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Dragon Sourcing Your Tailored Sourcing Approach to Emerging Markets Global Promotional Items Sourcing - Case Study 25 th Aug, 2015 1 © 2015 Dragon Sourcing. All rights reserved.

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Page 1: How to source global promotional products in emerging market?

Dragon SourcingYour Tailored Sourcing Approach to Emerging Markets

Global Promotional Items Sourcing - Case Study

25th Aug, 2015

1© 2015 Dragon Sourcing. All rights reserved.

Page 2: How to source global promotional products in emerging market?

1. Introduction

2. Annual Spend & Category Demand Analysis

3. Supply Base Response

4. Quotation Analysis

5. Supplier Recommendation

6. Summary

2

Agenda

© 2015 Dragon Sourcing. All rights reserved.

Page 3: How to source global promotional products in emerging market?

3

1. Introduction

Objectives was to secure savings through consolidating procurement and sourcing direct from

manufacturers in emerging markets for the following categories:

1. Textiles (contains 3 sub - categories)

a) T shirts, Polo Shirts, Shirts

b) Aprons & Table cloths

c) Hats

2. Parasol & Umbrella

3. Unprinted shrink and stretch Film

Scope included: China, Vietnam, Thailand, India, Bangladesh, Turkey

© 2015 Dragon Sourcing. All rights reserved.

Page 4: How to source global promotional products in emerging market?

4

1. 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

© 2015 Dragon Sourcing. All rights reserved.

Page 5: How to source global promotional products in emerging market?

5

1. 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 Client 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 Client.

Contract(s)

Milestone 4: Contracts Secured

Phase 2: Selection & Contracting

© 2015 Dragon Sourcing. All rights reserved.

Page 6: How to source global promotional products in emerging market?

Phase 1: Supplier Pre-qualification

StepsDuration/week

commencingWeek 1

June 8 ~ 12

Week 2June 15 ~ 19

Week 3June 22 ~ 26

Week 4June 29 ~ July 3

Week 5July 6 ~ 10

Week 6July 13 ~ 17

Week 7July 20 ~ 24

Week 8July 27 ~ 31

Ph

as

e 1

1. Demand Analysis 1

2. Supply Market Analysis 2

3. Telephone pre-screening 1

4. Develop RFI/RFQ 1

5. Administer RFI/RFQ 4

6. Analyze RFI/RFQ Responses 2

1. Schedule

Not started Done

In process Delay

Phase 1 (Supplier pre-qualification): 8 weeks

1 RFI/RFQ Approved

Shortlist for

Audit Agreed

2

6© 2015 Dragon Sourcing. All rights reserved.

Page 7: How to source global promotional products in emerging market?

1. Introduction

2. Annual Spend & Category Demand Analysis

3. Supply Base Response

4. Quotation Analysis

5. Supplier Recommendation

6. Project Summary

7

Agenda

© 2015 Dragon Sourcing. All rights reserved.

Page 8: How to source global promotional products in emerging market?

1.3

0.1

0.5

3

1

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

T-shirts, Polo Shirts Apron & Table Cloth Hats

Textile Parasol & Umbrella Shrink & Stretch Film

M U

SD

Sub-Category

Annual Spend per Sub-Category

2. Spend AnalysisTotal annual spend for 3 categories (5 sub-categories) is over USD 6 Million.

.

8

Total Annual spend analysis

© 2015 Dragon Sourcing. All rights reserved.

1.9

3

1

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Textile Parasol &Umbrella

Shrink and StretchFilm

M U

SD

Category

Annual Spend per Category

Page 9: How to source global promotional products in emerging market?

© 2015 Dragon Sourcing. All rights reserved.

Category: Textile

Sub-category: T-shirts, Polo shirts, Shirts

Product Specification

Product description T- shirts,

Polo Shirts,

Shirts

Material T-shirts:

100% cotton

95% Cotton / 5% Lycra

50%/25%/25% poly/cotton/rayon

65%/35% poly/cotton - 140gsm

POLO Shirts:

180 GSM/m2 Combed Cotton Single Jersey

95 % Combed Cotton Single jersey / 5 % Elastan

100% Micro Polyester 145 g/m2 (7 oz/linear yd).

