Global emerging markets sourcing through procurement sub-contractors Description: In present scenario emerging sourcing countries have become one of the popular destinations for effective sourcing activity. Emerging market sourcing helps to source products and services at fair price. To know more about emerging markets sourcing visit: http://www.dragonsourcing.com/

1. Company Presentation
Feb 2018
Dragon Sourcing - 龙 源
Delivering sustainable sourcing value from emerging markets

2. © 2018 Dragon Sourcing. All rights reserved.
Agenda
1. Our offerings and approach
2. Our clients and category expertise
3. Client case study
4. Successful Sourcing in China

3. Procurement Intelligence to deliver you insight into markets to
enable effective procurement decision.
Global Sourcing to identify, qualify & secure capable and
competitive suppliers in emerging markets.
Procurement Outsourcing of IPO’s (international procurement
offices) to increase productivity, reduce risks and fixed costs and
rapidly scale up
Procurement Capability Enhancement to Improve the
productivity and effectiveness of your procurement function in
emerging markets, especially in China
© 2018 Dragon Sourcing. All rights reserved.
Dragon Sourcing’s Suite of Offerings

4. Our suite of Procurement Intelligence Offerings covers the full information
requirements of Procurement Departments
© 2018 Dragon Sourcing. All rights reserved. 4
CLIENT
BENEFITS
Clarifying
Supply Chain
Risks
Discovering
Market
Opportunities
Informed
Buying
Decisions
PROCUREMENT INTELLIGENCE
SUITE
Supply Market Analysis
Supplier Analysis
Industry Best Practices Analysis
Price Tracking & Forecasting
Category Executive Dashboards
Dynamic Should-Cost Models
Value Chain Analysis
Supplier Financial Assessment
Supplier Ethics Assessment
- Which countries have potential?
- Should we buy-in or manufacture?
- Who are the top suppliers?
- What are the market dynamics?
- Should we buy now or later?
- Latest category news?
- What will the impact of inflation be?
- Is the market trending up?
- What are the raw materials?
- What are the key risks to supply?
- Do these suppliers meet our CSR
requirements?
KEY CLIENT
QUESTIONS

5. • Analyse spend category in detail
– Specifications and quality
requirements
– Volumes
– Deadlines
• Analyse supply market and
identify potential suppliers
• Pre-qualify potential suppliers
through an RFI process
• Manage RFP process with pre-
qualified suppliers
• Analyse supplier responses and
calculate fully delivered price
(logistics, import duties, ADT,..)
• Develop Business case and
implementation plan
• Shortlist suppliers based on
RFI/RFP process
• Audit shortlisted suppliers
• Select 2-3 suppliers for sample
development process
• Manage sample development
process
• Conduct final negotiations and
select suppliers
• Finalise Contract
© 2018 Dragon Sourcing. All rights reserved.
Our suite of Sourcing Offerings covers the end-to-end sourcing process
Value Discovery
Supplier Selection
and Contracting
Procurement Operations
• Manage P/O and agree payment
terms and details (L/Cs,..)
• Check in process production quality
• Conduct pre-shipment QC
• Arrange logistics
• Manage supplier performance
• Monitor new sourcing opportunities
Keyactivities

6. © 2018 Dragon Sourcing. All rights reserved.
Capability Assessment:
Improve the effectiveness of your procurement organization
6
1. Assessment 2. Implementation 3. Execution
To assess the current situation of the procurement organisation
and the demand, and identify the improvement opportunities.
1. Data collection through workshops and questionnaires to
gain clarity on the current state and demand.
2. Interviews with staff to determine current roles,
understanding of mission & capabilities.
3. Analysis & reporting of the current state, the demand, and
the areas for improvement.
4. Draft a detailed plan for implementing and communicating
the improvements.
5. Review and approval by stakeholders on the improvements
and the implementation plan.
To develop and implement the
organisational improvements.
1. Develop the new org model,
processes, tools, roles &
policies.
2. Recruiting for capability gaps
& training staff in new roles.
3. Defining a 12 month
operating plan.
4. Communicating and
formalising launch of the new
organisation model.
To reinforce the improvements
and deliver the first cycle targets.
1. Tracking the adoption of the
new tools, processes and
policies.
2. Supporting behaviour change
with side by side support.
3. Augmenting sourcing projects
where there are temporary
capability or capacity gaps.
Deliverables
• Analysis report of current situation
and recommendations on the
opportunities for improvements
• Implementation plan
• Communication plan
Deliverables
• Organisational model
• Process documents
• Tools, templates & policies
• Role descriptions
• Recruited staff
• Trained staff
• 12 month operating plan
Outcomes
• Reduced overheads
• Higher productivity
• Increased sourcing savings
• Reduced contract leakage
• Separation of duties
• Increased visibility & control
• Focus on value add activities

7. London
Paris Graz
Ljubljana
Warsaw
Budapest
Istanbul
Tel Aviv
Mumbai
Shanghai
Hong Kong
Ho Chi Min City
Bangkok
Jakarta
Johannesburg
Melbourne
Sao Paulo
Mexico City
Houston
Addis Ababa
Prague Kiev
Bucharest
Riga
Manila
Lagos
Rosario
Nairobi
Brussels
We can cover global emerging markets through our owned offices and our
network of procurement sub-contractors
© 2018 Dragon Sourcing. All rights reserved. 7 Geographies covered by DS network of procurement subcontractors
Santiago
Sales offices
Buying offices
Novosibirsk
Myanmar
Cambodia
Rome
MadridMilan
Porto
Kuala
Lumpur
DammamCairo

8. Service and Pricing
Dragon Sourcing - Service Offerings Pricing
DS Inhouse Outsourced Standard Comment
Market Intelligence
Procurement Intelligence x
Fixed fees according to price list
Should Cost Model x
Supplier Financial Assessment x
Supplier Supply Chain
Assessment
x
Supplier Ethics Assessment x
Category Executive Dashboard x
Country and
Manufacturing Site
Evaluation
Country Selection x
Customized fixed fees based client's
needs
Country/Region/City Analysis x
Factory ramp up support x
Global Sourcing
Portfolio Analysis & Category
Prioritization
x
Fixed fees according to price list
We can offer performance related deals
(gain sharing, commissions, trading). Deals
are structured on a case by case basis
based on (1) spend value, (2) types of
categories and (3) nature of the work
required by the client;
For Long-term Projects / High workload
Projects, we move away from our
standard pricing approach based on # of
categories and # of countries to projects.
Identification of potential
suppliers (RFI process)
x
Measuring cost competitiveness
of suppliers (RFQ process)
x
Auditing x x
Sample development and testing x x
Supplier development x x
Contract negotiaton x
Procurement Operations
QC Management x x
Fixed fee based on daily billing rateLogistics Management x
Payment / Invoice management x
Outsourcing
Interim Management x (Buyers) x (SQE, SDE) Fixed fee based on monthly billing rate
IPO Management x Fixed fees based on team size
Performance related deals are possible to
be crafted on a case by case basis
© 2018 Dragon Sourcing. All rights reserved.

