The Red Cross initiated the Blankets Project with the goal of providing thermal resistance blankets to regions in need. The project’s annual target was to distribute 350,000 blankets, with deliveries scheduled for March and June. To ensure the safety and comfort of recipients, the blankets were required to meet specific standards:
- Thermal Resistance: Minimum TOG 4 (0.4 k.m²/W)
- Size: 150 cm x 200 cm
- Weight: Between 1500 and 2000 grams
- Thickness: Minimum 4.9mm under 2kPa pressure
- Flammability: Class I (ASTM D4151)
Supplier Selection Process
Dragon Sourcing implemented a rigorous supplier selection process to ensure high-quality products:
- Initial identification: 28 potential suppliers
- Qualification phase: 21 suppliers passed
- Specification compliance: 15 suppliers failed to meet requirements
- Final selection: 6 suppliers chosen for sample evaluation
This thorough vetting process ensured that only capable suppliers were considered for the project.
Logistics and Cost Analysis
The project’s logistics focused on delivery routes from FOB (Free on Board) at a port in China to DDP (Delivered Duty Paid) destinations in Bandar Abbas, Iran, and Aqaba, Jordan. The cost breakdown included:
- FOB Price: Covering loading at the manufacturing site and transportation to the port
- CIF (Cost, Insurance, and Freight) Price: Including sea freight from Shanghai to destinations, port handling, and additional fees
- DDP Price: Representing the total cost after import duties and taxes
Pricing Breakdown
Suppliers offered various DDP prices based on import duty rates of 0%, 15%, and 30%:
- Supplier 7: €2.12 to €2.74
- Supplier 9: €3.92 to €5.08
- Supplier 10: €3.03 to €3.92
Supplier Profiles
Notable suppliers evaluated for the project included:
- Zhejiang Willing Foreign Trading (Supplier 1)
- Founded: 1975
- Annual Production Capacity: 1,000,000 blankets
- Primary Markets: Europe, US, Japan
- Jinjiano Huafeng Weaving & Dyeing Ind. (Supplier 6)
- Established: 1999
- Annual Production Capacity: 9,000,000 blankets
- Main Export Markets: US, Europe
- Dinghao Group (Supplier 10)
- Founded: 1995
- Annual Production Capacity: 750,000 blankets
- Primary Export Markets: US, Europe
The Red Cross Blankets Project shows the need for a careful supplier selection and a detailed logistics plan. Dragon Sourcing analyzed suppliers’ capabilities and costs. This ensured that the blankets met quality standards and were delivered efficiently and cheaply.
This case study shows the challenges of managing international humanitarian projects. It highlights the key role of supply chain management in their success.