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!

Metal Product Manufacturing & Mawson Global: The Perfect Alloy

Fabricated metal product manufacturing is a major global industry. The industry generates approximately $2 trillion in annual revenue and whether you’re a major consumer products manufacturer or a smaller regional player meeting niche demand, fabricated metal product manufacturing is an industry that depends on efficient operations to hit profitability targets. Global sourcing metals can offer significant benefits to manufacturers working to lower costs and raise profits in this highly competitive industry.

Reducing raw materials expenses: Companies producing products from metal materials operate in a highly competitive environment. An experienced sourcing partner, like Mawson Global, with relationships in China and other metals-producing countries can help you identify the best partners, negotiate hard for excellent prices and let your team focus on its core competencies.
 

Building strong sourcing partnerships on the ground: Doing business in China requires strong sourcing relationships on the ground. Trusted relationships, combined with a deep understanding of local business culture and traditions, makes it easier for a company to close important deals. An established sourcing partner with these relationships in place can effectively represent your company and save significant costs related to opening an office, making local hires, and paying for frequent executive travel to the region. Relationships also make it easier to resolve problems when they arise, trouble shoot disputes, and manage process improvements that can shorten customs delays and other logistical challenges.

Streamlining the value chain: Metals manufacturers rely on tight value chain management to keep production moving and costs down. Value chain management is a complex and expensive undertaking in its own right. By choosing an expert sourcing partner with strong knowledge of sourcing raw ore and established regional relationships, it’s possible to run a lean value chain management team. It also helps direct their focus to activities higher on the value chain that can further optimize a company’s profits. Streamlining the value chain is important for large companies with well-mapped processes, as well as smaller companies relying on simpler systems.

If you’re a metals manufacturer that’s ready to improve your sourcing operations in Asia, contact Mawson Global. Our proven two-step process can identify ways to streamline your operations and improve your profitability.

Mawson Global FAQ: How Will Global Sourcing Affect Your Business?

The idea of having your equipment purchased and shipped from the other side of the planet raises a lot of questions for a business owner.

There are concerns over quality control, cash flow, supply chain complications and international legislation. Naturally, we’re asked these questions a lot here at Mawson Global.

Here’s a quick overview of the most commonly asked questions about global sourcing and what it means for your business.

1.   Is it worth me investing in global sourcing?

Naturally, the size of your company and your level of turnover are key considerations when determining whether or not it’s worth you investing in global sourcing in the first place.

As a general rule of thumb, the savings on offer by dealing globally and direct with suppliers is between 40% and 70%. Provided the savings available to your particular orders outweigh the one-off fee paid to Mawson Global to source the products, it’s worth coming on board.

This is why we have our QuickLook Analysis. So we can uncover the potential savings, determine if it’s worthwhile for you, and without obligation to sign up for the long term. The process is typically completed inside 10 days.

2.   How will it affect my cash flow?

Typical purchases made when sourcing hardware globally involve a deposit down when you place your order, with the remaining balance to be covered upon shipping. Most banks offer trade finance products so you can facilitate the process without it impeding your business’ cash flow.

The benefits on offer considerably outweigh temporary inconveniences for cash flow and the fees associated with these bank services are typically very affordable.

3.   How can I guarantee satisfactory quality control?

When sourcing your equipment globally, it’s possible to predetermine a series of tests to be conducted by a third party inspector to ensure the equipment you’re purchasing is up to whatever standards you deem necessary or appropriate for your business.  Failing to use a trusted third party quality auditor is the most fundamental mistake most importers make.

That said, because you’re purchasing equipment directly from the factory, it comes off the production lines and goes immediately into quality control. Should problems arise, it’s much quicker to deal directly with the factory rather than a third party supplier or wholesaler.

Without this middleman, there are less stages where mishandling can happen and communication to fix problems is more streamlined.

4.   What about tariffs and timeframes?

If you’re in the West, sourcing equipment from countries such as China, Southeast Asia and India naturally takes a little longer than if you were sourcing from home. As a rule of thumb, and in addition to the production time for the equipment, you should allow four weeks for the delivery of globally sourced equipment to arrive via sea freight.