9. © 2018 Dragon Sourcing. All rights reserved.
In summary our key differentiating points are:
• Our ability to provide and end-to-end service from Procurement Intelligence through to
Procurement Operations
• A business model which ensures that we work exclusively for the benefit of the buyer
• Total transparency and sharing of information with the client
• Deep procurement process and category expertise combining operational and consulting
skills allowing us to provide high quality service across a wide range of categories
• An engineering and technical background combined with a deep understanding of industrial
B2B buying practices and requirements
• Global Footprint allowing us to effectively tap into all emerging market opportunities

10. © 2018 Dragon Sourcing. All rights reserved.
Agenda
1. Our offerings and approach
2. Our clients and category expertise
3. Client case study
4. Successful Sourcing in China

11. © 2018 Dragon Sourcing. All rights reserved.
Our clients are medium to large size corporations across a wide range of industries
Food & Beverage Construction
DIY
Industrial Products

12. © 2018 Dragon Sourcing. All rights reserved.
Our clients are medium to large size corporations across a wide range of industries
Service
Retail
Heavy Machinery
Automotive
Packaging
Pharma / Medical
Energy/Chemicals
Consumer Goods
Government
Mining

13. For these clients we have successfully sourced (or are in the process of
sourcing) an extensive set of spend categories
–Whisks
–Cooking items
–Bowl
–Cast Iron French Oven
–Soft Grid Handle
–Cast Iron Roster
–Oval Plate in Teflon
–Water filter
–Opal Glassware
–Tong
–TPE Lasagna Lid
–Cast Iron Saucepan
–Fondue Set
–Elegant plastic plate
–Cast Iron Braiser
–Vacuum Thermos Bottles
• Kitchenware
–Melamine dishes
–Nylon Spatula
–Cast Iron Skillet
–Oval Baker
–BBQ
–Lock Lids
–ABS handle/silicon handle
Finished goods for retail
–Self inflating air mattress
–Sleeping bag
–Towel / Beach towels
–Underwear
–White Tshirts
–Work wear
–Blouse
–Padded Jacket
–Comber cotton waste
–Casual shoes,boots,sandals
–Napkin/ Table Cloth
–Pillow
–PP non woven uniform
–PU Boots
–Canvas Shoes
–Quilt
–Coat
–Silk Dress
–Ladies’ Blazers
–Made ups (Linen)
–Plaids
–Semi finished artificial grass
carpet
• Textile
–Baby wear
–Blanket
–Carpets
–Duvet cover
–Socks (Lady, Men)
–Jeans
–Thermal suit
–Egyptian cotton CVC white
bleached fabric
–Burmuda short – stock lot buy
–Shopping Bag
–Shopping Basket
–Shopping Trolley
–Sound Ball
–Stones and Marble
–Wicker Basket
–Stand
–Microsign
–Baking tray
–Plastic trays
–Christmas decoration
–Deko Spring
–Door Sign
–Double loop hook
–Loop Hook
–Magnet
–Metal floorstand
–Dump bin
–Wooden crate
–Podium
– Fruit liner
–Cosmetic display
• Goods not for resale
－Acrylic Menu Holder
－Black hook
－Cardboard display
－Ceramic products (cup
Teapot, Plates)
－Counter unit
－PVC pocket
－Poster stand
－Roller scroll
－Wire Shelving
－Ice cream scoop
–Sonic Toothbrush
–Tooth Brush
–Tooth Floss
–Toothpick
–Elastic enhanced wrist
support
–Elastic knee support (4
ways)
–Powder free examination
glove
–Adjustable Medical Chair
–Fish Oil
–Hand Soap
–Hot Water Jar
–Moisturizer
–Crutch
–Ankle support
–Neoprene knee support
–Electric toothbrush
–Deluxe functional lumbar
support
–Manual toothbrush with
blister
• Healthcare
–Bath Gel
–Body care wet wipes
–Conditioner
–Soft pad elbow brace
–Elastic wrist brace
–Elastic elbow support
–Neoprene waist belt
–Elastic ankle support
–Knee support
–Neoprene ankle brace
–Shampoo
–Household wet wipes
–Humidifier
–Luminaries
–Misting Lamp
–Plastic scoop
–Dishwashing brush
–Energy saving lamp
• Household
–Air freshener
–Aroma diffuser
–Battery Alkaline
–Tray
–Cloth pegs
–Clothes line
–Thermos pot
–Vase
–Wicker basket
–Fridge magnet
–Tong
–Sardines in tomato sauce
–Swordfish steak
–Tuna steak
–Vannamei
–Whole Clean Octopus
–Red Chilli
–Tomatoes
–Canned Pineapple
–Nut (Peanuts and Cashew)
–Pangasius
–Whole Clean Squid
–Broth Cubes
–Wet Noodle/Sauce in Pouch
–Noodle/Pasta Cup
• Food
–Baby Corn
–Baby Cucumber
–Block of White Sesame
Candy
–Canned Papaya
–Pickled Cherry
–High Chair
–Toys
–Cloud travel cot
–Color Book
–Diapers
–wipes
• Baby products
–Bottle Sterilizer
–Model car
–Folding booster
•Furniture
−Steel Patio Furniture
−Rattan Patio Furniture
−Outdoor furniture
–Vanity
–Chair
–Wooden furniture
－Wicker furniture
－Compactus
－Office chair
• Shoes
–Vulcanized shoes
–Children EVA sandals
–Casual shoes
–Rain boots
–Surf – lady
–UGG boots
–GUM boot
–Hiking boot
–Sauna slipper
–Doble pulgger
–Surf – man
－Outdoor hikers
－Children boots
－Snow boots
－Children beach sandals
–Sandwich bag
–Soft Tissue Paper
–Cardboard Binder
–Seafood tray
–Trash bag
–Touch screen
–Tent
–iPad stand
–Twisted pearl necklace
–Bag
–Crab pot
–PE tarpaulin
–Silver drop necklace
–Car mat
–LED candle
–Paper Cup
–Plastic Bags
–PS Cup
–Cup holder
–Snap frame
–White board markers
and clips
–Opera house
–Black hand bag
–Perfume pump
–Brass bell with ropes
–Shopping basket
–Printing postcard,
booklets..
–Shoe bag
–Kids Bike in aluminium
• Consumables
–Container bin bag
–Deep freezer bag
–Book divider
–Light box
–Light box difital hand tally
counter
–Yogo mat
–Battery
–Winter scarf
–Sear cover
–Satin Wrap
–Fixture
–Plastic box
–Cord bag
–Flat bag

