Dragon Sourcing conducted a market study to identify high-quality suppliers of precision machining components. The objective was to find capable suppliers for 10 families and 100 SKUs of CNC Lathe machines, CNC Sliding Head Lathe machines, and CNC Milling machines, focusing on rings and screws.
Sourcing Approach
The sourcing approach involved multiple steps. Dragon Sourcing first developed a thorough understanding of the demand, including specifications, volumes, and technology requirements. Potential vendors in Brazil and Turkey were identified using external databases and networks of experts. Pre-screening was conducted via phone calls to ensure suppliers met the basic criteria, such as product capability and certifications.
An RFI/RFQ document was prepared and administered to the shortlisted vendors. This document covered background information, financial details, client and export experience, quality certifications, and manufacturing capabilities. The responses were analyzed using a scorecard process, leading to recommendations for further audits.
Findings
The project identified 25 Brazilian vendors and received 2 RFI/RFQs. In Turkey, 23 suppliers were identified, with 4 RFI/RFQs received. The total volume for the project was estimated at 55,000 units annually, with varying volumes across different types.
Supplier Analysis
The analysis revealed that Turkish vendors were more competitive and technically capable of handling the full range of families. In contrast, Brazilian suppliers showed less interest and capability, often due to technical limitations and engagement in other economic sectors.
6 vendors provided quotes based on the total estimated annual spend. Supplier 1 had the highest overall score of 82.3, followed by Supplier 2 with 60.7, and Supplier 3 with 60.3.
Recommendations
Dragon Sourcing recommended auditing the top 3 shortlisted vendors, all from Turkey. An additional audit was suggested for Supplier 4 from Brazil. The next steps included reviewing the RFI/RFQ and supplier profiles, conducting audits, analyzing results, and selecting suppliers for sampling and final negotiations.