Shirts:

35% Cotton 65% Polyester

Packing & Packaging Information

Packaging Description: Each item must be rolled and poly bagged

Each item must be packed separately in PVC plastic bag.

Number of pieces in a

20'container

19,800 pcs / 15,840 pcs …etc.

Number of pieces in a

40'container

41,400 pcs / 33,120 pcs …etc.

Product Picture

T-shirts

POLO Shirts

Shirts

Page 10: How to source global promotional products in emerging market?

© 2015 Dragon Sourcing. All rights reserved.

Category: Textile

Sub-category: Apron & Table Cloth

Product Specification

Product description Apron – Medium

Apron – Short

Table Cloth Big

Table Cloth Small

Material 100% cotton 240gsm

100% cotton; 180 g/m2,

Packing & Packaging Information

Packaging Description: Each item must be rolled and poly bagged

Each item must be packed separately in PVC plastic bag.

Number of pieces in a

20'container

26,400 pcs for Apron Medium

28,800 pcs for Apron Short

17,600 pcs for Table Cloth Big

158,400 pcs for Table Cloth Small

Number of pieces in a

40'container

55,200 pcs for Apron Medium

72,000 pcs for Apron Short

36,800 pcs for Table Cloth Big

331,200 pcs for Table Cloth Small

Product Picture

Apron Medium Apron Short

Table Cloth Big ( 140 x 140 cm)

Table Cloth Small ( 40 x 40 cm)

Page 11: How to source global promotional products in emerging market?

© 2015 Dragon Sourcing. All rights reserved.

Category: Textile

Sub-category: Hats

Product Specification

Product description

Flex fit hat

Cowboy hat

Material Flex Fit Hat:

97% Cotton & 3% Spandex for Flex fit hats

Cowboy hat:

Raffia Straw & Paper Straw for Cowboy hats

Packing & Packaging Information

Packaging Description: 24 pcs per polybag for Flex fit hats

50 units per sleeve, 150 units per carton for Cowboy

hats

Number of pieces in a

20'container

32,000 pcs for Flex fit hats

6,400 pcs for Cowboy hats

Number of pieces in a

40'container

72,000 pcs for Flex fit hats

14,400 pcs for Cowboy hats

Product Picture

Flex Fit Hat

Cowboy Hat

Page 12: How to source global promotional products in emerging market?

© 2015 Dragon Sourcing. All rights reserved.

Category: Parasol & Umbrella

Product Specification

Product description 1.8m Round Parasol,

Plastic Base for 1.8m Umbrella,

3.5 m double roof Telescopic,

3.5 m strong Telescopic,

Concrete Stone Base,

Concrete Base frame

Concrete Base for parasol 3,5 m

Umbrella Wood

Umbrella Steel

Material Frame: Steel, Aluminum, Wood.

Cover: Polyester Cloth ( 165 GRM/M2)

Packing & Packaging Information

Packaging Description: Bagging: packed in individual polybag and per box

Number of pieces in a

20'container

2,640 pcs for 1.8m parasol

81 pcs for 3.5m parasol

784 pcs for Umbrella Steel

480 pcs for Umbrella Wood

Number of pieces in a

40'container

2,880 pcs for 1.8m parasol

243 pcs for 3.5m parasol

1,764 pcs for Umbrella Steel

1,080 pcs for Umbrella Wood

Product Picture

Parasol, Umbrella & Bases

Page 13: How to source global promotional products in emerging market?

© 2015 Dragon Sourcing. All rights reserved.

Category: Shrink and Stretch Film

Product Specification

Product description Pallet Stretch Fim E41 23 MU

Unprinted Shrink Film

Material Polyethylene , virgin material.

Approximately 80 % Low Density and 20% Linear

Low Density Polyethylene. The combined density will

be in the range 0.920 – 0.930 kgm-3.

