Case Study-New Plant Building “Capex Sourcing in China”

New plant building Case study
Capex Sourcing in China
Shanghai, Jan 2014
Dragon Sourcing - 龙源
Your Tailored Sourcing Approach to LCC Sourcing

Agenda
© 2014 Dragon Sourcing. All rights reserved. 2
1. Context
2. Sourcing Strategy
3. Conclusions and Results

© 2014 Dragon Sourcing. All rights reserved.
Context
Client profile:
• One of the largest chocolate group in the world
• More than 7.8 billion EUR revenue and 20,000+ employees in the world for 20 plants
Objectives:
• To carry sourcing services for helping client to build a new plant in China, focused on below 8 categories
 Pipelines
 Tanks and Silos
 Utilities
 Part of a Production Line
 Packaging Machine
Engineering service
Construction service
Automation/Installation
Geographical scope:
• China ( suppliers are capable of delivering the products and services near Hangzhou area)
Deliverables:
• RFI / RFQ and Score Card
• Supplier profiles
• Audit reports
3
Gansu
Jiangxi
Zhejiang
BEIJING
Jiangsu
Guangxi
Hunan
Hubei
Qinghai
Ningxia
Shaanxi
Anhui
Fujian
Neimongu
Shanxi
Shandong
Sichuan
Yunan
Guizhou
Henan
Jilin
Liaoning
Hebei
Guangdong
Gansu
SHANGHAI
TAIWAN
Heilongjiang
Location of identified suppliersLocation of client’s plant

• Steering Committees weekly (conference
call) to review overall progress on all
categories
• Categories follow-up meetings on an ad-
hoc basis to review category issues
• Meeting minutes record main decisions,
planned actions and project status
Dragon SourcingClient
DS CEO
DS Account Manager
CPO
Strategic Sourcing
Manager
Buyer
Buyer
Buyer
Buyer
Buying Engineer
Buying Engineer
Buying Analyst
The China sourcing programme is managed via a series of frequent
conference call meetings
Buying Analyst
Buying Analyst
Buyer

Process for New Plant Building
Dragon Sourcing involved in 8 important categories for new plant building
DS Team Out of scope
New plant
Location
selection
6.Engineering
Service
(design)
Trial production
Formal
production
Commission
Feasibility
report
Construction
Management
Procurement
7.Construction
service
3. Utilities
Process area
Production area
Packaging area
Electrical parts
8. Automation
Mechanical parts
5.Packaging machine
1. Pipelines
2. Tanks and Silos
4. Part of production line
Others

8 categories-5 categories for equipments
-1. Pipelines, 2. Tanks&Silos
1. Pipelines 2. Tanks and Silos

-3. Utilities-electrical parts and mechanical parts
Electrical parts-Switchgear
&Switchboard
Electrical parts-Transformer Electrical parts-UPS Electrical parts- Diesel Generator
Mechanical parts-AHU Mechanical parts-Chiller Mechanical parts-Cooling Tower Mechanical parts-Air compressor

-4. Part of production line-equipments
Equipments-Mixer Equipments-Refining System Equipments-Tempering Machine Equipments-Roaster
Equipments-Air Humidifier Equipments-Mills Equipments-Chocolate Pump Equipments-Pumps and Valves

-4. Part of production line-lines
Lines-Moulding line Lines-easy line

-5. Packaging Machine
Flow pack Wrappers
Thermoforming
Machine
Tray Formers Cartoner/Case Packing Shrinker machine
Robot & Tool Checkweigher Ink Jet Laser Marker Hot Transfer

8 categories - 3 services categories
-6. Engineering service, 7.Construction service and 8. Automation
6. Engineering service 7. Construction service 8. Automation
-Working scope for engineering company
Detailed engineering services
Detailed design
Permitting service
Engineering timing & Permitting schedule
Manhours and fee for engineering
If good enough the engineering company can
also be the management company
Close to client‘s factory
Recommend for piling supplier
Good English skill
-Working scope for construction company
Construction services
Permitting service
Support for tender for construction company and
supervision for realisation phase
Constructoin timing & Permitting schedule
Manhours and fee for construction
List the work for sub-contract
Enough license
Close to client‘s factory and can do construction
work in Xiaoshan, Hangzhou city (with license)
Good English skill
-Working scope for construction company
No matter integrator or producer, supplier must have
the capability to program software and integrate
hardware for different brands, and also cabling work
Automatioin including 4 areas: utilities automation,
process automation, production automatoin and
packaging automation
Supplier has the design capablity fo the packaigng parts
Good english skill
Hardware will be used as below:
• Automation control system (PLC)
• Operator control and monitoring System (HMI)
• Identification system
• Industrial communication
• Industrial control
• PC based automation
• Sensor system
• Vision system

