This is a case study on sports facility in China by Dragon Sourcing. Learn the insights here!

1. Sports Facility Case Study
Dragon Sourcing - 龙 源
Delivering sustainable sourcing value from emerging markets

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Agenda
1. Introduction
2. Sourcing Approach
3. Results

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Context
Background
Client is high-end sports facility and accessories brand in USA, aim to provide the good quality sports facility and accessories with
right value to their customers, this client assigned DS as the sourcing agency in China.
Scope
1.Flex Soccer Goal
2.Bench Tent
3.Back Rebounder
Deliverables:
RFQ
Recommended suppliers factory photos

4. Flex Soccer Goal
4
Items Specs and Description of Products
Height 6.5’
Width 12’
Depth 2’
Base 3’
Weight 30lbs
Material Steel, Zinc Plated Steel, POLYOXYMETHYLENE,
Others per Requirements of Drawings
Construction
Fiberglass and metal. Tool-free set-up and take down
Tension poles provide constant soccer goal shape.
White vinyl posts/crossbar provides a true soccer
goal look. 2.4mm, 4" mesh, white net, Carry bag.

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Item Picture Specification Carton size QTY
without box
1set put in a brown box,
size:130X130X680mm
1set put in a brown box with barcode,
size:130X130X680mm
1set put in a white box with barcode,
size:130X130X680mm
• Full color printed retail package
• Brown Kraft box with full color printed label
• White box with full color printed label
500SETS
Bench
Tent
Benchtent:size 4300mmx1750mm,210D
black oxford cloth,print two logo.
Fiberglass tube:￠7.8mm*380mm*3pcs
￠7.8mm*460mm*2pcs
￠7.8mm*432mm*2pcs
￠9.5mm*617mm*8pcs
￠9.5mm*540mm*4pcs
￠9.5mm*535mm*6pcs
Plastic tube:￠16.39mm*384mm*4pcs
One set fiberglass put in a poly bag.
Plastic clamp:8pcs,put in a poly bag
Whole set put in a 210D black oxford
bag,then put in a poly bag.
Bench Tent

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Back Rebounder
Name Picture Specification Carton size Net Material
Back rebounder
Tube size:38X1.5X1670mmX2pcs
38X1.5X1665mmX2pcs
38X1.5X1136mmX2pcs
38X1.5X525mmX2pcs
38X1.5X1155mmX1pcs
each tube put in a poly bag
Nail:¢5X22mmX4pcs
Net:288.93X80.01cmX1pc
Elastic Band:60pc
one set put in one colour box then
in a outer brown carton
47''X15.25''X4.75''
(inner box)
47.5''X15.75''X5.25''
(outer carton)
HTPP,GSM221

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Agenda
1. Introduction
2. Sourcing Approach
3. Results

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Approach – Phase 1
No. Step Deliverables
1.
Demand Analysis
Work with client to define and understand the products and requirements (specs, volumes, materials,
production technology requirements)
 Project Requirement
Questionnaire
 Kick-Off Report
2.
Supply Analysis
Identify long list of potential suppliers in the selected markets 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/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 RFI/RFQ
4.
Develop RFI/RFQ
Prepare an RFI/RFQ document, with an aligned Balanced Scorecard that has the objective to pre-
qualify the competitiveness and capabilities of the suppliers, including: Background, financial, Client
and product experience, Quality certification & processes, Social Responsibility,
Manufacturing/technology capability, R&D capability
 RFI/RFQ Template
 Balanced Scorecard
 Introduction Letter
 NDA
Milestone 1: RFI/RFQ & Scorecard Approved
5.
Conduct RFI/RFQ Administration
The RFI/RFQ is translated to the local languages as relevant, and distributed to the relevant suppliers,
with telephone follow-up to push for maximum participation.
 Control Sheet
 Completed RFI/RFQs
6.
Analyze RFI/RFQ Responses
Analysis of RFI/RFQ responses, estimation of logistics costs, and preparation of a report which profiles
& objectively ranks the suppliers by capability and competitiveness, including a recommendation for
those to be audited.
 RFI/RFQ Report
 Supplier Profiles
 Proposed Shortlist for
Audit
Milestone 2: Shortlist for Audit Agreed
Phase 1: Supplier Pre-Qualification

