Dragon Sourcing teamed with a multinational pharmaceutical business in 2022 to improve the sourcing of 29 key chemical components. The initiative sought to find dependable vendors, raise product quality, and reach cost control during a sixteen-week timeframe.
Project Scope
Dragon Sourcing employed extensive supplier databases and a comprehensive sourcing strategy that encompassed 24 nations. Finding substitutes for the client’s present vendors was the aim, which also guaranteed quality and promoted long-term relationships.
- Geographic Reach: Suppliers from countries such as China, India, Belgium, and Japan were prioritized for evaluation.
- Scale: 651 suppliers were initially identified, with 109 shortlisted for pre-screening.
Approach
The sourcing process followed a well-thought-out methodology designed to ensure efficiency and thoroughness.
- Supplier Identification: A detailed database of potential suppliers was created, combining insights from various sourcing networks and trade databases.
- Pre-Screening: Simple but effective criteria filtered suppliers. This phase reduced the pool to 28 suppliers, who were invited to participate in the RFI/RFQ process.
- RFI/RFQ Administration: Suppliers were evaluated on multiple factors, including quality management, cost competitiveness, and export capabilities. Scoring ranged from 31 to 91 points.
- Sampling and Testing: Final recommendations were made based on supplier rankings, with selected suppliers producing test samples for evaluation.
Results
The project delivered significant benefits to the client.
- A supplier database with detailed profiles and evaluations was developed.
- For key chemicals like Dimethyl Carbonate (8050), five suppliers quoted capacities ranging from 7,200 to 96,000 tons/year.
- High-performing suppliers, such as one scoring 91 points, demonstrated robust quality standards and strong export readiness.
By securing reliable suppliers and ensuring a rigorous evaluation process, Dragon Sourcing enabled the client to achieve quality and cost alignment in their chemical procurement strategy. This structured and strategic approach provided a sustainable sourcing solution tailored to the client’s global operational needs.