This case study demonstrates Dragon Sourcing’s excellent methodology for finding the best vendors. They utilized it to locate tapioca starch suppliers. These vendors provide long-term cost savings and supply continuity for a leading global forestry products firm. The project spanned 3 countries, Thailand, Vietnam, and Cambodia. Our client planned to purchase several varieties of tapioca starch. Their annual volumes ranged from 500 to 8,000 metric tons. Dragon Sourcing followed its standard 3-stage sourcing approach. It included a feasibility study, supplier selection, contracts, and procurement. During the feasibility investigation, our team meticulously documented product specifications and quantities. They conducted a market study to identify manufacturers. Then, they pre-screened providers via phone interviews. They also submitted RFI/RFQs to get thorough supplier capability information. The data came from 19 providers across 3 nations, and we assessed it using a balanced scorecard. Our team of experts analyzed company information, manufacturing capacity, quality systems, and RFQ pricing for all 19 vendors.
After evaluating the responses of the vendors, we recommend further assessment of 6 Vietnamese and 2 Thai suppliers. This is due to their performance on the scorecard and their ability to provide tapioca starch products. Cambodia’s average price was $321/ton. Vietnamese suppliers offered the lowest prices. Their prices averaged $338/ton, just above Thailand’s. However, our experts noted that most Vietnamese suppliers specialize in producing native starch.
In contrast, Thailand offered a broader range of suppliers capable of delivering native and modified versions, albeit at higher prices. As a result, the auditor recommended 3 Vietnamese suppliers for audits. They had a good mix of manufacturing capabilities and fair prices. Our supplier scorecard analysis aided decision-making on cost, quality, and supply. This ensured excellent supply continuity for the client’s global operations. It also underscored Dragon Sourcing’s commitment to delivering sustainable and efficient sourcing solutions.