DCW Concludes Study of Indian Polypropylene Bag Suppliers

July, 2008  The goal of Dragon Commodities Worldwide (DCW), in its Woven Polypropylene (WPP) Bag and Fabric study was to validate source supply, logistics and supply chain schemes through a global and standardized approach. Working in collaboration with a cross section of prequalified India manufacturers, DCW established optimization potentials through a structured evaluation process that identified only top tier suppliers, where pricing, quality, delivery and service performance were defined as primary factors. Systematic selection criteria were intended to reduce the number of potential suppliers down to a select few (short list), where selection criteria was based on such factors as procurement risk, logistics, management and environment to name a few.

Supplier qualification involved only those suppliers who were chosen by DCW for further consideration based on meeting the minimum requirements of the Supplier Evaluation and Assessment Methodology (SEAM). The extent of the future audits relied upon the materials being purchased, its price, quality and logistics conformity as they relate to the products being sourced. DCW used the supplier short list methodology to compare suppliers, which relied on the assessment of primary and secondary data relative to the substance and quality of the supplier and its product offerings. The tool centers around three principles DCW believes are critical in the selection of WPP suppliers of this magnitude: fact-based research, industry and market focus, and business transparency. Each supplier was assessed based on how well its product fit the market and the value of its ownership. The fit-to-market assessment uses criteria that assess the strength of a product in terms of its quality, price, cost, delivery and service. The value of ownership assessment addresses the soundness of suppliers' business environment, strategy, financial strength, commitment to the industry and willingness to work with its customers.

Outcomes from the study were intended to serve as a strategic starting point in the process of developing a more conducive and long-term working relationship between DCW and preferred suppliers of WPP Bags and Fabric, while facilitating logistics and supply chain improvements.

Says Mr. DelRaso: "The growth of India as an economic power has without question brought the country into the spot light on the global stage. India, like China, has an increasingly influential role to play in the shifting politics, strategies and alliances that will ultimately determine the character of globalization in years to come. With a demonstrated capacity to quickly transform weaknesses and threats into strengths and opportunities, India has become a place of innovation and tremendous long-term potential. Growing participation of India’s economy in the world economy, with increased FDI inflows, has created additional incentives and opportunities for India to continue to grow and earn favorable rankings. Whether companies consider India a source of well trained and affordable labor or look upon it as a market, one thing is for certain companies involved in global expansion and trade can not afford to overlook it."


DCW Concludes China Cement Study

June, 2008  Dragon Commodities Worldwide (DCW) recently completed its 1st quarter China Cement study for 2008. The study included extensive factory tour visits of over twenty (20) select cement manufacturers throughout Southern China. The region was selected by DCW for its high growth potential and ability to meet future growth in export demand. Previously the region had reported a total annual output of 2-3 million MT. However, our research indicates that within the next several years the region is expected to add additional lines to its operations, which could push total capacity for the region well beyond 50 million MT per annum.

Says Mr. DelRaso "While still immature, the Southern China region is well positioned to participate in the expansion of cement capacities on a global scale. The region demonstrates great potential in terms of its contribution to added capacities for export consumption, with all visited factories exhibiting state-of-the-art operational schemes and easy access to raw materials, which are mined from deposit ranges just a few short kilometers from working facilities. In addition, the Yantain port, with exceptional services, is easily accessible and considered world class."

In terms of current situation, the region is considered self sustained with 95% of total production being consumed domestically with only a fraction of excess capacities available for export. However, the region is extremely interested in expanding business growth through export opportunities and with the proper guidance and assistance from companies such as DCW growth through increased exports can easily be attained.

Danny Kwok, who helped conduct the study and currently runs DCW Asia Sales and Sourcing operations, voiced great optimism. Says Mr. Kwok:"China has maintained its recognition as a suppliers market since 1993. As such, it will continue to offer long-term reliable supply of quality product at a competitive price. Sourcing is what we do best and we are currently making major commitments to a large number of manufacturers in the region to enhance trade on a global scale. Having residences in Shenzen, as well as Hong Kong, affords me the opportunity to work directly with Chinese manufacturers and suppliers in an unparalleled manner."

Overwhelmingly, the results from the study were positive. Through opportunities provided by the study, DCW was able to relate directly with manufacturers in an unprecedented way. Most notably we have drawn on the knowledge and expertise of local manufacturers to identify opportunities that can enable meaningful logistics and supply chain improvements for purposes of export within the region. As a result DCW has been able to demonstrate the potential for an effective working partnership and has successfully laid the foundation for the development of a viable long-term business relationship.