
Supplier Pre-Qualification: Stage 2 (NDA Process) & Stage 3 (RFQ process).
No. Stage 2: NDA Process Deliverables
7.
NDA Process
NDA Administration with the shortlisted suppliers from the RFI process.
 Signed NDA’s from
suppliers.
No. Stage 3: RFQ Process Deliverables
8.
Develop RFQ document
Prepare an RFQ template based on the product specification that has the objective to collect Ex Works and
DDP price, packing, loading volumes, sampling, incoterms and other relevant information.
 RFQ Template
9.
Conduct RFQ Administration
The RFQ is translated to the local languages as relevant, and distributed to the relevant suppliers, with
telephone follow-up to push for maximum participation.
• Completed RFQ’s
10.
Analyze RFQ Responses
Analysis of RFQ responses and preparation of a report with Ex Works and DDP price analyses from each
supplier.
 RFQ Report analysis.

5. Demand Analysis.
Approximate yearly volumes were collected from the client at the beginning of the
project.
5
# Category Items
Estimated
Yearly Volumes
Estimated
Yearly Spend
1 LV Electric Motors Low Voltage Electric Motors Units XXX € XXX
2 Iron Castings Grey and Nodular Tons XXX € XXX

6. 1. STAGE 1: RFI PROCESS
2. STAGE 2: NDA PROCESS
3. STAGE 3: RFQ PROCESS
6
Agenda
Dragon Sourcing has developed online software “Global Sourcing Platform” (GSP) to manage sourcing
projects locally as well internationally.
The GSP provides:
• A central database of suppliers
• Management of sourcing projects from start to finish
• Tools to facilitate supplier research, telephone pre-screening, RFI-RFQ & qualifying supplier.
 Complete unique online platform suitable for Global Strategic Sourcing process including qualifying the
supplier.

7. 7
Approach & Schedule.
RFI/RFQ processes were completed in 8 weeks as per schedule.
RFI/RFQs received, suppliers
profiles forwarded to client
# Step Responsible
Week
0
Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Week
10
13-17.
08
20-24.
08
27-31.
08
03-07.
09
10-14.
09
17-21.
09
24-28.
09
01-05.
10
08-12.
10
15-19.
10
22-26
10
0 Kick off Client/DS
1 Demand Analysis Client
2 Supply Market Analysis DS
3 Telephone pre-screening DS
4 Administer NDA DS
5 Develop the RFI-RFQ Client/DS
6 Conduct RFI/RFQ Administration DS
7 Analyze RFI/RFQ Responses Client/DS
1
2
Not started Started Finished Holiday RFI/RFQ process
start1 2

8. Process Steps Iron Casting Electric Motors Total
Supplier Identification • Suppliers identified 300 65 365
Pre-screening
• Supplier passed pre-screening so
far,
xxx xxx xxx
• Suppliers failed Pre- screening so
far,
xxx xxx xxx
• Suppliers pending for pre-screening xxx xxx xxx
Administer NDA
• NDA Sent xxx xxx xxx
• Preparing NDA xxx xxx xxx
• NDA Rejected to sign xxx xxx xxx
• NDA Returned, signed xxx xxx xxx
RFI-RFQ Administration
• RFIs sent xxx xxx xxx
• Intend to respond xxx xxx xxx
• Excluded from RFI/RFQ by client’s
category managers or DS.
xxx xxx xxx
• RFIs under consideration of client’s
category managers
xxx xxx xxx
• RFIs approved by client’s category
managers
xxx xxx xxx
• Number of RFQs, sent xxx xxx xxx
• Rejected to fill in RFQ/ excluded by
client’s category managers
xxx xxx xxx
• Number of RFQs received xxx xxx xxx
• Intend to respond xxx xxx xxx
Long list of suppliers, identified in targeted Country.
Supply market analysis per category was shared in the weekly progress report.
8
*xxx – Actual data from the report

9. 9
Pre-screening, phone-calling process was administered to filter the potential suppliers for
further next steps.
Iron Castings Category
*Screenshots from GSP system, Phone-screening step.

