Injection Moulded Products Sourcing In China - Case study


Debradin

Uploaded on Jul 18, 2025

Category Business

Injection Moulded Products Sourcing In China.

Category Business

Comments

                     

Injection Moulded Products Sourcing In China - Case study

Dragon Sourcing - 龙 龙 - Your Tailored Sourcing Approach to LCC Sourcing Injection Moulded Products Sourcing In China Case Study https://www.dragonsourcing.com Agenda 1. Objectives and approach 2. Project planning 3. Demand analysis 4. Progress Review 5. RFI Score and Ranking Summary 6. RFQ Summary 7. Supplier Recommendation © 2024 Dragon Sourcing. All rights reserved. 2 Objectives & Approach Context DS Approach consists in the following work steps: Objectives: 1. Demand Analysis: Work with the Clientto define and understand the products and requirements (specs, capacity, materials, production technology, quality • To carry out sourcing services for Plastic and Silicon Injection testing, certificates, etc.) Moulded Products 2. Supply Market Analysis: Identify list of potential suppliers in China by leveraging B2B Websites, DS Database, Fair catalogues, Chamber of Commerce, Magazines, Network, References. Geographical scope: 3. Telephone Pre-screening: Selection of suppliers to be included in the RFI- • China RFQ process by telephone pre-screening based on agreed simple criteria (e.g. capability to make the product, minimum company size, quality certifications, interest in participating) 4. Administer the NDA: provided by Client with supplier pass the phone screening. Deliverables: 5. Develop RFI-RFQ: Prepare an RFI-RFQ document, with an aligned Balanced Scorecard that has the objective to pre-qualify the competitiveness and • Supplier database capabilities of the suppliers, including: Background, Financials, Client • RFI-RFQ template references and Product experience, Quality certification & processes, Social • RFI-RFQ analysis report Responsibility, Manufacturing/technology capability, R&D capability. • Supplier profiles and ranking 6. Administer RFI-RFQ: The RFI-RFQ is distributed to the suppliers who signed the NDA, with telephone follow-up to push for maximum participation. 7. Analyze RFI/RFQ responses: Develop with Client a balance score card to evaluate suppliers and analyze the RFI-RFQ. Prepare the final report which profiles & objectively ranks the suppliers by capability, including a recommendation for those to be audited. 8. Suppliers pre-audits (optional): Carry pre-audits of recommended suppliers in order to identify those to have you audit and take through the negotiation stage . © 2024 Dragon Sourcing. All rights reserved. 3 Agenda 1. Objectives and approach 2. Project planning 3. Demand analysis 4. Progress Review 5. RFI Score and Ranking Summary 6. RFQ Summary 7. Supplier Recommendation © 2024 Dragon Sourcing. All rights reserved. 4 The project until step 7 will last about 8 working weeks. A weekly report will be sent every Friday, not excluding direct communication as needed. Steps In Charge W1 W2 W3 W4 W5 W6 W7 W8 1. Demand Analysis Client / DS             2. Supply Market Analysis DS         Questions to     be validated 3. Telephone Pre-screening DS             4. Develop RFI-RFQ Client / DS RFI/RFQ template         approved     5. NDA step DS 6. Administer RFI-RFQ DS             7. Analyze RFI-RFQ Client / DS 8. Pre-audits (optional) Client / DS TODAY Not started Started Finished Milestone © 2024 Dragon Sourcing. All rights reserved. 5 Agenda 1. Objectives and approach 2. Project planning 3. Demand analysis 4. Progress Review 5. RFI Score and Ranking Summary 6. RFQ Summary 7. Supplier Recommendation © 2024 Dragon Sourcing. All rights reserved. 