How to Reap Global Sourcing Benefits for Construction Companies

Issuing a tender can be a pretty tense process. Often, that’s stating it mildly...

You and your team sit down, painstakingly put together cost projections for materials, man-hours and the construction technicalities at hand. You arrive at the best price possible and you submit it to the client.

But, what happens meanwhile? Your competitors are doing the same. How much is their bid? Have they struck a great deal with a global supplier to source products significantly cheaper than you? Only time will tell. And usually a lot of nail biting, too.

In many ways, the construction industry is unique when it comes to budget considerations.

Sure, budget is paramount for any business. But, when you’re issuing a tender, getting your budget the right means the difference between having work to do and having nothing to work on at all.

Naturally then, the continuing trend in global sourcing is of particular interest to construction companies. Here’s how to get it right.

Stay on top of your schedule

When it comes to the different stages of a project, each can potentially be held up waiting for inexpensive and often very basic components that get stuck somewhere in the supply chain.

If you’re sourcing from somewhere in Asia, for example, it’s important to be especially diligent about the supply chain schedule. A 55% saving off the domestic price is an attractive reason to source any given widget globally.

But if they get held up and slow down the next stage of funding, your savings are nullified and major cash flow issues arise.

Seafreight is the most common form of shipping used in global sourcing and takes on average around 4 weeks. Airfreight can reduce that down to a few days, but is more expensive.

It’s worth making contact with an airfreight company to have a standby logistics account registered. Likewise, having backup component suppliers for emergencies is especially important when taking your supply chain global.

With these contingencies in place, you can reap the massive savings and ensure you’ve got your bases covered.

Quality assurance measures

Quality is a major concern for any business looking to outsource globally for the first time, and construction especially so. The idea of poor quality components jeopardising the safety of a project is beyond unacceptable.

Different regions and markets have different ideas of what constitutes “satisfactory quality” or “fit for purpose”. For that reason, paying a reasonable fee to an impartial third party inspector with a predetermined set of factors for what you consider acceptable quality is the ideal way to keep your project on track.

If everything’s checked by a reputable auditor, you get the peace of mind you need to focus on the project.

Be aware of cultural barriers

Finally, comes the inevitable cultural barriers.

It’s often quite incredible how different perspectives can be overseas. For that reason, being crystal clear and unambiguous in the language you use with your orders is tantamount for a successful project.

Classic examples which anyone who has travelled internationally will appreciate include:

• “Neutral” colour schemes are not the same in all countries
• "Normal" toilets and bathroom fittings are very different
• “Environmentally aware” buildings and building materials mean very different things in different countries

In addition to committing to a policy of crystal clear communications, it’s worth doing a little research, too. Head to Google and search for info dealing with different cultures in a business context such as this article on the Chinese holidays.

If you’d rather speak to someone in person, call one of our specialist outsourcers with a strong track record of saving money, and even stronger relationships built while sourcing globally for construction companies.

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!

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 Importing can Increase Productivity

Productivity.  It’s essential to success. It can be elusive. And it’s the driving force behind businesses -- literally. Without it, the world would crumble and nothing would ever get done. Without it your company wouldn’t exist.

Productivity is vital to all businesses, but it’s especially important to those in global commerce. To be successful, manufacturers need to bring products to market quickly, ensure on-time delivery, provide outstanding customer service, and maintain their market share. A high level of productivity is required to accomplish all these initiatives.  

There are a lot of methods for increasing manufacturing productivity – from restructuring the workforce to reworking procedures. However, one of the best ways to up the output is by importing manufacturing machinery.

Importing machinery can make a plant more efficient at a fraction of the cost of local machine brokers. It can also be accomplished a lot faster than other methods and with minimal disruption, especially when importing fully complete sub-assemblies.

By looking to equipment suppliers in other areas of the world, manufacturers can often find a larger selection of machines, lower prices, and better customer services. However, locating qualified international suppliers can be a challenge, especially for those with limited resources to devote to the search. These limitations don’t have to prevent you from importing your equipment, though.

