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!

5 Tips to Do 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! 

Decision, Decisions: 3 International Shipping Options

Selecting an international shipping method is a complex decision for any global commerce company. There are numerous options, each with its own advantages and disadvantages, and significant cost differences amongst the bunch Choosing the right shipping method could be the difference in whether your freight arrives on time. Picking the wrong one could mean your shipment never arrives at all.

If your company is evaluating its shipping options, examining each one, as well as some of the pros and cons, is an important step in the decision-making process. The following is a quick guide to a few of the most popular shipping options to aid in your shipping search.

Less than container load (LCL) - LCL is an international ocean freight shipping option that allows a shipper to utilize just a portion of a shipping container, instead of the whole thing. LCL is ideal for companies with a low volume of international shipments or those who need an inexpensive means for transporting cargo. It also allows shippers to quickly move their cargo because they don’t have to wait to fill an entire container. However, with these benefits come a few drawbacks. Most freight companies combined several LCLs to fill containers. This means your product could be at risk of contamination or damage from other cargo in the container. For businesses shipping high value items or food products, LCL might not be the best choice.

Full container load (FCL) – FCL shipping involves transporting using an entire sea freight container. FCL is typically the best way to transport freight – even if you’re only sending a partial shipment – because it allows you to track your goods and avoid the risk of damage or contamination by other cargo. Companies shipping a large quantity of cargo internationally, as well as those who need a little more control over their shipping timetable – and can’t afford airfreight – will benefit from FCL.

Airfreight – Shipping cargo via airfreight is exactly as it sounds. It’s putting your cargo on a plane in order to transport it to its international destination. This option offers the most control and flexibility over the shipping timetable and provides a safer means of transport over ocean freight shipping options. These conveniences come at a price, though. Typically, airfreight is the most expensive shipping option of the three, and may be out of many small and mid-size businesses’ budgets.

You probably can’t personally deliver your cargo to every international client, but you can find an international shipping method and freight forwarder that you can be confident in.

Mawson Global provides support to companies facing the challenging decision of which shipping method is ideal for their business. We work directly with freight forwarders to provide clients with numerous options in each of these shipping categories, as well as sound, reliable advice on the right choices for your business.  If your company needs an international shipping solution that it can count on, Mawson Global can find one that fits the bill. 

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.

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. 

3 Steps to Avoid Recalled Products due to Packaging and Labelling Errors

The Scenario:

The product you imported has now been distributed all over Australia and Europe and you have found  it does not meet labelling laws and needs to be recalled – at your expense!

We’ve all seen it happen before, a product gets recalled, not because it is faulty or subpar, but because a business overlooked the importance of following all rules and regulations for labelling and packaging. The question remains, how can you ensure your new product is not recalled because you overlooked a labelling requirement in another country?

Follow these three steps to ensure your business does not have an expensive product recall.

1.       Find consultants in your country or the countries you do business in to draft the labels and help you understand all the requirements for import

2.       Use third party inspection agents to check labels prior to shipment

3.       Use a customs broker to find out what paperwork you need to import the product

Over preparing and double checking is the first step to saving time and money in the long run. You do not need to be the expert on each rule and regulation your business will face, but it is important to hire someone who is an expert.

What other precautions can you share to make sure a labelling mistake does not lead to an expensive recall?

Go East, Entrepreneurs! The Business Impact of Global Sourcing

In a recent Forbes article, the authors give a ringing endorsement of the power of global sourcing for businesses:

“Although the relative cost of manufacturing in China has risen in recent years, the country is still often the cheapest location for American retailers and manufacturers to source goods or parts.”

Many entrepreneurs and small-business owners assume that successful sourcing from China requires opening local offices, hiring staff and making other investments that are impractical below certain revenue levels. However, a global sourcing firm with business expertise, established relationships and the experience to navigate the Chinese business world opens up an entirely new approach to doing business for companies interested in sourcing materials from China.

