Case Study Construction Companies Sourcing Project

July 2013

Dragon Sourcing - 龙 源 Your Tailored Sourcing Approach Asia

1. Demand analysis – Build steel structure warehouse in Russia

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2. Where we are in the project workflow: administer an RFI/RFQ process

Steps W1 W2 W3 W4 W5 W6 W7

1 Supply Market analysis: identifying capable suppliers in China by leveraging all available databases

2 RFI/RFQ approval

3 Develop and administer an RFI/RFQ process

4 Analysis of RFI/RFQ responses

5 Based on RFI, RFP; recommend to client potential suppliers

6 Develop business case with recommendations

TODAYMilestonesStarted FinishedNot-started Delayed

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3. Progress to date

Activity China

Product category Warehouse construction

Suppliers initially identified 139

RFI/RFQ sent-out 57

RFI/RFQ not sent 82

Suppliers intending to respond 3

RFI/RFQ declined/ discarded 54

RFI/RFQ received 3

Most China construction companies do overseas project in Middle East and Africa, however few have experience in Russia.

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4. Suppliers replied the RFI/RFQ and their locations

Xinjiang

Gansu

JiangxiZhejiang

BEIJING

Jiangsu

Guangxi

Hunan

Hubei

Qinghai

Ningxia

Shaanxi

Anhui

Fujian

Neimongu

Shanxi Shandong

Xizang

Sichuan

Yunan

Guizhou

Henan

Jilin

LiaoningHebei

Guangdong

Gansu

SHANGHAI

Hong Kong

Taiwan

Heilongjiang

Supplier name Region City RFI / RFQ received Scope

Supplier 1 Jiangsu Zhenjiang Yes All

Supplier 2 Shandong Liaocheng Yes Main Structure

Supplier 3 Zhejiang Hangzhou Yes Main StructureTotal: 3 3

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5. Example Supplier RFQ

  Scope Supplier 1 Subtotal

Civil works

Foundations $722,193.01

$16,910,654.61Floor slab $4,883,692.49Main structures (including steel structure, roof, wall ) $11,304,769.11

Building utilities

Water supply and sewerage works $439,931.30

$5,083,827.92

Ventilation and heating $268,240.57Gas $308,337.50Electrical $3,584,893.06

Earthing and lighting protection $203,176.33Fire Water $279,249.15

External roads and utilites

Roads $712,514.63

$1,354,769.51External rain, process and sanitary waste water $128,444.54

External fire fighting water + drinkable water $394,061.99External gas distribution $119,748.35

OthersDesign works $86,614.17

$834,645.67Site facilities $511,811.02Others $236,220.47

  Total $24,183,897.70

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6. Company ProfileExample Supplier Profile

GENERAL INFORMATION

Supplier Name Supplier 1

City xxx

Province Jiangsu

Contact person Ms Peng

Job title Project manager

Email xxx

Phone number 0511-xxx

Fax number 0511-xxx

Mobile 138xxx

Website xxx

TURNOVER IN MILLION RMB2011 Year to date 2010 2009 2008

1898 2149 1578 1867

CLIENT REFERENCE IN RUSSIA

Client name Industry Contact Project type Location in Russia Project size (m2) Project completion date

Basel Cement Cement xxx Factory

Russian Federation, 391720, Ryazan region, Michailov district, settlement Octyabr`skiy, Kooperativnaya street, 1

250,000 2012.8.8

BUSINESS INFORMATION

Found Year 1979

Capital in million RMB 8

Number of employees 1500

Has your company built projects in Russia before? Yes

Has your company built a warehouse or a factory in Russia before? Yes

Does your company have license to carry out earth work and construction in Russia? Yes

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6. Building certificate Example Supplier