identify new potential competitive suppliers for sourcing of roll container

Roll ContainerCase Study

Dragon Sourcing - 龙源Delivering sustainable sourcing value from emerging markets

2

1. Objectives

2. Product specifications

3. Approach

4. FOB prices

5. DDP prices

© 2017 Dragon Sourcing. All rights reserved.

Agenda


Objectives and approach

Context

Objectives:

• Identify new potential competitive suppliers.

Categories:

• Roll Container

Geographical scope:

• China, India, Thailand, Poland, Slovenia, Turkey and Italy

Deliverables:

• Supplier database

• RFI-RFQ template

• RFI-RFQ analysis report

• Supplier Profiles and recommended suppliers for Client to audit

DS Approach consists in the following work steps:

1. Demand Analysis: Work with the Company to define and understand

the products and requirements (specs, volumes, materials, production

technology requirements)

2. Supply Market 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.

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)

4. Administer the NDA: NDA template authorized by Vossloh that will

be distributed to the suppliers who is willing to attend the RFI-RFQ

5. 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.

6. 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.

7. 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.

3

4

1. Objectives


3. Approach

4. FOB prices

5. DDP prices


Agenda


Roll Container Specification

Product Name CC-ROLL CONTAINER Product Picture

Weight 30.5kg

Carrying Capacity 500kg UDL

Steel Quality hot-rolled, pickled material in quality

Coatinghot dip galvanized, thickness of zinc according to

DS/ISO 1461 class C.

Annual Volume 10,000 units

Annual Purchasing Spend 690,000 EURO

Dimension

HS code dedicated to customs

clearance871680000000H

Customs rate (based on CIF value) 1.7%

6

1. Objectives


3. Approach

4. FOB prices

5. DDP prices


Agenda


12

3 3

22

18

7

1st Supplier List Selected Supplier for RFQ Collected Quotation

Wire Shelving Supplier Roll Container Supplier

Since wire shelving and roll container are in the same industrial field, we used

our current screened wire shelving database, plus identified 22 additional roll

container suppliers for this project and collected 10 FOB quotations

Selection of

potential suppliers

Pre-selected

suppliers

Sending & follow

up of the RFQ

Analysis of the

suppliers’ offer

Total 10 suppliers’

quotation received

Criteria

Products category

Export experienceReasons for not responding to the RFQ

No ressources available

No manufacturing capabilities

No interest for this project

34 suppliers

21 suppliers


Shanghai

Gansu

Jiangxi

Zhejiang: 1 supplier

Jiangsu: 4 suppliers

Guangxi

Hunan

Hubei

Ningxia

Shaanxi

Anhui

Fujian

Neimongu

ShanxiShandong

Sichuan

Yunan

Guizhou

Henan

Jilin

Liaoning

Hebei

Guangdong: 1 supplier

Gansu

Heilongjiang

SHANGHAI: 4 suppliers

HONG KONG

BEIJING

The pre-selected suppliers are mainly located in the Jiangsu province (4) and

Shanghai (4), the remaining ones are in Guangdong (1) and Zhejiang (1)

Supplier name Province City

1 Jiangsu Changshu

2 Jiangsu Changshu

3 Shanghai Shanghai

4 Shanghai Shanghai

5 Guangdong Shenzhen

6 Jiangsu Suzhou

7 Zhejiang Yiwu

8 Shanghai Shanghai

9 Shanghai Shanghai

10 Jiangsu Suzhou

9

1. Objectives


3. Approach

4. FOB prices

5. DDP prices


Agenda


Synthesis of the collected quotations: FOB EURO price per units

Supplier Name Province City FOB Price in US$ per Unit FOB Price in EURO per Unit

1 Jiangsu Changshu US$82.00 € 64.79

2 Jiangsu Changshu US$67.50 € 53.33

3 Shanghai Shanghai US$66.88 € 52.84


5 Guangdong Shenzhen US$95.00 € 75.06

6 Jiangsu Suzhou US$53.75 € 42.47

7 Zhejiang Yiwu US$37.50 € 29.63



10 Jiangsu Suzhou US$80.75 € 63.80

Average US$63.86 € 50.86


Synthesis of the collected quotations: FOB EURO price per units

Wire Shelving pre-selected suppliers

Already visited plant and audited by DS

Provided samples for the wire shelving project

Pre-selected Suppliers

12

1. Objectives


3. Approach

4. FOB prices

5. DDP prices


Agenda


The DDP price is calculated by adding to the FOB price, the transportation costs, the

customs duties, the CIF ROTTERDAM value and the inland transportation (Holland)