14. For these clients we have successfully sourced (or are in the process of
sourcing) an extensive set of spend categories
Laboratory items
Packaging
• Consumables
–Beakers
–Brown glass bottles
–Caps bouffant
–Conical flask
–Corundum crucibles
–Coverall
–Count Tact Box
–Disposable centrifuge
tubes
–Disposable latex gloves
–Disposable nitrile gloves
–Disposable plastic dropper
–Disposable sterile masks
–Disposable syringes
–Drip tube
–Graduated cylinders
–Halfline measuring cups
–Hollow glass stopper
–Jerricans
–Mechanical stopwatches
–Mercury thermometer
–Micro plates
–Paper wiper
–Petri dishes
–Pipette tips
–Plugs
–PTFE magnetic stirring bar kit
–Shoe Cover
–Stainless steel medicine
spoons
–Testtube brush
–Two neck flasks
–VIDAS plastic Barrett
–VIDAS plastic container
–Wash bottles
–Wide mouth plastic bottles
–Wrist cuff
–Tongue depressor
–Swab
–Irradiation label
–Extensive pH indicator paper
–Funnels
–Gloves
–Tongue depressor
–Tubes
–Ear washing bulb
• Equipement
–Walk in Fume hood
–Wide Fume hood
–Racks
–Autoclave
–Sealing machine
–Precise peristaltic pump
–Haier freezer for
pharmaceutical industry
–Water heater
–Laminar flow cabinet
–Freeze dryer
–Stainless steel chair
–Marble table for lab
–Steel shelf
–Cabinet
–Vortex mixer
• Plastic
–Bread bag
–CD Box
–Film
–Freshness box
–Innerfoil
–Intermediate Bulk Containers
–Multilayered and Coextruded
Films
–Multilayered and Coextruded
Plastic Films
–Plastic Pallets
–Plastic box
–Hangsell
–Thermal sealable
cellophane
–Wine Bottle Capsule
–LDPE foam
–Plastic bags
–Plastic bubble wrap
–U shape edge protector
–Plastic rigid bottles, caps
–Plastic rigid tubes
–Carton box handle
–Woven Plastic Sacks
–Shopping bag
–Garment bag
–Cardboard bin with plastic
tray
–Strawberry container
–Adidas tray
–Brochure holder
–Menu holder
–Printing Film on Reel for
Food Industry
–Plastic rigid jars
• Paper
–Carton for Food Industry
–Chocolate Boxes
–Corrugated Packaging
–Cardboard box 7 layers
–Labels for electronic
devices
– Lables and print
–Hamburger box
–Hot Chip Box/Hot beverage cup
–Multilayered Paper Sacks
–Filter paper
• Wood
–Wine Bottle Cork Stopper
–Wine Boxes
–Wooden biscuits box
–Lumber
–Fasteners
–Stainless steel box
• Metal
–Beer kegs
－Tin Boxes
Construction Materials
MRO
Raw Materials
Production Equipment
- Cupper
- Can bodymaker
- Washer
- Decorator
- Pin Oven
- Sprayer
- Necker
- Empty can palletizer
- Hydraulic Press machine
- Shell press
- Conversion system
- Liner
- Conveyer
- Dryer
- Shell balancer
- Auto bagger
- Vessels
- Screen printing equipment
- Inverter
- Agitator
- Pipe line
- Rotary dryer
-Round seamless steel bar
-Cathode Bar
-Activated Carbon
-Silicon metal
-Silicon metal HP
-Steel wire cordage
-Steel wire
-Potassuim Amyl Xanthate
-Sodium sulfide
-Sodium chlorate
-Potassium permanganate
-Aluminum fluoride
-Benzoin Gum
-Ammonium sulfate
–Haz Mat Shoe Boot
–PVC industrial gloves
–Nitrile industrial gloves
–Safety glasses
–Coverall
–Protective glove
–Welding Helmet
–Headband
–Tear away mesh
–Beach hats
–Cooling bandanas
–Boot steals
–Sunscreen Lotion
–Earplug
–Anti fatigue Mat
–Work wear
–Cool Cap
–Baseball Bump Cap
–Protective Clothing
–Duct tape
–Helmet Lens
–Respirator
–Protective Eyewear
–Cut resistant glove
-Wire Mesh
- Aluminum laminate
- Fiberglass tissue
- Tack strip
- Concrete Accessory
-Agriculture Product
-Metal Lath
-Wood flooring
-Organic fiber
-Zamak handle
-Wire rods
-Steel Wire
-Cable Ladder
- Plywood
- MDF (medium density
fiberboard)
- PTB (Particle board)
- Nail
- Moulding
-Laminate flooring
-Drawer side
-ABS handle with aluminum
finishing
-Plywood
-Steel
-Cable Channel
-Resin Basin
-Deformed steel rebar in coil
& Straight length
-Southern yellow pine
-DWI Aluminum Can Raw
Materials: inks, Ultra
premium® exterior paint,
Basecoat, Premium spray
paint, Sealant compound
-T6 6060 Aluminum extruded
profiles
-Steel Angle
-Cable Tray
• Glass
–Alcohol bottles
–Beverage bottles
–Food Jars
–Pharmaceutical bottles
& vials
–Cosmetic bottles
–Wine bottle and outer carton

15. For these clients we have successfully sourced (or are in the process of
sourcing) an extensive set of spend categories
Industrial items
–PVOH (Polyvinyle
Alcohol)Fully hydrolysed
–DINP di-isononyl
phthalate
• Industrial Plastic
–PVB film for automotive glass
–PVB film for Construction,
building glassPVB resin for PVB film
manufacturing
• Tools
–Hand saw
–Scrapers
–Steel Wire brush
–Tool Case
–Utility knife
–Wall brush
–Tapes
–Staples
• Supporting range
–DIN Rail
–Perforated strips
–S Hooks
–Steel chains
–Suspension Hooks
–Threaded rod
• Grounding range
–Brass connector
–Cloverleaf rod closed clamp
–Cloverleaf rod flat clamp
–Connecting bolt
–Cross shape rod with bolt
–Derivation connector
–Earthing clamp
–Isolation bar
–Round rod closed clamp
–Round rod flat clamp
–Striking head
–Threaded copper round rod
–Cable terminal
–Cable tie
–Cable attachment
• Connecting range
–Christa’l terminal
–Heat Sink
–Low current connectors
–Peltier element
–Power cord
–Terminal for lamps
–Terminal strip black
Do it Yourself items
• Electrical
–AWG wire
–Cable sleeve
–PCBA
–EMT straps / Couplings
–Electric racking
–Electric switches
–Electric protection
–Electric cable
–Electric lighting
–Electric ground rod
–Electric general
－Plastic Injection:
Wheel joint for Baby trolley,
ABS and PP , Luggage wheels,
Coffee Machine parts,
winddeflector, front beam,
Black hook, Curved shelf,
Plastic number, Rota vials, HIV
vials, FOB vials, Fasteners &
Springs
• Processed Technologies
–Castings:
exhaust, In queue product parts, Axle
Housing Assembly, Coffee Machine
parts; Hollow Steel Structure; Steel
structure for solar panel; Counter weight
filler bit, Meat mincer, Heating block, Die
casting assy axle, insert, Cast PU
components, Cast AI components
–Extrusion:
Aluminum extrusion parts, Baby trolley
parts, Alu-alloy part , Data strip,
Railshaped ruler
–Metal Cutting and Melding:
Hollow steel structure, Steel structures
for solar panel
–Stampings:
Bread Pans for Automated Ovens, Steel
Containers, Steel Containers Coffee
Jug, In queue product parts, Industrial
Boiler Components, Lamp armature,
Stainless steel display tower, glass
reinforcement, spring wind deflector,
Safety bar
-Forging
Lower tube sheet, Gears, Shaft Axle,
Custom hot rolled steel profiles
–Hot Rolled Wire
–Mud Stay
–Plastic Bread Trays
–Stainless Steel products
–Tractor
–U bolts
–UTube
–Water tank
–Ductile Iron Pipe and fittings
–Car window channel
–Wire fence
–Carcass Light Box
–Electric and gasoline generator
–Solor motor
–Invertor
–Brass roller buckle
–Steel basic frame
–Solenoid
–Speaker
–Transformer
–Filter
–Electro-magnets
–Pump
–Ni Magnet
–Ball Valve
–Surge Protector
• Finished products
–Bread tins
–Bus bumpers
–Car batteries
–Coffee Machine
–Cutting knives
–Electric aerosol dispenser
–Fasteners
–Fifth Wheel
–Flame detector
–Tungsten wire
–Grinding media
–Magnet
–Double loop hook
–Wind Turbine Permanent Magnet
Generator/Alternator
–Brass lock
–Twist lock with fixed hinge
–Engraved padlock
–Full zipper puller
–Brass rivet
–Zinc alloy hook
–Plumbing
–Membrane keyboard
–Gauge
–Neck Printing Machine
–Metal Bracket
–Handbag/Luggage lock&puller
–Composite tube
–Motor assembly
–Universal AC motor for Food
Processing Machine
–Sheet metal – ATB reader
–Machining – ATB reader
–Turned parts – ATB reader
–Conduits
–Battery charger
–Battery
–Brass padlock with two keys
–Twistlock
–Padlock
–Buzzer
–Electric motor
–Electric motor for water filtration
system and GE appliance
–Flanges & Fittings
–HVAC
–Printed circuit board
–Aluminum sheets
–Fin Stock real
• Road Transportation
• Travel agencies
• Airlines
• Warehousing
• Creative agencies
• Legal Service
Services

