Here’s a brief insight into how Dragon Sourcing deployed an effective and successful screening process to identify a high-quality low-cost alternative Chinese supplier for Fibreglass Heat-Protection tubing/sleeving. Dragon Sourcing developed a two-stage screening process to prequalify the competitiveness and capabilities of the suppliers and then eliminating suppliers that do not match the benchmark and recommend which suppliers to include in the final negotiation. This report helps you gain a better insight into how Dragon Sourcing uses an advanced shortlisting process to filter a long list of suppliers to provide effective sourcing solutions to clients looking to delve into overseas procurement.
This study primarily focuses on the approach undertaken by Dragon Sourcing to leverage the supplier database and assess them for comparable products, fibreglass Heat-Protection tubing/sleeving in this case before the negotiation stage. DS works with the retailers to understand and define the product specifications like requirement volumes, materials, production technology, etc. Using B2B websites, DS databases, chamber of commerce, etc., DS was able to identify 42 suppliers and eliminate 11 ineligible ones in the telephone pre-screening process. Next, an RFI/ RFQ process was administered along with a balanced scorecard to select the most capable suppliers out of the remaining. Finally, the selected suppliers are further assessed based on company profile, financials, quality certification, Corporate Social responsibility, Manufacturing/technology capability, and R&D among others, to prepare and administer a pricing benchmark and objectively rank supplier capability.
Stage I of the process, which includes demand analysis of 5 products requested by the client, to evaluating the RFI/RFQ responses, was completed in 7 working weeks, where at least 11 suppliers submitted their responses. After comparing the target price for each product, 3 suppliers were recommended for product 1; 5 suppliers for product 2; 1 supplier for products 3 and 5; and 2 suppliers for product 4 were recommended for the qualification stage. Final negotiations were conducted with the shortlisted suppliers and Dragon Sourcing facilitated the contracting between the client and the suppliers.