EXW

Pric

e

Loading on container on

manufacturing site

Container transportation

to Port

Export documents

expenses, transporation

& other taxes

Handling & loading of

the container on the

vessel

Loading cost on

truck

Transportation

cost to final

destination

Fuel taxes

Port handling cost

Port taxes

Customs clearance

fees

Sea freight from

Shanghai (China) to

Le Havre (France)

Additional fees (BAF

& CAF)

Insurance cost based

on the FOB value,

plus the

transportation cost

DDP

Pric

e

FOB

Price

Logistics flow from FOB CHINA port to DDP ZAANDAM (THE NETHERLANDS)Suppliers’ quotation


Roll Container Packing Information

Product Name CC-ROLL CONTAINER

Number of pieces per box 1

Carton box size LxDxW (mm) 1800*200*850

Pallet size (mm) 1100*850

Number of pieces in a 20' container with

pallet (approximate)100

Number of pieces in a 40' container with

pallet (approximate)200

HS code dedicated to customs clearance 871680000000H

Customs rate (based on CIF value) 1.7%


Logistics cost from FOB CHINA (Port) to DDP ZANDAAM storage (HOLLAND)

Description of the different logistics operations from FOB CHINA Port to ZAANDAM

warehouse (HOLLAND)

Container 20’

Sea freight cost from FOB SHANGHAI to CIF ROTTERDAM (HOLLAND) €735

BAF cost (Bunker Adjustment Fee) €240

CAF tax (Currency Adjustment Fee) 6.10% to apply on the freight cost of a container €44

Administrative, Handling & Security charges at the Port of Origin (CHINA) €84

Total freight cost from FOB SHANGHAI to CFR ROTTERDAM (FRANCE) €1,103

Handling fees & administrative costs at the container arrival at ROTTERDAM (HOLLAND)

International Ship & Port Facility Security Surcharge €15

Documentation Fee & Administrative cost at Destination €40

ROTTERDAM Terminal Handling Charge €138

Total cost of the port & administrative taxes at ROTTERDAM Port (HOLLAND) €193

Freight cost from ROTTERDAM to ZANDAAM (storage) €270

Total transportation from FOB CHINA Port to ZANDAAM (storage) €1,566

Quantity of Roll Container per container (in units) 100


Synthesis of the collected quotations: DDP ZAANDAM EURO price, based on

20’ container freight cost

Supplier ProvinceCity

US$ FOB

price / unit

EURO FOB

price / unit

Freight cost based on

a 20’ container / unit

CIF price Customs duties

based on CIF value

Inland

transport

DDP unit

price

1 Jiangsu Changshu US$82.00 €64.79 €11.03 €75.82 €1.29 €4.63 €81.74

2 Jiangsu Changshu US$67.50 €53.33 €11.03 €64.36 €1.10 €4.63 €70.09

3 Shanghai Shanghai US$66.88 €52.84 €11.03 €63.87 €1.09 €4.63 €69.59


5 Guangdong Shenzhen US$95.00 €75.06 €11.03 €86.09 €1.46 €4.63 €92.18

6 Jiangsu Suzhou US$53.75 €42.47 €11.03 €53.50 €0.91 €4.63 €59.04

7 Zhejiang Yiwu US$37.50 €29.63 €11.03 €40.66 €0.69 €4.63 €45.98



10 Jiangsu Suzhou US$80.75 €63.80 €11.03 €74.83 €1.27 €4.63 €80.73

Average US$63.86 €50.46 €11.03 €61.49 €1.04 €4.63 €67.16

Current price €4.63 €69.00

1 US$ = 0.7901 Euro dated September 11th 2006

Quotation from pre-selected wire shelving suppliers Quotation lower than current AHOLD DDP price


Synthesis of the collected quotations: DDP ZAANDAM EURO price, based on 20’

container freight cost

identify new potential competitive suppliers for sourcing of roll container

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