Agenda
1. Context

• Analyse spend category in detail
– Specifications and quality requirements
– Volumes
– Deadlines
• Analyse supply market and identify potential
suppliers
• Pre-screening potential suppliers through
telephone based on client’s criteria and manage
NDA process
• Pre-qualify potential suppliers through an RFI-RFQ
process
• Analyse supplier RFI-RFQ responses and develop
score card
• Shortlist suppliers recommended for audit based
on RFI/RFQ process and score card
• Finalize suppliers for audit
• Make audit schedule and budget
• Audit shortlisted suppliers
• Make a report of audited suppliers
• Build supplier profiles
• Select 2-3 suppliers for sample development
process
• Manage sample development process
• Conduct final negotiations and select suppliers
• Finalise Contract
Step 1
Supplier identification and
pre-qualification
Step 2
Supplier selection and contracting
Keyactivities
Dragon Sourcing went through the following 2 stage process

– Volumes
– Deadlines
suppliers
telephone based on client’s criteria and manage
NDA process
process
• Analyse supplier RFI-RFQ responses and calculate
fully delivered price (FOB price, logistics, import
duties, ADT,..), develop score card
process
Step 1
pre-qualification
Step 2
Supplier Selection and contracting
Keyactivities

Product drawing
The first step was to develop a comprehensive understanding of the
requirements
Product pictures
Product Tank
Purchase
Qty
XXX pcs
Current
Price
(DDU)/pc
EUR XXX
RMB XXX
Target
Price
(DDU)/pc
EUR XXX
RMB XXX
Savings
target
xxx
Packaging Depends on supplier

then an extensive supplier data base is built leveraging multiple sources of
information
Company and contact information
No.
Product
category
Supplier
name
Province City Website Source
Contact
Person
Email Telephone Mobile
1 Tank Supplier 1 Shanghai
2 Tank Supplier 2 Jiangsu
Sources of Information - China
Website
name websites Remark
Alibaba www.alibaba.com
B2B for all over
the world
Global
Sources
www.globalsources.
com
B2B for all over
the world
Gongchang
www.gongchang.co
m
B2B for all over
the world
Tradekey www1.tradekey.com
B2B for all over
the world
ECVV www.ecvv.com
B2B for all over
the world
EC21 www.ec21.com
B2B for all over
the world
Hellotrade www.hellotrade.com
B2B for all over
the world
Trade Asia www.etradeasia.com B2B for Asia
Asian
Products
www.asianproducts.
com B2B for Asia
made in
china
www.made-in-
china.com BSB for China
Alibaba
China china.alibaba.com BSB for China
CHINA.CN www.china.cn BSB for China
CCCME www.cccme.org.cn
China Chamber of
Commerce for
electrical &
mechanical
products
Baidu www.baidu.com
TOP 1 source
engine in China

Then, a telephone pre-screening process is carried out to select the suppliers to
be included in the RFI/RFQ process
Category
Must-be criteria
criteria No.1 criteria No.2 criteria No.3
Tank ISO9001
Willing to
sign NDA
Inside R&D
department
Category
Can-be criteria
(According to the response of all the suppliers, decide which criteria
will change to must-be criteria)
criteria No.1 criteria No.2 criteria No.3 criteria No.4
Tank ISO14001
Experience to
supply products
for the western
client located in
China?
Has experience
to western world
(EU, US)
Min production
capability