16. For these clients we have successfully sourced (or are in the process of
sourcing) an extensive set of spend categories
Chemicals and Food Ingredients
–Acetonitrile 99.9+%
0.782g/mL (Methyl
cyanide) for HPLC
gradient analysis
CertiFied HPLC
–Acetone (Propanone)
–Metanol grad. Hplc
–Methylene Chloride Optima
–Dichloromethane 99+% (GLC)
stabilised with 0.005% amylene
SpeciFied
–Heptan-n 99,5% pa
–Ethyl acetate cert acs/hplc
–Acetonitril
–"Blood Agar"
–Tetrahydrofuran 99.5+% (GLC)
stabilised with 0.025% 2,6-di-tert-
butyl-p-cresol
–iso-Hexane contains < 5% n-
hexane for HPLC CertiFied
–Hexane optima grade
–Hexane cert acs/hplc
–Xylene
–Tryptic Soy Broth
• Pharmaceutical
–Water 0.1% tfa
–Dodecyl Sulfate Sodium
–Ethanol 99.8+% (GLC)
0.7897g/mL absolute (Ethyl
alcohol) for analysis CertiFied AR
–Dimetylsulfoxid
–Human Serum
–Horse Serum
–Sulfuric acid
–Brucite
–Turpentine- Myrcene
–Turpentine- Citronellene
–Turpentine-Alpha-Pinene
–Turpentine- Beta-Pinene
• Industry
–Calcined bauxite
–Vitamin A 1000 IU
Retinol
–Vitamin B1
–Vitamin B12
–Vitamin B2
–Vitamin B3
–Vitamin B5
–Vitamin B6
–Vitamin B9
–Vitamin C Acid
Ascorbic Dried
–Vitamin C Stabilised
35%
–Sorbitol esters
–Soya Protein
–Tartaric acid
–Taurine
–Tetra Potassium
Pyrophosphate (TKPP)
–Tetra Sodium Pyrophosphate
(TSPP)
–Titanium dioxide (TiO2)
–Tri calcium Phosphate
–Trilon A92 (Chelating agent)
–Trilon B (Chelating agent)
–Vitamin A - All-trans-retinyl
acetate
–Glycine
–L-cysteine
–Lecithin
–Liquid Caustic Soda
–Milk
–Mono calcium Phosphate
–Phosphoric Acid (75%) FCC
–Phosphoric Acid: 80%,
–Potassium Sorbate
–Propionic acid
–Sodium Stearoyl lactylate
–Sodium Tripolyphosphate (STPP)
–Sorbic acid
–Vitamin E (VE)
• Food and Animal Nutrition
–80% Sulphur DF and 20%
Mancozeb WP
–Benzoic acid
–C8 10L Fatty Acid
–Calcium Propionate
–Caustic Potash
–Caustic Potash (Liquid)
–Caustic Soda Pearl
–Citric acid
–Di calcium Phosphate
–Dicalcium Phosphate (DCP)
–Glycerine (Palm/Coconut derived)
–Xylose
–Sodium
Phosphatemonobasic
–Sodium Thiocyanate
–Sucrose
–Tartrazine Acidyellow 23
–Thimerosal
–TMB . 2HCl . 1H2O
–Trans-Cinnamaldehyde
–Trishydroxymethylamino
methane
–Triton X-100
–Urea HydrogenPeroxide
–Variquat 56
–Zwittergent 3-14
–Mops(morphol.Prop.Sulf
onic Acid)
–White/vory Beeswax
–Antimony Oxide
–RBD LLP
–Poly ethylene Glycol
(Macrogol 8000)
–Polysorbate 20
–Potassium
dihydrogenphosphate
–SERMUL EN 9
–Sodium Hydroxide
–Sodium Carbonate
–Sodium ChlorideType A
–Sodium citratedihydrate
–Sodium Hydrogen Carbonate
–Sodium Iodacetate
–Sodium phophatemonobasic
monohydrate
–Sodium phosphate dibasic
dihydrate
–Goat anti rabbit antibody &
goat anti mouse antibody
–Coconut Oil
–Emdex
–Eryoglaucine
–Erythrosin B
–Ethanol 96% denatured
(5%Methanol)
–Ethanol Type A (96% v/v)
–Gentamicin sulfate salt
–Glycine
–GuanidineThiocyanate
–HEPES free acidULTROL Grade
–Horse Radiche Peroxidase Grade
II
–Hydrochloricacid 37%
–Iron(III) chloride Hexahydrate
–Kathon CG Biocide
–Linalool
–Bile salts
–Albumin prepared from Human
plasma
• Biological
–2-Chloroacetamide
–2-Chloro-N-
(hydroxymethyl)acetamide
–alpha,alpha-TrehaloseDihydrate
–Amaranth
–BromocresolPurple
–Calcium Chloride dihydrate
–Citric acid Monohydrate
–CTAB
–Dextran Blue
–Dextran T40
–Disodium EDTA dihydrate
reagent (ACS)
–DL-Dithiothreitol
–NASBA Lysis buffer 500 ML
–Mannitol reagent (ACS)
–Sheep blood
–Organic Stearic Acid
Promotional items
• Gifts
–Electronic gadget: Photo frame, USB
Key, Flashlight….
–Premium:Lighter, key ring, money
clip…
–Umbrella and parasols
–Wine related gifts: cooler wine bottle
ring, bottle opener, parkling cork, wine
standee, wine bucket, Vacuum
stopper…
–Writing instruments: Notebook, ball
pens…
–Plastic diffuser and LED
• Display
–Cardboard display
–Light box
–Metal display
–Plastic display
• Glasses
–Bar accessories: Decanter, Jug, Water carafe, Ice
bucket…
–Glasses: Cognac glasses, Wine glasses, Whisky
glasses, Cocktail glasses, Champaign glasses…
• Luggage and Textile
–Backpack
–Bags
–Luggage
–Textile: Uniform, Apron, Towel set,
Jacket
• Printing & Boxes
–Brochures
–Christmas cards
–Gift boxes
–Shopping bag
–High temperature resistant spray
paint

17. © 2018 Dragon Sourcing. All rights reserved.
Agenda
1. Our offerings and approach
2. Our clients and category expertise
3. Client case study
4. Successful Sourcing in China

18. © 2018 Dragon Sourcing. All rights reserved.
Agenda
A. Context and Products
B. Sourcing Strategy
C. Governance model
D. Results & Conclusions

19. © 2018 Dragon Sourcing. All rights reserved.
Context
• Major global FMCG company producer
– Presence in over 70 countries, including Europe, Asia and America
– 18,000 employees worldwide
– Approx $8 billion turnover
– 15 key brands accounting for 70% of total turnover
• Effective management of marketing spend requires to overcome several challenges:
– Double digit growth in BTL marketing budget (approximately RMB120M/year)
– Communication within a complex decentralised organisation (brand driven)
– Collaboration between employees with very different backgrounds
– Relationship with creative agencies for product design
– Peak demand and short time to market
– Reactivity to frequent design change requests
• Decision to outsource BTL marketing/promotional procurement in 2005 to Dragon Sourcing

20. © 2018 Dragon Sourcing. All rights reserved.
Major trends in marketing services in China
• Use rigorous sourcing methodology as in the industry to manage creativity profusion, short
time to market and non recurrent purchasing
• De-aggregate supply chain between creative agencies and manufacturers
• Set up IPO or use PSP in China instead of traders in Europe to buy directly from manufacturers
• Look for value-added suppliers providing innovative solutions vs standard catalogue items
• Increasingly focus on CSR and environmental issues in supplier selection process
• Sourcing diversification outside China (e.g.: Vietnam) to leverage even lower cost suppliers

21. © 2018 Dragon Sourcing. All rights reserved.
Marketing spend includes all goods typically designed by creative agencies,
such as gifts, boxes or glasses
GiftsStandees Boxes Glasses

22. © 2018 Dragon Sourcing. All rights reserved.
Agenda
A. Context and Products
B. Sourcing Strategy
C. Governance model
D. Results & Conclusions