6 Injection Moulded Parts - Demand Analysis 7 Plastic parts 1 Silicon part 4 steel parts 1 FEP/FPM part © 2024 Dragon Sourcing. All rights reserved. 7 Agenda 1. Objectives and approach 2. Project planning 3. Demand analysis 4. Progress Review 5. RFI Score and Ranking Summary 6. RFQ Summary 7. Supplier Recommendation © 2024 Dragon Sourcing. All rights reserved. 8 Injection Moulded Products Sourcing Project - Progress Review 30 potential suppliers have been identified and called, 21 suppliers have passed phone screening,18 suppliers signed back the NDA, 14 suppliers responded to the RFI/RFQ. Client - Injection Moulded Products - Progress Review 35 30 30 25 21 20 18 18 15 14 10 5 0 No. of suppliers No. of suppliers passed No. of supplier signed No. of suppliers No. of suppliers identified phone screening back the NDA included in RFI/RFQ responded to RFI/RFQ process © 2024 Dragon Sourcing. All rights reserved. 9 # of suppliers Pre-screening Questions – Validated by Client No Pre-screening question Criteria 1 Are you a manufacturer or Trader? Traders will be excluded. 2 Are you able to produce Injection moulded polypropylene products in-house? Must be yes. 3 Do you have an export license? Are you able to export to Europe? Must be yes. 4 Do you have CE certificate? Must be yes. 5 Are you ISO9001 certified? Must be yes. Remark • Phone screening process is a filtration stage from large database of suppliers identified to discard the suppliers not able to fit in the minimum key criteria’s. • Phone screening stage should be limited to key questions only (normally 4-5 questions) • Please note, suppliers not able to answer the question for “Must have” will be considered as disqualified for next step of RFI /RFQ process. • Please specify if any key question need to be included which should be consider as a MUST criteria for the supplier. © 2024 Dragon Sourcing. All rights reserved. 10 Phone Screening – Rejection Reason Analysis 9 suppliers failed phone screening with rejection reason as below. Phone screening rejection reason analysis 11% 11% 44% 33% 龙 Phone screening - Rejection reasons No. of suppliers Percentage   Suppliers are mould maker only, not able to produce Injection moulded polypropylene products in-house 4 35%   Suppliers are mainly working on Automobile or home appliances industry, don’t think they’re competitive for bottle lid product 3 31%   Not Interested in the project / not open for a new customer 1 15%   Supplier don’t have ISO9001 certificate 1 3% Sub-total 9 100% © 2024 Dragon Sourcing. All rights reserved. 11 RFI/RFQ – Rejection Reason Analysis 4 suppliers failed RFI/RFQ process with rejection reason as below. RFI/RFQ - rejection reason analysis 25% 25% 25% 25% 龙 RFI/RFQ - Rejection reasons No. of suppliers Percentage   Supplier declared that they’ve cooperated with Client for other projects, they’re worried for conflict, therefore give up working with DS. 1 25%   Suppliers don’t think they’re competitive on bottle lid products after checking the drawings. 1 25%   Supplier wants to see the actual samples to be able to quote, but we told them client only have 3D printing prototype as it’s just in prototyping phase, therefore they give up on RFQ. 1 25%   Promised to respond, but didn’t respond on time. 1 25% Sub-total 4 100% © 2024 Dragon Sourcing. All rights reserved. 12 Agenda 1. Objectives and approach 2. Project planning 3. Demand analysis 4. Progress Review 5. RFI Score and Ranking Summary 6. RFQ Summary 7. Supplier Recommendation © 2024 Dragon Sourcing. All rights reserved. 