Here is a case study by Dragon Sourcing on Gloves sourcing from Packaging sector for the year 2018 covering China, Thailand, Malaysia. For details contact: www.dragonsourcing.com

1. Gloves Sourcing Case Study
Dragon Sourcing - 龙 源
Your Tailored Sourcing Approach to LCC Sourcing

2. Agenda
1. Objectives
2. Approach
3. Results
2

3. Objectives
Context
Objectives
• To carry out sourcing service for the below category to achieve
cost savings and identify new qualified suppliers:
 Gloves
Geographical scope:
• China
• Thailand and Malaysia only for “nitrile gloves”
Deliverables:
• Supplier long list
• RFI/RFQ template
• RFI/RFQ report
• Company profile
• Score card
• Recommend suppliers for audit
DS Approach consists in the following work steps:
1. Work with client to define and understand the products and
requirements (specs, volumes, materials etc.).
2. Identify long list of potential suppliers in China by incorporating
existing list of DS potential suppliers and by leveraging the web,
external databases and various networks of experts.
3. Carry out a phone pre-screening of the suppliers based on
maximum 4-5 screening criteria per category (e.g.: min size,
having certain quality certification, experience in relevant
industry,…) with these criteria to be provided by the client
4. Develop the RFI/RFQ – jointly with the client – to include all key
supplier qualification criteria (e.g.: financial, technology,
manufacturing etc.) and quotation requirements.
5. Administer the RFI/RFQ process to ensure as high return rate as
possible including quotation.
6. Analyze responses and use balance score card developed
together with client’s management team to rank and recommend
suppliers that the client needs to take through a formal
qualification process factory audit.
7. Carry out factory audits (either alone or jointly with client’s auditors
or buyers) of the suppliers that appear attractive and competitive
based on the RFI/RFQ analysis report. (Optional)
3

4. Agenda
1. Objectives
2. Approach
3. Results
4

5. Total current yearly spend: AUD ~961 K; total target yearly spend: AUD ~859 K
5
Category Type No. of SKUs Total current spend Total Target spend % in total target spend
Gloves
Protective Glove 36 (including 19 different products) $ 664,035 $ 614,468 71.5%
Anti Cut 13 (including 5 different products) $ 196,212 $ 173,335 20.2%
Mechanical Protection 3 (including 1 product) $ 54,330 $ 38,747 4.5%
Chemical resistant gloves 4 (including 3 different products) $ 27,539 $ 19,278 2.2%
Chemical & Liquid Protection 2 (including 1 product) $ 19,205 $ 13,444 1.6%
$ 961,321 $ 859,271 100%
71.5%
20.2%
4.5%
2.2% 1.6%
% in total target spend
Protective Glove Anti Cut Mechanical Protection Chemical resistant gloves Chemical & Liquid Protection

6. Below table indicate No. of sizes and spend for each item, item “gloves latex disp non-sterile”
has the top 1 spend AUD ~357 K (41.5% of the total target spend)
6
Category Type Item Description
No. of
Sizes
No. of
SKUs
Total current spend Total target spend
% in total target
spend
Gloves
Protective Glove
Gloves Latex Disp Non-sterile 2 2 $358,012 $356,670 41.5%
Gloves Knit Polycotton 1 1 $78,107 $77,513 9.0%
Gloves Hyflex Nitrile Palm 2 2 $74,246 $72,716 8.5%
Gloves Nitrile Ultratech Foam 3 3 $23,262 $16,283 1.9%
Gloves Uvex Helix C5 2 2 $21,873 $15,311 1.8%
Gloves Cotton Interlock 1 1 $20,668 $14,467 1.7%
Gloves Nit T/Tuff 3 3 $16,397 $11,478 1.3%
Gloves Polycotton Knitted 4 4 $11,965 $8,375 1.0%
Gloves Polycotton Knitted 1 1 $9,430 $6,601 0.8%
Gloves Leather Prosafe Warrior 2 2 $8,914 $6,239 0.7%
Gloves Rubber Silverlined 2 2 $6,457 $4,520 0.5%
Gloves Hyflex Nit 2 2 $5,968 $4,178 0.5%
Gloves Food Safe 2 2 $5,660 $3,962 0.5%
Gloves Solvex Flockline Nitrile 2 2 $5,514 $3,859 0.4%
Gloves Vantage Kevlar Stitch Leather 2 2 $4,926 $3,448 0.4%
Gauntlets Solvex Nitrile 2 2 $4,578 $3,205 0.4%
Gloves Vinyl Food Safe 1 1 $3,520 $2,464 0.3%
Gloves Hyflex Ultra 1 1 $2,756 $1,929 0.2%
Gloves Ecogreen Nitrile 1 1 $1,784 $1,249 0.1%
Anti Cut
Glove Kev Bdl Slve Lthr Pach 1 1 $87,652 $85,950 10.0%
Glove Atg Maxiflex Ultimate 3 3 $48,037 $38,946 4.5%
Gloves Ansell Dyneema 2 2 $29,907 $27,007 3.1%
Gloves Uvex Helix 3 3 $17,848 $12,494 1.5%
Gloves Maxicut 5 Ultimate 4 4 $12,768 $8,937 1.0%
Mechanical Protection Gloves Hylite Nitrile 3 3 $54,330 $38,747 4.5%
Chemical resistant gloves
Gloves Disp Nitrile Tgc Orange 2 2 $19,729 $13,810 1.6%
Gloves Solvex Flockline Nitrile 1 1 $5,062 $3,544 0.4%
Gloves Ecogreen Nitrile 1 1 $2,748 $1,924 0.2%
Chemical & Liquid Protection Gloves Ansell Microflex 2 2 $19,205 $13,444 1.6%
Total 58 $961,321 859,271 100%

