The document summarizes a sourcing project conducted by Dragon Sourcing for a European client to identify suppliers of sheet metal fabrication and machining parts in India. Dragon Sourcing identified 83 potential suppliers in Tamil Nadu and bordering states, screened 70 suppliers through an RFI/RFQ process, and identified 17 most competitive suppliers. The report includes analysis of supplier rejection reasons at each stage, supplier profiles with scores and rankings, and price comparisons of the 17 shortlisted suppliers.

1. Dragon Sourcing - 龙 源
Delivering sustainable sourcing value from emerging markets
Sheet Metal Fabrication & Machining Parts.
Case Study
© 2020 Dragon Sourcing. All rights reserved.

2. © 2020 Dragon Sourcing. All rights reserved. 22222222
Agenda
1. Sourcing Project Introduction
2. Sourcing Approach
3. Conclusions

3. © 2020 Dragon Sourcing. All rights reserved.
Objectives and Approach
Contex
Client Introduction:
• Client is a leading European Company into
designing and manufacturing of cooling systems for
diesel engines, hydraulics equipment, generators,
gearbox systems, etc. for wind turbines.
Project Objectives:
• Identify and recommend new potential competitive
supplies manufacturing Sheet Metal Fabrication
&/or Machining Parts.
Geographical scope:
• Mainly Chennai city and covering south of Indian
state “Tamil Nadu”.
• DS extended the scope to cover some potential
suppliers from bordering states as well.
Dragon Sourcing approach
Stage 1: Supplier Pre-Qualification
1. Demand Analysis
2. Supply Market Analysis
3. Telephone Pre-screening
4. NDA
5. Develop RFI/RFQ
6. Administer RFI/RFQ
7. Analyse RFI/RFQ Responses
Deliverables:
• Supplier database
• Signed NDA’s
• RFI-RFQ template & analysis report
• Supplier profiles with rankings
• DS Recommendation on next steps

4. Demand Analysis,
Total 10 styles were selected for this project.
Sheet Metal Parts with 1100 PCS and Machined Components with 1400 PCS each.
© 2020 Dragon Sourcing. All rights reserved.
# Category Item Name/Description SKU # Finish
Technical:
Weight (KG)
Annual
Volume (PCS)
1 Sheet Metal Parts Top Beam Front Weld Assy 4 Galvanized 74.90 1100
2 Sheet Metal Parts Top Beam Back Weld Assy 2 Galvanized XX 1100
3 Sheet Metal Parts Roof Plate Left 1 Galvanized XX 1100
4 Sheet Metal Parts Gen. Cooler Lid Left 1 Painted XX 1100
5 Sheet Metal Parts Gen Cooler 1B, Housing 8 Painted XX 1100
6 Machined components Manifold Tank Connection 1
Manifold
block
0.93 1400
7 Machined components 3 Way 2" Valve Block For Thermo 1
Manifold
block
XX 1400
8 Machined components Manifold For 2" Ball Valve 1
Manifold
block
XX 1400
9 Machined components Hose Connector G1" - Ø25 1
Hose
connector
XX 1400
10 Machined components Hose Connector G½" - Ø25 1
Hose
connector
XX 1400

5. © 2020 Dragon Sourcing. All rights reserved. 55555555
Agenda
1. Sourcing Project Introduction
2. Sourcing Approach
3. Conclusions

6. © 2020 Dragon Sourcing. All rights reserved.
No. Steps in stage 1 Deliverables
1.
Demand Analysis
Work with client to define and understand the Products and requirements (specs, volumes, material,
Production technology requirements, others)
• Kick-Off Report
2.
Supply Market Analysis
Identify long list of potential suppliers in the target region by leveraging B2B websites, DS database, fair
catalogues, Chamber of Commerce, magazines, network, references.
• Supplier Long List
3.
Telephone Pre-screening
Selection of suppliers to be included in the RFI/RFP process by telephone pre-screening based on agreed
simple criteria (e.g. capability to make the product, Willing to sign NDA, min company size, certification, ..)
• Shortlist for RFI-RFQ
process
4.
NDA
Send client’s NDA to suppliers and collect the signed copy.
• Signed NDA’s soft
copy.
5.
Develop RFI/RFQ document
Prepare an RFI/RFQ document, with an aligned balanced scorecard that has the objective to pre-qualify the
competitiveness and capabilities of the manufacturers, including background, financial, client and product
experience, quality certification & processes, social responsibility, manufacturing/technology capability, etc.
• RFI-RFQ Template
• Balanced Scorecard
6.
Administer RFI/RFQ:
The RFI/RFQ is distributed to the suppliers, with telephone follow-up to push for maximum participation.
• Completed RFI-RFQ’s
7.
Scoring the suppliers:
Work with client to draft a balance score card to evaluate suppliers based on the RFI-RFQ.
• Score card document
8.
Analyze RFI/RFQ Responses:
Analysis of RFI/RFQ responses and preparation of a report which profiles & objectively ranks the suppliers
by capability, including a recommendation for those to be audited.
• RFI-RFQ Report
• Supplier Profiles
• Proposed Shortlist for
Audit and/or sampling.
- Following steps were covered under stage 1: Supplier Pre-Qualification