13 RFI Scorecard – Weight per Section Section weight % Max. Point Business Information 40% 40 Production Management 20% 20 Quality Control Management 20% 20 Social Responsibility 10% 10 Cooperation Willingness 10% 10 In total 100% 100 Business Information 10% 10% Production Management 40% Quality Control Management 20% Social Responsibility 20% Cooperation Willingness © 2024 Dragon Sourcing. All rights reserved. 14 RFI Scorecard – Business Information: Scoring standard Locati Weight of Max Weight of Score Max on in Business Information the Scoring standard Locati Weight RFI section criteria per on in Business Information of the Weight of Scoring standard Score criteria RFI section criteria per 1 = between 1 to 3 years criteria 2 = between 4 to 6 years 1-2 Industry experience (years) 10% 0 = No3 = between 7 to 9 years 4 1-9 Export license 5% 11 = Yes 4 = Over 10 years 1 = Employee No. < 50 people 1 = between 1 to 3 years 2 = Employee No. >=50 and =100 and < 150 people 5 1-10 Export experience 5% 43 = between 7 to 9 years 4 = Employee No. >=150 and < 200 people 4 = Over 10 years 5 = Employee No. >=200 people 1 = staff No. < 30 people No. of Incoterms can your 2 = staff No. >=30 and < 50 people company quote and Production 5% 3 = staff No. >=50 and < 100 people 5 operate? 1 = 1 incoterm 4 = staff No. >=100 and < 150 people 2 = 2 incoterm1-11 * FOB 2% 4 5 = staff No. >=150 people 3 = 3 incoterm* CIF 1 = 1 people * DAP 4 = 4 incoterm Quality Control 2 = 2 people * DDP staff 5% 3 = staff No. >=3 and < 5 people 5 Employee 4 = staff No. >=5 and < 10 people 1-8 No. in each 5 = staff No. >=10 people 2023 5% 6 position 1 = 1 people 2 = 2 people 1 = Sales Turnover < 3 Million USD Engineering 5% 3 = staff No. >=3 and < 5 people 5 40% Sales 2 = Sales Turnover >= 3 M < 5 Million USD4 = staff No. >=5 and < 8 people Revenue 3 = Sales Turnover >= 5 M < 10 Million USD 5 = staff No. >=8 people 1-12 (in Million 4 = Sales Turnover >= 10 M < 20 Million USD 1 = staff No. < 10 people 2022 5% 6Management, USD) 5 = Sales Turnover >= 20 M < 30 Million USD purchasing and 2% 2 = staff No. >=10 and < 20 people 4 6 = Sales Turnover >= 30 Million USD 3 = staff No. >=20 and < 30 people other staff 4 = staff No. >=30 people 1= < 3,000 m² 2= >=3,000 and =6,000 and =10,000 and =20,000 m² Sales North America 5% 2 = 5% ~ 10% 5 1= < 1,000 m² 1-13 3 = 10% ~ 15% 1-6 Factory 2= >=1,000 and =3,000 and = 20% 4= >=5,000 and =10,000 m² 1= < 1,000 m² 0 = No Multinational client or didn't provide 2= >=1,000 and =3,000 and =5,000 m² client list 2 = 2 Multinational client 1-8 Number of English speaker 5% 1 = 1 people, 2 = 2 people 4 3 = Over 3 Multinational client in the company 3 = 3 ~ 5 people, 4 = over 5 people 龙 Subtotal 40% 100% 龙 5 龙 Subtotal 40% 100% 龙 5 © 2024 Dragon Sourcing. All rights reserved. 15 RFI Scorecard – Production management & QC management: Scoring standard Weight of Weight of Max Score Location in RFI Production management Scoring standard the section criteria per criteria Supplier declared their food contact materials comply with 0 = No 2-15 15% 1 Regulation (EC) No 1935/2004 1 = Yes 0 = No 2-16 Supplier declared their food contact materials BPA free 15% 1 1 = Yes Supplier declared their food contact materials FDA 0 = No 2-17 15% 1 approved 1 = Yes 0 = No 2-18 Supplier is willing to provide Mold Flow Analysis later on. 10% 1 1 = Yes 20% Supplier declared to have production operating instruction 0 = No 2-19 15% 1 on-site 1 = Yes Supplier declared to have production and safety training 0 = No 2-20 10% 1 for each worker 1 = Yes 0 = No 2-21 Use ERP system 10% 1 1 = Yes Supplier