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%
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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%
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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
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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
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