7. STEPS Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8
1. Demand Analysis
2. Supply Market Analysis
3. Telephone Pre-screening
4. NDA Process
5. Develop RFI/RFQ
6. Administer RFI/RFQ
7. Analyze RFI/RFQ responses & send RFQ
report.
RFI/RFQ
approved
Supplier profiles with
recommendations.
© 2020 Dragon Sourcing. All rights reserved.
Ongoing
Completed
Delayed
• Weekly progress report was sent every Friday.
- Stage 1: Supplier Pre-Qualification timeframe.
- Project was completed within 8 weeks as per schedule.
MilestonesFinished

8. • Full sourcing process including building long list of supplier databasewas done online on the DS e-sourcing tool GSP
- Long list of suppliers were identified from South Indian states leveraging multiple
sources of information & from existing DS database.
Confidential
© 2020 Dragon Sourcing. All rights reserved.

9. © 2020 Dragon Sourcing. All rights reserved.
• Full sourcing process including pre-screening the suppliers was done online on the DS e-sourcing tool GSP
Suppliers “Must have” criteria's to pass pre-screening.
- Pre-screening process was initiated after receiving client validation,
- This process was to filter the long list of suppliers prior moving them to the NDA step

10. • Post pre-screening the suppliers,
• RFI-RFQ process was administered only with the suppliers signed NDA.
Supplier Profile example
© 2020 Dragon Sourcing. All rights reserved.
RFI Score 80
RFI Ranking 1

11. Supplier Profile example
© 2020 Dragon Sourcing. All rights reserved.
RFI process was administered to filter out most capable suppliers

12. Supplier Profile example
© 2020 Dragon Sourcing. All rights reserved.
- Category specific technical questions were added in the RFI to understand supplier
capability and capacity.

13. © 2020 Dragon Sourcing. All rights reserved.
Process Steps Tamil Nadu Bordering state Total
Supplier Identification • Suppliers identified 66 17 83
Pre-screening
(Completed)
• Supplier passed in pre-screening XX XX 70
• Suppliers failed in Pre- screening XX XX 13
NDA Process
(Completed)
• NDA Sent XX XX 70
• NDA Received XX XX 57
• NDA rejected (not willing to sign) XX XX 13
RFI-RFQ Administration
(Completed)
• Number of RFI-RFQ sent XX XX 57
• Don't intend to respond XX XX 27
• Number of both RFI-RFQ received 25 5 30
• Chennai is the capital of the South Indian state of Tamil Nadu.
• Bordering states include “Karnataka” with 15 suppliers identified and from “Kerala” 2 suppliers identified.
- Supply market analysis was shared in the weekly progress and final report,

14. 3
3
2
1
1
3
Not reachable or Company Shutdown
Don’t produce required product
Only have 3 axis CNC machines in-house
Don’t have welding process in-house
Capacity Full
Not interested, small Company with limited production process.
© 2020 Dragon Sourcing. All rights reserved.
Supplier rejection analysis was shared with client for each step,
Suppliers failed in Pre-screening process
7
3
3
Not interested to sign NDA
Not willing to sign NDA until they review drawings/pictures
Can sign only on condition to change the governing law & dispute resolution to India
Suppliers failed in NDA process
10
9
4
2
2 Don't have key production capability in-house like shearing, laser cutting, hot dip galvanizing etc.
Not interested to continue
Only produce higher weight machined components
Only have 2 axis CNC machines
Capacity full
Suppliers failed in RFI-RFQ process
13
13
27

