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Dragon Sourcing - Your Tailored Sourcing Approach to Emerging Countries Case Study December 2015
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Page 1: Utilities case study

Dragon Sourcing - 龙 源Your Tailored Sourcing Approach to Emerging Countries

Case Study

December 2015

Page 2: Utilities case study

Agenda

2© 2015 Dragon Sourcing. All rights reserved.

1. Project scope

2. Approach & Schedule

3. RFI Results & Scoring

4. Recommendations

5. Company Profiles Example

6. Supplier Visit

Page 3: Utilities case study

DS administered an RFI for 5 categories for a major Utilities company followed by

audits of the most attractive suppliers

3© 2015 Dragon Sourcing. All rights reserved.

Category Focus

Pipe & Accessories • steel pipes• (accessories)

Pumps • In-line• Circulator

HVAC • air conditioning

Low Voltage Equipments • Circuit breaker, LVE components

Lightingstandard indoor: Ligthing source (LED/traditional) Lighting fixture (LED/Traditional)

Page 4: Utilities case study

Agenda

4© 2015 Dragon Sourcing. All rights reserved.

1. Project scope

2. Approach & Schedule

3. RFI Results & Scoring

4. Recommendations

5. Company Profiles Example

6. Supplier Visit

Page 5: Utilities case study

Each of the 5 categories required specific searching criteria.

© 2015 Dragon Sourcing. All rights reserved. 5

Product categoryPipes and

accessoriesPUMPS

LOW VOLTAGE

EQUIPMENTLIGHTING

AIR CONDITIONING

(HVAC)

Sub-categories

• Elbows, Tee’s, Fittings,

Reductions, Flanges,

Olets, covers

• Usage : oil and

natural gas, industrial

processing, structural,

mechanical other

• Material : steel,

plastic, ductile iron

• Pipe Spinning, fitting

casting, coating

• In Line

• Industrial

• Circulators

• Clear Water

• Waste Water

• Terminal

• Switch boards components

(Enclosure Cabling

accessories, including cable

trays, connector)

• Switch components (Switch,

Sockets)

• Protection (Circuit breaker <

160 A, Protection

Distribution),

• Safety (Camera, Safety

materials)

• Emergency lighting, anti-

explosive;

• Sources (fluorescent & LED)

• Standard indoor & "around

buildings“

• luminaires/fixtures

• Public, street lighting

• Indoor Design lighting,

• indoor architectural

• Sensors, Light control

(astronomic clock)

• Chillers :dry coolers, cooling

tower

• Air handling units and air

conditioners,

• Close control units cooling

modules (incl. Fancoil units,

heating / cooling ceilings and

floors, climate beams , …)

• Terminal units/

• Peripheral devices (Humidity

controls, dehumidifiers)

Key criteria for a

suitable suppliers- Quality

- Production capacity

TCO, Guaranty, Quality, Spare

Parts, Well Know, Brand

Name…

European Union standards,

normative content.

Storage capacity

European Union standards,

normative content.

Storage capacity, Geographical

branch/subsidiary presence

Prod. capacity; storage capacity

and locality; innovation

capacity; EU sales

representation/ distribution

partner; Certifications.

Min quality,

envirnmt., certif.C4Gas

To accept client purchasing

policy

Product qualification, Iso 9000

or similar

Product qualification

Iso 9000 or similar

European Certifications; quality

certifications.

Testing required See C4gasQualification of products, some

EU referencesQuality process

Supplier location ChinaAble to deliver some spare parts

quicklyNO NO NO

NDA required No Yes NO NO NO

Delivery N/A With palettization WITHOUT paletization WITHOUT paletization WITH paletization

Incoterm N/A DDP DDP (or close to DDP) DDP (or close to DDP) Not EXW; From CIF to DDP

End use locations Europe FR/BE mainlyInternational (Europe, South

America…)Europe, Mainly France Europe, Mainly France EUROPE

Other information

Activities: gas exploration,

transport and distribution

and aservices to the

energy sector.

