Dragon Sourcing embarked on a comprehensive project with a prominent European discount variety retailer, aiming to diversify its sourcing away from China and towards East Europe and Turkey. The project spanned 19 product categories, including pots, pans, glassware, firewood, working gloves, various types of detergents, and more, across a geographical scope of 18 countries. The initial phase involved a thorough demand analysis with the client to define and understand the product specifications, volumes, materials, and production technology requirements. This was followed by a supply-market analysis, leveraging many sources to identify 1370 potential suppliers. The team then conducted telephone pre-screening to select 184 suppliers for the RFI-RFQ process based on their capability to produce the required products, company size, quality certifications, and interest in participating.
The next step was to create an RFI-RFQ document and a balanced scorecard to evaluate the vendors’ competitiveness and skills. Financial stability, customer references, product experience, quality certification, social responsibility, and manufacturing and R&D skills were all considered. The RFI-RFQs were distributed to the suppliers in relevant languages with diligent follow-up to ensure maximum response. The project progressed with the analysis of RFI-RFQ responses, leading to the preparation of a report profiling and ranking the suppliers. This was essential for the qualification process, which included auditing and sampling.
The RFI/RFQ process was meticulously followed, with regular status updates and rejection analysis shared with the client. 82 unique suppliers responded to the RFI/RFQ phase, with 75 providing complete RFI/RFQs and 7 only RFIs. The project culminated in shortlisting 22 suppliers, categorizing them into immediate action categories, and setting out the following steps: sample collection, on-site audits, and further evaluations as needed.