Sample SupplierVisit ReportGalvanised PostOctober 20111Visit Details2Supplier Introduction (provided bysupplier)3Our assessment of the supplier4Facilities Location5Personnel Analysis6Production Capability7Quality Assessment8Supplier SWOT Analysis9Pricing Negotiations10 Information you requestedPeter EvansPhoneFaxMobile 61 8 7123 2601 ext 101 61 8 8121 8548 61 (0)419 59 1399 (Australia) 1 804 698 0393 (United States)

DisclaimerMawson Global is proud of its quality research and advice. Ourrelationship with suppliers is strictly arms length and our reports arecompletely independent. We use objective methodologies and takecare to validate our information before presenting it to you.However, the report is based on pricing, costing and assumptionsprovided by the client, and use of the report by the client to makebusiness decisions is subject to business judgment on the part of theclient. Responsibility cannot be accepted for these decisions or theirconsequences.Use of the information in this report is restricted to the client forwhom it has been prepared, and no responsibility is accepted to anyother user.

1Visit DetailsFactory Name:Sample CompanyAddress:No. xx Road, City Name, Country Name.Key Contacts:Mr XDate of Visit:DD/MM/YYYYSourcing Director:Miss XSupplier Visit Report

2Supplier Introduction (provided by supplier)Sample company, established in the mid 1990s, is a leading enterprisecharacterizing by both a manufacturer and an international trader of steelproducts in China. Our headquarters is located in Changsha, Hunan, and ourfive share-controlling factories lie in Tianjin and Tangshan, which enjoyconvenient transportation to Tianjin Port. After more than ten years'construction and development, has built up good and long business relationswith over ten first classes steel factories in China.At present, sample company stands out as an excellent producer of scaffoldingtubes, galvanized steel pipes and welded steel pipes in China. Our good qualityand competitive prices have gained good reputation from customers all overthe world. Meanwhile, the following products are also within our businessscope: steel couplers, seamless steel pipes, hollow sections, I beams, H beams,steel channel-sections, steel angles and steel structure products.Our products have been sold to Southeast Asia, Europe and America. In orderto enlarge our oversea market, our company has been starting producingAmerican standard, European standard, and Japan standard products.Supplier Visit Report

3Our Assessment of SupplierSample Company Is one branch of HSS group, mainly in charge all relativeproducts of scaffolding, this year, they bought a pipe factory then solved issueson raw material quality and delivery. This factory will work on your pipes, thewelding of the eyelets will be done in another factory belong to HSS, and zinccoating will be outsourced to a factory locally.SalesAnnual sales for the pipe factory which is where you will source your product is50,000 mts.Key products for the companyScaffolding products including walk boards, frame system, adjustable steelprops, scaffold couplers and accessories, cuplock system, ringlock system, pregalvanized pipe, square /rectangular tube(hollow section), seamless steel pipe,HSAW/SSAW pipeCountries and Companies ServedThe group currently exports scaffolding product to South East Asia andArgentina. The galvanised pipe product is exported globally.Current Customers given as ReferenceMolecular Scaffolding Ltd. They only provided this company name.Ownership of the companySample company is a 100% private company and it is Chinese owned andmanaged. The financial investment in the company has all come from withinthe parent HSS group.Supplier Visit Report

4Facilities LocationThe factory is located approximately 1 hours drive from the Tianjin BinhaiInternational Airport.The nearest major shipping port is Xingang which is approximately 1.5 hoursdrive.The nearest major city Tianjin is located about 1 hour from the factory.The map below shows in more detail the location of the relevant facilityAIRPORTCITY CENTREPORTSUPPLIERSupplier Visit Report

5Personnel AnalysisHow quickly can the team you will deal with make decisions8/10How flexible is the team to think of other ideas7/10Does our prime contact know who to speak to for decisions9/10Supplier Visit Report

6Production CapabilityDuring our visit we visited the following 3 facilities which are involved in themanufacture of your product.Pipe FactoryScaffolding andWelding Factory Number of workshops : Number of staff : Monthly production capacity: Level and standard of equipment: Organisation of Factory – 8/10 Cleanliness of factory – 7/10 Training level of key staff – 7/10 Number of workshops - Number of staff : Monthly production capacity: mts/month Level and standard of equipment : China made Organisation of Factory – 8/10 Cleanliness of factory – 7/10 Training level of key staff – 7.5/10Supplier Visit Report

Zinc CoatingFactory Number of workshops - Number of staff: more than Monthly production capacity: mts/month Level and standard of equipment: China made Organisation of Factory – 8/10 Cleanliness of factory – 7/10 Training level of key staff – 7.5/10Supplier Visit Report

7Quality AssessmentWhat standards are The entire scaffolding business has ISO operationsCommonly usedthird partyinspectorsMost customers of the company use the followinginspectors for third party inspections.Most commonmethod ofinspectionThe supplier reported that the most common forms ofinspection carried out by customers wasWhat is therecommendedinspection programWe are happy to work with your product experts torecommend an inspection program that will greatlymitigate your risk.SGS - Société Générale de Surveillance- Final Random Inspection- Document InspectionThis would include getting recommendations andcompetitive quotes from third party inspection agenciesto meet your criteria.These third party inspection reports would form part ofthe contract with the supplier so that full payment wouldnever be made until the product has passed yourtesting.This can be done in the Commercialisation step of thenfsourcing process.Supplier Visit Report

8Supplier SWOT analysisBased on our time with the supplier in their facility we offer the followingStrength, Weakness, Opportunity and Threat analysisStrengthScaffolding is key product for these facilities.They produce and sell the product in one operation.WeaknessThere were no obvious weaknesses observed in thesupplier visitOpportunityThey are strong and keen to further develop exportmarketsThreatsRaw material cost increasesSupplier Visit Report

9Pricing NegotiationsA summary of the pricing negotiation is as follows.All costs are in Australian dollars per metre for the product delivered.Galvanized pipe76.1 x 3.2 x 6000Galvanized pipe76.1 x 3.2 x 6000with eyeletsSupplier Visit Report

Reason for the Change in Cost1. Price has increased because the length of the post is not 6m not 5.5m. If wereturn to 5.85m we can reduce the cost per m by about 0.30.2. Price has increased as we now have allowed delivery to customer AU.3. The eyelet project was estimated in report and after sampling has increased. Asthe volume is small it was not possible to negotiate cost reduction. It is importantto not push price over quality in this first project.Payment termsThe supplier is happy to accept the following methods of payment:1. T/T or Telegraphic Transfer of 30% with order and remainder at presentation ofbill of lading.What do we recommend?We are happy to work with you financial experts to recommend the best terms ofpayment for your transaction. We will be able to advise on the best mix of simplicity andsafety to suit your requirements. We also are able to provide advice on thedocumentation required to effect the transaction.This can be done in the Commercialisation step of the Mawson Global process.Supplier Visit Report

10Information you requestedThere was no specific information you requested we find on your behalf this supplier visit.Supplier Visit Report

Peter EvansPhoneFaxMobile 61 8 7123 2601 ext 101 61 8 8121 8548 61(0)41959 Report1399 (Australia)SupplierVisit 1 804 698 0393 (United States)