23. Dragon Sourcing manages, for all BTL categories, the whole sourcing process…
• Negotiate contract with supplier
• Facilitate supplier and customer signatures
• Monitor down-payments
• Follow production quality
• Organize delivery
• Manage quantity variation effects
• Organize final payment
• Measure supplier performance
• Collect product design proposals from
creative agencies
• Forecast future volumes and consolidate
requirements
• Manage RFQ process with all qualified
suppliers
• Collect supplier samples and refine final
product design
• Update supplier quotations
• Negotiate and select supplier
© 2018 Dragon Sourcing. All rights reserved.
Contracting,
Production & Delivery
Product design &
Supplier selection
Supplier qualification & Supply base management
• Monitor supply markets
• Qualify potential new suppliers through an
RFI and « theoretical » RFP process
• Analyse responses and « identical » samples
• Audit suppliers
• Follow current supplier performance
• Set up list of qualified suppliers
– Introduce new supplier in base
– Eliminate poor performing current supplier

24. © 2018 Dragon Sourcing. All rights reserved.
… for approximately 350 discrete sourcing projects
driven by 2 major annual events: Mid-Automn Festival and Chinese New Year
Monthly spend evolution
M
ay-05June-05July-05
August-05
Septem
ber-05
O
ctober-05
N
ovem
ber-05
D
ecem
ber-05
January-06
February-06M
arch-06April-06M
ay-06June-06July-06
August-06
Septem
ber-06
O
ctober-06
N
ovem
ber-06
D
ecem
ber-06
January-07
February-07
Mid-automnfestival
ChineseNewYear
Mid-automnfestival
ChineseNewYear

25. © 2018 Dragon Sourcing. All rights reserved.
The RFI/RFP and “identical sample” process result in a short-list of
potential new qualified suppliers
Pre-qualified
suppliers Potential new
qualified
suppliers
Potential suppliers
Qualification of suppliers through RFI/RFP
RFI/RFP
process Sampling
process
Analysis of offers and samples
Potential
Supplier
1
Potential
Supplier
2
Potential
Supplier
3
Current
Supplier
Price
Prod. 1 26.4 23.8 24.9 24.6
Prod. 2 36.1 33.8 34.9 33.7
Prod. 3 13.4 15.1 12.2 12.8
Prod. 4 40.2 38.1 41.3 38.4
Region Jiangsu Zhejiang Shanghai Shanghai
Turnover (M€) 6 14 8 19
Staff 350 700 430 880
Capabilities 100/day 120/day 75/day 140/day
Cooperation Good Good Average Good
Samples

26. Objectives
• Meet top management and sales management teams
• Present product requirement and order details
• Understand organisation and processes
• Refine offer understanding
• Validate manufacturing capabilities
• Visit factory and check work conditions
Topics
• General Management
• Order management
• Shipping / packaging
• Planning process
• Goods flow
• Procurement
• Purchasing
• Production
• Quality
© 2018 Dragon Sourcing. All rights reserved.
This shortlist is then audited in order to finalise the qualification process
Audit
questionnaire
Audit report
Audit
summary

27. CONTACT INFORMATION 联系资料
B+
Response 评分
Comment 附加
评语
Response 评分
Comment 附加评
语
Yes/No
被取录/
不取录/
Comment 附
加评语
V019 estate catalogue Jul-06 Not needed, known supplier 常用供应商 Yes, on time 守时收到 Yes 有 Yes 有
V020 shopping bag Jul-06 Not needed, known supplier 常用供应商 Yes, with delay 迟受到 No 没有 No 没有
V021-V050 mini brochures Jul-06 Not needed, known supplier 常用供应商 Yes, on time 守时收到 Yes 有 Yes 有
A
Required 计划时间 Actual 实际时间
V019 estate catalogue Jul-06 10 11 1 Low 低
V020 shopping bag Jul-06 20 23 3 Low 低
V021-V050 mini brochures Jul-06 20 20 0 Low 低
A
Contract
number
Items
Date
(mm/yy) 日
Proposed alternative
(yes/no) 有否提供建议
Impact of
proposal 建议重要
V019 estate catalogue Jul-06 Yes 有 High 高
V020-V039 shopping bag Jul-06 No 没有 N/A 不应用
V021-V050 mini brochures Jul-06 No 没有 N/A 不应用
A+
Contract
number
Items
Date
(mm/yy) 日
Quality issues (yes/no)
质量
Issue Criticality/
Impact 质量重要性
V019 estate catalogue Jul-06 No 没有 Low 低
V020 shopping bag Jul-06 No 没有 Low 低
V021-V050 mini brochures Jul-06 No 没有 Low 低
INDUSTRY 行业
QUALITY PERFORMANCE (Other issues than delay) 服务性质量评分 （不包括送货延误事情）
PROACTIVENESS 前摄能力
(Good supplier should constantly propose alternative technology or cost-cutting options without jeopardizing quality and appearance / 好供应商应经常事先提出新的生产法案和改良方法)
Contract
number
Contract
number
RESPONSIVENESS IN PARTICIPATION TO RFx / COMPETITIVENESS 回应效率 / 竞争力
Shanghai xxxxxxxxxxx Co Ltd
Paper
No 2,Lane xxx, Xxxxx Road
Shanghai
Address 地址
City / Town 城市
SUPPLIER PERFORMANCE TRACKING 供应商项目评分
SECTOR 分类
Printing
COMPANY NAME 公司名字
General Manager Manager Assistant
Mobile phone 手机号码
cd@xxxx.comab@xxx.comEmail 电子邮址
RFQ stage 报价阶段
139xxxxxxxxx 131xxxxxxxxxxx
Recommended to
the client 已推荐
给客户
Date
(mm/yy) 日
期 （月/年）
Comment 附加评语
Delivery lead-time (days) 生产期 （天）
Selected for
negotiation after RFQ
报价后，已被取录
ON-TIME DELIVERY PERFORMANCE 发货守时评分
Comments on issue, impact and supplier explanation / 请解释服务性质量和它们的重要性
On-Time Delivery
Criticity 准时重要
性
RFI stage 要求资料阶段
First Name 名字
ALTERNATIVE CONTACT 其他联络人
C
MAIN CONTACT 主要联络人
A
Title 职位
If yes, please describe alternative and comment impact / 如果“有”，请解释他们的提议和重要
性
Give advice on paper to use in order to save cost
Date
(mm/yy) 日
期 （月/年）
Products
#
# of days delay 延误
（天）
The current suppliers’ performance is assessed on an on-going basis
A+
Supplier Scorecard
Competitiveness
Q1 Q2 Q3 Q4
On-time delivery
Quality
Proactiveness
B+ B+ B+ A
A A+ B A
B B+ A
A B+ B B
B+ A B+ B+Performance
Overall performance
Q1 Q2 Q3 Q4

28. © 2018 Dragon Sourcing. All rights reserved.
Introduction of new suppliers into the sourcing pool contributes to driving
cost and quality improvements while challenging incumbent suppliers
Alternative sourcing
opportunities monitoring
Current supplier
performance management
List of qualified
suppliers
• Supplier name
• City, web site, contact
• Turnover, #employees
• Price structure
• Capacities
• Audit report
• Samples
• New supplier 1
• New supplier 2
• New supplier 3
• …
• New supplier n
• Current supplier 1
• Current supplier 2
• Current supplier 3
• …
• Current supplier n
Supplier pool structure
0
5
10
15
20
25
30
35
40
45
50
New suppliers (< 1 year)
New suppliers (1-2 years)
Historic suppliers (> 2 years)
> 2 years
1-2 years
<1 year

29. © 2018 Dragon Sourcing. All rights reserved.
Creative agencies provide initial specifications for each product
Item Material Size Process requirement Product Picture
Cardboard 4mm board, 157 paper 400*120*125 shape, paperhanging
Plastic bed & Flocking PS plastic with flocking Subject to real size shape
Printing - 174 gram silver paper -
Ink DIC - -
Color 5 C - -
Surface protection Plastic film Subject to real size
Outside Package
Triple wall corrugated
fiber box
8 units / package Mark: SKU
Test Method Strength test

