Case Study-Investment casting sourcing

Investment Casting Sourcing

Case study May 6th 2016

Dragon Sourcing - 龙源Delivering sustainable sourcing value from emerging markets

2

1. Objectives

2. Approach

3. Result

© 2016 Dragon Sourcing. All rights reserved.

Agenda


Objectives and approach

Context

Objectives:

• Identify new potential competitive suppliers.

Categories:

• Investment Castings, total 50 items, 18 used in Europe, 32 used in

China, product weight range from 0.7KG-113KG.

Geographical scope:

• China, India, Thailand, CZ Rep, Turkey

Deliverables:

• Supplier database

• RFI-RFQ template

• RFI-RFQ analysis report

• Supplier Profiles and recommended suppliers for Client to audit

DS Approach consists in the following work steps:

1. Demand Analysis: Work with the Company to define and understand

the products and requirements (specs, volumes, materials, production

technology requirements)

2. Supply Market Analysis : Identify long list of potential suppliers in

the selected markets by leveraging B2B Websites, DS Database, Fair

catalogues, Chamber of Commerce, Magazines, Network,

References.

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, minimum company

size, interest in participating)

4. Administer the NDA: NDA template authorized by Vossloh that will

be distributed to the suppliers who is willing to attend the RFI-RFQ

5. Develop RFI/RFQ : Prepare an RFI/RFQ document, with an aligned

Balanced Scorecard that has the objective to pre-qualify the

competitiveness and capabilities of the suppliers, including:

Background, financial, Client and product experience, Quality

certification & processes, Social Responsibility,

Manufacturing/technology capability, R&D capability.

6. Conduct RFI/RFQ Administration : The RFI/RFQ is translated to the

local languages as relevant, and distributed to the relevant suppliers,

with telephone follow-up to push for maximum participation.

7. Analyze RFI/RFQ Responses : Analysis of RFI/RFQ responses,

estimation of logistics costs, and preparation of a report which profiles

& objectively ranks the suppliers by capability and competitiveness,

including a recommendation for those to be audited.

3

The project was conducted in a 12 weeks period.

© 2016 Dragon Sourcing. All rights reserved. 4

Step WhoWeek

0

Week

1

Week

2

Week

3

Week

4

Week

5

Week

6

Week

7

Week

8

Week

9

Week

10

Week

11

Week

12

0 Kick off Client/DS

1 Demand Analysis Client

2 Supply Market Analysis DS

3 Telephone pre-screening DS

4 Develop the RFI-RFQ Client/DS

5 Conduct NDA Administration DS

6 Conduct RFI/RFQ Administration DS

7 Analyze RFI/RFQ Responses Client/DS

Not started Started Finished Holiday Milestone

Today

5

1. Objectives

2. Approach

3. Result


Agenda


305 investment casting suppliers were identified, at the end we collected 25 RFI/RFQ

and 6 RFIs

Investment Castings

Step China India Thailand CZ Rep Turkey Total

Total number of suppliers 185 56 33 19 12 305

# Client contacted before 15 - - - - 15

# DS will contract 170 56 33 19 12 290

Supplier called 170 56 33 19 12 290

Shortlisted supplier after call 38 12 1 2 2 55

NDA sent 38 12 1 2 2 55

NDA received 30 11 1 2 1 45

RFI/RFQ Sent 23 11 1 2 1 38

RFI/RFQ received 15 8 0 1 1 25

RFI sent only (Potential

competitor)7 - - - - 7

RFI received only (Potential

competitor)6 - - - - 6

In processFinished Not started

11 suppliers quoted all 50 items in the RFI-RFQ


Supplier Name Country Europe China Total

Cost

break

down

(Y/N)

For items not quoted Detailed reason

# Client Status 18 32 50 Y

1 Supplier 1 China 18 32 50 Y -





6 Supplier 6 India 18 32 50 Y -

7 Supplier 7 India 18 32 50 Y -

8 Supplier 8 India 18 32 50 N -




12 Supplier 12 India 18 29 47 Y Can't produce the other 3 items. The product design is difficult for their equipment to produce.