It’s a major landscape that can be difficult to navigate. All an entrepreneur has to do is visit an online sourcing platform to recognize that hundreds or even thousands of potential vendors in every area are listed. There’s a massive opportunity to identify new sourcing partners. Yet with an online search it’s hard to tell which companies are legitimate, which have the manufacturing capabilities to meet demand, and whether their customers are happy. A knowledgeable sourcing partner can vet potential Chinese suppliers, eliminating stress by developing a short list of potential candidates.

Due diligence requires time, expertise and resources. There are numerous avenues that can be used to connect with suppliers. Entrepreneurs need to begin with some understanding of the Chinese market. When evaluating individual suppliers, it’s important to understand the company, its management team, its products, quality assurance programs, production capabilities, credit and financial terms and other components of how they do business. Chinese language skills and the ability to navigate Chinese business regulations and culture are helpful to this process. A local presence for site visits and face-to-face meetings is also important. An established sourcing partner can conduct due diligence and provide answers to all the questions that arise.

Accelerate progress by partnering with a sourcing partner. It’s easy to become overwhelmed with thoughts on visiting trade shows, reviewing audited financial statements, making site visits to plants and negotiating terms. But sourcing from China can provide a significant competitive advantage for any company and immediately impact a company’s bottom line … provided the company partners with the right firm. Working with an establishing global sourcing expert, like Mawson Global, allows companies all the benefits of a Chinese supplier while dramatically minimizing stress, travel and costs. Sourcing partners can manage the process end-to-end while communicating regularly throughout the process.

Are you ready to explore the advantages that working with a Chinese supplier could bring to your business? Contact Mawson Global today to discuss your company’s specific needs and learn more about how our Asia team’s global perspective and local expertise can work for you.

New Case Study: Mawson Global Enhances Client’s Savings

Organization: Distributor of name brand beverages, snack foods and confections

Looking to Source: Soda bottles

Results:

• Annual cost savings of more than $200,000.
• Rapid procurement of multiple sourcing options.
• Diverse pricing options from a variety of qualified suppliers.

The Objective

For 13 years, our client has been the state distributor for Cadbury Schweppes beverages, which includes Pepsi Cola, Gatorade, Spring Valley and Red Bull. The company also bottles its own line of specialty soda drinks.  The company contacted Mawson Global in order to improve its bottom line by discovering a reliable global sourcing partner to save on the cost of materials for soda bottles.

The Approach

After learning of Mawson Global’s proficiency in sourcing materials, our client engaged us to identify reliable global sources for its soda bottle business.

Our China-based staff researched a variety of suppliers, along with the company’s product specifications for the bottles, and we were able to recommend reliable suppliers producing the material in several China provinces.

We utilized our proven rating system to identify the top suppliers by marking efficiency levels, reliability and quality. Within a number of days, we presented the client with four soda bottle supplier options from different suppliers in China in our informative, easy-to-read Sourcing Report.

The Benefits

Significant Annual Cost Savings

Substantial Savings: As a result of Mawson Global’s global sourcing expertise, the client selected a vendor that will help it experience an annual cost savings of $200,000.

Outstanding ROI: Because Mawson Global operates on a fee-for-service model; the client only pays once for the process that now will save it significant costs for years to come.

Less Stress & More Flexibility

Multiple sourcing options: Mawson Global was able to identify a number of suppliers to fit our needs.

Future options: Because of Mawson Global’s approach, the client not only has acquired a provider for its current needs, but also has direct access to suppliers for future glass projects.

Comprehensive approach: Mawson Global not only conducted its Sourcing Project to identify the best soda bottle partner(s) for the client, but also conducted our Quicklook analysis, as well as our Research Project.

Quick Results

High Efficiency: Mawson Global sourcing experts conducted a timely and robust search for suppliers that not only could provide the required materials, but also could do so with significant cost savings.

Skilled, professional staff: Our staff in Asia has been with Mawson Global an average of six years, and they have streamlined the process of selecting trustworthy, reliable suppliers that meet our high standards for quality and customer service. This team, combined with our proven supplier ratings system, is why we were able to quickly address our client’s request for global sourcing options for its soda bottle business.