Cost saving opportunities

High level of standardization

some project, delivery time

around 1 month; For other, <12

hours

automation level

Page 6: Utilities case study

6

The project was carried out in 5 weeks.

Process Steps

Timing October November

(weeks) 6 13 20 27 3 10

Demand

analysis

Kick-off document and launch meeting 1

Draft RFI document 1

Identify long list of suppliers in China 1.5

RFI and Supplier long list approval jointly with client 1-2

RFI and

scoring

process

Administer RFI with all suppliers 2 - 3

Define and approve scorecard criteria and weight 1

Scoring of suppliers, company profiles 2

Report results & supplier selection for visit 2

Supplier

selection

Visit planning

Visit suppliers selected with client 1

© 2015 Dragon Sourcing. All rights reserved.

SU

PP

LIE

RS

VIS

IT W

EE

K : 1

0,1

2,1

3,1

4

Milestones

Page 7: Utilities case study

Agenda

7© 2015 Dragon Sourcing. All rights reserved.

1. Project scope

2. Approach & Schedule

3. RFI Results & Scoring

4. Recommendations

5. Company Profiles Example

6. Supplier Visit

Page 8: Utilities case study

43

6044

3018

32

36

32

26

13

20

16

15

14

10

23

15

13

22

5

7

71

66

19

0

50

100

150

200

250

# Suppliers identified Suppliers approved list RFI sent Intend to reply RFI received

Over the 170 RFIs sent, 67 completed RFIs were collected.

Suppliers screening follow-up

8© 2015 Dragon Sourcing. All rights reserved.

Lighting

LVE

HVAC

Pumps

Pipes

97

67

189196

170

69

Page 9: Utilities case study

103 suppliers did not participate for various reasons (don’t export, no interest, lack

of time)

9© 2015 Dragon Sourcing. All rights reserved.

Category # suppliers gave up Reason for not participating RFI process

Pipe & Accessories 26

• 12 did not finished RFI by the deadline

• 8 can’t be contacted

• 4 Raw steel only

• 2 limited capacity

Pumps 19

• 4 unreachable

• 3 don’t do the right pumps

• 2 can not communicate in English

• 2 lack of time

• 2 not interested

• 3 couldn’t meet the requirements

• 2 traders and not supplying the right product

• 1 duplicate supplier

HVAC 5

• 4 Not finished RFI by deadline

• 1 limited capacity

Low Voltage Equipment 6

• 4 Don’t export

• 2 Couldn’t sent RFI by deadline

Lighting 47

• 18 no reply

• 14 not reachable

• 7 not interested

• 4 don’t produce, traders

• 3 couldn’t meet the deadline

• 1 don’t export

Page 10: Utilities case study

Each of the 5 categories were ranked separately based on the input from the

category managers

10© 2015 Dragon Sourcing. All rights reserved.

Section PIPES PUMPS HVAC LVE LIGHTING

Business information 20% 20% 15% 10% 20%

CSR 5% 5% 5% 5% 5%

International supply chain 15% 21% 21% 20% 20%

Process and Technology 10% 10% 8% 10% 8%

Production Capability and

Flexibility

8% 5% 10% 5% 10%

Quality control and equipment 20% 20% 19% 20% 15%

Environmental production and

Specification

20% 17% 20% 20% 20%

Cooperation 2% 2% 2% 10% 2%

Total 100% 100% 100% 100% 100%

Page 11: Utilities case study

Agenda

11© 2015 Dragon Sourcing. All rights reserved.

1. Project scope

2. Approach & Schedule

3. RFI Results & Scoring

Pipes

Pumps

HVAC

LVE

Lighting

4. Recommendations

5. Company Profiles Example

6. Supplier Visit

Page 12: Utilities case study

For pipes, 18 suppliers were scored for the 8 different sections based on their

RFI answers

PIPES

12© 2015 Dragon Sourcing. All rights reserved.