13 Supplier 13 China 18 29 47 Y Can't produce the other 3 items.Stainless steel material, high requirement and little quantity, difficult to

produce.

14 Supplier 14 China 18 27 45 Y Can't produce the other 5 items. Too big to produce.

15 Supplier 15 India 12 28 40 YChina items doesn’t include machining price, can't produce the

other 10 items. Too big for their equipment to produce.

16 Supplier 16 China 18 14 32 Y Can produce all items，at this stage only quote 32 items.

17 Supplier 17 China 18 0 18 Y Can produce all items，at this stage only quote 18 items.

18 Supplier 18 China 18 0 18 Y Can't produce the other 32 items. Too big for their equipment to produce.

19 Supplier 19 India 18 0 18 Y Can't produce the other 32 items. Too big for their equipment to produce.

20 Supplier 20 China 17 0 17 Y Can’t produce the other 33 items. Too big for their equipment to produce.



23 Supplier 23 Turkey 7 1 8 Y Can product 43 items, at this stage only quote 8 items.

24 Supplier 24 China 0 7 7 N Can produce the other 43 items,at this stage only quote 8 items.

25 Supplier 25 Czech 7 0 7 NCasting price only, can machine in house end of 2016. For other

items, waiting for clarification.


10 suppliers provide detailed cost breakdown: material, casting and machining cost

Suppliers quoted Europe Items Cost Breakdown

# Suppliers Name Material price/pc Casting cost / pc Machining cost / pc Surface treatment / pc Packaging / pc Overhead and Profit / pc

1 Supplier 1 Y Y Y Y Y Y


3 Supplier 3 - Y Y - Y -






9 Supplier 9 - Y Y Y - -

10 Supplier 10 - Y Y Y Y Y


12 Supplier 12 Y Y Y - Y Y


14 Supplier 14 - Y - - - -

15 Supplier 15 - Y Y - Y Y

16 Supplier 16 - Y Y - - -

17 Supplier 17 - Y Y - Y Y


19 Supplier 19 - Y Y - - -



22 Supplier 22 - Y Y - - -


24 Supplier 24 - - Y - Y -

25 Supplier 25 - - - - - -

# of total suppliers 10 23 23 11 19 13


Savings range from €72-300k (14-58%).

Suppliers with saving

Suppliers without saving

Current supplier

Suppliers don’t quote all items

517

217 255

350 370 376 412 420 445

600 641 645 645

739 780

843 903

938

1045

697

337 282

521

267

34

208 250

601

€ 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18

12

18 18 18 17

16

1

18

7

0

18 18 18

0

2

4

6

8

10

12

14

16

18

20

0

200

400

600

800

1000

1200

k Eu

ro

Suppliers Europe Items FOB Spend Comparison & Items Quoted

Total (K Euro)

Items quoted

The high variability in €/kg between suppliers is indicative of both difference is relative

cost positions but probably also of differences in the understanding of the specs


0 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

China China India China China China China India China China India China India China India China China China China India India Turkey Czech India

Sodium

Silicate

Sodium

Silicate

Silica

sol

silica

solRemark

Combin

e

Silica

sol

Silica

sol

Combin

e

Silica

sol

Silica

sol

silica

sol

Silica

sol

silica

sol

Silica

sol

silica

sol

silica

sol

Remark

2

Silica

sol

Silica

sol

Silica

sol

Silica

sol Sand

Silica

sol

Current

supplierSupplier

1

Supplier

2

Supplier

3

Supplier

4

Supplier

5

Supplier

6

Supplier

7

Supplier

8

Supplier

9

Supplier

10

Supplier

11

Supplier

12

Supplier

13

Supplier

14

Supplier

15

Supplier

16

Supplier

17

Supplier

18

Supplier

19

Supplier

20

Supplier

21

Supplier

22

Supplier

23

Supplier

241st best 2nd best Average MAX

1 Item 1 22.0 6.0 6.6 10.8 10.6 8.8 9.4 20.8 13.6 16.7 12.5 16.9 14.9 17.1 17.7 13.5 17.2 27.4 29.4 21.6 11.4 22.2 34.4 6.0 6.6 16.3 34.4