15. Total 17 suppliers: 7 from Chennai Total 17 suppliers: 7 from Chennai
© 2020 Dragon Sourcing. All rights reserved.
RFQ Price Analysis,
Suppliers for each category as per state wise was shared with the client.
Sheet Metal Parts
RFI Ranking RFI % Supplier Name City State
2 70 Supplier 2 XX Tamil Nadu
27 44 Supplier 27 XX Tamil Nadu
6 63 Supplier 6 XX Karnataka
9 57 Supplier 9 XX Tamil Nadu
17 52 Supplier 17 XX Tamil Nadu
18 52 Supplier 18 XX Kerala
1 80 Supplier 1 XX Karnataka
29 34 Supplier 29 XX Tamil Nadu
7 61 Supplier 7 XX Tamil Nadu
13 54 Supplier 13 XX Karnataka
11 55 Supplier 11 XX Tamil Nadu
4 66 Supplier 4 XX Tamil Nadu
19 52 Supplier 19 XX Tamil Nadu
10 56 Supplier 10 XX Tamil Nadu
24 46 Supplier 24 XX Tamil Nadu
30 25 Supplier 30 XX Tamil Nadu
21 50 Supplier 21 XX Tamil Nadu
Machined Components
RFI Ranking RFI % Supplier Name City State
5 65 Supplier 5 XX Tamil Nadu
25 45 Supplier 25 XX Tamil Nadu
26 45 Supplier 26 XX Tamil Nadu
14 53 Supplier 14 XX Tamil Nadu
12 54 Supplier 12 XX Tamil Nadu
13 54 Supplier 13 XX Karnataka
15 53 Supplier 15 XX Tamil Nadu
22 50 Supplier 22 XX Tamil Nadu
8 58 Supplier 8 XX Tamil Nadu
20 50 Supplier 20 XX Tamil Nadu
28 43 Supplier 28 XX Tamil Nadu
23 46 Supplier 23 XX Tamil Nadu
16 53 Supplier 16 XX Karnataka
1 80 Supplier 1 XX Karnataka
3 70 Supplier 3 XX Tamil Nadu
4 66 Supplier 4 XX Tamil Nadu
10 56 Supplier 10 XX Tamil Nadu
• 4 suppliers (from Chennai and Bangalore location) have offered price for both the categories.

16. © 2020 Dragon Sourcing. All rights reserved.
Minimum
Below Average
Above Average
Maximum
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
All prices are delivered
Chennai Warehouse
Price excluding GST
Supplier
name
XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
City,
State
XX, TN XX, TN XX, KA XX, TN XX, TN XX, KL XX, KA XX, TN XX, TN XX, KA XX,TN XX, TN XX,TN XX, TN XX, TN XX, TN XX, TN
RFI
Ranking
2 27 6 9 17 18 1 29 7 13 11 4 19 10 24 30 21
#
Item
Name/Descriptio
n
Annual
Volumes
in Units
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
1
Top Beam Front
Weld Assy
1100 XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
2
Top Beam Back
Weld Assy
1100 XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
3 Roof Plate Left 1100 XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
4
Gen. Cooler Lid
Left
1100 XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
5
Gen Cooler 1B,
Housing
1100 XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
In millions ₹44.10 ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹86.54
Revised Revised Revised Revised Revised Revised
SHEET METAL PARTS
TN KA KL State
TotalTamil Nadu Karnataka Kerala
13 3 1 17
• Average Spend is XX M INR from total 17 suppliers.
- Price analysis was shared with the client,
- DDP Spend Analysis in million INR for sheet metal parts.

17. © 2020 Dragon Sourcing. All rights reserved.
Minimum
Below Average
Above Average
Maximum
• Average Spend is XX M INR from 17 suppliers
TN KA KL State
TotalTamil Nadu Karnataka Kerala
13 3 1 17
MACHINED COMPONENTS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
All prices are delivered
Chennai Warehouse
Price excluding GST
Supplier name XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
City, Province XX, TN XX, TN XX, KA XX, TN XX, TN XX, KA XX, KA XX, TN XX, TN XX, KA XX,TN XX, TN XX,TN XX, TN XX, TN XX, TN XX, TN
RFI Ranking 5 25 26 14 12 13 15 22 8 20 28 23 16 1 3 4 10
# Item Name/Description
Annual
Volumes
in Units
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
Spend
Value
1
Manifold block Tank
Connection
1400 XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
2
3 Way 2" Valve Block For
Thermo
1400 XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
3 Manifold For 2" Ball Valve 1400 XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
4
Hose Connector G1" - Ø25
mm
1400 XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
5
Hose Connector G½" - Ø25
mm
1400 XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX
In millions ₹ 15.97 ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ XX ₹ 41.84
Revised Revised Revised Revised
- Price analysis was shared with the client,
- DDP Spend Analysis in million INR for machined components.