Section Weight

Su

pp

lier

1

Su

pp

lier

2

Su

pp

lier

3

Su

pp

lier

4

Su

pp

lier

5

Su

pp

lier

6

Su

pp

lier

7

Su

pp

lier

8

Su

pp

lier

9

Su

pp

lier

10

Su

pp

lier

11

Su

pp

lier

12

Su

pp

lier

13

Su

pp

lier

14

Su

pp

lier

15

Su

pp

lier

16

Su

pp

lier

17

Su

pp

lier

18

Business information 20% 15% 18% 15% 15% 17% 14% 15% 14% 15% 14% 16% 13% 15% 16% 14% 13% 13% 8%

CSR 5% 5% 4% 4% 5% 4% 4% 5% 4% 4% 3% 4% 3% 3% 3% 3% 3% 3% 4%

International supply chain 15% 14% 13% 13% 9% 13% 12% 13% 9% 10% 10% 13% 9% 11% 11% 10% 3% 11% 11%

Process and Technology 10% 8% 6% 7% 5% 6% 6% 6% 6% 5% 5% 5% 4% 4% 3% 4% 5% 3% 3%

Production Capability and

Flexibility

8% 6% 5% 6% 5% 7% 6% 4% 6% 5% 4% 1% 6% 3% 5% 5% 2% 5% 5%

Quality control and

equipment

20% 16% 17% 14% 18% 14% 14% 15% 17% 16% 17% 14% 16% 13% 14% 13% 15% 9% 13%

Environmental production

and Specification

20% 15% 13% 16% 15% 11% 16% 11% 13% 13% 14% 15% 12% 15% 9% 9% 14% 11% 9%

Cooperation 2% 2% 2% 2% 2% 2% 2% 2% 1% 2% 2% 1% 1% 1% 2% 1% 2% 1% 2%

Total 100% 80% 78% 76% 75% 74% 73% 71% 71% 70% 69% 69% 65% 65% 61% 60% 57% 55% 55%

Page 13: Utilities case study

Allowing us to rank them based on their total score out of 100

10%

0%

20%

30%

40%

50%

90%

80%

70%

60%

Pipes suppliers scoring

Cooperation

Environmental production and Specification

Quality control and equipment

Production Capability and Flexibility

Process and Technology

International supply chain

CSR

Business information

PIPES

13© 2015 Dragon Sourcing. All rights reserved.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Page 14: Utilities case study

Agenda

14© 2015 Dragon Sourcing. All rights reserved.

1. Project scope

2. Approach & Schedule

3. RFI Results & Scoring

Pipes

Pumps

HVAC

LVE

Lighting

4. Recommendations

5. Company Profiles Example

6. Supplier Visit

Page 15: Utilities case study

PUMPS

15© 2015 Dragon Sourcing. All rights reserved.

For pumps, 13 suppliers were scored for the 8 different sections based on their

RFI answers

Section Weight Supplier

1

Supplier

2

Supplier

3

Supplier

4

Supplier

5

Supplier

6

Supplier

7

Supplier

8

Supplier

9

Supplier

10

Supplier

11

Supplier

12

Supplier

13

Business information 20% 19% 17% 15% 17% 10% 10% 8% 7% 8% 5% 9% 6% 8%

CSR 5% 5% 4% 5% 4% 5% 4% 4% 4% 0% 4% 4% 4% 4%

International supply chain 21% 16% 17% 14% 10% 15% 12% 9% 7% 0% 9% 8% 6% 9%

Process and Technology 10% 9% 9% 9% 9% 2% 7% 7% 7% 6% 4% 2% 4% 2%

Production Capability and Flexibility 5% 4% 3% 4% 4% 4% 4% 3% 3% 3% 3% 2% 2% 1%

Quality control and equipment 20% 16% 15% 16% 14% 13% 12% 14% 16% 11% 5% 5% 10% 3%

Environmental production and

Specification

17% 19% 17% 15% 17% 13% 5% 7% 2% 6% 3% 3% 0% 0%

Cooperation 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0%

Total 100% 90% 83% 78% 75% 64% 54% 53% 47% 34% 34% 32% 31% 26%

Page 16: Utilities case study

0%

10%

20%

30%

40%

50%

100%

90%

80%

70%

60%

Pumps supplier scoring

Cooperation

Environmental production and Specification

Quality control and equipment

Production Capability and Flexibility

Process and Technology

International supply chain

CSR

Business information

PUMPS

16© 2015 Dragon Sourcing. All rights reserved.

