Supplier Market screening in China for “Beer Processing Equipment”

1. 1
Case Study
China “Beer Processing Equipment”
Dragon Sourcing
Your Tailored Sourcing Approach to Emerging Markets
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2. 2
Supplier Market screening in China for “Beer Processing Equipment”
Context
Our Client is a large European beer manufacturer.
The Client wanted to better understand the current market
of Beer Process Equipment in China, and find new
suppliers at lower costs than their current suppliers.
Segments involved:
•Mill
•Mash Tun
•Brew Kettle
•Fermentation Tank
•Filter
•Conditioning Tank
•Pasteurizer
•Canning machine
•Bottling Machine
•Conveyor Belt
•Hot Filling Line
DS Supply Market analysis
Objectives
• Collect detailed spend information about the categories
such as technical requirements, standards applying,
material specifications, volume and current unit prices by
Client’s consuming factories.
• Identify a list of potential suppliers based in China to
include in the RFI/RFP process by leveraging the web,
external databases, and various networks of experts.
• Develop the RFI / RFP – jointly with client – to include all
key suppliers qualifications criteria (e.g.: financial,
technology, manufacturing capability, corporate
responsibility, quality…).
• Administer RFI / RFP process to ensure as high a return
rate as possible.
• Analyze responses, prices and use balance score carding
process to rank suppliers and recommend suppliers per
category which client needs to take through their auditing
process in order to potentially qualify them.
• Provide Client with a profile for all of the suppliers
recommended to be audited.
© 2013 Dragon Sourcing. All rights reserved.

3. © 2013 Dragon Sourcing. All rights reserved. 3
1. Mill
2. Mash Tun
3. Brew Kettle
4. Fermentation Tank
5. Filter
6. Conditioning Tank
7. Pasteurizer
Main Equipment For Beer Processing

4. Our approach enabled us to collect Beer Brewing Equipment Company
Profiles amongst a total of 21 suppliers invited to participate to the RFI
Selection of
potential suppliers
Pre-selection of
suppliers
Sending & Follow-
up of the RFI
Analysis of the
suppliers’ RFI
4
Suppliers
Identified
RFI Sent
Intended To
Respond
RFI
Received
Criteria
•Products category
•Export Experience
•No manufacturing
capabilities
Reasons for not
responding to the RFI
•No interest in this project
21
32
11
10
© 2013 Dragon Sourcing. All rights reserved.

5. 5
Suppliers Locations
- Supplier 1 is the biggest factory in China
- 3 suppliers are in Shandong province; 2 suppliers are in Guangdong province; 2 suppliers are in Jiangsu province;
Anhui, Beijing and Hebei provinces each count 1 supplier.
No. Supplier Name Province
1 Supplier 1 Guangdong
2 Supplier 2 Jiangsu
3 Supplier 3 Anhui
4 Supplier 4 Jiangsu
5 Supplier 5 Shandong
6 Supplier 6 Guangdong
7 Supplier 7 Beijing
8 Supplier 8 Shandong
9 Supplier 9 Shandong
10 Supplier 10 Hebei
Shanghai
Shanghai
SHANGHAI
Gansu
Jiangxi
Zhejiang
BEIJING
Jiangsu
Guangxi
Hunan
Hubei
Ningxia
Shaanxi
Anhui
Fujian
Neimongu
Shanxi
Shandong
Sichuan
Yunan
Guizhou
Henan
Jilin
Liaoning
Hebei
Guangdong
Gansu
Heilongjiang
© 2013 Dragon Sourcing. All rights reserved.

6. © 2013 Dragon Sourcing. All rights reserved. 6
Criteria Definition for Suppliers Ranking & Scoring
Company background Weight of criteria Scoring Max Score per criteria Weight of the section
How many years in the business 20% 1= Less than 5 Yrs 2= Between 5 to 10 Yrs 3= More than 10 Yrs 3
35%
Capital in USD 20% 1= Less than 5 million 2= Between 5 and 10 million 3= Between 10 and 20 million 4= 20 million or more 4
Work floor size (m2) 15% 1= Less than 30,000m2 2= 30,000m2 to 100,000m2 3= 100,000m2 to 200,000m2 4= over 200,000m2 4
Number of Employees 15% 1= Less than 100 2= 100 to 300 persons 3= 300 to 500 persons 4= over 500 persons 4
Do you have English speakers in your factory? 5% 0=No 1=Yes 1
Turnover in 2010 in USD 15% 1= Less than 5 million 2= 5 to 20million 3= 20 million to 100 million 4= More than 100 million 3
Total percentage of sales dedicated to export 5.0% 1= Less than 10% 2= Between 10 to 30% 3= Between 30 to 50% 4= More than 50% 4
Years of export experience to the West 5.0% 1= Less than 2 yrs 2= Between 2 & 5 yrs 3= More than 5 yrs 3
Subtotal 100% 3.45 35%
Quality Control Weight of criteria Scoring Max Score per criteria Weight of the section
ISO 9001 (Y/N) 45% 0=No 1=Yes 1
20%ISO 14000 (Y/N) 30% 0=No 1=Yes 1
Do you have any other certificates? 25% 0=No certificate 1= 1 to 3 certificates 2= 3 to 5 certificates 3= 5 certificates or more 3
Subtotal 100% 1.50 20%
Production capability Weight of criteria Scoring Max Score per criteria Weight of the section
Production capacity for 2010 15% 3
30%
Do you produce the listed products in
house?
Mill 7.5% 0=No 1=Yes 1
Mash Tun 7.5% 0=No 1=Yes 1
Brew Kettle 7.5% 0=No 1=Yes 1
Fermentation Tank 7.5% 0=No 1=Yes 1
Filter 7.5% 0=No 1=Yes 1
Conditioning Tank 7.5% 0=No 1=Yes 1
Pasteurizer 7.5% 0=No 1=Yes 1
Canning Machine 7.5% 0=No 1=Yes 1
Bottling Machine 7.5% 0=No 1=Yes 1
Conveyor Belt 7.5% 0=No 1=Yes 1
Can you produce other beer processing related equipment? 5% 0=No 1= 1 to 2 other equipments 3= 3 or more other equipments 3
Do you have a traceability system from raw material to mass production?(Y/N) 5% 0=No 1=Yes 1
Subtotal 100% 1.40 30%
Corporate Responsibility Weight of criteria Scoring Max Score per criteria Weight of the section
Do you adhere to all rules and regulations in respect to Chinese child labor
laws?
33% 0=No 1=Yes 1
5%Do you adhere to all rules and regulations in respect to environmental issues? 33% 0=No 1=Yes 1
Do you adhere to all rules and regulations in respect to health and safety issues? 33% 0=No 1=Yes 1
Subtotal 100% 1.00 5%
Cooperation Weight of criteria Scoring Max Score per criteria Weight of the section
Cooperation during RFI 60% 0= Poor 1=Satisfying 2=Excellent 2
10%Company pictures available 20% 0=No 1=Yes 1
Timeliness of response 20% 0= Poor 1=Satisfying 2=Excellent 2
Subtotal 100% 1.80 10%