Other specifications Clear film in rolls with cling layer inside

Shrink Film to be centrally wound onto a standard

76mm core without significant edge wander and with

sufficient tension to prevent telescoping.

Optical clarity to be a minimum of Class 2 clarity as

per PIFA standard.

Packing & Packaging Information

Packaging Description: Reel diameter: 500 mm Maximum

Pallet type: 1000 mm x 1200 mm Bule GKN Pallets

Number of pieces in a

20'container

4,000 Kgs for Stretch Film

5,600 Kgs for Shrink Film

Number of pieces in a

40'container

9,000 Kgs for Stretch Film

12,600 Kgs for Shrink Film

Product Picture

Pallet Stretch Film

Unprinted Shrink Film

Page 14: How to source global promotional products in emerging market?

1. Introduction

2. Annual Spend & Category Demand Analysis

3. Supply Base Response

4. Quotation Analysis

5. Supplier Recommendation

6. Summary

14

Agenda

© 2015 Dragon Sourcing. All rights reserved.

Page 15: How to source global promotional products in emerging market?

358

196

48 14

284

150

4112

231

134

40

7

203

93

17

4

295

128

31

80

500

1,000

1,500

No. of suppliers identified andcalled

No. of suppliers passed phonescreening & included in

RFI/RFQ process

No. of RFI/RFQ responsesreceived

No. of suppliers recommendedfor audit and sampling

# o

f su

pp

lier

T-shirts, Polo Shirts, Shirts Apron & Table Cloth Hats Parasol & Umbrella Shrink and Stretch Film

3. Supply Base Response1,371 suppliers in 6 countries were identified leading to 45 suppliers recommended for audit and sampling.

Supply Base Response chart

1,371

15

701

© 2015 Dragon Sourcing. All rights reserved.

177

45

Page 16: How to source global promotional products in emerging market?

3. Supplier Geographic Distribution

16

56

23

5

73

4

© 2015 Dragon Sourcing. All rights reserved.

8

13

35

50

Category: Textile – T-shirts, Polo Shirts, Shirts

358 suppliers in 5 countries were identified

Category: Textile – Apron & Table Cloth

284 suppliers in 5 countries were identified

20

62

Category: Textile – Hats

231 suppliers in 5 countries were identified

29

37

9

Category: Parasol & Umbrella

203 suppliers in 4 countries were identified

Category: Shrink & Stretch Film

295 suppliers in 5 countries were identified

Page 17: How to source global promotional products in emerging market?

1. Introduction

2. Annual Spend & Category Demand Analysis

3. Supply Base Response

4. Quotation Analysis

5. Supplier Recommendation

6. Project Summary

17

Agenda

© 2015 Dragon Sourcing. All rights reserved.

Page 18: How to source global promotional products in emerging market?

18

4. Quotation Analysis: DDP Price Calculation Methodology

FOB Price (supplier) Freight forwarding, customs & duties

DDP Price

+Cargo Marine Insurance

FOB Price

Sea Freight

+

+Import Duty

Local charges

+

Inland Truck

Transportation

cost+ DDP Price=

+

DDP prices to 11 destination countries.

1) Sea Freight: (Sea Freight cost received from DS forwarder on July 22nd, 2015, valid until July 31st 2015)

2) Local charges and Inland truck transportation cost: (Received from DS forwarder on July 22nd, 2015, valid until July 31st 2015)

3) Import duty rate was searched in different government websites:

© 2015 Dragon Sourcing. All rights reserved.

Page 19: How to source global promotional products in emerging market?

4 Quotation Analysis: Pallet requirementLoading quantity was calculated based on below pallet requirement.

19

Country Pallet size Pallet Packing Height Limit Max. pallet total weight

Country 1

1200 mm x 800 mm 120 cm 350 kg

Country 2

Country 3

Country 4

Country 5

Country 6

Country 7

Country 8

Country 9

Country 10

1200 mm x 1000 mm,

4-Way Entry,

full perimeter base.