Mawson Global, a leader in global sourcing, has a proven method for helping manufacturers import machinery and components. Need a supplier of sanding equipment or corrugated cardboard box maker? Mawson Global can perform a comprehensive search and provide you with supplier recommendations that meet a company’s exact requirements.

With Mawson Global, the risks commonly associated with global sourcing are minimal because we have teams located around the globe. This “boots on the ground” approach means we’re familiar with the international standards, language, and culture of each of the countries we source from.

If your manufacturing company is searching for a way to boost its productivity without having to decrease it first, Mawson Global can help. Let us handle the search for your machinery supplier. With our assistance, your business can not only improve its output, but also slash costs and increase its profit.

Understanding Asian Management Styles

The West looks to Asia for many things.

Whether it’s globally sourced products or manufacturing, forward-thinking economics, or an incredible history of culture, there’s a lot we can learn from many Asian countries.

And management styles is another item on that list.

With such a different historical background to most Western countries, the perspectives that found their way into the workplace are very different from those you’re probably used to.

And understanding these perspectives better can provide you inspiration on how to more effectively manage your own business.

But perhaps more importantly, it gives you insight into the workings of your Asian business partners, resulting in better interactions and stronger, more profitable relationships.

Let’s look at some key characteristics of Asian management styles and how they can help you understand this part of the world more accurately.

Political connections

The relationship between business and politics is stronger than ever, but in many Asian countries, that link is even more pronounced. In countries like America, deep political connections are a potential roadmap to success. Though capitalising on those connections is much less common in the West than in much of Asia.

In many Asian countries conducting business with politicians is standard practice. For example in China, dinners are regularly enjoyed with businesses owners and high-ranking local government officials to build credibility inside relevant social business circles.

Key takeaway: In many Asian countries, and as we’ll see more of soon, questioning authority is seen as a bad thing. This is especially true with the political establishment. It’s not like the West where an amusing quip about a recently-passed government policy will raise a smile, so the subject is typically best left avoided.

Asian paternalistic style

In the “Asian paternalistic” style of management, business decisions take into consideration the needs of all employees, often to a greater extent than the individual managers. In short, people are put first.

While orders are delivered in a top-down manner, questioning of senior decisions is rare due to an unspoken respect for superiors or management. Staff turnover is low and loyalty is ubiquitously encouraged as a cultural norm.

Key takeaway: Consequently, if you work in a sector of business that involves decisions that have a direct impact on a company’s employees at large, it’s important to frame your sales pitch and conversations in a way that observes the Asian paternalistic style of management. Failing to do so could make you look bad.

Confucian philosophy

There’s a lot of focus in the West these days about equality in the workplace. Back in 2013, we started to see the “bossless office trend” appear in everything from New York magazine to the Harvard Business Review.

The pin-up example is Semco, a conglomerate that’s distributed decision-making since the 1980s and has witnessed 20% annual growth rates for over three decades now. Sounds great, but ideas like that simply don’t fly in much of Asia.

Confusion philosophy is the polar opposite of the above ideology, whereby relationships must have a non-linear structure. A “bossless office” is considered a bizarre notion of the West and, in some cases, that’s putting it politely.

Some research suggests that many people in Asia go as far to say that a lack of acceptance for the inevitably hierarchical order of things is a root cause of many “Western problems” such as the degeneration of morals and the idea that the individual is more important than the collective.

In China, questioning authority can result in “losing face”. It’s a bad thing to have happen to you in a business context and, if you’re trying to source products globally, it’s your savings that are on the line.

Key takeaway: Making the extra effort to show respect for seniority is important. It’s a no-brainer that senior members of staff with whom you attempt to conduct business should be treated with a certain decorum. But you should know in advance that most Asian countries take this particularly seriously.

Want to speak to an expert with an established presence in Asia? Call Mawson Global today and speak to a specialist who knows how to walk the cultural tightropes.

What to Expect During Supplier Visits and How Mawson Global Can Help

When you’re contemplating visiting your suppliers, it’s helpful to remember some advice from “Sesame Street:” “Asking questions is a good way of finding things out.”

At Mawson Global, we have the expertise and the skills to make supplier visits successful -- and educational. Whether you need a guide on-site or someone to visit potential suppliers on your behalf, we can help.

