2014 Forecast for Global Sourcing

As the economy continues to rebound after the tough global recession of the last few years, many companies and markets are poised for a resurgence. For firms in manufacturing and other industries that rely on global sourcing, 2014 stands to be a growth year.

While budgets are always a top consideration, this year the focus will shift from slashing costs to investing in relationships that scale production, break open new markets and increase revenues.

Here’s a closer look at the trends we expect to drive global sourcing in 2014:

Small- and medium-sized firms grow through sourcing: Global sourcing is synonymous with big business. Retail giants drive up profits by sourcing components and products cheaply around the globe thanks to complex value chain management. Increasingly, small- and medium-sized firms are taking advantage of global sourcing by partnering with qualified sourcing companies. As a result, they’re able to access production capacity, cheaper components and affordable global talent. Small businesses can then reinvest those savings into growing their companies and better serving their customers. 

Integrating global marketing with global sourcing: Another trend that’s on the rise is the increasing integration of global marketing services for companies doing business abroad. From building relationships with a country’s leading suppliers to paving the way to do business in a new market, global marketing provides international businesses with an insider perspective on foreign markets. Global marketing services provide businesses with insights into distribution channels, on-the-ground representation and help identifying the best partners to meet top business goals.

Technology plays a bigger role in delivery: Several technologies are changing the service model in the global sourcing field. Big data is giving better insights into the savings and efficiencies that sourcing creates for specific businesses, and making it easier to pinpoint bottlenecks that need to be addressed in the production process. Cloud-based technologies and mobile devices are making it easier to stay connected with suppliers 24/7, and creating global communications infrastructures that are fully integrated to streamline communications and data sharing. Finally, there’s an increasing focus on enhancing global security across partners and along the value chain to better protect valuable client information, financial data and trade secrets.

2014 promises to be an exciting year for companies that are ready to grow through investing in technology, integrating marketing with global sourcing and making global sourcing accessible to companies of all sizes. If you’re ready to leverage global outsourcing to grow your business in 2014, contact Mawson Global today for assistance with your global sourcing, marketing and commerce solutions.

5 Tips For Doing Better Business in Asia

China is the largest supplier of goods to the United States, and the trade of goods and services between the two nations is a multi-billion dollar relationship. But in order to gain a foothold in the global sourcing industry, there are some cultural and business customs you will do well to adhere to if you want successful.

Mawson Global can act as a liaison between you and suppliers, and accompany you on overseas supplier visits and meetings. However, there are some important customs you need to be aware of before you go. Here’s a quick guide to get you through the trip embarrassment-free.

• Relationships before business. There is a saying in China that you don’t discuss business until the third cup of tea. The Chinese place great importance and value in developing relationships first and conducting business second. The best course of action is to learn about your host’s country, culture, interests, and share your own interests. Once trust and cooperation has been established, then get down to business.
• Always be on time. While the Chinese are occasionally late to meetings, your punctuality is a sign of respect. The pace of business in China is somewhat different; so don’t be put off if your hosts are late to a meeting. Just don’t cause the delay!
• Pay attention to your body language. Talking with your hands, pointing, waving, and gesturing are rude in China. Talking with your hands in your pockets is also disrespectful. Even a simple handshake should be handled in a modest manner. Too firm a grip, too much hand pumping, or too long of a handshake can be considered aggressive. Also, it’s customary to pass and offer things, such as dishes at a meal, with your right hand rather than your left.
• Keep a calm demeanour.  Avoid being overly boisterous or too forward with potential business partners. Instead, approach business negotiations with a calm demeanour, patience, and dignity, and you’ll win the day.
• Be prepared to dine and drink. Entertaining is a vital component to Chinese business culture. The Chinese like to conduct business over lunch or dinner, and they enjoy having drinks during and after the meal! Business deals often are completed over a meal. Make sure that you plan for this in your daily schedule.

With a team located in Qingdao, China, Mawson Global is uniquely positioned to assist you with your global sourcing ventures in China. Please contact us to learn more about how we can help you during visits, as well as with other global sourcing needs!