120 cm 350 kg

Country 11 48” x 40” x 52” 52” 2200 Ib / pallet

© 2015 Dragon Sourcing. All rights reserved.

Page 20: How to source global promotional products in emerging market?

4. Quotation Analysis: Logistic costs

20

China India Bangladesh Vietnam Turkey

20' 40' 20' 40' 20' 40' 20' 40' 20' 40'

Destination

Country

CIF -

FOB

DAP -

CIF

CIF -

FOB

DAP -

CIF

CIF -

FOB

DAP -

CIF

CIF -

FOB

DAP -

CIF

CIF -

FOB

DAP -

CIF

CIF -

FOB

DAP -

CIF

CIF -

FOB

DAP -

CIF

CIF -

FOB

DAP -

CIF

CIF -

FOB

DAP -

CIF

CIF -

FOB

DAP -

CIF

Country 1 750 1,350 1,400 1,350 800 1,350 1,200 1,350 1,700 1,350 2,500 1,350 700 1,350 1,250 1,350 2,750 3,350

Country 2 950 1,350 1,450 1,450 925 1,350 1,425 1,450 1,400 1,350 2,200 1,450 700 1,350 1,250 1,450 2,000 2,750

Country 3 750 850 1,400 850 800 850 1,200 850 1,500 850 2,200 850 700 850 1,250 850 2,750 3,350

Country 4 750 1,100 1400 1,200 600 1,100 1,050 1,200 1,300 1,100 2,000 1,200 750 1,100 1,200 1,200 714 1,100 844 1,200

Country 5 750 1,750 1,400 1,750 600 1,750 1,000 1,750 1,300 1,750 2,000 1,750 750 1,750 1,250 1,750 2,750 3,350

Country 6 850 950 1,600 950 810 950 1,213 950 1,700 950 2,500 950 700 950 1,200 950 2,750 3,350

Country 7 650 1,100 1,300 1,150 750 1,100 1,325 1,150 1,500 1,100 2,200 1,150 700 1,100 1,150 1,150 2,000 2,750

Country 8 750 1,450 1,400 1,450 800 1,450 1,200 1,450 1,600 1,450 2,300 1,450 700 1,450 1,250 1,450 2,000 2,750

Country 9 750 1,250 1400 1,500 600 1,250 1,000 1,500 1,300 1,250 2,000 1,500 750 1,250 1,250 1,500 720 1,250 850 1,500

Country 10 1,200 1,500 1,630 1,550 600 1,500 1,000 1,550 1,500 1,500 2,200 1,550 450 1,500 900 1,550 725 1,500 875 1,550

Country 11 3,560 655 4,320 705 3,130 655 4,250 705 3,700 655 4,600 705 3,200 655 3,600 705 2,850 655 3,600 705

© 2015 Dragon Sourcing. All rights reserved.

Page 21: How to source global promotional products in emerging market?

4. Quotation Analysis: Import Duty Rates of Textile

21

Country of Destination

# Product Name Country of Origin Country 1 Country 2 Country 3 Country 4 Country 5 Country 6 Country 7 Country 8 Country 9 Country 10 Country 11