7. 19 RFI/RFQ and 11 only RFQ received, except 1 supplier is in Pennang of Malaysia, the
other 29 suppliers are all located in China: 10 in Jiangsu, 8 in Shandong, 2 in Shanghai, 3 in
Guangdong,3 in Zhejiang, 1 in Fujian, 1 in Beijing
7
Gloves
# Country Province RFI (Y/N)
RFQ
(Y/N)
Items quoted
(total 58 SKUs)
RFI score
Saving compare to target price (AUD)
20’
with pallet
20' without
pallet
LCL
(1 pallet)
1 China Jiangsu Y Y 51 78 88,253 109,036 64,518
2 China Shandong Y Y 27 78 151,564 156,525 146,490
3 China Fujian Y Y 54 78 286,534 327,558 233,612
4 China Jiangsu Y Y 8 75 115,877 119,544 112,034
5 China Shandong Y Y 53 73 374,742 415,175 315,688
6 China Jiangsu Y Y 51 69 170,847 188,994 163,942
7 China Shandong Y Y 24 67 0 0 0
8 China Beijing Y Y 10 63 99,408 119,440 60,630
9 China Jiangsu Y Y 6 62 41,361 42,668 39,984
10 China Jiangsu Y Y 24 59 132,909 140,888 131,807
11 China Shandong Y Y 10 58 6,837 20,348 1,134
12 China Shandong Y Y 6 56 39,793 42,760 39,392
13 China Shanghai Y Y 6 56 8,183 8,965 7,161
14 China Guangdong Y Y 23 56 127,501 131,902 122,902
15 China Guangdong Y Y 5 55 111,854 131,344 73,966
16 China Jiangsu Y Y 6 55 11,823 12,477 11,136
17 China Jiangsu Y Y 21 50 121,857 125,523 118,008
18 Malaysia Penang Y Y 9 44 7,183 8,290 7,099
19 China Shanghai Y Y 22 33 20,077 21,285 19,532
20 China Henan N Y 23 no RFI 160,321 120,761 155,500
21 China Jiangsu N Y 15 no RFI 146,204 150,740 141,448
22 China Shandong N Y 37 no RFI 142,990 160,809 127,896
23 China Guangdong N Y 4 no RFI 124,317 143,496 86,612
24 China Zhejiang N Y 8 no RFI 99,255 119,032 60,801
25 China Zhejiang N Y 9 no RFI 72,314 95,864 71,885
26 China Zhejiang N Y 3 no RFI 19,943 20,184 19,914
27 China Jiangsu N Y 3 no RFI 0 0 0
28 China Shandong N Y 7 no RFI 0 0 0
29 China Shandong N Y 3 no RFI 0 0 0
30 China Jiangsu N Y 3 no RFI 0 0 0