Allowing us to rank them based on their total score out of 100

1 2 3 4 5 6 7 8 9 10 11 12 13

Page 17: Utilities case study

Agenda

17© 2015 Dragon Sourcing. All rights reserved.

1. Project scope

2. Approach & Schedule

3. RFI Results & Scoring

Pipes

Pumps

HVAC

LVE

Lighting

4. Recommendations

5. Company Profiles Example

6. Supplier Visit

Page 18: Utilities case study

HVAC

18© 2015 Dragon Sourcing. All rights reserved.

For HVAC, 10 suppliers were scored for the 8 different sections based on their

RFI answers

Section Weight

Su

pp

lie

r 1

Su

pp

lier

2

Su

pp

lier

3

Su

pp

lier

4

Su

pp

lier

5

Su

pp

lier

6

Su

pp

lier

7

Su

pp

lier

8

Su

pp

lie

r 9

Su

pp

lier

10

Business information 15% 12% 13% 13% 12% 11% 11% 9% 13% 9% 12%

CSR 5% 5% 5% 5% 5% 5% 5% 5% 4% 0% 4%

International supply chain 21% 21% 21% 20% 16% 16% 10% 20% 16% 0% 0%

Process and Technology 8% 7% 7% 7% 7% 6% 7% 7% 7% 4% 0%

Production Capability and

Flexibility

10% 8% 4% 8% 8% 7% 8% 6% 6% 4% 0%

Quality control and equipment 19% 17% 16% 10% 16% 12% 16% 7% 12% 5% 0%

Environmental production and

Specification

20% 20% 20% 20% 15% 15% 13% 11% 6% 16% 0%

Cooperation 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1%

Total 100% 92% 88% 85% 80% 74% 72% 65% 64% 39% 17%

Page 19: Utilities case study

HVAC

20%

10%

0%

30%

40%

50%

60%

100%

90%

80%

70%

Allowing us to rank them based on their total score out of 100

HVAC 10 suppliers scoring

19© 2015 Dragon Sourcing. All rights reserved.

Cooperation

Environmental production and Specification

Quality control and equipment

Production Capability and Flexibility

Process and Technology

International supply chain

CSR

Business information

1 2 3 4 5 6 7 8 9 10

Page 20: Utilities case study

Agenda

20© 2015 Dragon Sourcing. All rights reserved.

1. Project scope

2. Approach & Schedule

3. RFI Results & Scoring

Pipes

Pumps

HVAC

LVE

Lighting

4. Recommendations

5. Company Profiles Example

6. Supplier Visit

Page 21: Utilities case study

LVE

21© 2015 Dragon Sourcing. All rights reserved.

For LVE, 7 suppliers were scored for the 8 different sections based on their RFI

answers

Section Weight Supplier

1

Supplier

2

Supplier

3

Supplier

4

Supplier

5

Supplier

6

Supplier

7

Business information 10% 9% 7% 8% 7% 8% 7% 7%

CSR 5% 5% 5% 4% 4% 4% 5% 4%

International supply chain 20% 14% 11% 17% 6% 10% 11% 8%

Process and Technology 10% 7% 7% 7% 3% 7% 5% 5%

Production Capability and Flexibility 5% 3% 3% 3% 4% 4% 2% 2%

Quality control and equipment 20% 16% 17% 9% 16% 16% 14% 9%

Environmental production and Specification 20% 18% 13% 8% 15% 4% 5% 9%

Cooperation 10% 7% 10% 8% 5% 7% 8% 5%

Total 100% 78% 72% 64% 60% 58% 57% 47%

Page 22: Utilities case study

LVE

20%

10%

0%

30%

40%

50%

60%

100%

90%

80%

70%

LVE suppliers scoring

Cooperation

Environmental production and Specification

Quality control and equipment

Production Capability and Flexibility

Process and Technology

International supply chain

CSR

Business information

22© 2015 Dragon Sourcing. All rights reserved.

