Dragon Sourcing conducted a comprehensive sourcing project for a leading French cable company operating in 40 countries with 26,000 employees. The goal was to achieve cost savings and identify qualified suppliers for DPHP, EVA, and EPDM products with a combined annual spend of €5,300K (1,000 tons DPHP: €1,500K, 350 tons EVA: €1,400K, 700 tons EPDM: €2,400K).
Step-by-Step Journey
Dragon Sourcing began by analyzing demand for 3 product categories totaling 2,050 tons annually. The team identified 182 potential suppliers across China, with 73 for DPHP, 59 for EVA, and 50 for EPDM. All 182 suppliers underwent initial pre-screening calls to assess their capabilities against the client’s requirements.
After thorough pre-screening, 56 suppliers qualified for the next stage—20 for DPHP, 20 for EVA, and 16 for EPDM. Dragon Sourcing developed comprehensive RFI/RFQ templates tailored to each product category. These were distributed to the qualified suppliers, with 19 companies completing the full process: 7 for DPHP, 7 for EVA, and 5 for EPDM.
Using balanced scorecards with weighted criteria, Dragon Sourcing evaluated each supplier’s responses. Price comparisons revealed varying rates: DPHP ranged from €1,664 to €1,885 per ton, EVA 28% from €2,900 to €4,432, EVA 40% from €3,723 to €6,438, and EPDM from €3,531 to €4,750. The team also assessed delivery timeframes, which varied from 7 to 40 days, with most suppliers requiring 100% TT payment in advance.
The sourcing project successfully identified 4 manufacturers among the 7 qualified suppliers for EVA. Dragon Sourcing discovered limited production capacity in the market, especially for EVA 40%, with no Chinese manufacturers able to produce this variant. Detailed supplier profiles were created to facilitate client evaluation. Dragon Sourcing recommended joint supplier audits for final selection and contract negotiation, enabling the client to partner with the most qualified suppliers from emerging markets. The 9-week project provided a clear pathway for the client to optimize their €5,300K annual spend across these critical chemical categories.