One of the largest chocolate companies in the world, with a revenue exceeding EUR 7.8 billion and employing over 20,000 people globally, initiated the China Cooler Project. The goal of the project was to source qualified suppliers in China for cooler manufacturing, ensuring compliance with the client’s rigorous standards.
Sourcing Strategy and Execution
Dragon Sourcing employed a two-stage approach over 12 weeks, starting with supplier pre-qualification. The first stage included demand and supply analysis, telephone pre-screening, and the development and administration of RFI/RFQ (Request for Information/Quotation). This process culminated in the identification of 56 suppliers. After pre-screening, we shortlisted 36 suppliers, and 21 of them successfully completed the RFI/RFQ.
The second stage involved auditing the shortlisted suppliers. Dragon Sourcing conducted site visits, audits, and sample testing to evaluate quality. Based on performance metrics and price, Dragon Sourcing recommended 7 suppliers from the initial pool for the final selection.
Key Findings
- Supplier Performance: The highest RFI score was 97, while the lowest was 37. The average score stood at 69 points, highlighting the competitive nature of the selection process.
- Rejection Rates: A significant portion of suppliers (44%) failed during the phone pre-screening due to not producing independent devices, while 28% failed the RFI stage because they lacked similar products.
- Final Suppliers: We recommended five suppliers from provinces including Shandong and Guangdong, showcasing a geographically diverse supply base in China.
Results
The project led to the identification of capable suppliers in China, with an emphasis on quality control, price competitiveness, and market readiness. Dragon Sourcing’s systematic approach ensured that only the best suppliers advanced to the final stage, delivering results that aligned with the client’s needs.