III. Quality, Environmental and Product Certification
质量环保认证
3-16
What quality and environmental registrations do you have?
右侧相关认证贵司达到吗?
Yes / No
Date of
Certificate
Certifying Org.
ISO 9001
ISO 14001
Other
(已或得的其它认证
请列举)
II. Production Capability
生产能力
3-1
Can you do these tanks products 100% matching the drawing
requirements?
贵司是否能完全按照图纸要求生产这批罐体产品?
3-2
What processing capabilities are included in your tanks
production? Are these processes in-house or sub-contracted?
However we would require all these process done in house.
贵司生产此罐体包含哪些加工工艺？哪些是自行完成，哪些工艺
需要外协完成?我们要求所有相关工艺需要在本厂自行完成。
Process
生产工艺
In house(Y/N)
自行生产(是/否)
Sub-
contractor(Y/N)
外包(是/否)
3-3
What is the range of unit size your production facilities currentlly
handles?贵司能生产的罐体产品的单件尺寸范围是多少?
Min in m3
最小立方
Max in m3
最大立方
3-4
What is the range of dimensions that your production can
handle? 贵司能生产的罐体产品的单件最大尺寸是多少?
Length 最长 (mm) Width 最宽 (mm)
Height 最高
(mm)
I. Company Background
公司信息
2-1
What date was your company founded?
贵司是在哪一年成立的?
2-2
Ownership (State Owned/ Priviate/Foreign Investement)
企业性质 (国有/民营/外资)
2-3
What are your main type of products?
贵司的主要产品是?
2-4
Where is the factory located?
生产工厂/车间位于哪里?
2-5
What is the workfloor size (m²)?
贵司工厂面积有多少平方米?
Next step is to administer the RFI/RFQ process
RFI- Contact Information
信息征询-公司联系方式
Please fill the orange cells 请填写橙色表格
Dragon Sourcing contact
龙源联系人
Email
电子邮件
Tel
电话
Fax
传真
Mobile phone
手机
COMPANY INFORMATION
公司信息
1-1
Company Name
公司名称
1-2
Address
地址
1-3
Town
城市
1-4
Province
省份
1-5 Company website
公司网址
CONTACT INFORMATION
联系信息
1-6
Contact Person
联系人
1-7
Title
职位
1-8
Email
电子邮件
1-9
Tel
电话
1-10
Fax
传真
1-11 Mobile phone
手机
Contact detail
information
Company Profile
Production
Capacity
Quality and
certificate

Company and contact information RFI/RFQ Process follow up
Product
category
Supplier
name
Province City
RFI/RFQ sent Intend to respond Last call follow up RFI received RFQ received
Y/N Date Y/N
If no,
reason
Date Comment Y/N Date
If no,
reason
Y/N Date
If no,
reason
Tank Supplier 1 Shanghai Shanghai Yes Oct.-2013 Yes Oct.-2013
completed RFI-
RFQ
Yes
Oct.-
2013
Yes
Jan.-
2014
Tank Supplier 2 Jiangsu Nantong Yes Oct.-2013 Yes Oct.-2013
replied RFI but
not complete,
ask supplier to
update it
Yes
Oct.-
2013
Yes
Jan.-
2014
not complete
RFI-RFQ
Yes
Oct.-
2013
Yes
Jan.-
2014
completed RFI-
RFQ
Yes
Oct.-
2013
Yes
Jan.-
2014
completed RFI-
RFQ
Yes
Oct.-
2013
Yes
Jan.-
2014
During the RFI/RFQ process, an RFI/RFQ control sheet is used to follow up the
whole process

Contact information
Company
name
Supplier 4
City Shanghai
Province N/A
Website
Contact
person
Tel
E-mail
Company background
Year
Founded
1990
Ownership
Foreign
Investment
Main
Products
Tank Products
Work floor
size (m²)
800,000 ㎡
Have export
license (Y/N)
Yes
How many
years of
export
experience
15 years more
Business Overview
Turnover (in USD)
2013 20 M
2012 14 M
% Sales to the Main
Markets
Domestic (%) 60%
Italy (%) 2%
Rest of EU (%) 8%
Other Main markets
(%)
30%
Total 100%
Top 3 Customers
Customer
name
Industry Country
GE Medical US
BP
Petrochem
ical
US
P&G
Petrochem
ical
US
Based on the RFI/RFQ, company profiles are developed
Production Capacity
Quality Control
Top 3 Customers in food
industry
Customer name Country
Coca-cola US
Suntary Japan
Nestle US
Corporate Responsibility
Adhere to all rules and regulations
in respect to (Y/N)
Child labour Yes
Environmental
issues
Yes
Health and safety
issues
Yes
List of equipments
Name Quantity Age Brand
Endoscope n/a n/a n/a
Texture
analyzers
n/a n/a n/a
Thickness
gauges,
n/a n/a n/a
Golden image
Analyzer
Electron
microscopes
List of QC Equipment
No. Name
1 moisture tester
2 sensitive balance
Human Resources
Factory
Worker
2945 QC 105
Engineer 750
Office
Staff
200
Total 4000
English
Speaker
800
more
Production
Total maximum production
capacity in 2013
1100 Units
Actual annual production
capacity in 2012
900 Units
Percentage of your tank
products among all the
categories?
80 %
Percentage of your stainless
products among all the
metals?
56%
What is the range of unit size
your production facilities
currentlly handles?
0.01-5000 m3
What is the range of
dimensions that your
production can handle?
10000X10000X7
0mm
Quality & Environmental Registration
Certificate Yes / No
Date of
certificate
Expiration
date
Certifying organization
ISO 9001 Y 1999 N/A N/A
ISO 140001 Y 2010 N/A N/A
Others OHSAS 18001:2007 N/A
Others N/A N/A
20