1 T-Shirt

China 15% 10% 22% 12% 12% 18%

India 15% 10% 22% 9.6% 9.6% 18%

Bangladesh 15% 10% 22% 0% 0% 0%

Vietnam 15% 10% 22% 9.6% 9.6% 18%

Turkey 15% 10% 22% 0% 0% 18%

2 Polo Shirt

China 15% 12% 12% 12% 12% 18%

India 15% 9.6% 9.6% 9.6% 9.6% 18%

Bangladesh 15% 0% 0% 0% 0% 0%

Vietnam 15% 9.6% 9.6% 9.6% 9.6% 18%

Turkey 15% 0% 0% 0% 0% 18%

3 Shirts

China 15% 12% 12% 12% 12% 10% 12% 22% 12% 12%

India 15% 9.6% 9.6% 9.6% 9.6% 10% 9.6% 22% 9.6% 9.6%

Bangladesh 15% 0% 0% 0% 0% 10% 0% 22% 0% 0%

Vietnam 15% 9.6% 9.6% 9.6% 9.6% 10% 9.6% 22% 9.6% 9.6%

Turkey 15% 0% 0% 0% 0% 10% 0% 22% 0% 0%

4 Apron

China 15% 12% 12% 12% 12% 22% 12% 12%

India 15% 9.6% 9.6% 9.6% 9.6% 22% 9.6% 9.6%

Bangladesh 15% 0% 0% 0% 0% 22% 0% 0%

Vietnam 15% 9.6% 9.6% 9.6% 9.6% 22% 9.6% 9.6%

Turkey 15% 0% 0% 0% 0% 22% 0% 0%

5 Table Cloth

China 12% 12%

India 9.6% 9.6%

Bangladesh 0% 0%

Vietnam 9.6% 9.6%

Turkey 0% 0%

6 Flexi Fit Hat

China 0%

India 0%

Bangladesh 0%

Vietnam 0%

Turkey 0%

7 Cowboy Hat

China 0%

India 0%

Bangladesh 0%

Vietnam 0%

Turkey 0%

© 2015 Dragon Sourcing. All rights reserved.

Page 22: How to source global promotional products in emerging market?

22

4. Quotation Analysis: Potential Saving SummaryPotential savings for Textile and Parasols are exceeding 30% .

© 2015 Dragon Sourcing. All rights reserved.

Category Sub-category2015 Annual Spend

(in USD)

Max. savings of

recommended supplier

(in USD)

Min. savings of

recommended supplier

(in USD)

Max. saving % Min. saving %

Textile

T-shirts, Polo Shirts 1.3 M 520 K 260 K 40% 20%

Shirts No annual quantity data available, therefore can't quantify saving values.Out of 7, 5 recommended supplier with savings over

20%, up to 75%.

Apron & Table Cloth 0.1 M 35 K 15 K 35% 15%

Flex Fit Hat 0.1 M 30 K 12 K 30% 12%

Straw Cowboy Hat 0.4 M No potential saving

Parasol & Umbrella Parasol & Umbrella 3 M 900 K 60 K 30% 2%

Shrink and Stretch

Film

Pallet Stretch Film 0.3 M 48 K 9 K 16% 3%

Unprinted Shrink Film 0.7 M Savings calculations more difficult because of index pricing

Page 23: How to source global promotional products in emerging market?

23© 2015 Dragon Sourcing. All rights reserved.

4. Quotation Analysis: Savings Analysis Example

Sub-category: T-shirts & Polo Shirts

Page 24: How to source global promotional products in emerging market?

1. Introduction

2. Annual Spend & Category Demand Analysis

3. Supply Base Response

4. Quotation Analysis

5. Supplier Recommendations

6. Summary

24

Agenda

© 2015 Dragon Sourcing. All rights reserved.

Page 25: How to source global promotional products in emerging market?

79

73 71 69 66

63 63 61 61 60

85 83

76 75 74 74 72 70

68 67 67 66 65 64 63 63

74 73

67 65 64 64 61 59 58 57

50 47

39 37

64

34

14

10

0

10

20

30

40

50

60

70

80

90

100

Sup

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r 2

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Sup

plie

r 2

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Bangladesh China India Turkey Vietnam

RFI

Sco

re

T-shirts / Polo Shirts / Shirts - Supplier RFI Scorecard summary

Quality Control Management & Certifications Production Capability RFQ Completeness Cooperation Willingness Company Background

25

5. RFI Scorecard and Ranking SummarySub-category: T – Shirts, Polo Shirts, Shirts

Recommended for audit and sampling

© 2015 Dragon Sourcing. All rights reserved.

Page 26: How to source global promotional products in emerging market?

26

5. Supplier RecommendationSub-category: T – Shirts, Polo Shirts, Shirts

No.Country of

OriginSupplier name RFI Score

# of items quoted

# of items with potential

savings

Potential Saving in USD

Reason for recommending

1 Bangladesh Supplier 25 73 11 7 398 K

• Competitive price & top 2nd RFI scoring among Bangladesh suppliers.