Allowing us to rank them based on their total score out of 100

1 2 3 4 5 6 7

Page 23: Utilities case study

Agenda

23© 2015 Dragon Sourcing. All rights reserved.

1. Project scope

2. Approach & Schedule

3. RFI Results & Scoring

Pipes

Pumps

HVAC

LVE

Lighting

4. Recommendations

5. Company Profiles Example

6. Supplier Visit

Page 24: Utilities case study

LIGHTING

For Lighting, 19 suppliers were scored for the 8 different sections based on their RFI

answers. The number of NO GO criteria that supplier couldn’t meet were also

recorded

24© 2015 Dragon Sourcing. All rights reserved.

Section

Weig

ht

Supplie

r 1

Supplie

r 2

Supplie

r 3

Supplie

r 4

Supplie

r 5

Supplie

r 6

Supplie

r 7

Supplie

r 8

Supplie

r 9

Supplie

r 10

Supplie

r 11

Supplie

r 12

Supplie

r 13

Supplie

r 14

Supplie

r 15

Supplie

r 16

Supplie

r 17

Supplie

r 18

Supplie

r 19

Business information 20% 16% 16% 13% 14% 14% 15% 17% 16% 16% 11% 17% 12% 12% 8% 16% 9% 8% 12% 4%

CSR 5% 5% 5% 5% 4% 5% 4% 5% 5% 5% 4% 5% 5% 5% 5% 5% 4% 5% 3% 2%

International supply

chain

20% 19% 17% 18% 19% 13% 20% 13% 13% 14% 17% 13% 13% 13% 19% 11% 13% 13% 11% 7%

Process and

Technology

8% 6% 6% 6% 6% 6% 6% 6% 6% 8% 6% 6% 6% 6% 6% 6% 6% 5% 6% 2%

Production Capability

and Flexibility

10% 10% 6% 10% 9% 9% 7% 9% 7% 6% 9% 6% 8% 8% 3% 9% 6% 5% 5% 5%

Quality control and

equipment

15% 13% 13% 13% 12% 14% 13% 13% 13% 13% 14% 13% 11% 10% 12% 13% 12% 12% 6% 3%

Environmental prod.

and Regulations

20% 18% 18% 14% 14% 14% 10% 12% 14% 12% 12% 10% 14% 12% 12% 4% 12% 13% 4% 8%

Cooperation 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% 1%

Total 100% 89% 84% 81% 80% 77% 77% 77% 76% 75% 74% 72% 72% 69% 67% 66% 63% 62% 49% 31%

# NO GO CRITERIA X/15 2 3 4 3 4 4 4 3 3 4 5 5 3 3 5 4 2 9 9

Page 25: Utilities case study

LIGHTING

70%

60%

50%

40%

30%

20%

10%

0%

80%

90%

100%

Lighting suppliers scoring Business information

CSR

International supply chain

Process and Technology

Production Capability and Flexibility

Quality control and equipment

Environmental prod. and Regulations

Cooperation

25© 2015 Dragon Sourcing. All rights reserved.

Allowing us to rank them based on their total score out of 100

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Page 26: Utilities case study

Agenda

26© 2015 Dragon Sourcing. All rights reserved.

1. Project scope

2. Approach & Schedule

3. RFI Results & Scoring

4. Recommendations

5. Company Profiles Example

6. Supplier Visit

Page 27: Utilities case study

Based on the RFI scores, 25 suppliers were recommended for auditing

27© 2015 Dragon Sourcing. All rights reserved.