Factory Entrance Workshop 1 Workshop 2
Machinery 1 Machinery 2 R&D
Factory Pictures
…and factory pictures collected

Supplier 1
Location
in
RFI/RFQ
Quality Control
Weight of
criteria
Scoring
Max Score
per criteria
Weight of
the section
Answers Score
3-16 Do you have ISO 9001? 35%
0= No
1= Yes
1
20%
3-16 Do you have ISO 14000? 25%
0= No
1= Yes
1
3-16
Do you have any other key certificate
like ROHS, REACH?
10%
0= No
1= Yes
1
3-11
Do you have daily on line quality
inspection and supporting
documents(Y/N)?
10%
0= No
1= Yes
1
3-12 Do you accept 3rd party QC? 5%
0= No
1= Yes
1
3-14 & 15
Do you conduct tests for the tanks
before the delivery? ?
5%
0= No
1= Yes
1
3-13 & 15
Do you have in house testing
equipments/lab?
10%
0= No
1= Basic QC Mechanical inspect
tools(Caliper, Micrometer, etc)
2= Optical inspect tools (CMM, 3D,
etc)
2
Subtotal 100% 1.1 20%
Point per section
based on 100
0.00
Location
in
RFI/RFQ
Export Experience
Weight of
criteria
Scoring
Max Score
per criteria
Weight of
the section
Answers Score
2-9 Export license 5%
0= No
1= Yes
1
20%
2-17 % of the turnover dedicated to Export 15%
1= <25%
2= 26% ~ 50%
3= >51%
3
2-17 Main Export Market 40%
1= Other
2= USA/Japan
3= Western Europe
3
2-18 & 19 Who are the main customers 40%
1= Local brands
2= International brands
3= Famous international brands
3
Subtotal 100% 2.9 20%
Point per section
based on 100
0.00
Location
in
RFI/RFQ
Cooperation
Weight of
criteria
Scoring
Max Score
per criteria
Weight of
the section
Answers Score
Cooperation / Attitude during RFI/RFQ 100%
1= Acceptable
2= Satisfactory
3= Excellent with great interest
3 10%
Subtotal 100% 3 10%
Point per section
based on 100
0.00
Total scoring 12 100.00%
Total Points
based on 100
0.00
Supplier 1
Location
in
RFI/RFQ
Company background
Weight of
criteria
Scoring
Max
Score
per
criteria
Weight of
the
section
Answers Score
2-1 How long is your industry experience? 20%
1= Less than 5 years
2= 5 to 10 years
3= More than 10 years
3
25%
2-16 What's your turnover in 2012? 20%
1= Lowest 1/3 of responses
2= Middle 1/3 of responses
3= Top 1/3 of responses
3
2-7 & 8
Do you have good English capability
with engineering/technical staffs as well
as sales/account personnels?
20%
0 = Not satisfactory
1 = Average
2 = Good
2
2-11
Do you have experience of providing
tank for the food industry ?
20%
0 = No
1 = Yes
1
2-12
Do you have experience of supplying
products for the western client located
in China?
20%
0 = No
1 = Yes
1
Subtotal 100% 2 25%
Point per section
based on 100
0.00
Location
in
RFI/RFQ
Production Capabilities
Weight of
criteria
Scoring
Max
Score
per
criteria
Weight of
the
section
Answers Score
2-15 How many employees do you have? 15%
1= <100
2= 100-200
3= > 200
3
25%
3-1
Whether can do these tanks products
100% matching the drawing
requirements?
15%
1= No, partly
2= Yes
2
3-2
Do you have all your processes in
house with strong design & fabrication
capability?
15%
1= No, partly
2= Yes
2
3-6
What's your annual production capacity
in units?
15%
3
3-8
What's the percentage of your tank
products among all the categories?
20%
3
3-9
What's the percentage of your stainless
products among all the metals?
20%
3
Subtotal 100% 2.7 25%
Point per section
based on 100
0.00
The RFI responses are analyzed using a score card validated by the client
Company Profile
Production
Capacity
Quality and
certificate
Export
Cooperation