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Approach – Phase 2
No. Step Deliverables
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, with or without XXX buyers, of all the suppliers. Focus is
management, logistics, production & quality.
 Completed Audit
Questionnaires
9.
Analyse Audit Results
Analysis of the audit results, together with RFI/RFQ results, and preparation of a report that ranks the
suppliers, including a recommendation for those for sample development.
 Audit Report
 Supplier Audit Profiles
 Proposed Shortlist for
Sampling
Milestone 3: Shortlist for Sampling Agreed
10.
Sample Development & Testing
Managing the sample development and testing iterations to determine which suppliers can meet the
quality.
 Samples
 Sample Analysis Reports
11.
Negotiation & Contracting
Conducting final negotiations with the shortlisted suppliers, and facilitating contracting between
selected suppliers and XXX.
 Contract(s)
Milestone 4: Contracts Secured
Phase 2: Selection & Contracting

10. Not started Done
In process Delay
Note that the schedule maybe impacted by the time taken to collect category specifications, gain deliverable
validation, short list suppliers, produce samples & test samples.
Approach & Schedule for RFI-RFQ stage
Flex Soccer Goal Sourcing Project
Project Activity
Week No.
Feb March April
W 07
Feb 13rd
W 08
Feb 20th
W 09
27th
W 10
Mar 6th
W 11
Mar 13rd
W 12
Mar 20th
W 13
Mar 27th
W 14
April 7th
1. Demand Analysis
2. Supply Market Analysis
3. Telephone Pre-screening
4. Develop RFI/RFQ
5. Conduct RFI/RFQ
Administration & Supplier
Scorecard
6. Analysis RFI /RFQ
Responses
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11. The first step for demand analysis was to develop a comprehensive understanding
of the requirements
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Part Number
Purchasing Qty.
2016(Pieces)
Current Cost
(USD/PC)
2016 Total Spend
(USD)
Target Cost
(USD/PC)
Estimate Spend
2017 (USD)
xxxxxx 500 xxxxx xxxxx xxxxx xxxxx
Items Specs and Description of Products
Height 4’
Width 6’
Depth 1.5’
Base 3’
Weight 20lbs
Material Steel, Zinc Plated Steel, POLYOXYMETHYLENE,
Others per Requirements of Drawings
Construction
Fiberglass and metal. Tool-free set-up and take down
Tension poles provide constant soccer goal shape.
White vinyl posts/crossbar provides a true soccer
goal look. 2.4mm, 4" mesh, white net, Carry bag.

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Then an extensive supplier data base is built leveraging multiple sources of
information
Company and contact information
No.
Product
category
Supplier
name
Province City Website Source
Contact
Person
Email Telephone Mobile
1
Flex Soccer
Goal
Supplier 1
2
Flex Soccer
Goal
Supplier 2
3
Flex Soccer
Goal
Supplier 3
4
Flex Soccer
Goal
Supplier 4
5
Flex Soccer
Goal
Supplier 5
Sources of Information - China
Website name websites Remark
Alibaba www.alibaba.com
B2B for all over the
world
Global Sources www.globalsources.com
B2B for all over the
world
Gongchang www.gongchang.com
B2B for all over the
world
Tradekey www1.tradekey.com
B2B for all over the
world
ECVV www.ecvv.com
B2B for all over the
world
EC21 www.ec21.com
B2B for all over the
world
Trade Asia www.etradeasia.com B2B for Asia
made in china
www.made-in-
china.com BSB for China
Baidu www.baidu.com
TOP 1 source engine
in China

13. After building a supplier long list, a telephone pre-screening process is carried
out to select the suppliers to be included in the RFI/RFQ process
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No. Pre-screening question for case 2 Importance
1 • Do you manufacturer for the inquired products, what’s the range? Must have
2 • Do you have certificates of ISO? Must have
3 • Do you have experience export to EU, USA, Australia, etc. Must have

