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!

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.

Is Global Sourcing is Right for You? Questions to Ask Yourself

You’ve heard the stories.

There’s a company based in China that produces exactly the widgets you need, just the way you need them for about 35% of the cost you currently pay.

Surely, there must be a catch?

Well, sourcing globally does require a little extra due diligence. A few more skills must be learned and your supply chain must be tweaked to accommodate your new overseas suppliers. Sounds pretty reasonable.

But then, is it right for your business? Here are some questions to ask yourself before you make the decision.

What strategies can you use to maintain quality?

Your primary consideration should focus on the issue of quality. Countries such as China are notorious for building so-called “quality fade” into products. It’s a process whereby manufacturing materials are replaced with cheaper alternatives to reduce costs and improve profit. And that means improve their profit; not yours.

The secret weapon in the supply chain manager’s global sourcing arsenal is the third party auditor. You can hire an impartial inspector for a reasonable fee to ensure quality control overseas.

Action step: Whatever type of product you’re considering outsourcing, ensure it’s possible to put third-party and impartial quality control in place prior to making the move.

In what ways will global sourcing affect your business?

Alright so, you’re going to save money. But, there are other considerations here and proper research is necessary.

For example, let’s say the widget you want to purchase at 35% the domestic cost is only available in one overseas country. Let’s also say that the country is susceptible to natural disasters.

What alternatives do you have before you drop your current contract? If there are no backup plans to source this equipment, then an earthquake or typhoon could cause you major problems.

Action step: Plan out the changes to your supply chain, ensure you have contingencies in place. If you find there aren’t any, you may think twice about that 65% saving on a mission-critical component.

Do you need to be nimble, or first to market?

Typically, companies opt for seafreight when sourcing globally because it’s significantly cheaper than airfreight. However, typical shipping times are around four weeks.

Let’s say you work in a fast-paced business where the prototyping phase must be completed, production started and the finished items on the market as soon as possible. If that’s true, the distances associated with global sourcing may rule it out for your company.

Action step: Ask yourself if you need to be first to market. If you do, properly calculate airfreight times and charges to double check the feasibility of global sourcing using this more expensive logistics service.

Do you have the right people, expertise & support to implement it?

If you’re reading this, you probably already know that sourcing globally can save between 40% and 70% on domestic prices. Naturally, a few new strategies and a little extra planning is required to unlock all that equity.

So finally, before you take on a global sourcing strategy, take time to consider if you have the right people for the job. If not, can you afford to hire a full-time staff member or consultant? Or do you have time to learn about international business cultures, international logistics and the critical legislation such as importation tariffs?

The crucial thing is, before you jump on board, it’s necessary to you educate yourself. At least you must find the right people for the job. Then you know for sure that, no matter what happens, your supply chain is both agile and reliable.

If you want to know more about sourcing globally would like a QuickLook Analysis, call the Mawson Global team today.

5 tips for doing business in China

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! 

7 Tips to Keep in Mind When Global Sourcing Products

If you’re reading this article right now, it’s likely you’re aware that sourcing globally can offer enormous financial benefits to your supply chain.

But, as you’d expect, typical savings of between 40% and 70% don’t come with a snap of the fingers...

A few new processes must be considered, and a few new skills must be learned to ensure you stay on track and realise the full benefit of global sourcing.

Here are some top tips to keep you on track.

1. Quality and Quality fade

Studies show that at the front and centre of people’s concerns when looking into global sourcing surround the issue of quality.

And rightly so. The concept of “quality fade” is the deliberate and slow degradation of quality that happens when manufacturers replace materials with cheaper alternatives to reduce cost and increase profits. Fortunately, there’s a simple weapon for the discerning supply chain manager to tackle quality-orientated issues when sourcing globally. And that is the third party inspection.

An investment in a qualified, reputable third party auditor ensures that you get what you pay for and can pay serious dividends in the long term.

2. Costs and time associated with travel to suppliers

When calculating the savings from a global sourcing initiative, it’s easy to look at the cash difference between your old supplier and your new supplier and ignore the rest. However, it’s important to realistically assess how much money you’re saving by including expenses such as time and travel costs to suppliers.

It might make your balance sheet look more attractive without considering these, but fail to do so at your peril.

3. Language barriers

It’s often worth spending just a little time learning one or two basic phrases of your new supplier’s language. When building a relationship with a foreign business, taking just a little initiative to learn common greetings in their mother tongue can have an enormously powerful effect on rapport.

Also, it’s important for you to be ultra concise with your order, ensuring that every aspect of it is spelt out, leaving no room for ambiguity or misinterpretation.

4. Cultural differences

Embarrassing and relationship-damaging faux pas must be avoided at all costs in order to properly maximise the benefits of sourcing equipment or manufacturing globally. Take the time to learn the cultural differences in the nationality of your individual suppliers in addition to one or two nifty local phrases.

5. Tariffs and taxes on imported goods

Tariff in this context refers to international trade tariffs, or the taxes placed on imported goods. To avoid nasty surprises that eat into your savings later on, ensure you work with qualified customs brokers who will not only give you the heads-up about what (if any) costs you’ll incur, but also about any necessary licenses or permits you might need.

6. Transportation costs and geographic distances

When it comes to the logistics, know your numbers. It’s worth having a handle on geographical distances in addition to how much the different transportation costs are. Typically, it’s cheaper and slower to use sea freight, although air freight is an option if you need something faster and are willing to pay extra for a speedy delivery.