10. Process Steps Iron Casting Electric Motors Total
Supplier Identification • Suppliers identified xxx xxx xxx
Pre-screening
• Supplier passed pre-screening so
far,
47 10 57
• Suppliers failed Pre- screening so
far,
253 55 308
• Suppliers pending for pre-screening 0 0 0
Administer NDA
• NDA Sent xxx xxx xxx
• Preparing NDA xxx xxx xxx
• NDA Rejected to sign xxx xxx xxx
• NDA Returned, signed xxx xxx xxx
RFI-RFQ Administration
• RFIs sent xxx xxx xxx
• Intend to respond xxx xxx xxx
• Excluded from RFI/RFQ by client’s
category managers or DS.
xxx xxx xxx
• RFIs under consideration of client’s
category managers
xxx xxx xxx
• RFIs approved by client’s category
managers
xxx xxx xxx
• Number of RFQs, sent xxx xxx xxx
• Rejected to fill in RFQ/ excluded by
client’s category managers
xxx xxx xxx
• Number of RFQs received xxx xxx xxx
• Intend to respond xxx xxx xxx
Phone-calling process results were shared in the weekly progress report.
10
*xxx – Actual data from the report

11. 11
Post pre-screening the suppliers.
RFI process was administered to filter out most capable suppliers.
Supplier Profile example
*Screenshots from GSP system, RFI step.

12. 12
RFI process was administered to filter out most capable suppliers.
Supplier Profile example
*Screenshots from GSP system, RFI step.

13. 13
Category specific technical questions were added in the RFI relevant to Electric Motors
and Iron Castings Categories to understand suppliers capabilities and capacity.
Supplier Profile example
*Screenshots from GSP system, RFI step.

14. 29
7
5
4
3
3
2
1
1
1
1
1
1 1 1 1
Phone screening rejection reasons - Electric motors
Don't produce required products
Traders/distributors or Importers only
Produce the motors but according to local standards, no IE2 or IE3.
The same manufacturer doesn't have any English speaking people, ISO 14001 and has only local environmental certificates.
Unable to contact them
We are only R&D company, no direct production
Duplicate suppliers
Outsource production in China
Not interested to take part in the selection process
Not possible to respond until late November.
We have checked RFI/RFQ and decided not to participate in this project because of no interest in production of items,
requested. We mainly produce HV Motors.
Will be able to consider the project only in Mid December
Excluded by client
Supply Market Analysis.
Supplier rejection analysis was shared for each step, Pre-screening, RFI,
NDA & RFQ administration.
14
Example of rejection analysis
Electric Motors Category

15. 15
Suppliers location example – Electric Motors Category – RUSSIA.
Locations of the RFI/RFQ responders - manufacturers, highlighted on the map.
Supplier Location Marked
Mednogorsk
Moscow
Kamensk-Ural’skiy

16. 16
Executive summary was shared with Result & Recommendation.
Electric Motors Category
Example of the executive summary
Manufacturers which provided RFI+ RFQs within project schedule:
1. Supplier 1 – Profile to download;
2. Supplier 2 – Profile to download;
3. Supplier 3 – Profile to download.
• RFQs can be downloaded from profiles directly.
• Detailed lists of manufacturers on all the steps can be found in detailed Progress Excel report:
Client’s summary file IC EM categories Final