Tips for Giving Business Gifts in Asia

Giving the right business gift for the right occasion is always a challenge. How much should you spend? Should you wrap the gift? Is it even appropriate to give a gift? While gift giving in your country can be complicated, giving business gifts in Asia has a whole other level of nuances. Some general principles apply in all countries, but each one also has its own distinct traditions.

First off, it’s important to understand that your gift shouldn’t be too lavish or over-the-top because you want your host to be able to reciprocate without feeling uncomfortable. Additionally, in some countries, like China, gift giving can be seen as bribery and is frowned upon. Another consideration is whether or not you are going to present gifts to the entire team, or just to the senior most members. The senior member should always receive the most valuable gift.

You also need to be aware of what not to offer as a business gift. Never give someone a sharp object, such as a knife or scissors, as it can be seen as severing the ties of your relationship. You should also avoid clocks because they’re associated with the word for ‘death’ in Asia. Gifts indicating the number four or groups of four, as well as odd numbers and the number 13 are considered unlucky in Asian culture. Finally, gifts that could be considered to have romantic connotations also should be avoided.

Some acceptable gifts for Asian business partners include electronic gadgets, desk and office accessories, liquor, chocolate and flowers. In some countries, such as China, you may even want to host a banquet or dinner at a local restaurant for your business colleagues. The most important element is that the gift is of the best quality.

Red is considered a lucky colour in Asia, so it’s a good choice for wrapping paper. Other positive colours include pink, gold and silver. Always check with the local customs, though, as a certain colour of wrapping paper might be acceptable in one Asian country, but get you into trouble in another.

Mawson Global is uniquely positioned to assist with supplier relationships, from selecting an appropriate business gift to identifying the best source for your products. For more information on how we can help with all your global sourcing needs please, contact us!

Sourcing From China on the Rise

As global economic indicators have shown incremental improvement over the past several months, it could also point to a positive position for Chinese manufacturers and service providers. According to the most recent International Sourcing Confidence Index, confidence from multinational companies that source products from China increased in the third quarter, up from 50.40 to 51.28, according to the Shanghai International Sourcing Promotion Group Co.

The Index is a measure of the confidence that multinational companies feel with regards to sourcing products in China. The survey interviewed more than 200 multinational companies that have a presence in China. A reading above 50 indicates optimism, and the third-quarter index represents the highest mark in a number of quarters. The index’s improvement also indicates that the global market might be inclined to source more products from China.

According to the most recent trade information, exports from China grew to 7.2% in August, up from 5.1% in July.

With four experienced individuals staffing our office in Qingdao, China, Mawson Global is strategically positioned to help companies and organizations of all sizes and disciplines to identify and acquire the most cost-effective suppliers of products and services in the Chinese market.

Because we have a team on the ground in China, we’re able to minimise the risks associated with global sourcing and help your company make the most out of global sourcing its products. Our team members are knowledgeable about international standards, and understand local languages and cultures. Having a team in China also means that Mawson Global can quickly identify suppliers that meet your quality standards, and provide you with a partner with whom you can cultivate a long-term relationship.

There are a number of reasons to partner with Mawson Global for your global sourcing needs, including:

• We are a global leader in product sourcing with more than 70 years of family experience.

• Small and medium enterprises get Fortune 500 sourcing expertise for a fraction of the cost.

• Mawson Global identifies high-quality suppliers that you can build a long-term relationship with.

• These relationships enable your company or organization to become a key player in the global market.

• Sourcing through Mawson Global will keep you ahead of your competition.

• Partnering with Mawson Global helps your company slash costs and increase your profit.

For more information on how Mawson Global can help you join the global arena, please take our 10 Product Challenge or contact us.

How to Avoid Common Global Shipping and Logistics Mistakes

As a business owner, you are (rightly) focused on the quality of your product and how it will satisfy your customer when it reaches its destination -- hoping for customer satisfaction and an ongoing relationship.

But spare a thought -- or two -- for the time in between, when your product has left your warehouse and is en route to your customer.