If the supplier is new to your organization, one of your primary goals should be to validate claims that they make in sales presentations and proposals. If the supplier is one that you already use, it’s helpful to conduct an annual renewal evaluation or a periodic cost negotiation.

Here are some tips on how Mawson Global can help you get the most out of a supplier visit:

• Visit the receiving dock. On the dock, we can help you find the names of suppliers and the quantities of raw materials on hand. We will help you compare the information that you have received from cost-analysis negotiations to what we can observe on-site.  Here is a great place to see if the product you are buying is really made in the factory or just shipped in from the real producer!
   
• Visit the shipping dock. Here we can see the condition of finished goods, observe the quality inspection process and learn how shipments are handled.  Making sure the quality inspectors (preferably third party) understand what you are looking for is one of the most important issues to solve on a supplier visit.
   
• Talk to the sales staff. We ask how orders are received, entered, and queued for production or fulfillment, and whether electronic notifications to the customer are available at every step.
   
• Talk to line employees. We’ll check on company morale and organization, and ask specific employees specific questions. For example, it’s helpful to ask machine operators about their productivity per hour so you can verify any commitments the sales team has made to order delivery dates.
   
• Talk to management. We’ll ask about such things as communication structures, employee turnover, and how long management has been in place. If relevant, we’ll help you peruse the company’s financial statements and business plan.  Here you are trying to get a feel for how committed the whole company (not just the sales department) are to your project.

Mawson Global Presents at the Mildura Asia Business Council

William Jackson with Mawson Global is Keynote Speaker at Mildura Business Council

Adelaide, Australia: William Jackson with Mawson Global was the headline speaker at the first networking event by the Mildura Asia Business Council. The speakers at this event highlighted important insights into doing business with Asia to the 40 attendees.

Jackson’s speech was aimed towards businesses looking to create lasting relationships with Asia specifically those businesses looking for manufacturers in China and businesses seeking markets to sell to in China. He highlighted the incredible opportunities that exist for Australian businesses to cut costs and ensure quality when pursuing manufacturing and business overseas.

Other speakers at the event included:

-        Mayor Glen Milne, who discussed Mildura’s links with Asia through trade and education as well as the importance of forging strong relationships with business partners in Asia

-       Richmond Yeung, senior economist with ANZ, gave insights into the opportunity presented by the growing middle class in Asia

-       Chris Crewther, Mildura Development Corporation chief executive shared the expectations of the future of the event to help establish a business relationship with Asia.

About Mawson Global: Mawson Global is a leader in global sourcing and a visionary in international manufacturing. With more than 70 continuous years of international experience, the team at Mawson Global has the expertise necessary to help your company maximize its global commerce potential. Our mission is to make international growth simple and attainable for all companies, regardless of size, by utilising our global experience to reduce risk and increase profit.

2015 Forecast for Global Sourcing

The sheer quantity of savings available through global sourcing has made the supply chain strategy increasingly popular over the past few years.

With big improvements in global communications and data analytics, and with the previously slow recovery from the 2008 financial crisis finally picking up momentum, 2014 witnessed businesses shift from fiercely protecting budgets to carefully investing in relationships with a view to break open new markets.

With 2015 now upon us, economic indicators across the board continue to improve. And yes, that means there’s every good reason to stay ahead of the curve by knowing the global sourcing trends you can expect to see in 2015.

Increased adoption of global sourcing

Although many large businesses (such as key players in the semiconductor industry) have taken advantage of global sourcing and manufacturing for many years now, small to medium enterprises (SME’s) have only caught on more recently.

It’s still a relatively new phenomenon and, as awareness of the considerable savings on offer continues to spread, we can expect to see more businesses take advantage in 2015.

Last year, and as predicted, SME’s began partnering with qualified, experienced global sourcing specialists and used the savings on offer to leverage growth. This year, and with the global economic situation improving, we can expect more of the same.

Greater competition in overseas markets

In developing countries, global sourcing is largely seen as a business opportunity for the West, but naturally the domestic markets benefit, too. This year we can expect to see countries with strong manufacturing backgrounds (such as Japan) set up in South-East Asian countries to tailor to the needs of the West.

