Dragon Sourcing executed a sourcing project for a leading wind turbine manufacturer, aiming to identify potential suppliers for medium-voltage (MV) transformers in China, India, Turkey, and Poland. The project targeted five categories: MV transformers, electro-mechanical components, resins, steel-welded assemblies, and castings.
The primary objective was to locate manufacturers in the specified regions capable of producing MV transformers that met the client’s quality and technical requirements. The project aimed to diversify the supply chain and achieve cost savings.
Dragon Sourcing adopted a structured approach to identify and qualify suppliers. The process included three stages: Request for Information (RFI), Non-Disclosure Agreement (NDA), and Request for Quotation (RFQ).
Stage 1: The RFI Process
- Demand Analysis: Collaborated with the client to understand product requirements, volumes, and standards.
- Supply Market Analysis: Identified a long list of potential suppliers using B2B websites, databases, trade fair catalogs, and references.
- Pre-screening: Conducted telephone pre-screening based on criteria such as manufacturing capability, company size, quality certifications, and willingness to participate.
- RFI Administration: Created and distributed RFI templates in local languages, followed by telephone follow-ups to ensure maximum participation.
- RFI Analysis: Analyzed RFI responses, prepared a report profiling and ranking suppliers, and recommended those for auditing.
Stage 2: The NDA Process
- Managed NDA administration with shortlisted suppliers to ensure confidentiality and secure detailed information.
Stage 3: RFQ Process
- RFQ Administration: Developed RFQ templates based on product specifications, collected price quotes, and other relevant information.
- RFQ Analysis: Analyzed responses, including FOB and Delivered Duty Paid (DDP) prices, and prepared a comprehensive report.
Results and Findings
- Supplier Identification: We identified 168 suppliers across four target countries. After pre-screening, 80 suppliers were shortlisted for the RFI process.
- RFI Participation: Sent RFIs to 80 suppliers; received 40 completed RFIs.
- Supplier Assessment: Evaluate suppliers based on technical capability, certifications, and production capacity. Notably, all RFI responders could produce MV transformers with output power between 2500 and 3000 KVA.
- NDA and RFQ: Secured signed NDAs from 12 suppliers and received RFQ responses from 8 suppliers.
Dragon Sourcing’s strategic approach facilitated the identification of potential suppliers for MV transformers in emerging markets. The process, completed within 9 weeks, ensured a thorough evaluation of supplier capabilities and alignment with the client’s technical requirements. The project culminated in supplier recommendations for sample development and further auditing, providing the client with viable options for improving their supply chain.