Dragon Sourcing executed a comprehensive sourcing project for one of the world’s largest chocolate manufacturers with over €7.8 billion in revenue and 20,000 employees. The project aimed to source corrugated carton displays and metal displays from China. It helped in identifying qualified suppliers to meet the client’s sustainability and production goals.
Project Overview
We divided the project into two phases:
- Stage 1: Supplier pre-qualification, including demand and supply market analysis, telephone pre-screening, RFI/RFQ administration, and response analysis. This stage spanned 9 weeks, with 46 suppliers pre-screened from an initial 69.
- Stage 2: Focused on supplier audits, sample development, testing, and contract negotiation, which took 12 weeks, including the Chinese New Year holiday.
Key Metrics:
- 69 suppliers were initially identified.
- 46 suppliers passed pre-screening.
- 29 suppliers responded to RFIs/RFQs.
- 26 suppliers filled out both RFIs, scoring between 45 and 86 points, with an average score of 68 points
The final round recommended 7 suppliers, 3 of whom were based in Shanghai and 2 in Zhejiang.
Audit Process
The auditing process involved detailed supplier evaluations, with Supplier 2 achieving the highest audit score of 75.10 out of 100. Despite challenges like a seasonal workload and tech requirements, the process ended with successful supplier selections. This allowed the client to move forward with confidence.
Dragon Sourcing’s tailored approach ensured that the client could meet their production timelines while adhering to strict sustainability guidelines. Dragon Sourcing used a strong supplier database and audits. They found the best suppliers. This ensured high-quality, low-cost production. The project’s success highlights the effectiveness of Dragon Sourcing’s strategic sourcing methodology in complex, multi-stage procurement processes.