Dragon Sourcing undertook a comprehensive sourcing project for a US-based global display and gondola system manufacturer. The project aimed to identify competitive suppliers for sheet metal parts across eight countries: India, Vietnam, Turkey, Mexico, the Czech Republic, Hungary, Poland, and Slovakia.
The project involved sourcing 17 different sheet metal parts with a total spend of USD 4.1M. Dragon Sourcing completed the entire process in 9 weeks, implementing a structured approach through their e-sourcing tool, GSP.
The team identified 244 potential suppliers across all target countries. After rigorous pre-screening, 142 suppliers qualified for the RFI/RFQ phase. The final response came from 29 suppliers, with India showing the strongest participation (14 suppliers), followed by Turkey (5 suppliers) and Mexico (4 suppliers).
Dragon Sourcing evaluated suppliers using a comprehensive scorecard system. The top-performing supplier achieved a score of 79%, while the average score stood at 57%. Price analysis revealed significant cost-saving opportunities, with maximum potential savings of USD 148,458 from a single supplier.
Key Outcomes Included:
- 6 suppliers made the final recommendation list
- All recommended suppliers held ISO 9001 certification
- Top suppliers offered in-house production capabilities including stamping, bending, welding, and powder coating
The project successfully identified potential 3 partners from India, 2 partners from Turkey, and 1 partner from Vietnam, leading to immediate sampling initiation. All these suppliers have an annual turnover ranging from $3 million to $16.4 million. The client gained access to suppliers who combined sheet metal fabrication expertise with storage/display racking system experience, creating additional strategic value.