8. Score card analysis - 19 suppliers RFI are scored and ranked, 18 suppliers are from
China, 1 supplier is from Malaysia
8
Section Weight
China Malaysia
Supplier
1
Supplier
2
Supplier
3
Supplier
4
Supplier
5
Supplier
6
Supplier
7
Supplier
8
Supplier
9
Supplier
10
Supplier
11
Supplier
12
Supplier
13
Supplier
14
Supplier
15
Supplier
16
Supplier
17
Supplier
18
Supplier
19
Business information 20% 91 92 91 79 88 91 76 55 58 64 82 68 73 77 55 52 32 20 64
Production 30% 65 51 57 71 51 53 38 25 49 43 29 31 41 34 37 49 31 15 16
Quality system 30% 81 100 81 81 81 63 81 100 69 69 63 69 69 44 69 44 63 81 63
Social Responsibility 20% 80 70 90 70 80 70 60 70 60 60 60 60 40 80 60 70 80 0 40
Total 100% 78 78 78 75 73 67 63 62 59 58 56 56 56 55 55 52 50 33 44
0%
25%
50%
75%
100%
0
25
50
75
100
Supplier
1
Supplier
2
Supplier
3
Supplier
4
Supplier
5
Supplier
6
Supplier
7
Supplier
8
Supplier
9
Supplier
10
Supplier
11
Supplier
12
Supplier
13
Supplier
14
Supplier
15
Supplier
16
Supplier
17
Supplier
18
Supplier
19
China Malaysia
(Filling rate
total 100%)
(Score
max 100 points)
RFI score card and filling rate

9. Score card analysis - RFI score and filling rate for each section
Low score at production section due to only produce 1 category PPE product and not
cooperated with global PPE clients, low score at social responsibility due to no
ISO14000/OHSAS 18001 certificate and not a Sedex member
9
0%
25%
50%
75%
100%
0
25
50
75
100
Supplier1
Supplier2
Supplier3
Supplier4
Supplier5
Supplier6
Supplier7
Supplier8
Supplier9
Supplier10
Supplier11
Supplier12
Supplier13
Supplier14
Supplier15
Supplier16
Supplier17
Supplier18
Supplier19
China Malaysia
(Filling rate
total 100%)
(Score
max 100 points)
Business information
0%
25%
50%
75%
100%
0
25
50
75
100
Supplier1
Supplier2
Supplier3
Supplier4
Supplier5
Supplier6
Supplier7
Supplier8
Supplier9
Supplier10
Supplier11
Supplier12
Supplier13
Supplier14
Supplier15
Supplier16
Supplier17
Supplier18
Supplier19
China Malaysia
(Filling rate
total 100%)
(Score
max 100 points)
Production
0%
25%
50%
75%
100%
0
25
50
75
100
Supplier1
Supplier2
Supplier3
Supplier4
Supplier5
Supplier6
Supplier7
Supplier8
Supplier9
Supplier10
Supplier11
Supplier12
Supplier13
Supplier14
Supplier15
Supplier16
Supplier17
Supplier18
Supplier19
China Malaysia
(Filling rate
total 100%)
(Score
max 100 points)
Quality system
0%
25%
50%
75%
100%
0
25
50
75
100
Supplier1
Supplier2
Supplier3
Supplier4
Supplier5
Supplier6
Supplier7
Supplier8
Supplier9
Supplier10
Supplier11
Supplier12
Supplier13
Supplier14
Supplier15
Supplier16
Supplier17
Supplier18
Supplier19
China Malaysia
(Filling rate
total 100%)
(Score
max 100 points)
Social Responsiblity