• 100% Export oriented unit with 30% export to Europe & 5% to Canada.

• Leading international experience like US polo and C&A etc.

• All production step in-house, Knitting to packing

• Certified with Oekotex, BSCI, Wrap and Gots.

2 Bangladesh Supplier 23 71 9 7 450 K

• Competitive price & top 3rd RFI scoring among Bangladesh suppliers.

• 100% export oriented with 90% to Europe & 5% to Canada.

• Leading international experience like Espirit and H&M.

• With all production steps in-house Knitting ,Dyeing ,Sewing &Finishing.

• Certified with Oekotex, BSCI and Gots.

3 Bangladesh Supplier 22 63 9 9 479 K

• Competitive price

• Good Industry experience of 16 Years & Export experience of 16 Years.

• 100% export oriented unit 80% of the sale is for exports to Europe

• All production step in-house.

4 Bangladesh Supplier 20 61 11 10 520 K• Highest potential savings.

• 100% Export oriented unit with 10% export to Europe & 80% to Canada.

• Can offer multiple items, Garments as well Apron and Table Cloth.

5 Bangladesh Supplier 21 60 9 9 507 K

• Competitive price.

• Industry experience of 14Years & Export experience of 14 Years.

• 100% export oriented with 80% of exports to Europe.

• With all production steps in-house.

• Certified with Oekotex &BSCI

6 India Supplier 32 73.54 11 4 260 K

• Competitive price & top RFI scoring among Indian suppliers.

• Very Rich Industry & Export experience, 60 years old Company.

• All production step in-house, cutting, sewing, embroidery, printing, finish/pack.

• 85% of the sale is for exports to Europe

• Can offer multiple items, Garments as well Apron and Table Cloth.

• Certified with ISO 9001, ISO 140001 & Product certification with Oekotex and Gots.

7 India Supplier 31 70.05 11 9 314 K

• Competitive price & top 3 RFI scoring among Indian suppliers.

• Over 10 years Industry & Export experience.

• 100% Export oriented unit with 80% export to Europe & 20% to Canada.

• Can offer multiple items, Garments as well Apron and Table Cloth.

• Good production capacity 125,000 pcs per month only for T-shirts.

8 India Supplier 30 65.28 9 4 352 K

• Competitive price.

• Rich experience in the industry with over two decades.

• 95% of the sales is export with 30% to Europe & 20% to Canada.

• Good production capacity 900,000 pcs per month only for T-shirts.

© 2015 Dragon Sourcing. All rights reserved.

Page 27: How to source global promotional products in emerging market?

27

5. Supplier RecommendationSub-category: T – Shirts, Polo Shirts, Shirts

No.Country of

OriginSupplier name RFI Score

# of items quoted

# of items with potential

savings

Potential Saving in USD

Reason for recommending

9 China Supplier 1 66 11 9 493 K

• Competitive price. Have quoted all 9 items, 7 items with potential savings.

• Highest total saving value 498 K USD among all suppliers.

• 30% export to EU & CA,

• SGS & AQF test certified.

10 China Supplier 2 70 11 11 491 K

• Competitive price. Have quoted 7 items, 9 items with potential savings.

• Total saving value 495 K USD, ranked number 2 among all suppliers.

• 6 years production experience in the industry, Produced the similar T-shirt & Polo before.

• Over 90% export to EU & US & CA,.

• All production steps are in house.

• BSCI certified.

11 China Supplier 3 65 9 6 437 K

• Competitive price. Have quoted 9 items, 6 items with potential savings.

• Total saving value 437K USD,

• 8 years production experience in the industry, Produced the similar T-shirt & Polo before.

• Over 90% export to EU & US & CA,.

• All production steps are in house.

• BSCI & BV certified.

12 China Supplier 4 74 11 11 423 K

• Competitive price. Have quoted 7 items, 9 items with potential savings.

