Dragon Sourcing worked on a project for a client. The client specializes in various lighting segments, including LED, waterproof, and decorative lighting. The goal was to optimize the supplier selection. The goal was to identify reliable suppliers capable of meeting the client’s stringent quality and technical requirements across multiple regions in China.
Project Objectives
The project aimed to find and assess suppliers for various lighting categories. They must meet the client’s standards. The deliverables included a detailed supplier database, RFI/RFQ templates, and analysis reports. Additionally, a supplier shortlist was compiled for possible involvement.
There are two main stages to the sourcing strategy:
Stage 1: Supplier pre-qualification
Demand Analysis: Collaborated with the client to define product specifications, volumes, and technical requirements. This initial phase ensured clarity and alignment between Dragon Sourcing and the client. Supply Market Analysis: The initial list had 322 suppliers. Most were in Guangdong (182) and Zhejiang (100) provinces, which made up 87% of the total. Telephone Pre-Screening: This process further refined the list to 96 suppliers who met the basic criteria, representing 30% of the initial pool. RFI/RFQ Administration: Out of the 287 RFIs sent out, 96 suppliers responded, yielding a response rate of approximately 33%. This response included 17 suppliers for LED, 15 for waterproof lighting, 15 for die-casting, and other segments.
Stage 2: Supplier Selection and Evaluation
Supplier Scoring: A robust scoring system evaluated suppliers on their responses. Criteria included ISO certifications, technical capabilities, and production capacity. For example, LED suppliers must have in-house temperature and humidity tests and at least one certification, either international or domestic. Final Selection: We selected 35 out of the 96 responding suppliers for further audits. This selection process focused on suppliers who met a “MUST” achievement rate of over 70%.
Notably, the client shortlisted 4 LED suppliers and 6 waterproof lighting suppliers due to their high-quality, compliant responses. Dragon Sourcing’s careful work greatly sped up the client’s supplier selection. 96 of the initial 322 suppliers met the preliminary screening criteria, leading to the final selection of 35 for detailed audits.
The suppliers demonstrated a high level of compliance, with an average “MUST” achievement rate of over 75%. This strategic sourcing initiative not only reduced procurement risks but also enhanced the client’s supply chain efficiency. The whole process, from scouting to selection, took ten weeks. This shows Dragon Sourcing’s efficiency and expertise in delivering results.
Dragon Sourcing helped the client by focusing on quality. Their strong supplier evaluation methods let the client partner with reliable suppliers. This improved quality control and saved costs in a competitive market.