2 Item 2 22.0 6.0 6.9 13.2 10.6 8.8 10.3 24.5 14.2 17.0 12.5 16.9 15.5 17.1 26.3 13.5 17.5 27.4 29.4 22.0 11.4 31.3 42.7 6.0 6.9 18.0 42.7

3 Item 3 22.0 6.0 6.9 14.6 10.6 8.8 9.9 24.5 14.7 17.8 12.5 16.9 15.5 17.1 17.4 13.5 17.2 27.4 29.4 21.3 11.4 21.3 35.1 9.8 6.0 6.9 16.5 35.1

4 Item 4 15.1 4.6 5.8 7.3 8.4 8.1 9.2 15.4 9.8 14.0 13.4 14.4 12.9 12.9 17.8 15.1 17.6 21.5 25.2 19.0 10.3 14.9 6.1 7.0 4.6 5.8 12.6 25.2

5 Item 5 16.2 4.9 6.5 7.9 8.6 8.7 9.7 20.2 10.9 15.4 14.4 15.5 12.9 13.9 19.4 16.2 18.9 23.1 27.1 21.0 10.8 15.9 4.9 6.5 14.4 27.1

6 Item 6 16.2 4.9 6.5 8.7 8.6 8.7 10.0 20.2 10.9 15.6 14.4 15.5 12.9 13.9 21.2 16.2 18.9 23.1 27.1 20.3 10.8 17.2 4.9 6.5 14.6 27.1

7 Item 7 10.6 4.4 5.0 6.5 7.4 7.3 8.0 12.0 9.3 12.4 12.4 12.8 13.2 11.0 14.5 15.5 16.2 18.1 27.5 17.1 9.2 13.4 10.5 4.4 5.0 12.0 27.5

8 Item 8 10.4 4.4 5.0 6.5 7.4 7.3 7.9 11.7 9.3 12.2 12.4 12.8 13.1 11.0 14.7 15.5 16.1 18.1 27.9 16.8 9.2 13.6 4.4 5.0 12.0 27.9

9 Item 9 10.6 4.4 5.1 7.8 7.4 7.3 8.5 11.7 9.3 12.3 12.4 12.8 13.0 11.0 20.7 15.5 16.1 18.1 27.9 17.1 9.2 19.8 4.4 5.1 12.7 27.9

10 Item 10 11.1 4.1 5.0 6.6 6.9 6.8 7.6 7.7 8.6 11.5 12.3 12.1 12.5 11.3 14.0 15.2 15.7 16.8 23.3 15.1 8.1 12.8 26.5 8.9 4.1 5.0 11.7 26.5

11 Item 11 11.1 4.1 5.1 6.7 6.9 6.8 7.6 7.7 8.6 11.6 12.3 12.1 12.5 11.3 14.0 15.2 15.7 16.8 23.3 15.3 8.1 13.0 27.2 4.1 5.1 11.9 27.2

12 Item 12 11.1 4.1 5.1 6.7 6.9 6.8 7.5 8.6 8.6 11.6 12.3 12.1 12.5 11.3 14.0 15.2 15.6 16.8 23.3 15.1 8.1 13.1 27.3 4.1 5.1 11.9 27.3

13 Item 13 8.5 3.6 4.5 5.8 6.4 6.3 6.8 6.7 7.3 9.9 11.3 10.5 10.6 8.4 13.3 13.6 14.9 15.3 17.0 13.6 6.7 5.4 3.6 4.5 9.4 17.0

14 Item 14 14.3 6.0 7.3 6.8 7.5 10.5 11.1 10.1 12.1 16.4 18.7 17.5 12.0 13.7 22.0 22.5 24.8 25.4 29.2 22.6 8.4 6.0 6.8 15.2 29.2