• Total saving value 427K USD, ranked number 5 in RFI scorecard,

• Over 80% export to EU & US & CA,.

• All production steps are in house.

• BV certified.

13 China Supplier 5 76 11 8 413 K

• Competitive price. Have quoted 9 items, 7 items with potential savings.

• 16 years production experience in the industry, Produced the similar T-shirt & Polo

before.

• Ranked number 3 in RFIRFQ scorecard.

14 China Supplier 6 68 11 11 403 K• Competitive price. Have quoted 9 items, 9 items with potential savings.

• Over 60% export to EU & US & CA,.

• BSCI certified.

© 2015 Dragon Sourcing. All rights reserved.

Page 28: How to source global promotional products in emerging market?

© 2015 Dragon Sourcing. All rights reserved. 28

Supplier Profile: T-Shirts, Polo Shirts & Shirts

RFI/RFQ rank: 1

Score: 85

COMPANY BACKGROUND

Year Founded 2003

Ownership

(State Owned/ Private/ Foreign Invested)Private

Business Type: Manufacturer, or trader ? Manufacturer and Trader

Registered Capital (in US$) 2,000,000

Export License ? (Y/N) Y

Able to export to EU or Canada ? (Y/N) Y

Export Experience (in Years) 10

Work Floor Size ( Square meters) 16,000

Total Employee Number 400

No. of English speaker and writer 10

Main products Cotton cloths, Jacket, Sports wear, T shirt, Hoodie

CORPORATE SOCIAL RESPONSIBILITY

Declare to adhere to all rules and regulations in respect to child labor? (Y/N) Y

Working hours specified in the employment contract? (Y/N) Y

Declare to adhere to all rules and regulations in respect to environmental issues? (Y/N) Y

Declare to adhere to all rules and regulations in respect to health and safety issues? (Y/N) Y

Declare able to comply with Molson Coors supplier standard (Social compliance). (Y/N) Y

HUMAN RESOURCES

Factory WorkersQuality Control

staffMold designer

Sample making

staff

Sales &

Management and

Other staff

Employee No. 380 15 2 8 45

6

COMPANY INFORMATION

Company Name

Factory Address

City

Province

Country

Company Website

CONTACT PERSON INFORMATION

Contact Person

Title

Email Address

Telephone Number

Mobile Number

ANNUAL TURNOVER

2015 Forecast 2014 2013

Total Sales Turnover (in M USD) 25 22.3 21.5

MAIN MARKET

Europe (%) Canada (%) US (%) Asia (%)Rest of the world

(%)

% of Sales 20 5 50 10 15

TOP 3 CUSTOMER

Customer Name Industry Country % of Sales Type of Product

Top 3

Customers

Southpole Cloths USA 30 Knitwear

Cintas Uniform USA 20 Uniform

Bodyshape Sports wear Germany 10 Sports wear

Page 29: How to source global promotional products in emerging market?

© 2015 Dragon Sourcing. All rights reserved. 29

Supplier Profile: T-Shirts, Polo Shirts & Shirts

PRODUCTION CAPABILITY

Able to

Produce

(Y/N)

Manufacturer In-

house or

outsourcing?

Production

experience

(years)

Monthly Production

Capacity

(Pcs / Month)

Actual annual

production in

2014

(Pcs / year)

Briefly specify the production process

All production

steps are

In-house?

(Y/N)

Which production steps are

outsourcing?

T-shirt Man / Woman Y In-house Over 10 years 1,000,000 800,000 cuting-printing-sewing -ironing-packing Yes 3

Polo Shirt Man / Woman YIn-house Over 10 years

8,000,000 700,000 cuting-printing-sewing -ironing-packing Yes 3

Shirt Man / Woman YIn-house Over 10 years

8000000 700,000 cuting-printing-sewing -ironing-packing Yes 3

Apron YIn-house Over 10 years

1,200,000 1,000,000 cuting-printing-sewing -ironing-packing yes 3

Table Cloth N

Beach Towel N

Flex Fit HatN

Cowboy Hat N

DESIGN CAPABILITY & PRODUCTION CUT OFF PERIOD

Have design capability in-house, able to propose a design based on client brief. (Y/N) Y

Have prototyping / sample production capability in-house (Y/N) Y

Production cut off period for Chinese New Year. (From which date to which date) Around 20days

Order cut-off date for order to be shipped before Chinese new year. (Date) TBD

RFI/RFQ rank: 1

Score: 85

Page 30: How to source global promotional products in emerging market?