Global logistics and shipping mistakes, sadly, are easily made if you don’t know what to look out for. The good news is that these errors are often easy to identify and correct.

To help you avoid any snags, here are four common global shipping and logistics mistakes -- and how to avoid or fix them.

1.  Choosing the wrong shipping company. There is no one international shipping vendor or method that works in every circumstance. Once you realise that,      you can research shipping companies that have established relationships with customs in certain destinations. Choosing a company that meets your criteria may speed delivery to your customers. Check the shipper’s references and ask questions: How many years has it been shipping to that country? How many transactions has it handled? How many employees work on the ground? Most shippers who maintain a strong presence in a country will also have a physical office there.
2. Packing shipments incorrectly and using incorrect addresses. It’s always      important to make sure your shipments are packaged correctly to make sure      they arrive intact. Find out how many times a shipping container will be handled, and the mode of transportation to be used. Also be aware of regulations on shipping containers in the destination country. Finally, though it seems like a no-brainer, make sure that you have the correct address especially if delivering to a third party!
3. Know who will be shipping your goods. When you contract with a shipping service to ship your product, you might assume that the company will handle the shipping itself. However, that company often turns over the shipment to a shipping management company. Before you hire a shipping company, ask what      management company it uses, and find out if the delivery date and/or method is guaranteed.

No matter what your logistics or shipping quandary, Mawson Global can help! We maintain staff in the world’s fastest-growing regions, and we can answer these questions and solve global sourcing problems before they become actual problems. Contact us today and let us show you how we can help grow your business!

5 Benefits Global Sourcing Organisations Can’t Afford to Ignore

No matter your organisation’s size or the volume of your order, there is no question that global sourcing can dramatically increase your profits.

Many companies are still making procurement decisions based mainly on unit cost. But the global explosion of technology, well-educated workers, and capital has made it possible to literally have the entire world competing for the opportunity to sell to your business.

 For most big corporations, global sourcing is not a matter of choice, but of necessity. The days of simply finding the best contract you can with suppliers with whom you frequently interact are gone. Now, you can partner with suppliers from across the globe.

Mawson Global understand the benefits of global sourcing – after all, we’ve been helping companies with it for more than a decade. However, we recognise that you might still need a little convincing. So, here are five advantages of global sourcing that you can’t afford to overlook.

• A reduction in costs, especially labour costs. Most Mawson Global clients save at least $100,000 on their first project, and their savings are typically 40 to 70 percent of domestic prices. In 2012, we saved our clients more than $19 million.
• Access to fresh research, design, and specialised intellectual capital.
• Availability of new technology and capacity. A number of companies source overseas because domestic suppliers lack the capacity and they’re not making the necessary investments to stay competitive.
• Superior quality. Many companies praise the quality of internationally sourced products compared to domestic products, mainly because of supplier investment in technology and capacity to attract global business.
• Companies can focus on their core processes and have more capital to invest in them.

Whatever product you’re seeking, Mawson Global can find you a reliable, more cost-effective overseas supplier. We have professional teams on the ground in Asia that help businesses around the world safely minimise any risks involved in global purchasing.

Mawson Global is confident that we can assess your potential cost-savings without disrupting your supply chain. We are not broker-agents; our services are fee-based, and we work without taking a commission. Our research and advice are completely independent and unbiased.

Utilising our services for your global sourcing needs is a simple process that provides you with all the information, feedback, and recommendations you need to successfully source your company’s products.

Want to know if Mawson Global sourcing is right for your company? Take our 10-product challenge. We’ll ask you to name five to 10 products that you now buy from an importer, and then we’ll work to find those items from a cheaper global supplier. The input is minimal – all it takes is a few minutes of you time – but the benefits will likely be substantial!

For more information about how Mawson Global can help you with all your global sourcing needs, please contact us online!

Tackling the Issue of Quality Fade

Quality fade is all around us, but many businesses and consumers don’t always know how to recognise this concept or know what they should call it.