15 Item 15 14.3 6.0 7.4 7.0 7.5 10.5 11.5 10.1 12.1 16.5 18.7 17.5 11.7 13.7 23.3 22.5 24.8 25.4 28.9 22.8 8.4 6.0 7.0 15.3 28.9

16 Item 16 7.3 3.4 3.5 5.3 6.0 5.0 5.3 4.5 6.5 7.9 9.3 8.5 10.4 16.2 10.8 10.9 13.0 12.9 13.0 10.7 5.8 25.3 4.3 3.4 3.5 9.0 25.3

17 Item 17 7.5 3.4 6.1 5.5 6.0 8.6 10.1 4.5 6.5 8.9 4.8 15.8 10.3 16.2 19.1 26.0 14.5 21.7 20.2 21.5 3.4 4.5 12.1 26.0

18 Item 18 4.0 3.0 2.9 4.9 4.9 5.3 5.4 2.4 5.0 7.9 9.2 7.3 9.6 11.9 9.4 12.1 14.6 11.9 8.8 4.0 2.4 2.9 7.4 14.6

Average 13.0 4.6 5.6 7.7 7.7 7.8 8.7 12.4 9.8 13.1 12.5 13.8 12.6 13.3 17.2 16.0 17.2 20.4 24.3 18.4 9.2 17.4 31.2 7.0 7.0 4.6 5.5 13.0 27.6

Part no.


Europe items price/kg variability chart.