30. © 2018 Dragon Sourcing. All rights reserved.
Cross-brand quantitative requirements are consolidated by product categories
to leverage negotiation with suppliers
Fore-
c ast
Ac tual Var.
Fore-
c ast
Ac tual Var.
Fore-
c ast
Ac tual Var.
Fore-
c ast
Ac tual Var.
Fore-
c ast
Ac tual Var.
Fore-
c ast
Ac tual Var.
Product 1 63,548 64,993 10,560 6,744 14,175 13,823 7,484 12,207
Product 2 45,592 48,739 12,997 7,945 7,354 6,092 7,412 6,939
Product 3 46,886 50,750 9,489 7,225 13,598 8,610 5,302 6,525
Product 4 50,736 52,358 9,133 7,388 11,200 12,431 5,965 6,241
Product 5 47,616 47,833 11,542 5,819 5,796 10,704 5,896 8,075
Product 6 44,016 45,626 11,169 5,647 8,981 5,109 6,330 8,390
Product 7 47,030 48,779 10,134 5,305 9,058 9,306 6,291 8,685
Product 8 46,948 48,666 8,373 5,954 7,366 9,890 7,345 9,738
Product 9 51,204 53,550 11,104 7,424 12,723 7,770 5,057 9,471
Product 10 47,674 50,052 12,832 6,699 7,582 9,148 7,593 6,197
Product 11 59,735 64,437 11,648 6,731 14,498 13,442 6,637 11,481
Product 12 40,135 44,001 5,136 7,563 6,148 8,971 6,853 9,330
Product 13 43,453 47,023 10,732 6,967 5,852 8,930 5,839 8,703
Product 14 46,570 48,411 8,827 6,655 11,949 9,258 5,112 6,610
Total 681,142 715,217 143,676 94,067 136,280 133,485 89,116 118,593
Fore-
cast
Actual
produc-
tion
Brand 2
Var.
Brand 6Brand 5Brand 4Brand 3
Unit: pcs
Brand 12006
CNY
Actual

31. © 2018 Dragon Sourcing. All rights reserved.
The RFQ process includes a supplier cost structure breakdown
to check consistency and to gain a deep understanding of price drivers
Box production TransportationPrinting and effects on the printing
C
ardboard
-纸
板
Flocking
-植
绒
Plastic
Bed
(PS)-吸
塑
O
utside
Package
-外
包
装
Afterprocess
&
Labor-后
道
&人
工
Paper-纸
张
Ink
-油
墨G
olden/SilverPrinting
-印
金
/印
银
Film
C
overing
-覆
膜
SpotU
V
Varnishing
-过
釉
G
olden/SilverStam
ping
-烫
金
/烫
银
Em
bossing
/D
ebossing
-凹
凸
处
理
Price
ofextra
4C
printing
-4色
印
刷
Price
ofextra
6C
printing
-6色
印
刷
Price
ofextra
7C
printing
-7色
印
刷
TO
TA
L
Shanghai-上
海
Beijing
-北
京
Xiam
en
-厦
门
Zhongshan
-中
山
W
uhan
-武
汉
C
hengdu
-成
都
Supplier 1 4.49 0.32 0.28 1.54 3.87 0.26 0.62 0.04 0.44 4.62 0.28 0.23 0.07 0.55 0.05 17.7 0.21 0.09 0.43 0.67 0.79 2.18
Supplier 2 4.06 0.31 0.26 1.63 3.91 0.24 0.63 0.04 0.48 4.95 0.27 0.24 0.06 0.54 0.04 17.7 0.20 0.08 0.39 0.64 0.81 2.36
Supplier 3 4.54 0.31 0.29 1.44 3.72 0.26 0.66 0.04 0.40 4.56 0.26 0.24 0.07 0.60 0.04 17.4 0.19 0.09 0.44 0.72 0.82 2.14
Supplier 4 4.36 0.34 0.31 1.64 4.17 0.24 0.62 0.04 0.41 4.99 0.28 0.22 0.07 0.58 0.05 18.3 0.20 0.08 0.42 0.68 0.74 2.34
Supplier 5 4.42 0.31 0.26 1.45 4.01 0.24 0.58 0.04 0.43 4.27 0.30 0.25 0.07 0.58 0.05 17.3 0.23 0.08 0.43 0.71 0.79 1.98
Supplier 6 4.57 0.32 0.29 1.58 3.82 0.23 0.64 0.04 0.42 4.29 0.26 0.23 0.07 0.53 0.05 17.4 0.23 0.09 0.40 0.60 0.72 2.02
Supplier 7 4.87 0.33 0.29 1.41 4.00 0.25 0.56 0.05 0.41 4.25 0.26 0.23 0.07 0.54 0.05 17.5 0.21 0.08 0.44 0.65 0.82 2.21

32. © 2018 Dragon Sourcing. All rights reserved.
The final supplier selection is based on sample quality and price level
Suppliers’ quotation
Sample
Supplier
Name
Final
Ranking
Supplier 1 1
Supplier 2 4
Supplier 3 2
Supplier 4 5
Supplier 5 3
Supplier
summary
Supplier
capabilities
Supplier
assesment
Box production TransportationPrinting and effects on the printing
C
ardboard
-纸
板
Flo
ckin
g
-植
绒
Pla
stic
Bed
(PS)-吸
塑
O
utsid
e
Package
-外
包
装
Afterprocess
&
Labor-后
道
&人
工
Paper-纸
张
Ink
-油
墨G
old
en/SilverPrin
tin
g
-印
金
/印
银
Film
C
overin
g
-覆
膜
SpotU
V
Varnis
hin
g
-过
釉
G
old
en/SilverStam
pin
g
-烫
金
/烫
银
Em
bossin
g
/D
ebossin
g
-凹
凸
处
理
Pric
e
ofextra
4C
prin
tin
g
-4色
印
刷
Pric
e
ofextra
6C
prin
tin
g
-6色
印
刷
Pric
e
ofextra
7C
prin
tin
g
-7色
印
刷
TO
TA
L
Shanghai-上
海
Beijin
g
-北
京
Xia
m
en
-厦
门
Zhongshan
-中
山
W
uhan
-武
汉
C
hengdu
-成
都
Supplier 1 4.49 0.32 0.28 1.54 3.87 0.26 0.62 0.04 0.44 4.62 0.28 0.23 0.07 0.55 0.05 17.7 0.21 0.09 0.43 0.67 0.79 2.18
Supplier 2 4.06 0.31 0.26 1.63 3.91 0.24 0.63 0.04 0.48 4.95 0.27 0.24 0.06 0.54 0.04 17.7 0.20 0.08 0.39 0.64 0.81 2.36
Supplier 3 4.54 0.31 0.29 1.44 3.72 0.26 0.66 0.04 0.40 4.56 0.26 0.24 0.07 0.60 0.04 17.4 0.19 0.09 0.44 0.72 0.82 2.14
Supplier 4 4.36 0.34 0.31 1.64 4.17 0.24 0.62 0.04 0.41 4.99 0.28 0.22 0.07 0.58 0.05 18.3 0.20 0.08 0.42 0.68 0.74 2.34
Supplier 5 4.42 0.31 0.26 1.45 4.01 0.24 0.58 0.04 0.43 4.27 0.30 0.25 0.07 0.58 0.05 17.3 0.23 0.08 0.43 0.71 0.79 1.98
Supplier 6 4.57 0.32 0.29 1.58 3.82 0.23 0.64 0.04 0.42 4.29 0.26 0.23 0.07 0.53 0.05 17.4 0.23 0.09 0.40 0.60 0.72 2.02
Supplier 7 4.87 0.33 0.29 1.41 4.00 0.25 0.56 0.05 0.41 4.25 0.26 0.23 0.07 0.54 0.05 17.5 0.21 0.08 0.44 0.65 0.82 2.21