Around the world, we’ve all been exposed to situations such as recalls for unsafe food products, cars with safety problems, dangerous toys, electronics and gadgets that break within days. Not to mention the buttons that fall off clothes on the first day or the zip that breaks in 48 hours after purchase.

This is ‘quality fade’, which describes a supplier systematically downgrading the quality of the products that a foreign buyer has contracted them to manufacture, in order to boost their profit margins.  Quality fade and the escalating business greed that drives it has become a significant issue for importers sourcing products from highly competitive low cost manufacturing countries, which notably include Vietnam and China.

Mawson Global experts regularly work with foreign companies who recognise they need support and assistance in establishing relationships with quality manufacturing partners in emerging and industrial countries.  Many of our clients have encountered deliberate quality fade problems in previous business dealings, with the excellence of early product runs and customer satisfaction frustratingly replaced by quality problems, customer complaints and lower sales over time. 

Sometimes quality fade issues are just annoying nuisance, but for other products such as foodstuffs or vehicles, profit-driven cuts pose a real risk to consumers’ health and safety on the other side of the world.

Unscrupulous factory owners will continue cutting quality and cost corners until confronted or exposed.  This is a common problem in China, with shrewd suppliers proffering plausible enough excuses if questioned, aware from experience that many international buyers will shrug off a small problem, believing it was simply a mistake.

We can introduce you to trusted suppliers who are serious about quality, helping you to develop a reliable long term manufacturing partnership. We provide advice on negotiations to achieve clear outcomes based on agreed specifications, structuring contracts before production starts that protect both parties; and on quality control steps which include setting up inspection procedures and standards.

We will advise you to save yourself future trouble and money by independently checking the factory before entering a working relationship.  Always work within formal contracts to avoid potential issues that often arise from more informal arrangements, which are found to be unenforceable in the manufacturer’s country. We recommend using a third party auditor regularly, or if you start to be aware of quality fade issues with a supplier.

Your contract with a manufacturer must specify that they take responsibility for product quality control, including catching defective products before they leave the factory premises and accepting liability for handling any quality problems post-sale. 

Over time, it is critical that foreign buyers maintain a close watch on product quality, to avoid the headaches of quality fade problems that increasingly impact your resources and bottom line. 

After-Hours Business Entertaining in Asia: To Karaoke, or Not to Karaoke?

When you’re traveling for business in Asia or any part of the world unfamiliar to you, it’s wise to be familiar with local customs regarding business entertaining.

You may be invited by suppliers, customers, and associates to meet after hours – in a more informal setting than daytime meetings. These interactions are equally important as daytime meeting in forging business relationships.

Hosts are usually appreciative of visitors who demonstrate knowledge about their culture, as well as the ability to converse in his or her language, so make an effort to do both. The following is a quick guide to navigating after-hours business functions.

Dining
In Asian countries, seating is very important at a formal meal, and guests should wait to be seated by the host to avoid being disrespectful. It’s also polite to try everything served during a meal. Take a bite of each dish – even if it seems unappealing – and be sure to give your compliments to the host.  If you enjoy the meal, eat up -- a clean plate is a good thing in Asian countries! However, be aware that your host may insist that you keep eating, even if you are full.

Karaoke
Karaoke bars are a common form of entertainment in Asian countries. If your host suggests visiting one and you agree, be ready to participate! Agreeing to go to a karaoke bar means you are willing to sing!  Men often receive unsolicited attention from women in these establishments. Be aware that most of it comes at a price to you or your host. Remember, you are there on business; have fun, but conduct yourself in a professional manner.

Drinking
Alcohol is an important part of building business relationships. If you don’t drink, politely inform your host in advance. Toasts are a big part of Asia’s culture, so if they are offered, it’s polite to take part. You may also ask your host if you can offer a toast to them and the success of your relationship.

Navigating Business After-Hours
If you’re working on forging business relationships in China or other Asian nations, Mawson Global can help with every aspect of the endeavor -- from efficiently arranging flights, hotels, and other transportation to advising you on the proper way to deal with businesspeople.