© 2015 Dragon Sourcing. All rights reserved. 30

Supplier Profile: T-Shirts, Polo Shirts & Shirts

PRODUCTION EQUIPMENT

Equipment name Quantity Brand / TypeUsage of the

Equipment

Overlock machine Sewing

Plain stitch Pressing

Five wire machine Sewing

Yarn machine(four pin six

line)Pressing

Cutting off Car Edgefolding

Flat eyed machine

CERTIFICATIONS

Certificate Y/NDate of

Certificate

Date of

Expire

Certificate

number.

Certifying

Organization

ISO 9001:2008

Quality management systemsY 3/11/2014 3/10/2017

0070014Q10

651R0S

ZhongJian

Certification

Co.Ltd

ISO 14001

Environmental management systemsN

SA 8000 N

Euro 1 Certificate N

QUALITY CONTROL MANAGEMENT

Able to comply AQL Standard: Critical 0, Major 1.0, Minor 2.5 (Y/N) Y

Able to comply AQL Standard: Critical 0, Major 2.5, Minor 4.0 (Y/N) Y

General Production Defective Rate (% rejected)? 0.9

Time to keep QC records? (in Month) 96

Accept 3rd party QC? (Y/N) Y

Have product recall system in place (Y/N) N

Customer Satisfaction Survey in place (Y/N) Y

Internal rule regarding maximum reaction time of quality claim (hours) 48hrs

PRODUCT CERTIFICATIONS

Product Certificate Y/NDate of

Certificate

Date of

Expire

Certificate

number.

Certifying

Organization

N

N

N

N

RFI/RFQ rank: 1

Score: 85

Page 31: How to source global promotional products in emerging market?

© 2015 Dragon Sourcing. All rights reserved. 31

Supplier Profile: T-Shirts, Polo Shirts & Shirts

FACTORY PHOTOS

Factory Overview Office R&D room

Workshop Workshop Warehouse

Machinery Machinery Showroom

RFI/RFQ rank: 1

Score: 85

Page 32: How to source global promotional products in emerging market?

1. Introduction

2. Annual Spend & Category Demand Analysis

3. Supply Base Response

4. Quotation Analysis

5. Supplier Recommendations

6. Summary

32

Agenda

© 2015 Dragon Sourcing. All rights reserved.

Page 33: How to source global promotional products in emerging market?

6. Summary: 45 suppliers to be audited from 1371 suppliers identified

33© 2015 Dragon Sourcing. All rights reserved.

ChinaSourcing

Indiasourcing

Bangladeshsourcing

Vietnamsourcing

Turkeysourcing

Thailandsourcing

6 CountriesIn Total

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1T-shirts, Polo Shirts, Shirts

131 72 19 6 75 58 14 3 73 37 10 5 56 20 4 0 23 9 1 0 358 196 48 14

2Table Cloth &

Apron157 82 17 5 64 43 16 5 35 12 5 2 20 10 2 0 8 3 1 0 284 150 41 12

3 Hats 105 73 31 6 41 17 1 0 35 14 3 1 30 24 4 0 20 6 1 0 231 134 40 7

4Parasol & Umbrella

124 59 18 13 32 16 5 1 30 10 3 1 17 8 5 1 203 93 17 4

5Shrink &

Stretch Film130 43 12 0 70 42 9 3 31 14 3 0 37 17 3 3 27 12 4 2 295 128 31 8

5 Sub - categories In Total

647 329 97 30 282 176 45 12 143 63 18 8 167 78 16 1 105 43 11 4 27 12 4 3 1371 701 177 45