Category Rk Top 5

suppliers

Score % Province Remark Recommendation

Pipes

1 80% Hubei + strong experience in EU VISIT (long trip)

2 78% Zhejiang

- Price competitiveness

+ EU presence+ Right targeted products & industry

VISIT

3 76% Hunan

- Petroleum focus

+ Presence in EU VISIT (long trip)

4 75% Shanxi

+ large offer and presence in EU

- Focus on local demand NO VISIT

5 74% Guangdong

- Wide offer but no seamless pipes

- Material not exactly on targetNO VISIT

Pumps

1 90% Zhejiang

- Can’t offer 2Y warranty

+ Produces for Xylem VISIT

2 83% Zhejiang+ Supplies similar pumps to EU

VISIT

3 78% Zhejiang

- Average size

+ seems to know well regulations and high quality

standards in EUVISIT

4 75% Anhui

- Not the same industry (more HVAC)

NO VISIT

5 64% Zhejiang

- Seems too small, can do attitude but very few info

on current customers NO VISIT

Page 28: Utilities case study

Based on the RFI scores, 25 suppliers were recommended for auditing (cont’d)

28© 2015 Dragon Sourcing. All rights reserved.

Category Rk Top 5 suppliers Score % Province Remarks Recommendation

HVAC

1

92% Guangdong+ Already identified, largest in China

VISIT (long trip)

2 88% Shandong - US foreign investment, good reputation, large

corporation similar to MIDEA

+ Familiar with EUROVENT

VISIT (long trip)

3 85% Guangdong + supplies Daikin

+ has EUROVENTVISIT (long trip)

4 80% Guangdong - Not EUROVENT VISIT (long trip)

5 74% Guangdong - Local market oriented VISIT (long trip)

LVE

1 78% Zhejiang+ Already identified, one of largest in China

VISIT

2 72% Zhejiang + Familiar with EU norms- Not much experience in Western Europe

VISIT

3 64% Shanghai - Foreign (Spain), not local supplier VISIT

4 60% Jiangsu - RFI not full, info missing lower score NO VISIT

5 58% Zhejiang - RFI not full, info missing lower score NO VISIT

Lighting

1 89%Fujian

+ Produces for big players in EUVISIT (long trip)

2 84% Guangdong + Produces for big players in EU

+ familiar with EU ragulationsVISIT (long trip)

3 81% Guangdong - Smaller company, large customers VISIT (long trip)

4 80% Guangdong + large company, large customers VISIT (long trip)

5 77% Guangdong N/A NO VISIT

Page 29: Utilities case study

Agenda

29© 2015 Dragon Sourcing. All rights reserved.

1. Project scope

2. Approach & Schedule

3. RFI Results & Scoring

4. Recommendations

5. Company Profiles Example

6. Supplier Visit

Page 30: Utilities case study

Company Profile

Supplier 1

PIPES – RANK 1

30© 2015 Dragon Sourcing. All rights reserved.

GENERAL INFORMATION

Company Name

Address

Town

Province Hubei

Company Website

CONTACT INFORMATION

Contact Person Mr. Hu

Title Chief Marketing Officer

Email

Tel

Fax

Mobile phone

BUSINESS INFORMATION

Founded Year 2004

Ownership Foreign Investement

Type of products Ron And Steel Smelting, Special Steel Material

Forging And Rolling, Metal Material Re-forming And

Rolling Processing, Iron And Steel Material

Inspection.

Factory location Huangshi

Work floor size (m²) 15,000,000

Production Facilities WW 1

Export License (Y/N) Y

Years of export experience 30

Develop products for International Markets Y

Industries served Argo,pharma,chem,steel,petro,nuclear

Sub-categories provided N

HUMAN RESSOURCES

Total # employees 8,800

Good English speakers (Y/N) Y

Sales & Management R&D Quality Factory workers

800 500 500 7000

TURNOVER IN USD

2012 2013 2014 (forecast)

4.2 B 4.7B 4.7B

% SALES EXPORT TO MAIN MARKETS IN 2013

Domestic (%) EU (%) US (%) Other Intl (%)

70 10 10 10

MAIN CUSTOMERS

European customers See below

Customers Industry

Product category

Country Product

SKF BEARING Sweden -

ZF AUTOMOBILE Germany -

HALLIBOTON OILFIELD SERVICE USA -

BAKER HUGHES OILFIELD SERVICE USA -

THYSSENKRUPP

MATERIAL

MECHANICAL

ENGINEERING

Germany -

Company qualified

for Gas Transport

Operators

Qualified by Date of obtention

NA

Page 31: Utilities case study

Company Profile

Supplier 1

PIPES – RANK 1

31© 2015 Dragon Sourcing. All rights reserved.