17. 1. STAGE 1: RFI PROCESS
2. STAGE 2: NDA PROCESS
3. STAGE 3: RFQ PROCESS
17
Agenda

18. Process Steps Iron Casting Electric Motors Total
Supplier Identification • Suppliers identified xxx xxx 365
Pre-screening
• Supplier passed pre-screening so
far,
xxx xxx xxx
• Suppliers failed Pre- screening so
far,
xxx xxx xxx
• Suppliers pending for pre-screening xxx xxx xxx
Administer NDA
• NDA Sent 47 10 57
• Preparing NDA 0 0 0
• NDA Rejected to sign 19 1 20
• NDA Returned, signed 28 9 37
RFI-RFQ Administration
• RFIs sent 28 9 37
• Intend to respond 2 0 2
• Excluded from RFI/RFQ by client’s
category managers or DS.
21 6 27
• RFIs under consideration of client’s
category managers
0 0 0
• RFIs approved by client’s category
managers
5 3 8
• Number of RFQs, sent xxx xxx xxx
• Rejected to fill in RFQ/ excluded by
client’s category managers
xxx xxx xxx
• Number of RFQs received xxx xxx xxx
• Intend to respond xxx xxx xxx
18
Executive summary on the RFI and NDA Processes results were shared
with the client in terms of weekly progress report.
*xxx – Actual data from the report

19. 1. STAGE 1: RFI PROCESS
2. STAGE 2: NDA PROCESS
3. STAGE 3: RFQ PROCESS
19
Agenda

20. 20
Ex Works and DDP price analyses were done based on the actual suppliers
prices.
Electric Motors Category
€ 842 € 842 € 842 € 842 € 842 € 842
€ 936 € 936 € 936 € 936 € 936
€ 1 805 € 1 805
€ 57 € 59 € 73 € 74 € 85 € 103
€ 173 € 176
€ 324
€ 553 € 589 € 578
€ 788
€ -
€ 200
€ 400
€ 600
€ 800
€ 1 000
€ 1 200
€ 1 400
€ 1 600
€ 1 800
€ 2 000
Item1
Item2
Item3
Item4
Item5
Item6
Item7
Item8
Item9
Item10
Item11
Item12
Item13
1 2 3 4 5 6 7 8 9 10 11 12 13
RFQ, EXW Price in EUR
Supplier 1 Supplier 2 Supplier 3

21. Process Steps Iron Casting Electric Motors Total
Supplier Identification • Suppliers identified xxx xxx 365
Pre-screening
• Supplier passed pre-screening so
far,
xxx xxx xxx
• Suppliers failed Pre- screening so
far,
xxx xxx xxx
• Suppliers pending for pre-screening xxx xxx xxx
Administer NDA
• NDA Sent xxx xxx xxx
• Preparing NDA xxx xxx xxx
• NDA Rejected to sign xxx xxx xxx
• NDA Returned, signed xxx xxx xxx
RFI-RFQ Administration
• RFIs sent xxx xxx xxx
• Intend to respond xxx xxx xxx
• Excluded from RFI/RFQ by client’s
category managers or DS.
xxx xxx xxx
• RFIs under consideration of client’s
category managers
xxx xxx xxx
• RFIs approved by client’s category
managers
xxx xxx xxx
• Number of RFQs, sent 5 3 8
• Rejected to fill in RFQ/ excluded by
client’s category managers
2 0 2
• Number of RFQs received 3 3 6
• Intend to respond 0 0 0
21
RFQ rejection analysis was shared with the client in terms of weekly, progress
report.
Iron Castings and Electric Motors Categories
*xxx – Actual data from the report

22. Conclusions
 Whole project was carried out with 365 suppliers identified; with 37 RFIs received as long as
signed NDAs & 6 suppliers finally responded with the RFQ document for both categories.
 As per instructions from client, the whole project was finalized during 10 weeks in comparison
to standard 12 weeks period, because of high level of urgency to get results and start audits.
 The producers, recommended by DS corresponded to the technical requirements of client and
had all the necessary certificates.
 DS recommended № of suppliers for visit/auditing with showing exact location of each
manufacturer on the map.
 The contact information about all the producers, identified, rejected, passed on all the selection
steps, was forwarded to client.
 Client visited DS recommended suppliers, responded to the RFQ process based on the stringent
qualification process.
22