7. Do your sums before you commit to the shipment!

Ultimately, it boils down to properly doing your sums.

Don’t commit to anything until you’ve properly and realistically calculated any and all expenses associated with the additional distance for goods to travel through the supply chain now that you’ve taken it global.
Yes, there are big savings on the table. But it’s much better to be honest about how big those savings are. If you want to be sure, contact one of our specialists today and get a QuickLook Analysis.

How to Mitigate Risk in Your Global Supply Chain

Around the middle of last year, a study sponsored by international logistics group, UPS Capital Corporation, was conducted at the University of Tennessee’s Global Supply Chain Institute.

The key takeaway of the study was simple;  risk mitigation in global supply chain management is dangerously lacking in the vast majority of businesses.

A frightening 90% of the 150 surveyed firms didn’t formally quantify supply chain risk when sourcing and manufacturing equipment globally. And not a single one consulted a third party specialist prior to taking on global sourcing additions to their supply chain.

Considering that many executives are aware of the highly undesirable outcomes of supply chain problems, it was a pretty shocking set of results. Dr Paul Dittmann who headed up the investigation stated simply that:

“Any business that does not have some basic form of risk mitigation plans in place is simply gambling with its existence.” Yes, it’s that serious.

So how can you mitigate risk in your global supply chain? Here’s a how-to guide on thinking both strategically and tactically so you’re in good shape to avoid the worst happening to your business.

1. Minimise exposure to risk

First up, it’s important to minimise the amount of risk to which you’re exposed in the first place.

A good place to start here is to sit down and look at each individual component in your supply chain and give it a risk rating of 1 to 10. Next, consider what strategies or alternatives could be used that would potentially pose a lower risk rating.

For example, if you’re gather components from a country that’s known to be earthquake prone, consider if there are other countries with similar deals on the table that are not susceptible to natural disasters.

It’s easy to become comfortable with the way your supply chain is set up. But when something goes wrong, you’ll wish you’d taken the time to minimise your exposure to risk.

2. Prepare for what-if scenarios

Another great exercise is to prepare for the “what if” scenarios.

Begin by listing all of the worst-case scenarios of things that could go wrong in your current supply chain setup. What would you do if one of those scenarios happened first thing Monday morning?

Set up at least two separate contingency plans, making the necessary phone calls and doing the necessary research for each one to ensure that it’s implementable should the worst happen.

Taking the time to prepare these scenarios upfront can save you a fortune and perhaps even your business should the manure hit the fan at the 11th hour. It’s often as simple as making sure you have more than one supplier for your most important items.

3. Re-examine global approach frequently

Sourcing globally can save huge amounts of money, often in the region of 40% to 70%. But it can bring further considerations for risk, and increased exposure to the macroeconomic climate is one of them.

Schedule a time in your calendar once every month, three months or six months (whichever you deem appropriate) to assess your supply chain. Check for legislation changes, new political parties coming into power or other potential or economic shifts that could affect your global approach.

By keeping on top of things, not only will you spot problems before they arise, but you’ll operate your business with peace of mind knowing that you’re on top of your supply chain.

4. Consider how one change affects all areas

If you followed the above steps, you’ll have a series of potential problematic scenarios that can affect your global supply chain. Take a bird’s eye view on these and consider how each event’s knock-on effect may hinder other parts of the chain.

Thinking in terms of the big picture is a cornerstone of good supply chain management. But, with global considerations, it’s especially important to cultivate this kind of top-down perspective.

5. Use rigorous quality standards for new suppliers

Finally, and perhaps not surprisingly, comes the idea of applying rigorous quality standards to new suppliers. Don’t make the mistake of jumping on board with someone too soon because they have attractively low prices. It’s an age-old mistake, even if it remains tempting.

A small investment in quality control conducted by an independent third-party inspector can save enormous amounts of money later on. Stay on top of your quality control.

Want to speak to a professional about supply chain risk mitigation? Contact one of our specialists today for a quick conversation with a qualified global sourcing specialist who takes financial savings just as seriously as quality control.

Importing: The Productivity Booster

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.

Co-Founder of Mawson Global Gives Over $400,000 in Business Referrals

 John Evans of Mawson Global Receives Title of BNI Networker of the Year 2014

Adelaide, Australia: John Evans, co-founder of Mawson Global, was recently named BNI Networker of the Year 2014. This exciting announcement from Business Network International makes John an integral part of business relations and is a prestigious title showing his work to genuinely make a difference in the businesses with which he meets. 

Given the nature of global sourcing, providing that kind of value is certainly possible. Because most global deals are with CEOs and CFOs, networking ensures we keep in contact with the decision-makers and allowed John to help them in more ways than purely through Mawson Global services.

Don’t underestimate the power of networking. Because when there’s real value to offer, a little time spent networking can produce serious results. Just ask John.

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.

Mawson Global Boosts team in Sydney

Michael Corigliano Joins the Mawson Global Team

Adelaide, Australia: Mawson Global is pleased to announce the addition Michael Corigliano and growth to Sydney. Corigliano will manage the NSW based clients and is currently working to establish relationships with key businesses in the area.

Corigliano has an applied finance education and used this extensively in his career.  Most recently Michael spent 8 years with the ANZ Bank as a relationship manager for commercial and property clients.  His excellent understanding of cash flow and finance are a huge asset especially to those clients who may be moving into international trade for the first time.
 
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.

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