7. Results of the Suppliers Ranking & Scoring
Suppliers Scorecards
7© 2013 Dragon Sourcing. All rights reserved.
72.66 71.72
60.92
52.28
44.54 42.78 41.40
35.11
27.50
21.57
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
SupplierN°1
SupplierN°6
SupplierN°8
SupplierN°4
SupplierN°7
SupplierN°5
SupplierN°2
SupplierN°10
SupplierN°9
SupplierN°3
Company background Quality Control Production capability Corporate Responsibility Cooperation
Score

8. Recommended Suppliers & Their Locations
No. Supplier Name Province Score
1 Supplier 1 Guangdong 73
2 Supplier 6 Guangdong 72
3 Supplier 8 Shandong 61
8© 2013 Dragon Sourcing. All rights reserved.
Shanghai
Shanghai
SHANGHAI
Gansu
Jiangxi
Zhejiang
BEIJING
Jiangsu
Guangxi
Hunan
Hubei
Ningxia
Shaanxi
Anhui
Fujian
Neimongu
Shanxi
Shandong
Sichuan
Yunan
Guizhou
Henan
Jilin
Liaoning
Hebei
Guangdong
Gansu
Heilongjiang

9. 9
Current status
• DS identified and recommended to the Client 3 high potential suppliers.
• Client realized factory audits with these suppliers, after which they started discussions
regarding possible partnerships and future orders.
© 2013 Dragon Sourcing. All rights reserved.

10. 10
Company and Contact Information
Company Name Beer Processing Equipment Co., Ltd.
City Guangzhou
Province Guangdong
Contact person Mr. Cheng
Job title Manager of Export Dept.
Email sales@beerprocessingco.cn
Phone number +86-20-8484-8484
Fax number +86-20-8484-8487
Mobile phone +86-138-8484-8484
Website www. beerprocessingco.com.cn
Company Background
Year Founded 1958
Ownership 100% State Owned
Capital in million RMB 140
Work floor size (m2) 150,000
Number of employees 520
Main Products
1.Beer & beverage filling equipments
2.Instant noodle production line
3. /
Export (Yes or No) Yes
Turnover (in USD)
2008 N/A
2009 N/A
2010 (forecast) N/A
% sales export to main markets in 2010
US (%) N/A
EU (%) N/A
Japan (%) N/A
Others(%) N/A
Total export N/A
Customers Information
Customers Industry Country
Percentage of
sales
1. Customer 1 Beer Denmark N/A
2. Customer 2 Beer China N/A
3. Customer 3 Beer China N/A
4. Customer 4 Beer Japan N/A
5. Customer 5 Beer Philippines N/A
Quality & Environmental Registration
Certificate Date of certificate Certifying organization
ISO 9001 2003.1.18 Example Certification Co., ltd.
ISO 14000 No No
Others N/A N/A
Compliance With Local Law
Do you adhere to all rules and regulations in respect to Chinese child labor laws? (Y/N) Yes
Do you adhere to all rules and regulations in respect to environmental issues? (Y/N) Yes
Do you adhere to all rules and regulations in respect to health and safety issues? (Y/N) Yes
Are you willing to sign a confidentiality agreement? (Y/N) Yes
Company Profile
Example Supplier Beer Processing Equipment Co., Ltd. (1/3)
© 2013 Dragon Sourcing. All rights reserved.

11. 11
Sales References
Beer Brewing Process Equipment
Mill Mash Tun Brew kettle
Fermentation
Tank
Filter
Conditioning
Tank
Pasteurizer
Canning
Machine
Bottling
machine
Conveyor
Belt
Others
No,
through a
partner
company
Yes Yes Yes
No,
through a
partner
company
Yes Yes
No,
through a
partner
company
Yes
No,
through a
partner
company
Bottle
Washer,
Decrater,
CIP, Case
Palletizer,
Recrater,
Labeling
Machine
Company Profile
Example Supplier Beer Processing Equipment Co., Ltd. (2/3)
© 2013 Dragon Sourcing. All rights reserved.

12. 1212
Factory Entrance Workshop
Machinery Machinery
Factory Pictures
Company Profile
Example Supplier Beer Processing Equipment Co., Ltd. (3/3)
© 2013 Dragon Sourcing. All rights reserved.