declared to have products / service traceability 0 = No 2-23 10% 1 system 1 = Yes 龙 Subtotal 20% 100% 龙 1 Weight of Weight of Max Score Location in RFI Quality Control Management Scoring standard the section criteria per criteria 0 = No 2-24 ISO 9001 certificate 40% 1 1 = Yes Supplier declared to have a documented company-wide 0 = No 2-25 10% 1 quality manual 1 = Yes Supplier declared to have daily on line quality inspection 0 = No 2-26 10% 1 and report 1 = Yes Supplier declared to have have final products inspection 0 = No 2-27 10% 1 and report 1 = Yes Supplier declared to have clear and sysmatic procedure to 2-28 20% 0 = No 10% 1 collect, register, handle and solve customer complaints? 1 = Yes Supplier declared they're in possession of CE (certificate of 0 = No 2-29 10% 1 compliance) 1 = Yes 1 ≥ 5% 2 ≥ 3% and < 5 % 2-30 General production defective rate (%) 10% 3 ≥ 2% and < 3 % 5 4 ≥ 1% and < 2 % 5 < 1 % 龙 Subtotal 20% 100% 龙 1 © 2024 Dragon Sourcing. All rights reserved. 16 RFI Scorecard – Social Responsibility & Cooperation willingness: Scoring standard Location Weight of Max Score Social responsibility Weight of criteria Scoring standard in RFI the section per criteria 0 = No ISO14001 50% 1 1 = Yes 0 = No SA8000 5% 1 1 = Yes 0 = No 2-31 Certification BSCI 5% 1 1 = Yes 0 = No OHSAS 18001 5% 1 1 = Yes 10% 0 = No WRAP 5% 1 1 = Yes Declared to have Western company conducted the 0 = No 2-32 20% 1 audit during the last two years 1 = Yes Relased the Western company name and passed 0 = No 2-33 10% 1 the audit. 1 = Yes 龙 Subtotal 10% 100% 龙 1 龙 Weight of Max Score Cooperation Willingness Weight of criteria Scoring standard the section per criteria 0 = No responding 1 = 10% ~ 30% completeness   2 = 30% ~ 50% completeness Cooperation during RFI / RFQ 70% 5 3 = 50~70% completeness 4 = 70~90% completeness 5 ≥ 90% completeness 10% 0 = No responding 1 = Poor, push for many times   2 = OKResponding time to RFI / RFQ 30% 5 3 = Satisfying 4 = Good, quick response 5 = Excellent and very quick response 龙 Subtotal 10% 100% 龙 5   Total scoring 100%     龙 © 2024 Dragon Sourcing. All rights reserved. 17 RFI Score & Ranking summary Max point 40 20 20 10 10 100 Supplier Business Production Quality Control Social Cooperation Rank code Region Information Management Management Responsibility Willingness Total point % of completion 1 CN13 China 39 20 17 8 9 93 95% 2 CN07 China 39 20 14 8 9 91 93% 3 CN10 China 33 20 20 5 9 87 95% 4 CN01 China 33 20 20 5 8 86 88% 5 CN05 China 33 20 17 5 9 85 95% 6 CN04 China 38 20 19 0 8 85 88% 7 CN09 China 34 20 16 5 8 83 88% 8 CN11 China 32 18 20 3 8 81 80% 9 CN14 China 28 16 13 5 9 71 93% 10 CN06 China 23 20 19 0 8 69 80% 11 CN08 China 26 20 11 5 5 68 56% 12 CN02 China 22 18 19 0 8 66 71% 13 CN12 China 19 18 19 0 9 65 90% 14 CN03 China 21 18 11 0 8 59 73% © 2024 Dragon Sourcing. All rights reserved. 18 RFI Scorecard Sum up Injection Moulded Supplier - RFI Scorecard Sum up 100 100% 95% 95% 95% 93% 93% 90 90% 90% 88% 88% 88% 80 80% 80% 80% 73% 70 71% 70% 60 60% 56% 50 50% Cooperation Willingness 40 40% Social Responsibility 30 Quality Co3n0tr%ol Management 20 Production2 M0%anagement Business Information 10 10% % of completion 0 0% CN13 CN07 CN10 CN01 CN05 CN04 CN09 CN11 CN14 CN06 CN08 CN02 CN12 CN03 © 2024 Dragon Sourcing. All rights reserved. 19 RFI Score % of completion Agenda 1. Objectives and approach 2. Project planning 3. Demand analysis 4. Progress Review 5. RFI Score and Ranking Summary 6. RFQ Summary 7. Supplier Recommendation © 2024 Dragon Sourcing. All rights reserved. 