Current supplier

Supplier 1

Supplier 2

Supplier 3

Supplier 4Supplier 5









Supplier 22Supplier 23Supplier 24

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Item1

Item2

Item3

Item4

Item5

Item6

Item7

Item8

Item9

Item10

Item11

Item12

Item13

Item14

Item15

Item16

Item17

Item18

Euro

Suppliers Denmark Items Price/kg Spend Comparison

40.0 -45.0

35.0 -40.0

30.0 -35.0

25.0 -30.0

20.0 -25.0

15.0 -20.0

10.0 -15.0

5.0 -10.0

0.0 -5.0

Score card used to rank suppliers


Business information Weight of criteria Scoring Max Score per criteriaWeight of

the section

Year Founded 10%

1=After 2010

2=Between 2006 to 2010

3=Between 2000 to 2005

4=Between 1995 and 1999

5=Before 1995

5

20%

Turnover in 2015 in USD 10%

1=Less than 5M

2=5-10M

3=10-20M

4=above 20M

4

Number of employees 10%

1= < 100

2=100-200

3=201-500

4=>500

4

Export experience 10%

1=Less than 5 years

2=5-10 years

3=More than 10 years

3

Handle DDP quote 10% 0=No, 1=Yes 1

Client in Europe, China 10%

0=No

1=1 country

2=Both

2

the percentage of casting production in your

turnover?10%

0= < 10%

1= 10%-30%

2=30%-50%

3=>50%

3

Profile of Top Customers 10%

0=Not provided

1=Local customers

2=National customers

3=International customers as

Client

3

Provide company presentation 10% 0=No, 1=Yes 1

Cooperation during RFI/RFQ 5%

1= Poor

2= Satisfactory

3= Excellent

3

Completeness of RFI/RFQ 5%

1= Poor

2= Satisfactory

3= Excellent

3

Subtotal 100% 20%

Production Weight of criteria Scoring Max Score per criteriaWeight of

the section

Experience of valve housing 6% 0=No, 1=Yes 1

40%

Experience of G20MN5+QT 6% 0=No, 1=Yes 1

Casting technology: 10%

1=Sodium Silicate only

2= Silica sol or Composite

technology

3=Two kind technology

3

Precision casting capacity ( sodium silicate

+ silica sol + composite technology)10%

1= < 2000 Ton

2= 2000-5000 Ton

3=5000- 10000 Ton

4=> 10000 Ton

4

Number of Electric furnace 6% 1=1-3, 2=4-6, 3=>=7 3

automatic wax mould production line 6%0=No

1=Yes 1

Number of CNC 3 axes 6% 0=0, 1=1-2 , 2=2-5 , 3=>5 3

Subtotal 100% 40%

Number of CNC 4 axes 6%

0=0

1=1-2

2=2-5

3=>5

3

40%

machining accuracy (IT level) 6%

1=IT 7

2=IT 6

3=IT 5

4=IT 4

4

sand blasting in house 5%0=No

1=Yes 1

Heat treatment in house 5%0=No

1=Yes 1

Zinc coating in house 3%0=No

1=Yes 1

pattern making / Mold fabrication in house 5%0=No

1=Yes 1

Knowledge and implementation of TS tools and supply

of PPAP5%

0=No

1=Yes 1

ERP system 5%0=No

1=Yes 1

Number of items quoted 10%

1= Less than 15 items

2= 15-30 items

3=31-40 items

4=>=41 items

4

Subtotal 100% 40%

Quality systemWeight of

criteriaScoring Max Score per criteria

Weight of

the

section

ISO 9001 10% 0= No,1= Yes 1

40%

ISO 14001 5% 0= No,1= Yes 1

PED for G20Mn5+QT 15%

0= No

1= Don't have, but can apply

2= Yes, already have.

1

X-Ray in house 5% 0= No,1= Yes 1

Chemistry test in house 5% 0= No,1= Yes 1

Leakage test in house 5% 0= No,1= Yes 1

Lower temperature impact test -60C test in house 5% 0= No,1= Yes 1

Yield strength testing test in house 5% 0= No,1= Yes 1

Ultrasound test in house 5% 0= No,1= Yes 1

Brinell Hardness test in house 5% 0= No,1= Yes 1

Mechanical Properties test in house 5% 0= No,1= Yes 1

Microstructure test in house 5% 0= No,1= Yes 1

Incoming material inspection record 5% 0= No,1= Yes 1

online inspection record 5% 0= No,1= Yes 1

final inspection record 5% 0= No,1= Yes 1

Non-destructive test records 5% 0= No,1= Yes 1

Can your company trace casting, machining and

coating ?5% 0= No,1= Yes 1

Subtotal 100% 40%

Supplier profile example


COMPANY INFORMATION

Company Name Supplier xx

Address xxx

Town xxx

Province xxx

Country China

Company Website xxx

CONTACT PERSON INFORMATION

Contact Person xxx

Title Marketing Director

Email xxx

Tel xxx

Mobile phone xxx

Company Background

What date was your company founded? 2007

Ownership (State Owned/ Private/Foreign

Investments/Joint venture)Private

Registration capital (USD) 0.865million

What is the workfloor size (m²)? 106000

How many employees do you have? 1300

Sales &

ManagementR&D Staff

Quality

Control

Factory

workers

How many people do you have in these

positions?80 46 166 960

How many people can speak English in each

department?10 2 2 0

Do you have export license ? Yes

How many years of export experience do you

have? 9

Do you have capacity to support

documentation and special requirements for

overseas shipping?

Yes

Can you handle DDP quote? Yes

Do you have any Europe customers? If yes,

client name? Yes, Such as Sulzer and so on

Does your company have client in right listed

countries?

Denmark China

No Yes

2015 2014 2013 2012

Turnover (in Million USD) 40M 40M 45M 45M

What‘s the percentage of casting production in

your turnover? % 70%

Domestic Europe North

America

Rest of the

World

% Sales exports to the main markets (US,

Europe)40% 20% 20% 20%

Customers Industry Country Product type of

end usage

Who are your top 3 Customers?

xxx PUMP GERMANYpump and

valve parts

xxxFORKLIFT

CASTINGUSA

Engineering

Machinery

parts

xxxMACHINING

CASTINGSJAPAN Auto parts

Corporate Responsibility

Do you have policy to cover environment and conservation? Yes

Do you have policy to cover health and safety? Yes

Do you have policy to cover human rights? Yes

Do you have policy to cover business ethics and anti-

Bribery? Yes

Scorecard Score 88

Items Quoted 29


Technolgy & Process

What's your company's main products?