Example of a score card – tank category
Rank by
score card
Supplier name
Sections Total
100%
25% 25% 20% 20% 10%
Company backgroundProduction Capabilities Quality Control Export Experience Cooperation base 100
1 Supplier 4 25.00 18.06 20.00 16.21 10.00 89.26
2 Supplier 5 22.50 17.59 20.00 17.24 10.00 87.33
3 Supplier 3 22.50 21.30 18.18 16.21 6.67 84.85
4 Supplier 2 25.00 19.91 20.00 12.41 6.67 83.99
5 Supplier 1 22.50 23.15 9.09 13.45 10.00 78.19
Average 84.72
89.26 87.33 84.85 83.99
78.19
0
10
20
30
40
50
60
70
80
90
100
Supplier 4 Supplier 5 Supplier 3 Supplier 2 Supplier 1
Cooperation
Export Experience
Quality Control
Production Capabilities
Company background

Suppliers recommended to be audited according to the score card
Country
Supplier
name
City Province
Score card
ranking
Strength weakness
China Supplier4 Shanghai Shanghai 1
- Excellent company background
- Has a lot of experience in the food industry
- Has a lot of experience in supplying for western clients located in China
- They are foreign invested company with Japan background
- The percentage of
stainless products
among all the metals is
56%.
China Supplier 5 Shanghai Shanghai 2
- Very good company background
- Has some experience in supplying for western clients located in China
- They are foreign invested company.
- The percentage of
tank products among
all the categories is
40%
-Very good company background
- With 21 years industry experience
- Mainly market is in
local China.
- Excellent company background
- Has no ISO14001
- Very good company background
-Has no ISO14001
- The Max tank they
can do is 100m3
Strongly recommended to be audited Can be audited

– Volumes
– Deadlines
suppliers
telephone based on client’s criteria
process
• Analyse supplier RFI-RFQ responses and calculate
fully delivered price (FOB price, logistics, import
duties, ADT,..), develop score card
process
Step 1
pre-qualification
Step 2
Supplier Selection and contracting
Keyactivities

5 tank suppliers were finally selected for audit
Visited by
Rank by
score card
Province City Supplier name Product Client DS
1 Shanghai Shanghai Supplier 4 Tank x x
4 Jiangsu Nantong Supplier 2 Tank x x

An audit schedule and budget is developed
No. Category Supplier name City Province Location
Score card
ranking
1 Tank Supplier 4 Nantong factory Nantong Jiangsu Pin A 1
2 Tank Supplier 4 Shanghai factory Shanghai Shanghai Pin B 1
Timing Agenda
Estimated
Cost (RMB)
Attendee
08:30am
Finish breakfast and Supplier 4 come
to pick up at hotel
Mr.xxx(Client)
Mr.xxx (Client)
Mr.xxx (DS)
09:00am ~
12:00pm
Supplier 4 Nantong Factory audit
and technical discussion on the
drawings and quotation
12:00pm ~
13:00pm
Lunch or supplier may invite for lunch
together
EUR 22 /
lunch / person
13:00pm ~
15:00pm
Supplier 4 car take us back to
Shanghai Supplier 4 factory
15:00pm ~
17:00pm
Supplier 4 Shanghai Factory audit
and technical discussion on the
drawings and quotation
17:00pm ~
Take taxi to get back hotel
Then DS goes back home
EUR 25/car
EUR 15/car
Total
EUR 106/3
persons
1 EUR=8.1856 RMB

Short-listed suppliers are audited to assess long-term partnership opportunities
Audit
questionnaire
Audit report
Audit
summary
Objectives
• Meet top management and sales management teams
• Present order details
• Refine supplier offer understanding
• Understand organisation
• Validate manufacturing capabilities
• Visit factory and check work conditions
Topics
• General Management
• Order management
• Shipping / packaging
• Planning process
• Goods flow
• Procurement
• Purchasing
• Production
• Quality…