10. Agenda
1. Objectives
2. Approach
3. Results
10

11. Client total target spend for total 5 types of gloves - 58 RFQ items is AUD 859K, 30
quoted suppliers’ spend are from AUD 11K to AUD 2.6M for 3 to 54 items; all 58 items
from 25 suppliers have potential savings, the total savings range from 16% to 73%.
11
Supplier
1
Supplier
2
Supplier
3
Supplier
4
Supplier
5
Supplier
6
Supplier
7
Supplier
8
Supplier
9
Supplier
10
Supplier
11
Supplier
12
Supplier
13
Supplier
14
Supplier
15
Supplier
16
Supplier
17
Supplier
18
Supplier
19
Supplier
20
Supplier
21
Supplier
22
Supplier
23
Supplier
24
Supplier
25
Supplier
26
Supplier
27
Supplier
28
Supplier
29
Supplier
30
Total
Spend
2,607,671 2,402,205 795,322 709,548 669,049 617,739 601,964 522,757 335,707 313,773 289,341 277,403 211,847 202,168 174,591 164,632 159,680 109,947 92,288 85,312 78,844 66,337 60,364 38,302 33,915 30,715 15,046 11,663 11,253 10,743
# of SKU
quoted
3 51 51 6 24 54 22 53 10 8 5 4 27 10 9 34 3 23 23 24 26 21 21 6 3 3 6 9 6 6
# of SKU
lower
than
target
0 7 40 0 0 47 7 51 9 8 3 4 24 2 7 30 2 23 23 24 26 21 21 6 0 0 6 7 6 6
Savings
on SKUs
with
lower
quotes
0 64,519 163,942 0 0 233,612 19,532 315,688 60,630 60,800 73,966 86,612 146,491 1,135 71,884 127,896 19,915 155,499 122,902 131,807 141,448 112,035 118,008 39,392 0 0 39,984 7,099 11,137 7,161
Savings
% on
SKUs
with
lower
quotes
0% 57% 62% 0% 0% 32% 52% 38% 16% 16% 21% 24% 65% 27% 47% 64% 74% 59% 57% 61% 64% 63% 66% 51% 0% 0% 73% 52% 50% 40%
0 65
164
0 0
234
20
316
61 61 74 87 146
1 72 128
20
155 123 132 141 112 118 39 0 0 40 7 11 7
0
78
52
0
67
78
33
73
63
0
55
0
78
58
0 0 0 0
56 59
0
75
50
56
0 0
62
44
55 56
0
25
50
75
100
0
500
1,000
1,500
2,000
2,500
3,000
RFIscore
ThousandsAUD
Total spend, supplier potential savings for LCL and RFI score
Total Spend Savings on SKUs with lower quotes RFI score

12. 5 suppliers are recommended for 2nd round RFQ
12
Gloves
# Province
RFI
(Y/N)
RFQ
(Y/N)
RFI
score
No. of
Items
quoted
(total 58
SKUs)
Excluded from bids
Sedex
ANZ safety
standards
compliance
%
coverag
e of -
bids by
spend
Saving compare to target price
(AUD)
Recommend reasons
Protective
(36 SKUs)
Chemical
& Liquid
（2 SKU）
Anti Cut
（13 SKUs）
Chemical
Resistant
(4 SKUs)
Mechanical
(3SKU)
20’
with pallet
20'
without
pallet
LCL
(1 pallet)
1 Shandong Y Y 78 27 20/36 2/2 8/13 1/4 0 N
ANSI, CE
(EN 388:2003)
38% 151,564 156,525 146,490
No.1 RFI score with good savings, has
cooperated with global PPE clients,
very good attitude and it's first vendor
who quoted with entire packging
information.
2 Jiangsu Y Y 78 51 2/36 0 3/13 2/4 0 N
ANSI, CE
(AS/NZS
2161:2005/EN
374-
1:2003/EN
388:2003)
95% 88,253 109,036 64,518
No.1 RFI score, found in 1983, big
factory. High Quality they quoted so
savings aren't very good, but can
requote after receive samples. Almost
all gloves they can produce.
3 Fujian Y Y 78 54 2/36 0 0 2/4 0 Y
CE
(EN
388:2003/EN4
20/EN374/
EN407)
98% 286,534 327,558 233,612
No.1 RFI score, have good savings,
almost all gloves they can produce.
Only one vendor who are a member of
Sedex.
4 Shandong Y Y 73 53 5/36 0 0 0 0 N ANSI,CE,ISO 97% 374,742 415,175 315,688
Have good savings, almost all gloves
they can produce, very good attitude,
can quote all other products which
client needs, they have lots of
experience in auditing but seems they
also use other factory to produce
gloves
5 Jiangsu Y Y 69 51 2/36 2/2 3/13 0 0 N
ANSI, CE
(AS/NZS
2161:2005/EN
388:2003)
95% 170,847 188,994 163,942
have good savings, almost all gloves
they can produce. Their prices are
nearly close to the prices with client,
should know those kinds of gloves very
well.

13. For 5 recommended suppliers , they are located in 3 province: 3 in Jiangsu, 1 in Fujian, 1 in
Shandong
13
Protective Gloves
# Province
RFI
(Y/N)
RFQ
(Y/N)
RFI score
No. of
Items
quoted
(total 58
SKUs)
Saving compare to target price (AUD)
20’
with pallet
20' without
pallet
LCL
(1 pallet)
1 Shandong Y Y 78 27 151,564 156,525 146,490
2 Jiangsu Y Y 78 51 88,253 109,036 64,518
3 Fujian Y Y 78 54 286,534 327,558 233,612
4 Jiangsu Y Y 73 53 374,742 415,175 315,688
5 Jiangsu Y Y 69 51 170,847 188,994 163,942