TECHNOLOGY AND PROCESS

Have stable partners of raw material Y

Design according to client's requirement Y

Have equipment list Y

Can do heat treatment Y

Carbon Steel P265GH

P245GH

Y

Y

Can you produce

p

ipes

u

sing the St. 45,8 Y

following raw mat erials (Y/N) ? Steel alloy 13CrMo45 Y

Stainless steel 304L Y

316L Y

Production range Seamless HFI Saw-L Saw-H

Capacity/ Y (Ton) 1.4 million - - -

OD (mm) min 51 - - -

OD (mm) max 520 - - -

WT (mm) min 4 - - -

WT (mm) max 120 - - -

Steel grades attached sheet - - -

Diameter range (mm)

Smallest Largest

60.3 508

CORPORATE & SOCIAL RESPONSIBILITY

Adhere to all rules and regulations in respect

to child labor (Y/N)

Y Policy to cover

human rights

Y

Adhere to China Labor Law requirement for

maximum overtime (Y/N)

Y

Adhere to all rules and regulations in respect

to environmental issues (Y/N)

Y Policy to cover

business ethics

and anti-Bribery

Y

Adhere to all rules and regulations in respect

to health and safety issues (Y/N)

Y

Agree to sign a confidentiality agreement ? Y

Accident tracking Y

DELIVERY TO CUSTOMERS OUTSIDE CHINA

EUROPE US ASIA Latin America

Y Y Y Y

Strategy for international distribution Subsidiaries, distributors, traders

Ensure short delivery lead times abroad special GREEN CHANNEL for export PO

INTERNATIONAL DISTRIBUTION NETWORK

Country, City Since Range of products description

Houston,USA 2006 ROLLED & FORGED

BAR, TUEB/PIPE AND

RING.Dusseldorf, Germany 2006

Souel, Korea 2002

Subsidiary Country

NA

PRODUCTION CAPACITY & FLEXIBILITY

Production output

(Tons/ year)

Total Quantity % output for

GAS OIL WATER

2013 1M 8 10 5

2014 1M 10 10 5

Product lead time -

Manufacturing capacity (kg/week)

Pipes 20,000,000 Reducers -

Elbows - Flanges -

Tees - Forging fittings -

Page 32: Utilities case study

Company Profile

Supplier 1

PIPES – RANK 1

32© 2015 Dragon Sourcing. All rights reserved.

Quality, Environmental and Product Certification

Certificate Name Yes/No Date of

Certificate

Certifying

Organization

ISO 9001 Yes 2014-May--19 TUV

ISO 14001 Yes 2013--July--15 CCCI

OHSAS 18001 Yes 2013--July--16 CCCI

PED/97/23/EC Yes 2014--Mar--12 TUV

API 5L Yes 2013--Aug--09 API

RCC-M - - -

What manufacturing norms do you comply

with ? (Y/N)

Pipes EN 10216-1 Yes

EN 10216-2 Yes

EN 10216-5 Yes

EN 10217-1 Yes

EN 10217-2 Yes

EN 10217-5 Yes

EN 10217-7 Yes

Fittings EN 10253-2 -

EN 10253-4 -

Flanges EN 10222-1 -

EN 10222-2 -

EN 10222-5 -

EN 1092-1 -

Document

control

EN 10204 Yes

Others

QUALITY PROCESSES

Y/N, details

Incoming material quality inspection Y

Industry standards applied ISO, ASTM, SAE, AISI, ASME, GB/T, JIS,

GOST ETC

Accepts 3rd party QC NA

In-line quality inspection Y

Finished good inspection Y

Sampling rate 30%-100%

Provide final product inspection and report Y

Performance achieved in out-going quality (% rejected) 0.01%

Quality defects management Rejected As The Scrap Material For Steel

Making

Reaction time for quality claim 2 months

Reaction time for after sale services 2 months

QC records archived 15-30 years

Tests by external suppliers By National Analysis Center Of Iron & Steel

Quality control equipment list Chemical composition, Oxygen and Nitrogen

analyzer, Electronic Universal Testing

Machine, Electronic Tensile Testing Machine

Testing Non Destructive test

Page 33: Utilities case study

FACTORY PICTURES & PRODUCTS

Company Profile

Supplier 1

PIPES – RANK 1

33© 2015 Dragon Sourcing. All rights reserved.