20 RFQ Summary RFI Score 86 66 59 85 85 69 91 68 83 87 81 65 93 71 Product Part Name MOQ 10000 2000 5000 10000 5000 1x20'GP 5000 2000 3000 5000 1000 5000 10000 10000 2000 5000 20000 1000 name Target price (USD) CN01 CN02 CN03 CN04 CN05 CN06 CN07 CN08 CN09 CN10 CN11 CN12 CN13 CN14 Part 1 0.35 0.089 0.070 0.300 0.299 0.170 0.262 0.223 0.300 0.293 0.235 0.44 0.33 0.22 0.300 0.275 0.220 0.171 0.600 Part 2 0.3 0.051 0.060 0.079 0.135 0.120 0.145 0.125 0.140 0.200 0.175 0.28 0.23 0.18 0.250 0.193 0.143 0.100 0.400 Part 3 0.25 0.055 0.052 0.076 0.143 0.100 0.153 0.125 0.190 0.206 0.145 0.25 0.19 0.14 0.350 0.193 0.142 0.100 0.350 Part 4 0.15 0.046 0.040 0.054 0.066 0.100 0.138 0.125 0.050 0.180 0.100 0.22 0.17 0.12 0.080 0.174 0.122 0.081 0.300 Part 5 0.2 0.050 0.043 0.107 0.180 0.100 0.153 0.156 0.270 0.109 0.145 0.30 0.18 0.10 0.400 0.450 0.450 0.450 0.300 Bottle Lid Part 6 0.3 0.076 0.042 0.111 0.134 0.130 0.145 0.179 0.150 0.187 0.245 0.25 0.19 0.14 0.250 0.202 0.154 0.088 0.350 Part 7 0.2 0.068 0.043 0.119 0.185 0.060 0.145 0.182 0.290 0.122 0.145 0.25 0.19 0.14 0.650 0.600 0.600 0.600 0.250 Part 8 0.06 0.060 0.160 0.050 0.077 0.190 0.06 0.06 0.040 0.06 0.06 0.06 0.06 0.06 0.050 0.256 0.256 0.256 0.050 Part 9 0.1 0.035 0.100 0.050 0.015 0.140 0.1 0.1 0.040 0.1 0.1 0.1 0.1 0.1 0.050 0.190 0.190 0.190 0.050 Part 10 0.1 0.035 0.100 0.050 0.015 0.140 0.1 0.1 0.040 0.1 0.1 0.1 0.1 0.1 0.050 0.190 0.190 0.190 0.050 Part 11 龙   0.040 0.050 0.031 0.110     0.100   0.105       0.150 0.312 0.312 0.312 0.200 Part 12 0.2 0.033 0.057 0.079 0.080 0.120 0.092 0.218 0.050 0.149 0.255 0.250 0.190 0.140 0.150 0.179 0.129 0.085 0.400 Capsule Part 13 0.2 0.045 0.043 0.111 0.100 0.120 0.110 0.143 0.140 0.164 0.185 0.250 0.190 0.140 0.150 0.157 0.087 0.066 0.300 Sub-total 2.41 0.64 0.85 1.24 1.46 1.60 1.60 1.74 1.80 1.87 2.00 2.75 2.12 1.58 2.88 3.37 3.00 2.69 3.60 Assembly cost 0.300 0.300 1.140 0.923 0.500 0.780   0.520   0.300 0.410 0.410 0.410 0.500 0.410 0.410 0.410 1.000 Packaging cost 0.014 0.200 0.040 0.231       0.150   0.150 0.190 0.190 0.190 0.150 0.170 0.170 0.170 0.500 Total Cost per set (USD) 0.957 1.350 2.416 2.616 2.100 2.382 1.736 2.470 1.870 2.445 3.350 2.720 2.180 3.530 3.951 3.575 3.269 5.100 Total mould cost (USD) 21,800 22,680 18,786 72,000 72,693 92,800 41,700 232,000 31,730 53,850 90,550 43,400 58,610 34,800 Mould lead time (days) 30 30 30 30 35 35 40 40 35 45 40 40 40 50 30 30 © 2024 Dragon Sourcing. All rights reserved. 21 2024 Forecast total spend comparison 2024 Forecast total spend comparison per supplier 7,000 232,000 250,000 6,000 92,800 90,550 90,550 90,550 2,100 72,000 72,693 5,000 53,850 518,0,60180 58,610 58,610 41,700 43,400 21,800 22,680 31,730 34,800 18,786 648 900 4,000 1,500 453 1,200 1,140 3,000 1,320 570 939 1,083 720 604 840 540 4,580 4,194 4,376 2,000 570 3,893 3,830 3,395 3,033 300 2,429 2,626 1,000 234 1,934 2,052 2,113 2,075 2,350 2,346 1,962 1,578 853 1,132 0 -350,000 RFI Score 86 66 59 85 85 69 91 68 83 87 81 65 93 71 Capsule spend Bottle lid spend RFI Score Mould cost Recommended supplier 22 © 2024 Dragon Sourcing. All rights reserved. 2024 Forecast total spend (USD Mould cost (USD) Agenda 1. Objectives and approach 2. Project planning 3. Demand analysis 4. Progress Review 5. RFI Score and Ranking Summary 6. RFQ Summary 7. Supplier Recommendation © 2024 Dragon Sourcing. All rights reserved. 