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.