14. After completing the phone pre-screening process, we administer the RFQ
process
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Request for information - Contact Information
信息征询 - 联系信息
I. COMPANY
INFORMATION
公司信息
1-1 Company Name
公司名称
1-2 Factory Address
工厂地址
1-3 Town
城市
1-4 Province
省份
Company Website
公司网址
CONTACT
INFORMATION
联系信息
1-5 Contact Person
联系人
1-6 Title
职位
1-7 Email
电子邮件地址
1-8 Tel
电话
1-9 Fax
传真
1-10 Mobile phone
手机
1-11 English Contact Person
英语联系人
1-12 Title
职位
1-13 Email
电子邮件地址
1-14 Tel
电话
1-15 Fax
传真
1-16 Mobile phone
手机
Contact Information Inquiry RFQ Chart: EXAMPLE
-Key commercial terms
-Key certificates
-Key questions for order: MOQ, color/packaging
customization
-Etc.
Country of Origin 产地国
Port of Loading 装运港
Validty 报价有效期：
Quotation date报价日期：
Do you have ISO 22716 certificate? (Y/N)
Do you have GMPC? (Y/N)
Client's Payment Term:
客户付款条件
Quotation 报价
Product
产品名称
Item/Drawing number
产品代码/图纸号
Picture
产品图片
Product Decription
产品描述
Item
weight (lbs)
产品重量
Unit
单位
Single Order
quantity
单个订单数量
FOB price
(USD/PC)
FOB价格(美金/套)
Flex Soccer
Goal
便携式美式
足球门
2B1701
Flex Soccer Goal 便携式足球门
Height（高）:4'
Width（宽）: 6'
Depth（顶深）: 1.5'
Base（底深）: 3'
20 pc 250-1000
1) ITEM PACKAGING - GOAL FOLDED AND
PLACED IN A POLY BAG.
POLY BAG AND INSTRUCTIONS PLACED IN
VZ780 BAG WITH BUBBLE WRAP AT BOTH ENDS.
CARRY BAG PLACED IN A FULL COLOR RETAIL
BOX.
RETAIL BOX SIZE - 41.5 X 10 X 7 (OUTSIDE)
CORRUGATED CARDBOARD
2) INNER PACK - NONE
3) MASTER PACK - CONTAINS ONE ITEM PACK IN
DOUBLE WALL CORRUGATED BOX TAPED
CLOSED.
BOX SIZE 42 X 11 X 8 (OUTSIDE MAXIMUM)
LABEL - WITH UPN# 0001617305018168
OUTSIDE BOX TO BE MARKED WITH ITEM
NUMBER, QUANITITY, PO NUMBER AND ITEM
DESCRIPTION IN ALPHANUMERIC FORMAT
1.球门折叠好后放置在一个塑料袋内。装好球
门的塑料袋和装配说明书一起放置在图纸号
为VZ780的携带袋里。携带袋两头用气泡膜封
好。携带袋再放入一个分销彩盒里。彩盒尺
寸为41.5'x10'x7'，材质为瓦楞纸。
2. 无内包装。
3.外包装：外包装为双层白色瓦楞纸箱。每个
纸箱装一套球门用胶带纸封好。纸箱尺寸：4
2'x11'x8'。外箱上需要贴标签，标签内容：U
PN#
0001617305018168。纸箱需印制箱唛，箱唛
内容显示货号，数量，订单号和货物描述，
文字字体为 ALPHANUMERIC.
0
Raw Materials Cost
原料成本
pc 0
Assembly cost
装配成本
pc
Other Cost
其他成本
pc
Cost Breakdown
价格结构分析
Please fill the orange cells
请填写表格中的橙色区域
Specification 产品信息
Packaging
包装

15. Supplier Sourcing Response will be followed and analyzed
4 suppliers sent us completed RFI/RFQ and 2 suppliers filled RFI only. There are many
manufacturers specializing in soccer goals but very few of them are familiar with the flex soccer goal
as required by drawings.
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RFI/RFQ Analysis will be present in chart
4 suppliers responded to the RFI-RFQ, 2 suppliers only to the RFI waiting for samples to provide
quotes.