Mawson Global has representatives on site who are familiar with local businesses and industries. We can help you and your company forge new overseas relationships – and even suggest a karaoke song or two!

Is Global Sourcing Right for You?

Are you considering global sourcing for your business or your clients? Wondering what your first steps should be?

Mawson Global’s mission is to make international growth simple and attainable for all companies, regardless of their size or budget. Quite simply, we connect you with suppliers and partners across the globe, to help you increase profits, improve efficiency, and strengthen your overall business. No matter what products you need, we aim to find a reliable, more affordable overseas supplier for you.

Most Mawson Global clients save at least $100,000 on their first projects, and their savings are typically between 40 to 70% of domestic prices. At last count, Mawson Global clients have saved almost $20 million using our global sourcing services.

Our clients come from a wide variety of industries and companies, with varying sizes and revenues. But they do share some common characteristics:

• ·         They buy products not manufactured in the domestic market.
• ·         They spend more than $50,000 with any one supplier.
• ·         They are planning to purchase plant and equipment worth more than $50,000.
• ·         They are a company’s owner, CEO, COO, or CFO.
• ·         They are prepared to spend $7,000 to save $75,000!

Mawson Global is confident that we can assess your potential cost savings without disrupting your supply chain. We are not broker-agents; our services are fee-based, and we work without taking a commission. Our research and advice are also completely independent and unbiased.

We have professional teams based in a number of countries to help businesses around the world safely minimise any risks inherent in global purchasing.

Want to know if Mawson Global sourcing is right for your company? Take our 10-product challenge. We’ll ask you to tell us five to 10 products that you now buy from an importer, and then we’ll work to find those items from a cheaper international supplier.

Now is the time to find out if global sourcing can help you grow your business. Contact Mawson Global today!

Doing Business in Asia: Making a Good Impression

It may go without saying that first impressions are important in business, but they are particularly crucial when you’re doing business in Asia.

Your image matters. Looking polished and sharp in a business meeting not only reflects well on you and your business; it also indicates respect for your host.

Proper Attire
For example, wearing an open-neck shirt, and going without a tie, is usually appropriate when you’re visiting suppliers, particularly if you’re touring factories. However, for other business meetings the dress code is stricter. Men may need a suit and tie, and women should wear a skirt or dress that falls below their knees, along with a jacket or sweater that covers their arms. All dress should be weather appropriate; wearing a heavy suit in a humid city can be uncomfortable and can interfere with the impression you want to create. You also need to make sure your socks are in good condition as shoes are prohibited in certain places in Asia, including some restaurants.

Business Card Etiquette
Business cards are another crucial consideration. Make sure you have plenty, because you’ll be giving away a lot of them, especially when you meet potential clients for the first time.

Following these tips can help you avoid cultural business-card gaffes:

• Use both hands when presenting and receiving a card. Using one hand in Asia is considered casual to the point of rudeness.  Although it is common to slide you cards over a table like dealing at a casino in the West this is not done when making a good impression in Asia.
• Properly acknowledge your associate. You do this by accepting his or her card and examining it carefully.  If you are not sure how long this should take be guided by how long they look at your card.
• Ask, “how should I address you?” Asian businesspeople are keenly aware of position and hierarchy. Titles are important, so don’t guess; ask! Do not be afraid to write down their preferred title so you can refer to it during the meeting.  When you make the effort to be respectful it is noticed and the other “mistakes” you will make are excused.  Also, never use a client’s given name unless he or she invites you to do so.
• ·         Keep the client’s business card on the table during your meeting. It is also acceptable to place it in a cardholder. Either way, leaving the business card in full view for the duration of your meeting will show appropriate respect.

Mawson Global can help you navigate the process of doing business in China and other Asian countries – and making a good impression while you’re there! In addition to arranging hotel and flight bookings, Mawson Global’s on-site staff can advise you on the proper way of dealing with Chinese businesspeople, along with briefing you on local businesses practices, business development, and the country’s customs, holidays, and practices.