18. © 2020 Dragon Sourcing. All rights reserved.
MACHINED COMPONENTS Minimum Maximum
Supplier name XX XX XX XX
City, State Chennai, TN Coimbatore, TN Hosur, TN Chennai, TN
Price validity XX XX XX XX
Standard payment terms XX XX XX XX
# Item Name/Description
Weight in
Kg
Tooling
cost
Amortize
tooling cost
after min.
PCS
Production
lead time
Tooling
cost
Amortize
tooling cost
after min.
PCS
Production
lead time
Tooling
cost
Amortize
tooling cost
after min.
PCS
Production
lead time
Tooling
cost
Amortize
tooling cost
after min.
PCS
Production
lead time
1 Manifold block Tank Connection 0.93 ₹ XX XX 30 days ₹ XX XX 35 days N/A N/A 42 days N/A N/A 42 days
2 3 Way 2" Valve Block For Thermo 7.96 ₹ XX XX 35 days ₹ XX XX 49 days ₹ XX XX 42 days ₹ XX XX 42 days
3 Manifold For 2" Ball Valve 2.24 ₹ XX XX 35 days ₹ XX XX 49 days ₹ XX XX 42 days ₹ XX XX 42 days
4 Hose Connector G1" - Ø25 mm 0.09 N/A N/A 15 days ₹ XX XX 28 days ₹ XX XX 42 days N/A N/A 42 days
5 Hose Connector G½" - Ø25 mm 0.04 N/A N/A 15 days ₹ XX XX 28 days N/A N/A 42 days N/A N/A 42 days
₹ XX ₹ 35,250 ₹ XX ₹ XX
RFQ Price Analysis,
- Tooling cost, Amortization of tooling cost, Production lead time and other information was
collected during the RFQ process and shared in the report..
• Suppliers without tooling cost do not wish to charge and will absorb the cost.

19. 18 18 17 18 18
14 12
8
12 13 15 16 14 15 16 14 12 12
18
12 12 13 13 12 10 12 13 10 9 10
1 2 1
3 4
2
2
1
32
23
22
24 22
24
22
25
21 25 21 18
17 13 12 14 21 20
16
14
20
16 14 17
14
14
16
14 16
9
24
24 27 18 18
21
24
21 19 15 16 15
21
21 21 21
15 18 15
21
13 18
15 13
18 15 12
15
7
3
5
3 3
3 3
4 3
4 3 3 3 3 2
4 4 4 4 2 3
3 4 3
4 4 3 4 3 4
2
3
80
70 70
66 65
63
61
58 57 56 55 54 54 53 53 53 52 52 52
50 50 50
46 46 45 45 44 43
34
25
0
10
20
30
40
50
60
70
80
90
100
Supplier1
Supplier2
Supplier3
Supplier4
Supplier5
Supplier6
Supplier7
Supplier8
Supplier9
Supplier10
Supplier11
Supplier12
Supplier13
Supplier14
Supplier15
Supplier16
Supplier17
Supplier18
Supplier19
Supplier20
Supplier21
Supplier22
Supplier23
Supplier24
Supplier25
Supplier26
Supplier27
Supplier28
Supplier29
Supplier30
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
SupplierRFIScore
Business information Social Responsibility Production
Quality management Certificate, documents and pictures Total Score
Shortlisted
Could be considered
Not shortlisted
Average scoring: 53
© 2020 Dragon Sourcing. All rights reserved.
Suppliers Assessment,
- Suppliers were assessed and ranked based on their Company profile,
- Scoring and ranking of the suppliers were done on the e-sourcing tool GSP,