33. © 2018 Dragon Sourcing. All rights reserved.
Very short time to market requires efficient contracting and payment management
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
6-Nov 13-Nov 20-Nov 27-Nov 4-Dec 11-Dec 18-Dec 25-Dec 1-Jan 8-Jan 15-Jan 22-Jan 29-Jan 5-Feb 12-Feb
date
#contracts
signed by supplier
signed by customer
-17
-12
-18
-29
-29
9-Nov-06
19-Nov-06
29-Nov-06
9-Dec-06
19-Dec-06
29-Dec-06
8-Jan-07
18-Jan-07
28-Jan-07
7-Feb-07
17-Feb-07
1
Theorical date of downpayment Actual date of down payment
Down payment tracking
Contract signature analysis
Order global overview
Delivery status
15-Nov-06 22-Nov-06 29-Nov-06 6-Dec-06 13-Dec-06 20-Dec-06 27-Dec-06 3-Jan-07 10-Jan-07 17-Jan-07 24-Jan-07 31-Jan-07 7-Feb-07
Product 14
Product 13
Product 12
Product 11
Product 10
Product 9
Product 8
Product 7
Product 6
Product 5
Product 4
Product 3
Product 2
Product 1
Signature date Start Production
1st batch completed 2nd batch completed
3rd batch completed Batch 1:
25/12
Batch 2:
10/01
Batch 3:
21/01
• Contract preparation in collaboration with Legal
• Close interaction with suppliers and customer to
have contracts signed rapidly
• Monitoring of customer down-payments
triggering production start
• Follow-up of production progress

34. © 2018 Dragon Sourcing. All rights reserved.
Overall methodology & 7-step process
Quality is regularly monitored during production and at pre-shipment
• Dragon Sourcing teams are trained to follow a
7-step process to execute Quality inspections
• Sampling and criteria requirements are detailed
in a specific document for customer approval
• On-site data are recorded in a specifically
designed Excel table
• Inspections are documented in a report
submitted to customer
• Action plans are defined in order to improve
product quality
Sampling & Criterias
Excel recording tool
Checkitem #
Box #
Marking Inner carton Mug Quantity Mug heigth
Mug upper
diameter
Mug lower
diameter
Wall
thickness
Mug weigth Material type Quality
1 OK OK 48 104.3 64.9 3.6 326 OK OK
2 OK OK 48 103.4 64.5 4.2 346 OK OK
3 OK OK 48 104 64.6 3.9 344 OK OK
4 OK OK 48 104.6 64.8 3.8 317 OK OK
5 OK OK 48 104.3 57 3.6 308 OK OK
6 OK OK 48 104.8 61 3.8 317 OK OK
7 OK OK 48 103.7 64.5 3.9 328 OK OK
8 OK NO 48 103.8 62 3.9 345 OK OK
9 OK OK 48 103.3 64.1 3.1 322 OK OK
10 OK OK 48 103.2 63.4 3.7 325 OK OK
11 OK OK 48 104.4 64.8 3.9 317 OK OK
12 OK OK 48 102.3 64.2 3.2 316 OK OK
13 OK OK 48 105.4 63 4 316 MO OK
14 OK OK 45 105.6 65 4 322 OK OK
15 OK OK 48 106.3 65.6 4.1 357 OK OK
16 OK OK 48 103.4 65.5 3.9 311 NO OK
17 OK NO 48 104.7 64.1 3.8 300 OK OK
18 OK OK 48 104 60 3.8 342 OK OK

35. © 2018 Dragon Sourcing. All rights reserved.
Upon production completion, daily planning ensures smooth nationwide delivery
• Tight integration with supply chain teams
• Transportation planning
• Stock level monitoring
• Anticipated dispatching to regions
• Priorization of production outputs
• Reactivity to market demand changes
• Management of quality issues at delivery
Delivery follow-up
Due date:
Brand
Delive-
ries
Objec-
tive
Ratio
achieved
Region
1
Region
2
Region
3
Region
4
Region
5
Region
6
Product 1 17,488 18,022 97% 3,323 2,273 2,448 2,798 2,973 3,673
Product 2 22,138 24,500 90% 4,206 2,878 3,099 3,542 3,763 4,649
Product 3 21,797 24,139 90% 4,141 2,834 3,052 3,488 3,706 4,577
Product 4 14,991 17,789 84% 2,848 1,949 2,099 2,399 2,548 3,148
Product 5 13,010 14,180 92% 2,472 1,691 1,821 2,082 2,212 2,732
Product 6 11,867 12,016 99% 2,255 1,543 1,661 1,899 2,017 2,492
Product 7 16,586 17,525 95% 3,151 2,156 2,322 2,654 2,820 3,483
Product 8 20,106 23,287 86% 3,820 2,614 2,815 3,217 3,418 4,222
Product 9 14,011 16,580 85% 2,662 1,821 1,962 2,242 2,382 2,942
Product 10 11,060 13,228 84% 2,101 1,438 1,548 1,770 1,880 2,322
Product 11 12,895 14,288 90% 2,450 1,676 1,805 2,063 2,192 2,708
Product 12 24,923 25,131 99% 4,735 3,240 3,489 3,988 4,237 5,234
Product 13 9,869 10,058 98% 1,875 1,283 1,382 1,579 1,678 2,072
TOTAL 210,742 230,745 91% 40,041 27,397 29,504 33,719 35,826 44,256
March 10th
CHINA

36. © 2018 Dragon Sourcing. All rights reserved.
Agenda
A. Context and Products
B. Sourcing Strategy
C. Governance model
D. Results & Conclusions

37. © 2018 Dragon Sourcing. All rights reserved.
Supply Chain
Finance
Coordination of relationships between branding and purchasing teams is
essential in order to bridge 2 groups with extremely different backgrounds
DS Managing
Director
DS Account Manager
Category Buying
Engineer
Marketing Director
Marketing Services
Manager
Brand Manager
Brand Manager
Brand Manager
Brand Manager
Brand Manager
Brand Manager
Dragon SourcingCustomer
Category Buying
Engineer
Category Buying
Engineer
Marketing
Dedicated
project team
Legal
Other project team
Other project team
Other project team
Prepare contracts
Organize delivery
Monitor payments
Category 1
Technology
Productcategories
Category 2
Category n
…
Creativity
Brands
…

38. © 2018 Dragon Sourcing. All rights reserved.
The product design results from a close collaboration between Creative Agencies,
Customer, Dragon Sourcing and Suppliers
RFQ and Sample request
Creative agencies SuppliersDragon Sourcing
Product briefing
Customer
Quotation
Sample
Sample assessment
Sample modification request
Updated sample
Final design decision
Final quotation
Quotation analysis and recommendations
Supplier selection
Consumer research

39. © 2018 Dragon Sourcing. All rights reserved.
A Supplier day is organised once a year to strenghten relationships and
communicate key messages to the qualified supply base
Attendees:
• Suppliers management and sales teams
• Customer purchasing team
• Dragon Sourcing project team
Objectives
• Present future purchasing trends and “sell” Customer as a strategic account
• Gain suppliers’ commitment to Customer’s Corporate Social Responsibility chart
• Remind suppliers of the purchasing rules of engagement
• Present main contractual evolutions

40. © 2018 Dragon Sourcing. All rights reserved.
A collaborative web tool supports a live communication on project status

