In 2022, Dragon Sourcing partnered with a client to optimize their procurement of bearing rings. The goal was to identify competitive suppliers in China and test samples, ensuring cost-efficiency and quality. This meticulous process spanned 13 weeks, leveraging Dragon Sourcing’s structured methodology.
Objectives and Approach
The project involved sourcing bearing rings for two specifications, IR-6202-2Z and IR-6204-2Z, with a total annual demand of 10 million sets. Dragon Sourcing undertook a seven-step approach:
- Demand Analysis: We first defined product specifications and volumes.
- Supply Market Analysis: In the next stage we identified 145 potential suppliers via databases, B2B platforms, and trade networks.
- Telephone Pre-Screening: From 145 suppliers, we shortlisted 57 based on their capabilities.
- RFI/RFQ Administration: Distributed comprehensive evaluation documents to pre-screened suppliers.
- Response Analysis: We received 18 completed RFI/RFQs.
- Supplier Recommendation: From the 18 RFI/RFQs, we selected 4 suppliers with competitive pricing and high scores for further engagement.
- Sample Testing: Collaborated with suppliers to develop and deliver test samples.
Key Achievements
Dragon Sourcing’s process ensured rigorous evaluation. Supplier locations included Zhejiang (10), Shandong (5), Jiangsu, Henan, and Sichuan (1 each). The RFI scores ranged from 35 to 86, with the 4 top suppliers excelling in both scoring and cost-effectiveness. Notably, the IR-6204-2Z quotations varied from RMB 1.09 to 2.16, highlighting significant price differentiation.
The project delivered tangible outcomes:
- A supplier database with detailed profiles.
- Recommendations based on RFI scores and pricing.
- Samples produced and shipped by November 2021 for testing.
Results
This structured sourcing project exemplified Dragon Sourcing’s expertise in navigating competitive markets, ensuring quality and cost alignment for the client’s bearing ring procurement needs. With robust analysis and strategic execution, Dragon Sourcing enabled the client to secure a reliable supply chain in China.