20. Suppliers location was shown on the map.
• Chennai is the capital of the South Indian state of Tamil Nadu.
• 12 suppliers responded from Chennai.
India RFI Ranking
Shortlisted
Could be considered
Not shortlisted
Ranking Supplier Name City State
1 Supplier 1 Banglore Karnataka
2 Supplier 2 Puducherry Tamil Nadu
3 Supplier 3 Chennai Tamil Nadu
4 Supplier 4 Chennai Tamil Nadu
5 Supplier 5 Chennai Tamil Nadu
6 Supplier 6 XX XX
7 Supplier 7 XX XX
8 Supplier 8 XX XX
9 Supplier 9 XX XX
10 Supplier 10 XX XX
11 Supplier 11 XX XX
12 Supplier 12 XX XX
13 Supplier 13 XX XX
14 Supplier 14 XX XX
15 Supplier 15 XX XX
16 Supplier 16 XX XX
17 Supplier 17 XX XX
18 Supplier 18 XX XX
19 Supplier 19 XX XX
20 Supplier 20 XX XX
21 Supplier 21 XX XX
22 Supplier 22 XX XX
23 Supplier 23 XX XX
24 Supplier 24 XX XX
25 Supplier 25 XX XX
26 Supplier 26 XX XX
27 Supplier 27 XX XX
28 Supplier 28 XX XX
29 Supplier 29 XX XX
30 Supplier 30 XX XX

21. RFI
Ranking
RFI
Score
%
Supplier State
Product
Category
Number
of
employe
es
2019
turnove
r (in M
US$)
Sheet Metal Parts Machined Components Certification
Welding in-
house
Laser
cutting In-
house
Powder
Coating
Painting-
spray cabin
Total
Spend
Value in
million
CNC 3, 4 &
5 axis
machine
Total
Spend
Value in
million
Social
Compliance
Certification
Quality
management
& others
1 80 XX Karnataka Both 210 XX Yes Yes Yes Yes ₹ XX Yes ₹ XX ISO 14001 ISO 9001
2 70 XX
Tamil
Nadu
Sheet Metal
Parts
215 XX Yes Yes Yes Yes ₹ XX
Not
applicable
-
ISO 14001,
OHSAS 18001
ISO 9001
3 70 XX
Tamil
Nadu
Machined
Components
257 XX Yes
Not
applicable
No No
Not
applicable
Yes ₹ XX ISO 14001 ISO 9001
4 66 XX
Tamil
Nadu
Both XX XX XX XX XX XX XX XX XX XX XX
5 65 XX
Tamil
Nadu
Machined
Components
XX XX XX XX XX XX XX XX XX XX XX
6 63 XX XX
Sheet Metal
Parts
XX XX XX XX XX XX XX XX XX XX XX
7 61 XX XX
Sheet Metal
Parts
XX XX XX XX XX XX XX XX XX XX XX
8 58 XX XX
Machined
Components
XX XX XX XX XX XX XX XX XX XX XX
9 57 XX XX
Sheet Metal
Parts
XX XX XX XX XX XX XX XX XX XX XX
10 56 XX XX Both XX XX XX XX XX XX XX XX XX XX XX
Sheet Metal Parts and Machined Components: Spend value in INR M
Minimum Below Average Above Average Maximum
RFI Ranking
Shortlisted
Could be considered
Not shortlisted
- Executive summary with key information was shared with the client,

22. Next Steps was suggested to the client
Actions Responsible Deadline Remarks
1. Collect similar samples from recommended
suppliers
DS/Client - Process to start immediately.
2. Send original samples to recommended
suppliers
Client - Process to start immediately.
3. On site audit
(Technical/ Social/ or Hybrid model)
DS and/or
Client
- To be confirmed
4. Production follow up DS - XX
5. Quality inspections DS - XX
6. Container loading supervision DS - XX
Below are the proposed next steps with responsibilities.
© 2020 Dragon Sourcing. All rights reserved.

23. © 2020 Dragon Sourcing. All rights reserved. 2323232323232323
Agenda
1. Sourcing Project Introduction
2. Sourcing Approach
3. Conclusions

24. Conclusions
✓ Whole project was carried out in 8 weeks with 83 suppliers identified from South Indian state & 30
complete RFI-RFQ received.
✓ All the recommended suppliers are certified with ISO 9001 certification with key production process
in-house.
✓ Some of the suppliers could offer both the categories (Sheet metal and machined components) in-
house which was considered as high advantage in supplier selection.
✓ Suppliers were willing to amortize the mould cost for X number of PCS
✓ Sampling process was initiated with the recommended suppliers.
✓ A plan was framed to audit the recommended suppliers as a next step post sampling.
✓ Overall based on our report, It helped client to identify potential & price competitive suppliers in the
desired location close to city Chennai or in and around Tamil Nadu sate.
** Dragon Sourcing has experienced team for performing Technical and Social Corporate Responsibility
(CSR) audit or hybrid model combing both.
15© 2020 Dragon Sourcing. All rights reserved.