Audit outcome is summarized in a rated profile of each supplier

Audit summary
The final supplier selection relies on the short-listed suppliers’ offers, audits and
samples
Supplier
Name
Final
Ranking
Supplier 1 1
Supplier 2 4
Supplier 3 2
Supplier 4 5
Supplier 5 3
Suppliers’ quotation
Samples
Supplier
summary
Supplier
capabilities
Supplier
assessment
Supplier
Quotation for Client
Standard
Quotation for Supplier
Standard
Supplier 1 € 34,810 € 22,590
Supplier 2 € 44,454 € 40,432
Supplier 3 € 45,420 € 40,050
Supplier 4 € 78,500 € 74,700
Supplier 5 € 93,533 € 82,910

Agenda
1. Context

1615 suppliers initially identified for 8 categories, 494 suppliers went to the RFI
process, 282 suppliers replied to the RFI, 100 suppliers were finally audited, client
intends to cooperate with Chinese suppliers for all categories
Category
No. of suppliers
identified
No. of suppliers go to pre-
screening
No. of suppliers RFI sent
No. of suppliers RFI
received
No. of suppliers audited
Pipelines 284 90 36 21 9
Tanks and Silos 83 51 39 22 5
Utilities-electrical 223 87 65 47 10
Utilities-mechanical 431 104 104 47 12
Part of a Production Line 394 208 158 77 27
Packaging Machine 69 69 50 34 12
Engineering service 25 25 15 14 6
Construction service 34 34 9 9 8
Automation 72 40 18 11 11
Total 1615 708 494 282 100
0
50
100
150
200
250
300
350
400
450
Pipelines Tanks and Silos Utilities-electrical Utilities-mechanical Part of a
Production Line
Packaging Machine Engineering
service
Construction
service
Automation
No. of supplier identified
No.of supplier go to pre-
screening
No. of supplier RFI sent
No. of supplier RFI
received
No. of supplier audited

Approach
Categoies
Engineering
servcie
Construction
service
Utilities-
electrical
Utilities-
machanical
Automation Pipelines Tanks
Part of
production line
Packaging
machine
Time spend (weeks) 8 weeks 10 weeks 16 weeks 13 weeks 12 weeks 15 weeks 11 weeks 12 weeks 8 weeks
1 Collect detailed technical information
1 week 2 weeks 4 weeks 3 weeks 4 weeks 3 weeks 2 weeks
4 weeks
(short time but
need to source
several items)
2 weeks
(short time but
need to source
several items
and some items
only need
supplier list)
2
Identify list of potential suppliers in China to pre-
screening process
3
Carry out a phone pre-screening of the suppliers
based on (1) maximum 4-5 screening criteria per
category with these criteria to be provided by client 2 weeks 2 weeks 3 weeks 3 weeks 2 weeks 4 weeks 3 weeks
4
Develop the RFI-RFQ – jointly with client– to include
all key supplier qualification criteria
6 weeks 3 weeks5
Administer the RFI process to ensure as high a return
rate as possible
2 week 2 weeks 4 weeks 3 weeks 3 weeks 4 weeks 3 weeks
6
Analyze RFI responses by score card and recommend
suppliers which client needs to the RFQ process
7
Administrate NDA process
(For some categories, this process done after the audit
process)
1 weeks 1 week
4 weeks
3 weeks
1 week
(Done after audit)
3 weeks
(RFQ
required
after audit)
2 weeks
(RFQ
required
after audit)
Not required
for the NDA
Not required
for the NDA
8
Administrate RFQ process and analyze RFQ responses
by score card and recommend suppliers with client for
audit
(Not all categories need RFQ process and some RFQ
process done after audit by client themselves)
RFQ process
controlled by client
themselves after
audit
RFQ process
controlled by
client themselves
after audit
RFQ process
controlled by
client
themselves
Not required
for RFQ
Not required
for RFQ
9
Carry out audits with pre-selected suppliers: Dragon
Sourcing carries out qualification audits with client
together
2 weeks
(Done before RFQ
process)
3 weeks
(Done before
RFQ process)
1 week 1 week 2 weeks 1 week 1 week 2 weeks 2 weeks
33 Process done by DS Process done by client
The selection process varied in time depending on the category

• Understand the process for building a plant in China very well
• Successful sourcing experience on extensive set of categories
• Knowledge about who best qualified suppliers are for all Capex and services categories needed
to build new facility in China
• Strong project management experience allowing to proceed at speed
Based on this experience, DS can provide end-to-end procurement support to
clients building a new plant in China

Case Study-New Plant Building “Capex Sourcing in China”

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Case Study-New Plant Building “Capex Sourcing in China”