Air freight is an option and, although more expensive than sea freight, can shave the shipping time down to just a few days.

Mawson Global advises of any licences or permits necessary to ship your purchases. We also consult with registered and qualified customs brokers to ensure you know the importation tax tariffs upfront to avoid nasty surprises later down the line.

Have any other questions?

Do you have questions left unanswered? Contact one of our knowledgeable staff today to get a comprehensive answer to any other global sourcing question.

Global Sourcing: A Vital Tool for Machinery & Industrial Supply Companies

The machine and industrial supply sector is often a competitive environment.

You know the great feeling of securing a valuable, long-term contract with an established company. But ensuring you have the kind of supply chain in place to offer competitive rates, with the proper quality assurance, and in the right timeframes is a genuine challenge.

Naturally then, global sourcing has become increasingly popular for industrial supplies and machinery.

With savings of 40% to 70% on the table, medium, large, and even some small businesses adopt this strategy to shave costs. It means offering more competitive quotes to secure those all-important contracts.

Naturally, such savings require a little diligence to be fully recognised. Let’s take a look at some key considerations for sourcing globally in the industrial supply and machinery sectors.

Schedule considerations

First and foremost, and as we often highlight here on the Mawson Global blog, sourcing products globally takes a little longer than purchasing from a supplier that’s just down the road.

Sea freight is the most common method and takes around four weeks for delivery. Airfreight is an option and spending the extra cash can shave that time down to just few days.

With the machinery and industrial supply sector specifically, it’s important to recognise that many of the largest contracts are often seasonal in nature.

Sourcing from many foreign countries such as China or India means working with cultures that don’t recognise Judeo Christian holidays such as Christmas.

Whichever country you decide to source from, ensure you stay up to date with the holiday calendars to avoid delays during important seasonal contracts. Check out our guide to Chinese holidays here. 

Quality considerations

At the forefront of most people’s minds when sourcing globally for the first time are considerations of quality. Another point that’s particularly relevant in the industrial supply and machine industries is the idea of safety regulations.

Safety regulations are different in different countries. So one piece of equipment ordered from China may not be built to the same safety specification as one you ordered in Australia where local standards are observed.

Consequently, it’s important to be crystal clear about what you want from your overseas supplier, taking into account not only the difference in safety legislation, but also the language barrier. Be super concise with your language.

A good rule of thumb is to never assume anything and to always spell everything out.

Cultural barriers

Finally comes the inevitable cultural barriers. Business is increasingly global these days and learning how to effectively interact with different cultures is an invaluable skill for the discerning supply chain manager.

But there are practical differences in the way business is conducted, too. For example, in Asia and many other countries from which you might source globally, labour is typically very cheap. Consequently, production lines are often built to accommodate more manpower and less automation.

This must be taken into consideration when ordering machinery. Conversely, if setting up your own operation overseas, you may find it cheaper to employ more locals. Expectations will differ on both sides of the proverbial fence, so again, don’t assume anything.

Next comes the normal issue of etiquette. It’s often surprising how different cultures can be and how easy it is to find yourself leading an awkward silence by failing to recognise a social faux pas.

If you want to save yourself that kind of embarrassment and work with people who can help you build the kind of strong and profitable relationships you want overseas, call one of the Mawson Global team today for a QuickLook Analysis.

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.

A New Kind of Growth: Global Sourcing for Agricultural Companies

As every farmer knows, the job is not without its difficulties.

Yes, agriculture can be lucrative. And the feeling of a good season is tough to beat, too. But even when that happens, it can bring some pretty sizeable expenditures with it.

Harvesters and other farming equipment cost tens or even hundreds of thousand of dollars. How can you shave these costs down?

Well, one way is to take part in a growing agricultural trend and source your harvesting equipment from cheaper parts of the world such as China, India and South America.

Savings of around 40%-70% are on the table. But there are a few things worth knowing to ensure global sourcing success for agriculture.

Schedule considerations

Naturally, the ebb and flow of summers and winters put significant schedule considerations on any farming operation. So when you’re adding a global supplier to your regulars list, overseas logistics must be weighed in to your timing.