Consequently, there will be greater competition in global sourcing locations such as South America and the ASEAN. China is increasingly seeing global sourcing as an investment opportunity and will continue to establish facilities both at home and in other countries with low labour costs such as Africa.

Increased nearshoring

As the US economic recovery continues and fracking legislation promises the country a much needed cash injection, it’s likely we’ll see many US businesses adopting nearshoring strategies to outsource manufacturing operations to countries such as South America.

With increasing amounts of manufacturing done overseas in developing countries, greater global sourcing opportunities could arise.

Big data tools increased transparency and cost tracking

We’re increasingly move into the world of “big data” with ever more readily available cloud computing services capable of serious number crunching. When combined with the inevitable adoption of the so-called “Internet of Everything”, global sourcing will become increasingly easier to manage for suppliers, buyers and logistics companies alike.

With more accurate tracking capabilities, realising the financial benefits from value chains will become easier, making it simpler to justify the move to global sourcing, further exacerbating its increase in popularity.

A maturing sector

All of the above trends culminate in what could be described as a maturing of an industry. Many factors come together to make global sourcing not only more accessible, but more efficient and potentially with even with bigger savings on the table.

If you’d like to learn more about how to stay ahead of your competition by freeing up cash flow  through sourcing globally, contact Mawson Global for a QuickLook Analysis today.

Benefits of Global Sourcing for Small Businesses

Global Sourcing: An opportunity that delivers more than just reduced costs

Small manufacturing businesses often face challenges that lead to conflicting priorities. While at one hand there is a need to significantly lower operational costs, there is also an increasing pressure to deliver high quality products to achieve strategic advantage in the marketplace. The cost of raw materials continue to increase while companies are forced to sell the products at a low price due to growing global competition, causing the profit margins to remain all-time low. In these challenging scenarios, small and emerging businesses struggle to keep up and just stay in the game whereas their energy should be channelized to launch new strategic initiatives to be able to grow and evolve.

Global sourcing provides promising opportunities to small businesses by reducing costs, improving bottom lines while helping them achieve competitive edge through improved agility to deliver quality products faster. At Mawson Global, we understand that while achieving lower costs of operations is unarguably the most important driver to adopt global sourcing, the realized operational and strategic benefits go much beyond.  

1. Reduced operational overheads through low cost of labour and low costs of raw materials available through global sourcing
2. With supplier base not restricted to the domestic market, global sourcing offers companies the additional choices and opportunities to transact with more competitive suppliers on a world-wide level.
3. Access to new technology platforms, innovative product designs and distinctive skills not available locally. It offers an increased opportunity to innovate and improved ability to deliver superior goods, helping companies achieve high performance throughout the supply chain.
4. Small companies benefit from enhanced competitive edge through increased capacity to innovate, faster time to market and greater flexibility to respond to changing consumer demands.
5. Leverage follow-the-sun model for enhanced productivity and faster turnarounds
6. Ability to focus on strategic imperatives and core-processes, redirection of cost savings on innovation strategies.
7. Achieve much higher utilization and scalability of resources with quick ramp up/down time to meet project requirements as and when needed.

Mawson Global can help small and emerging enterprises to find a reliable, cost-effective overseas supplier. Our global sourcing services aim to drive efficiency and help small businesses to gain access to new markets. Our global sourcing initiatives are much more than the promise of reduced costs from less expensive labor. If you are small business looking to benefit from global sourcing, we can help you locate suppliers with specialized skills, low cost labor and raw materials, enabling you to focus towards creating strategic initiatives, build roadmaps to innovate better and reach new market opportunities faster.

We’re able to minimize the risks associated with global sourcing specifically because we have teams placed in the countries where the suppliers are located. In a nutshell, Mawson Global works as your extended team towards a common goal of achieving enhanced operational efficiency and deliver very tangible benefits for bottom-line impact across your supply chain. Whatever product you need, there is a reliable, more cost-effective overseas supplier out there, and we’ll find it for you.

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.