17. Supplier Scorecard will be developed to rank
A supplier scorecard was developed to objectively evaluate the suppliers RFI responses
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Business information
Weight of
criteria
Scoring
Max Score per
criteria
Weight of the
section
Year Founded 10% 1=Aft 2010, 2= >= 2006 to 2010, 3= >= 2000 to 2005, 4= >= 1995 and 1999,5=Bef 1995 5
30%
Registered capital in USD 5% 1=Less than 0.5M, 2=Between 0.5 to 1M, 3=Between 1 to 2M, 4=More than 2M 4
Turnover in 2014 in USD 10% 1=Less than 0.5M, 2=1 - 2M, 3= 2-3M, 4=3-5M, 5=above 5M 5
Number of employees 10% 1=<100, 2=100-200, 3=200-400, 4=400-500, 5=>500 5
Do you have export license 10% 0=No, 1=Yes 1
Export experience (year) 10% 0=No export, 1=Less than 5 years, 2=>=5-10 years, 3=>=More than 10 years 3
Main market 5% 1= local, 2= half local , half export, 3= USA 3
Experience in flex soccer goal industry 10% 0=No, 1=Yes 1
Experience in exporting to US market 5% 0=No, 1=Yes 1
% turn over from flex soccer goal 5% 1=<10%, 2=10% - 30%, 3>=more than 30% 3
Profile of Top Customers 10% 0=Not provided, 1=Local customers, 2=National customers, 3=International customers 3
Factory pictures 10% 0=Not provided, 1=Some pictures, difficult for overview, 2=Completed 2
Production
Weight of
criteria
Scoring
Max Score per
criteria
Weight of the
section
Does your company produce flex soccer goal in house? (Yes/No) 30% 0=No, 1=Yes 1
30%
How many sets of flex soccer goal does your company produce per
year?
30% 1=<1M, 2= 1M-3M, 3>=more than 3M 3
How many percentage of your capacity is for new order？(%) 20% 1=NA & more than 40%, 2=30% - 40%, 3=20% - 30%, 4= less than 20% 4
Does supplier list any of key production equipments for flex soccer
goal?
20% 0=No, 1=Yes 1
Quality system
Weight of
criteria
Scoring
Max Score per
criteria
Weight of the
section
ISO 9001 10% 0=No, 1=Yes 1
30%
ISO 14001 10% 0=No, 1=Yes 1
Can your company accpet a 3rd party QC? 10% 0=No, 1=Yes 1
Do you have incoming material inspection and report? 20% 0=No, 1=Yes 1
What type of inspection to be conducted(100% or sample inspection)? 20% 0= No, 1= Sample inspection, 2= 100% 2
Reject ratio 20% 1= Reject ratio>3%, 2= Reject ratio 1-3%, 3= Reject ratio<= 1% 3
Years to keep the QC records 5%
0= No description, 1= less than 1 year, 2= 1-3years，
3= 3-5 years, 4= more than 5 years
4
Does supplier list any of key QC equipments? 5% 0= No, 1= Yes 1
Cooperation
Weight of
criteria
Scoring
Max Score per
criteria
Weight of the
section
Cooperation during NDA,RFI/RFQ 50% 1= Poor，2= Satisfactory，3= Excellent 3
10%
Completeness of RFI/RFQ 50% 1= Poor，2= Satisfactory，3= Excellent 3
Total Scoring 100%

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Supplier will be ranked and presented by chart
Only 1 supplier so far combines a high RFI score and competitive quotes

19. Company and contact information RFI/RFQ Process follow up
No.
Product
category
Supplier
name
Province
RFI/RFQ sent Intend to respond Last call follow up RFQ received
Remark
Y/N Date Y/N
If no,
reason
Date Comment Y/N Date
If no,
reason
1 Flex Soccer Goal Supplier 1
2 Flex Soccer Goal Supplier 2
3 Flex Soccer Goal Supplier 3
4 Flex Soccer Goal Supplier 4
5 Flex Soccer Goal Supplier 5
During the RFQ process, an RFQ control sheet is used to follow up the whole
process, for good potential suppliers will be closely tracked in remark
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Short-listed suppliers are audited to assess long-term partnership opportunities
For audit process:
All the new supplier for this client will fill-out the questionnaire, and DS and the client will
evaluate the new suppliers based on the documents and decide if a) to approve directly for
an initial order, or b) to do the on-spot audit, or c) reject
Questionnaire of DS:
-Management
-Production Management
-Quality Control
-Logistics proceure
-Safety and HR management
-Etc

21. Audit Report Example – the main part contains:
Overview – Questionnaire feedback – Scoring – Factory pictures
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Agenda
1. Introduction
2. Sourcing Approach
3. Results

23. Results
• The business relationship with new suppliers are in building further and new products to be develop for a wider
products range.
• We find the valuable manufactures to give quotation and samples, our client have the benchmark to improve
their current supplier chain and selected the new manufacture to develop their products.
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