Auto parts: Wheel hub. brake drums and other auto parts.

Pump and Valve parts: Pump body and cover, housing,

volute and other pump and valve parts.

Engineering parts: Hanger, bracket and other

Farm parts: brackets, links, shaft and so on.

Municipal facilities: Manhole cover, grates.

Railway parts: axle case, wheel, axle and so on

Does your company produce casting valve

housing? Yes

Silica solCompsite

technology

Sodium

Silicate Sand casting

Do you have right listed technology? (Yes/No) Yes Yes Yes Yes

Max casting production capacity per year in ton? 1000 1000 3000 60000

Actual annual casting production in 2015？ 200 500 27000

Does your company cast G20MN5+QT? Yes

What is the range of investment casting unit

weight your production facilities currently handles

？

Min in Kg Max in Kg

0.2 40

What is the range of sand box dimensions that

your production can handle？

Length Thickness Height

3000m

Quantity Total capacity (Ton)

Electric furnace 15 60000

Does your company have automatic wax mould

production line? Yes

3-axis 4-5axis

How many CNC machining center does your

company have? 7 4

machining accuracy (IT level) 6 6

Can your company do sand blasting in house? Yes

Can your company do heat treatment in house? Yes

Can your company do zinc coasting house? No， outsourcing

Does your company make mould in house? Yes

Knowledge and implementation of TS tools and

supply of PPAP? Yes

Which planning system (ERP) do you use in your

company? No，We are plan to use it

Do you have equipment list? (Yes/No) Yes

Quality Control and Testing Equipment

What quality and environmental registrations do

you have?

Yes / NoDate of

CertificateCertifying Org.

ISO 9001 Yes 2013.6.7 BV

ISO 14001 No

PED for

G20Mn5+QT No

Can you do the right listed test equipment in

house?

Test Yes / No

X-Ray Yes

Chemistry Yes

Leakage Yes

Lower temperature impact

test -60CYes

Yield strength testing Yes

Ultrasound Yes

Brinell Hardness Yes

Mechanical Properties Yes

Microstructure Yes

Do you do incoming material inspection? Do you

keep written record?Yes

Do you do online inspection? Do you keep written

record?Yes

Do you conduct final inspection? Do you keep

written record? Yes

Can your company provide Non-destructive test

records? Yes

Can your company provide heat treatment

records? Yes

Can your company trace casting, heat treatment,

machining and zinc coating ? If yes, please

describe your process.

Yes

How many employees in your company is

qualified for CAD? 10

Do you accept 3rd party QC or testing? Yes

Supplier profile example (continued)


FACTORY OVERVIEW AND WORKSHOP PICTURES

Supplier profile example (continued)