Many companies from all kinds of sectors import various types equipment and products globally. But agricultural equipment constitutes some of the larger and more complicated products in freight over the world’s oceans.

While sea freight typically takes around four weeks, it can sometimes take longer for harvesters and other oversized agricultural equipment.

Naturally, you can discuss delivery times with your suppliers. But don’t leave your enquiries too late in the season. Otherwise by the time you make the phone call, you’ll have already missed the boat.

Quality Assurance considerations

Similarly, quality assurance is especially important to farmers. Having a piece of mission-critical equipment or a vehicle break down at a crucial point in the harvest cycle can cost a small fortune.

Many industries employ third-party auditors to assess products prior to shipping. Due to the complex and specialised nature of agricultural vehicles and equipment, it’s best to employ a specialist third-party inspector who knows exactly what to look for.

Similarly, safety regulations are different overseas than back home. Naturally, it’s important your country’s safety regulations are adhered to. A third party inspector will also ensure these specifications are met so you can legally use your equipment once it arrives.

Cultural differences

Farmland and the machinery used to work it varies greatly in different parts of the world. A good example is that China has much smaller farms areas, so the domestic tractor in China is considerably smaller than you might expect to find ploughing fields in Australia.

Consequently, the way different cultures think about equipment is different to the way you might be accustomed to. That, plus the language barrier, means that a policy of crystal clear communications must be adhered to if you’re to ensure you get exactly the product you’re looking for. Language must be unambiguous, and it’s best to spell every detail out clearly just to be sure. Never assume anything is obvious.

If you’re interested in the 40% to 70% average savings of sourcing agricultural equipment from overseas but want to make sure you get the ordering process right, contact the Mawson Global team for a QuickLook Analysis today.

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. 

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!

Choosing a Customs Broker – What You Don’t Know Could Hurt You

Customs Brokers – What do they actually do?

The work of a customs broker can seem rather mysterious because when managed properly, the customs clearance process should be seamless and invisible to you.  In an ideal situation, customs clearance of your imported or exported goods should “just happen.”

The truth is, the cross-border clearance of goods that change hands from one party to another can be a complex undertaking that is fraught with potential risk, extended delays and excessive taxes or other unexpected costs.  

Customs brokers are responsible for managing the end-to-end process that starts with identifying goods that need to be shipped from one location and finishes with the successful delivery of those goods to a final destination.  Brokers handle the paperwork, taxes, shipping details and customs compliance requirements at every step in the process.

The Good, the Bad and the Ugly

You have endless choices available to you when it comes to selecting a customs broker. There are large variances among brokers in terms of cost, technical knowledge and overall competence.  Some brokers provide specialty expertise for certain industries or in transporting goods among specific countries.  Certain brokers have tightly managed internal controls and well established processes and procedures; others do not.

Perhaps crucially, some customs brokers actively seek to minimise customs clearance lead times but at the potential expense of full compliance.  Other brokers lack formal representation in the relevant locations and so rely on informal “arrangements” to get the job done. 

In the eyes of the authorities, you are responsible for the decisions made by the broker on your behalf, so it is essential that you can trust the customs broker you choose and that you share common objectives.

Customs Broker Checklist

When interviewing prospective customs brokers to facilitate your importing or exporting activities, be sure to cover the following points:

• Ask the broker what roadblocks are likely to be encountered with your particular customs clearance needs
• Ask how they handled a tricky situation in the past and what creative solutions they were able to implement.  For example, what steps do they take when a shipment is stuck at a border entry point behind a backlog of other shipments due to an extreme weather delay?
• Ensure they have 24/7 shipment tracking facility, not just online but on the phone with a real person
• Confirm that they will provide upfront and in writing a complete itemisation of the tariffs that you will be responsible for paying – in other words, total landed cost
• Ask for at least two references that you can personally ring to obtain a first-hand account of how the broker performed for other clients, ideally from your industry.  Then ring those clients.

The team at Mawson Global work with a variety of reputable, proven customs brokers every day and are here to help you with your broker selection process.  Please contact us if we can answer any questions for you.

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 QuickLook Analysis. 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!