41. © 2018 Dragon Sourcing. All rights reserved.
Project status is updated automatically after each meeting
Promo type DS Category Contract number Supplier Item
Signed &
chopped by
supplier
Signed by
Customer
Month
CNY07 Printed Item V121 Supplier 1 Letter 4-Jan-07 12-Jan-07 Jan-07
POSM Printed Item V056 Supplier 2 Posters 4-Jan-2007 still not Jan-07
MAF06 Gifts J084 Supplier 5 jar 12-Jan-2007 still not Jan-07
MAF06 Gifts J085 Supplier 3 jar 4-Jan-2007 still not Jan-07
flow material Glass J086 Supplier 1 Wine glass 15-Jan-2007 still not Jan-07
flow material Gifts J087 Supplier 4 Watch 10-Jan-2007 still not Jan-07
MAF06 Gifts J091-1 Supplier 3 Camera 2-Jan-2007 9-Jan-07 Jan-07
MAF06 Gifts J091-2 Supplier 4 key ring 11-Jan-2007 9-Jan-07 Jan-07
Gifts V019 Supplier 2 passort holder 2-Jan-2007 Jan-07
MAF06 Gifts V020 Supplier 5 back pack 22-Jan-2007 no Jan-07
MAF06 Gifts V021 Supplier 3 Camera 23-Jan-2007 still not Jan-07
MAF06 Gifts V022 Supplier 1 Gym bag 17-Jan-2007 no Jan-07
MAF06 Gifts V023 Supplier 4 back pack 26-Jan-2007 still not Jan-07
events Gifts V025 Supplier 3 Gym bag 26-Jan-2007 still not Jan-07
events Gifts V026 Supplier 4 key ring 26-Jan-2007 still not Jan-07
MAF06 Gifts V040 Supplier 2 manicure kit 16-Jan-2007 Jan-07
MAF06 Gifts V064 Supplier 5 passort holder 15-Jan-2007 Jan-07
Gifts W095 Supplier 3 plastic pen 23-Jan-2007 19-Jan-07 Jan-07
Gifts W096 Supplier 1 Gym bag 12-Jan-2007 still not Jan-07
Gifts W097 Supplier 4 Travel bag 8-Jan-2007 still not Jan-07
Gifts W098 Supplier 3 back pack 16-Jan-2007 still not Jan-07
Gifts W099 Supplier 4 Ice bucket 16-Jan-2007 no Jan-07
Gifts W100 Supplier 2 key ring 15-Jan-2007 18-Jan-07 Jan-07
Gifts W101 Supplier 5 manicure kit 29-Jan-2007 24-Jan Jan-07
Gifts W102 Supplier 3 passort holder 15-Jan-2007 still not Jan-07
Gifts W103 Supplier 1 plastic pen 23-Jan-2007 still not Jan-07
Gifts W104 Supplier 4 tent card 5-Feb-2007 still not Feb-07
Gifts W105 Supplier 3 plastic pen 5-Feb-2007 17-Jan-07 Feb-07
MAF06 Gifts J088-1 Supplier 4 passort holder 12-Feb-2007 no Feb-07
flow material Gifts J088-2 Supplier 2 Gift box additional order 2-Feb-2007 Feb-07
flow material Gifts J088-3 Supplier 2 standee 6-Mar-2007 Mar-07
Supply Contracts managed by Dragon Sourcing - Starting May 2005

42. © 2018 Dragon Sourcing. All rights reserved.
Agenda
A. Context and Products
B. Sourcing Strategy
C. Governance model
D. Results & Conclusions

43. © 2018 Dragon Sourcing. All rights reserved.
Budget and current spend evolution
0
10
20
30
40
50
60
70
80
90
2004 2005 2006
Budget
Actual spend
Despite double-digit budget increases and increases in product quality
requirements, the actual spend has been maintained below the initial budget
Double-digit
budget
increase
Double-digit
budget
increase-25%
-20%
Outsourcing
to Dragon
Sourcing

44. © 2018 Dragon Sourcing. All rights reserved.
These results have been achieved by having to sometimes fundamentally change the
client’s sourcing strategy, e.g.: Glass products where 40% savings have been achieved
Strategy element Current Client strategy Recommendation for the
future
Rationale
Creative agency vs.
manufacturer
• Creative agency • Direct to Manufacturer • Agency not competent in
procurement but in creation
• No incentive to optimized total
ownership costs
• Very high commission fees (over
20%)
• Negative taxes impact
• Direct link with Manufacturer
provides better cost / quality
optimization at design stage
Technology segmentation • Per Brand • Per technology (Glass, steel
wood, leather, etc.)
• Consolidated volume to a reduced
supplier base
Contracting • PO Driven • Annual, frame contracting • Simplify ordering process
• Agree key contractual issues
(payment terms, tools ownership,
etc)
• Provide suppliers with better
visibility into client requirements
• Intellectual property

45. © 2018 Dragon Sourcing. All rights reserved.
In addition to these significant savings, other soft benefits have been achieved
after nearly two years of collaboration
• Total transparency over sourcing process and supplier base
• Greatly reduced supply chain risks such as CSR or product availability
• Improved Quality of the spec and to the spec
• Reduced time to market
• Internal Marketing team totally focused on higher value added activities
• Customer plans to enlarge scope of work in the future and to extend these benefits to:
– Other categories such as logistics or indirect purchases
– Other supply markets such as South-East Asia, e.g. Vietnam
– Other company subsidiairies to leverage the Chinese supplier base globally

46. © 2018 Dragon Sourcing. All rights reserved.
Agenda
1. Our offerings and approach
2. Our clients and category expertise
3. Client case study
4. Successful Sourcing in China
5. Other credentials

47. © 2018 Dragon Sourcing. All rights reserved.
Successful Sourcing in China
• Adopt strategic approach vs. tactical approach
– No leverage back mentality
– Follow through with real orders vs. benchmarking only
• Sell your « buy » to the Chinese suppliers
– High quality suppliers are in high demand
– Build credibility in your sourcing program with the suppliers
• Enterprise wide approach with top management support vs. Procurement only
– Internal change management is often the toughest challenge
– Involve Marketing, Quality, Engineering, Manufacturing from the beginning (mix function of
categories)
• Dedicated professionals vs. User/buyer model
– Don’t try using local buyers to manage « export » business
• Start with high potential/low risk categories on a pilot basis to generate rapid success
– Rigorous analysis of spend portfolio to identify best candidates
• In Sourcing cycle per se, use same professional process rigor as in the West
– Don’t believe that it’s only a « relationship » game

48. © 2018 Dragon Sourcing. All rights reserved.
The following cost framework helps explain, differences in procurement philosophies
between Japan and the West
Cost Driver Framework
Structural
Inherent
Realized
• Cost driven by the selection
of the supply base e.g.:
– Factor cost
– Scale effect
• Costs driven by design
decisions and by the
selection of the
manufacturing process
• Costs driven by the on-
going operational
performance of the supplier
Castings Example
Average cost/kilo
by country
Mould yield ratio
Operational metrics
42,5
44,5
46,5
48,5
50,5
52,5
54,5
56,5
58,5
60,5
C
zech
R
epublic
Poland
H
ungary
C
anada
France
U
nited
Kingdom
Sw
eden
Finland
U
nited
States
N
etherlands
Italy
Belgium
D
enm
ark
Australia
JapanSw
itzerlandG
erm
any
Averagecostperkg(measure/kg)
The Client
average
cost
17%
15%
14%
6% 6%
2% 2% 1% 1% 1% 0% 0% 1%
2% 2%
8%
10%
55
Change of:
• Labor cost
• Energy cost
• Transportation cost
• Interest rates
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
0 1000 2000 3000 4000 5000 6000 7000
The weight of the article (grams)
Themouldyieldratio
Supp. C, Engine Bracket
Supp. C, Engine Bracket
Supp. A, Camshaft housing
Supp. B, Oilsump
Averagecostperkg(measure/kg)
The Client
average
cost
42,5
44,5
46,5
48,5
50,5
52,5
54,5
56,5
Improved
casting
labor
productivity
Full
utilization
Reduced
burnoff
Reduced
scrap rate
Reduced
mould yield
ratio
8,9% 9,3% 10,1%
10,6%
12,8%
55
Averagecostperkg(measure/kg)
The Client
average
cost
42,5
44,5
46,5
48,5
50,5
52,5
54,5
56,5
Improved
casting
labor
productivity
Full
utilization
Reduced
burnoff
Reduced
scrap rate
Reduced
mould yield
ratio
8,9% 9,3% 10,1%
10,6%
12,8%
55

49. © 2018 Dragon Sourcing. All rights reserved.
Potential China
Model
Western Japan
Competitive pricing
Relationshipmanagement
Japanese Model
(Keiretsu)
Western Model
Sourcing Model Matrix
China’s ambition in procurement can be and must be to leapfrog
the West and Japan