A client tasked Dragon Sourcing with sourcing stainless steel sinks with the goal of enhancing product quality and establishing long-term supplier relationships. The geographical scope included China and Mexico.
Objectives
- Provide procurement services for stainless steel sinks.
- Identify alternative suppliers to enhance product quality and long-term collaboration.
Sourcing Strategy
Over the course of eight weeks, we meticulously planned and executed the sourcing strategy, focusing on thorough demand and supply analysis, pre-screening, and detailed RFI/RFQ processes.
Step 1: Supplier Pre-Qualification
- Demand Analysis: Defined product specifications and key requirements, such as food-grade stainless steel Type 304, NSF certification, and specific design features.
- Supply Market Analysis: Identified 96 potential suppliers from China and Mexico.
- Telephone Pre-Screening: We contacted 58 suppliers out of 96, and based on criteria like NSF certification and product capability, 8 suppliers (7 from China and 1 from Mexico) passed the pre-screening.
- Develop the RFI/RFQ Template: Create and distribute the RFI/RFQ to 8 pre-qualified suppliers.
- RFI/RFQ Administration: Conducted follow-ups to ensure maximum participation. Out of the 8, 4 suppliers responded with both RFI and RFQ.
- Analyze RFI/RFQ Responses: We evaluated respondents using a balanced scorecard. The highest RFI score was 82, and the lowest was 45, with an average score of 76.5.
Results
- Suppliers Identified: 96
- Passed Telephone Pre-Screening: 8
- RFI/RFQ Responses: 4 (with scores ranging from 45 to 82).
Step 2: Supplier Selection
- Sample Development & Testing: We requested samples from suppliers who scored the highest.
- Final Selection: After testing, we selected Supplier 2 because of its superior sample quality.
Dragon Sourcing’s comprehensive approach streamlined the supplier selection process, significantly improving the client’s product quality. This project, completed in just 8 weeks, involved rigorous evaluation and selection, culminating in a reliable partnership with a top supplier.