Page 34: Utilities case study

Agenda

34© 2015 Dragon Sourcing. All rights reserved.

1. Project scope

2. Approach & Schedule

3. RFI Results & Scoring

4. Recommendations

5. Company Profiles Example

6. Supplier Visit

Page 35: Utilities case study

35© 2015 Dragon Sourcing. All rights reserved.

Category Supplier Evaluation • Next steps agreed

Pipes

Supplier 1

• Collecting HSE safety reports, certificates PDF.

• List of foreign projects

• CPTDC won bid (Quality first, price 2nd, delivery time and service level)

Supplier 2

• Collect summary list of pipe projects overseas;

• Collect quality manuals;

• Confirm pipe products supply for nuclear plant project

Supplier 3 • Collecting a list of pipe project overseas.

Supplier 4 • Cilent may send inquiries to PCK

Supplier 5 • Clarify how to manage short time delivery, what kind of service in overseas offices

Pumps

Supplier 1 • Contact by email before the end of the month

Supplier 2 • Contact by email before the end of the month

Supplier 3 • Contact by email before the end of the month

Supplier 4 • Contact by email before the end of the month

LVE

Supplier 1 • Meet with SIMON in Spain

Supplier 2 • RFQ, contact with the right person and sales rep. in Europe

Supplier 3 • RFQ with specific regulation requirements

Supplier 4 • Contact if needed for middle voltage

HVAC

Supplier 1 • Arnaud will send enquiry with detail spec to Ms.zhangyan

• Ms.zhangyan will provide a list of distributor to client for better cooperation.

Supplier 2 • Arnaud will send enquiry with detail spec to Anderson

Supplier 3 • Arnaud will send enquiry with detail spec to Anderson.

Lighting

Supplier 1

• Yankon to provide a list of selected items to sell to client

• client to select the interested items

• Yankon to provide FOB price, MOQ

• Yankon to provide the final test report

Supplier 2

• FSL to provide E-catalogue

• Client to select the interested items;

• FSL to provide FOB price, MOQ , Tech data, samples etc

Supplier 3 • Client to select the interested items;

• Letaron to provide FOB price, MOQ , Tech data, samples etc

Supplier 4 • NVC to recommend best sell items to have quotation, MOQ etc.

Supplier 5 - • Too risky for client to cooperate with such company, in terms of quality, financial guarantee etc.

Supplier 6 • Client to select the interested items;

• Illusion Led to provide FOB price, MOQ , Tech data, samples etc

Finally, 22 suppliers were visited in 5 days for 5 categories, several of them have now

become regular suppliers to our client

Page 36: Utilities case study

36© 2015 Dragon Sourcing. All rights reserved.

Client Attendees

Supplier Attendees

DS Attendees

Company / Product Information Good

CSR (incl. safety & training) Pay great attention to HSE, everyone wears mask inside factory.

International supply chain Experienced with international distribution, 3 offices overseas. 36% export

Processes and TechnologiesNeed to improve workshop ventilation. Could see smoke coming outside from workshops.

Well organized lab and research center.

Production capacity and flexibilityLargest stainless steel pipes exporter

Oil and Gas industry about 45%

Nuclear as well.

Quality Control and Equipments Quality system qualifications and manuals available

Technical and environment regulations Good

Cooperation Excellent. Knew client projects and is very interested in partnership.

Management and technical staff speak good English.

Additional remarks Experienced in supplying gas and oil industry. Overseas network

Agreed Next Steps Clarify how to manage short time delivery, what kind of service in overseas offices?

Date Nov.14

Location Huzhou,Zhejiang

DS Overall Grade*

client Overall Grade

Supplier Visit Report

PIPES


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