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Dragon Sourcing - 龙 源Your Tailored Sourcing Approach to Emerging Countries
Case Study
December 2015
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
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)
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
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
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
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
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
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
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%
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
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%
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
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
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%
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
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
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%
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
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
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%
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
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
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
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
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
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
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
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
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
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
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 -
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
FACTORY PICTURES & PRODUCTS
Company Profile
Supplier 1
PIPES – RANK 1
33© 2015 Dragon Sourcing. All rights reserved.
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
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
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