23 Supplier Recommendation 1/3 Supplier No. code RFI Score Reason for recommending • Quotation is much cheaper than target price of 2.4 USD, The lowest price in all suppliers • RFI ranking No. 4 with RFI score 86 • Supplier is a direct manufacturer, with 16 Years of export experience, have export experience to EU 1 CN01 86 • Willing to provide mold flow analyses • In possession of CE . • ISO9001 certified, ISO 14001 certified • Declared materials BPA free, FDA approved, comply with Regulation (EC) No 1935/2004 • Quotation is much cheaper than target price of 2.4 USD • RFI ranking No. 12 with RFI score 66 • Supplier is a direct manufacturer, with 22 Years of export experience, have export experience to EU 2 CN02 66 • Willing to provide mold flow analyses • Willing to apply for CE • ISO9001 certified, ISO 14001 certified • Declared materials BPA free, FDA approved, comply with Regulation (EC) No 1935/2004 • Quotation is 49% cheaper than target price of 2.4 USD. • RFI ranking No. 6 with RFI score 85 • Supplier is a direct manufacturer, with 22 years of industry experience • 16 Years of export experience, have export experience to EU, with 15% sales export to EU 3 CN04 85 • 260 employees, with factory area size 25,000 square meters. • Willing to provide mold flow analyses • Willing to apply for CE • ISO9001 certified, ISO 14001 certified • Declared that the materials are BPA free, FDA approved, comply with Regulation (EC) No 1935/2004 © 2024 Dragon Sourcing. All rights reserved. 24 Supplier Recommendation 2/3 No. Supplier RFI Score Reason for recommending code • Quotation is 34% cheaper than target price of 2.4 USD. • RFI ranking No. 5 with RFI score 85 • Supplier is a direct manufacturer, with 24 years of industry experience • 10 Years of export experience, have export experience to EU, with 10% sales export to EU 4 CN05 85 • 230 employees, with factory area size 60,000 square meters. • Willing to provide mold flow analyses • Willing to apply for CE • ISO9001 certified, ISO 14001 certified • Declared that the materials are BPA free, FDA approved, comply with Regulation (EC) No 1935/2004 • Quotation is 28% cheaper than target price of 2.4 USD. • RFI ranking No. 2, with RFI score 91. • Supplier is a direct manufacturer, with 18 years of industry experience • 17 Years of export experience, have export experience to EU, with 30% sales export to EU 5 CN07 91 • 300 employees, with factory area size 60,000 square meters. • Willing to provide mold flow analyses • Willing to apply for CE • ISO9001 certified, ISO 14001 certified • Declared that the materials are BPA free, FDA approved, comply with Regulation (EC) No 1935/2004 • Quotation is 22% cheaper than target price of 2.4 USD. • RFI ranking No. 7, with RFI score 83. • Supplier is a direct manufacturer, with 14 years of industry experience • 10 Years of export experience, have export experience to EU, with 10% sales export to EU 6 CN09 83 • 500 employees, with factory area size 13,000 square meters. • Willing to provide mold flow analyses • Willing to apply for CE • ISO9001 certified, ISO 14001 certified • Declared that the materials are BPA free, FDA approved, comply with Regulation (EC) No 1935/2004 © 2024 Dragon Sourcing. All rights reserved. 25 Supplier Recommendation 3/3 No. Supplier RFI Score Reason for recommending Code • Quotation is 17% cheaper than target price of 2.4 USD. • RFI ranking No. 3, with RFI score 87. • Supplier is a direct manufacturer, with 17 years of industry experience • 16 Years of export experience, have export experience to EU, with 15% sales export to EU 7 CN10 87 • 165 employees, with factory area size 16,000 square meters. • Willing to provide mold flow analyses • in possession of CE (certificate of compliance) • ISO9001 certified, ISO 14001 certified • Declared that the materials are BPA free, FDA approved, comply with Regulation (EC) No 1935/2004 © 2024 Dragon Sourcing. All rights reserved. 26