Total 31 suppliers are scored and ranked with an average score of 74

No. Supplier Name Country PEDBusiness information Production Quality system

Total Rank by score Items quoted

20% 40% 40%

1 Supplier 1 China Y 16 35 46 97 1 -

2 Supplier 2 China Y 17 25 46 89 2 -

3 Supplier 3 China - 17 34 38 88 3 47

4 Supplier 4 China - 17 34 38 88 4 50

5 Supplier 5 China Y 16 26 44 86 5 -

6 Supplier 6 China - 15 33 38 85 6 50

7 Supplier 7 China - 15 31 38 84 7 50

8 Supplier 8 China - 15 34 34 83 8 50

9 Supplier 9 China - 14 31 36 81 9 50

10 Supplier 10 China Y 16 21 44 81 10 -

11 Supplier 11 India Y 12 28 40 80 11 50

12 Supplier 12 China Y 18 22 40 80 12 -

13 Supplier 13 China - 17 24 36 77 13 50

14 Supplier 14 China - 17 27 32 77 14 50

15 Supplier 15 China Y 15 24 38 77 15 17

16 Supplier 16 China Y 14 24 38 76 16 -

17 Supplier 17 India Y 12 24 40 76 17 18

18 Supplier 18 China Y 17 21 38 76 18 18

19 Supplier 19 China - 17 23 34 74 19 18

20 Supplier 20 India - 14 25 32 71 20 40

21 Supplier 21 China - 16 22 32 70 21 50

22 Supplier 22 China - 13 21 34 68 22 7

23 Supplier 23 China - 16 22 30 68 23 45

24 Supplier 24 China - 13 21 32 66 24 14

25 Supplier 25 India - 11 21 34 66 25 50

26 Supplier 26 India - 12 24 30 66 26 47

27 Supplier 27 India - 5 26 32 63 27 50

28 Supplier 28 Czech - 16 23 24 63 28 7

29 Supplier 29 Turkey - 12 20 24 56 29 8

30 Supplier 30 India - 7 12 32 51 30 16

31 Supplier 31 India - 5 11 16 32 31 15

Potential competitor


Suppliers total RFI score and ranking:

- 31 suppliers ranked with an average score of 74

- 18 suppliers are above the average score.

97

89 88 88 86 85 84 83 81 81 80 80

77 77 77 76 76 76 74

71 70 68 68 66 66 66

63 63

56 51

32

0 0

47 50

0

50 50 50 50

0

50

0

50 50

17

0

18 18 18

40

50

7

45

32

50 47

50

7 8

16 15

0

10

20

30

40

50

60

0

10

20

30

40

50

60

70

80

90

100

RFI Score Vs Items Quoted

Score

Items quoted

Potential competitor


Recommend suppliers

9 suppliers were recommended for auditing based on (1) RFI score above average 72, (2)

price/KG below average of €13,1 and (3) their ability to produce most items.

88 88 85 84 83 81 80

77 77 77 76 76 74

71 70 68 66 66 66 63 63

56 51

32

18 18 18 18 18 18 18 18 18 17 18 18 18

12

18 18 18 18 18 18

7 7

16

1

8

12

9

13

6

13

10

8

5

18

16

20

17 17

13

17

14

8

24

13

7

31

9

7

0

5

10

15

20

25

30

35

0

10

20

30

40

50

60

70

80

90

100

Suppliers quoted Europe items score VS Items quoted & Price/kg cost average

RFI score Items quoted Price/kg cost average

Eu

ro/k

g

19

1. Objectives

2. Approach

3. Result


Agenda

Total 11 suppliers from China and India are recommended for next steps with total

potential savings up to €743k or 33%


# Suppliers Supplier countryRecommended

for Europe items

Europe Items

Process

Europe items

potential saving

(K Euro)

Recommended

for China items

China Items

Process

China items

potential saving

(K Euro)

Total potential

saving (K Euro)

Total potential

saving %

1 Supplier 1 China YSodium Silicate,

Sand casting161.1 Y

Sand casting,

Sodium Silicate106.1 267.2 12.1%

2 Supplier 2 China Y Silica sol 113.7 YSilica sol,

Combine93.5 207.2 9.4%

3 Supplier 3 China Y Combine 130.0 YCombine, Sodium

Silicate.0.6 130.6 5.9%

4 Supplier 4 China Y silica sol 28.1 Y silica sol 0.0 28.1 1.3%

5 Supplier 5 China Y Sodium Silicate 262.7 Y Sodium Silicate 480.6 743.2 33.7%

6 Supplier 6 China Y Sodium Silicate 9.8 YCombine, Silica

sol.2.4 12.3 0.6%

7 Supplier 7 India Y Silica sol 85.9 Silica sol 0.0 85.9 3.9%



10 Supplier 10 India Silica sol 0.1 Y Silica sol 6.6 6.7 0.3%

11 Supplier 11 China Silica sol 23.5 Y Silica sol 1.1 24.6 1.1%

Case Study-Investment casting sourcing

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