Overcoming Language Barriers with Global Sourcing Partners

Globally sourcing your company's products can improve your productivity, efficiency and bottom line, but sometimes language barriers can get in the way. From simple miscommunications to cultural gaffes, language barriers can cause international business relationships to grind to a halt.

It’s important to have a strategy in place to mitigate language issues before they cause serious problems. So, here’s a closer look at strategies that can help overcome language barriers with your global sourcing partners:

1.       Translate all critical documents into the local language. Before embarking on a business partnership, it’s important to consider the basic documents that will outline and guide the relationship. Examples of critical documents include legal contracts, sourcing guidelines, company and background information, and operating agreements. Translate these documents into the local language to ensure that both members of a partnership get off to a good start. It gives everyone involved a clear frame of reference. Any point of confusion or disagreement can refer back to these original core documents.

2.       Utilize multiple channels for communication. One of the most effective strategies for overcoming language barriers is creating redundant systems. Don’t rely on a single source of communication to handle important conversations. Follow up conference calls or Skype discussions with summary emails that outline the major takeaways. Email exchanges are easier to track than phone and in-person meetings, but written communications also should be supplemented with other points of contact. Even simply hearing a colleague’s voice helps to build strong relationships.  

3.       Partner with sourcing firms that have language capabilities: When you’re selecting your global sourcing partner, choose a firm that has language and translation capabilities. The right partner will be able to navigate your sourcing market with conversational fluency, but also be able to translate written documents as part of the process. The best firms offer this support to clients as part of the ongoing relationship, and can provide premium support at a reasonable price when special translation needs arise.

If you’re contemplating launching a global sourcing initiative, Mawson Global can help. Contact us to discuss your business, your sourcing goals and how our services can make it easier to navigate the process today.

How to Choose a 3rd Party Quality Auditor

In global commerce, a third-party quality audit – one that’s completely independent of your supplier – is one of the best ways to minimise the risks of each transaction.

Defining Third-Party Audits 
Unlike first- and second-party quality audits, an autonomous team of auditors -- with absolutely no connection to your supplier -- performs the audit. These auditors assess your product based on a set of pre-determined standards of quality (for example ISO 9000 or anything you specify) and consequently issue a certification of compliance upon completion of the procedure.

There are four types of third-party quality audits auditors use for evaluations, and each one examines a different facet of the product.

Product Audit - A product audit refers to a detailed inspection of the finished product before it is delivered to the customer. The term “audit” is a bit deceptive in this case since it’s more like a quality inspection.  By doing this correctly you will ensure the product you pay for is what is delivered!

System Audit - The quality system audit is just as it sounds. It analyses the various components of the production system, including how it’s used, who uses it, when it’s used, where it’s used, and why it’s used. Auditors take a comprehensive look at how these puzzle piece fit and work together to produce the product.

Process Audit - While a system audit is typically broad in nature, the process audit goes a bit deeper. It intricately assesses the nuances of the system. A process audit verifies aspects of the production process, such as the machinery, people, and materials involved.

Compliance Audit - During a compliance audit, auditors scrutinize your specified work instructions, contracts, obligations, and procedures associated with the product, and then compare them to what’s actually being done during the production process.

Selecting the Right Auditor
A third-party audit can be extremely useful in helping foster growth and improvement within your supply chain. Selecting the right auditor or audit team isn’t as cut and dry as calling a big brand or asking your supplier to recommend one.

First and foremost, you need to decide if you want a global auditing partner with international experience or one that’s local. If you’re searching for an auditor in your region, find a provider that specializes in your area of business. An apparel auditor isn’t going to do you any good if your company purchases drill bits. It’s also important to review the auditor’s previous work and check their references to ensure their expertise and credibility. Regardless of the type of auditor or firm you choose, make sure they provide advice on creating an inspection process your organisation can use after the audit is complete.

Getting an Audit Edge
If your company needs assistance in locating a qualified auditor or firm, Mawson Global has local knowledge on inspection agents who can meet your organisation’s unique needs. We are experts in global commerce with more than 70 years of experience in the field. We understand the importance of providing the highest quality products possible, and we are committed to helping you achieve that goal.