Background
St Gobain Packaging is one of the 2 world’s largest company specializing in glass packaging for the food and beverage industries. Saint Gobain Packaging wanted to challenge its current carton supplier base in Europe by conducting a benchmarking exercise in China and in Vietnam. Saint Gobain asked Dragon Sourcing to support its sourcing initiative to find corrugated plate suppliers capable of covering their demand of roughly 4 millions plates/year spread over 10 different references.
Approach
- Collected detailed demand requirements for corrugated cardboard sheets
- Identified more than 250 suppliers to involve in RFI process
- Qualified through the RFI process 28 Chinese suppliers and 2 Vietnamese suppliers capable of meeting Saint Gobain’s requirements
- Created a scorecard in order to pre select suppliers to include in RFQ process.
- Run RFQ process with pre-selected suppliers to develop understanding of FOB price points in China and calculated DDP prices delivered to St Gobain location
- Based on RFQ analysis, audited 13 suppliers in China and in Vietnam.
- Recommended suppliers who can match Saint Gobain requirements in order to move to sample development stage
Results
Identified and audited 13 suppliers capable of meeting client’s technical requirements.
Obtained best possible FOB and DDP prices to benchmark with current European prices
Lack of DDP competitiveness led St Gobain Packaging to replicate same process in Eastern Europe.