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.

Mawson Global Client Finds Big Cost Savings with Global Sourcing

Organization: Food manufacturer

Looking to Source: Printed rewind

Results:

* Annual cost savings of more than $32,000.

* Rapid procurement of multiple sourcing options.

* Variety of pricing options from a select group of qualified suppliers.

The Objective

This client is a nationally-recognized processor, wholesaler and distributor of nuts, dried fruit, confectionary and snack products since 1996. In an effort to uncover cost savings on a specific product, the company contacted Mawson Global in hopes of identifying a reliable global sourcing partner to save on the cost of the material for printed rewind.

The Approach

Due to Mawson Global’s impressive track record in sourcing materials, the client engaged us to identify reliable global sources for printed rewind.

Our China-based staff researched a variety of suppliers – taking into account the client’s product specifications – and we were able to recommend reliable suppliers producing the material in multiple 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 three different supplier options from different suppliers in China in our informative, easy-to-read Sourcing Report.

The Benefits

Annual Cost Savings

Substantial Savings: Because of  Mawson Global’s global sourcing expertise, the client selected a vendor that will help it experience an annual cost savings of more than $32,000 each year.

Outstanding ROI: Our fee-for-service model means the client pays for our service once, but experiences long-term benefits.

Flexible Alternatives

Future potential: After going through the sourcing process, the client now has the ability to quote more products and experience additional cost savings for years to come.

Comprehensive approach: Mawson Global not only conducted its QuickLook Analysis, but also applied its Research Project capability for the client.

High Efficiency: Mawson Global sourcing experts conducted a timely and robust search for suppliers that provided the required materials at a significant cost savings.

Skilled, professional staff: Our team members in Asia have been with Mawson Global an average of six years, and they have simplified the process of selecting trustworthy, reliable suppliers that meet our high standards for quality and customer service. This team, along with our proven supplier ratings system, is a key reason we’re able to quickly address our client’s request for global sourcing options for its printed rewind.

Welcome 2015

Happy Holidays and thank you for helping this be such a successful year. In 2014 our clients have seen savings of over $23 million and many have transformed their business. Without you, this would not have been possible!

Many of our clients find that the next few weeks is a really good time to review the long term goals in their business. The day to day operational issues are little quieter through January and they can focus on big changes for 2015.  So if you are thinking of making global competitiveness a goal this year please get in touch, we would love to help.

Given it is a gift giving time we have shared an article on giving business gifts in Asia. Please take look, we would love to hear your thoughts. 

Thank you for your support and belief in us to continue helping businesses reach their goals.

Don’t forget, if you haven’t yet contacted us to find out how global sourcing can transform your business, our QuickLook Analysis of your product is free.

Thank you very much, 

The Mawson Global Team

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.

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 10-product challenge. 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!

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.

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.

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!

Can you take the risk out of moving exchange rates?

The short answer is yes... at a cost!

If you are considering importing because of a few cents variation in the exchange rate make sure you have considered the full effect on your business model.  

Many people consider the most obvious risk.

You took advantage of a favourable exchange rate and bought a container of product at a great price in Asia.  However in the time between placing the order and making your payment to the supplier the exchange rate has moved again. Now when the product arrives at your warehouse it has cost you as much as product from your regular supplier.  And to make matters worse, the quality of the product you bought is sub standard!

There are finance tools you can use to avoid some of these problems but make sure you consider the other risks of buying because of exchange rate variation!

 The most common problem comes from the disruption it causes in your supply chain.  If you are not building a business based on the consistent quality of your products this may not be an issue for you.  However if quality is important switching between suppliers in various countries at short notice to gain a few dollars is usually not worth it.  You will create serious risks to your product quality.

There are two main reasons for this

1.       When a supplier knows you have only placed an order today because of a small change in the exchange rate and tomorrow you will be buying elsewhere their incentive to get the quality perfect is low.  Everyone wants to build long term business not fill a single order!

2.       The other risk is that as you see a variation in the exchange rate that makes a certain county cheaper you are under immediate time pressure to place and pay for an order before the currency moves again.  This does not give you the time you need to properly research your supply options.  Without this research the risk of choosing a poor quality or unprofessional supplier is much greater.

We would recommend only moving sourcing or production offshore if your research shows a significant advantage regardless of a 10 cent negative move in the exchange rate.

The best way to avoid this risk is to do your research before you consider the exchange rate.  Then once you have identified the suppliers you want to work with and there is a positive move in the exchange rate you can increase your orders to this supplier.  Many of our clients at Mawson Global use our own teams in Asia to complete this research for them so they can be confident the change of suppliers won’t negatively affect their business.

Once you have identified the suppliers that have this advantage you can look at the options to “fix” the exchange rate.  Your bank or financial institution will have tools available which allow you for a small cost to buy the currency you need to pay for your order at today’s exchange rate.  This is a great option if you are spending large amounts over a long period as you can get the items into your budget and know exactly how much you need to pay for them in several months time.

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Mawson Global’s QuickLook Analysis Provides Cost-Savings Proof

Every client we ever talk to shares a common characteristic – they want to improve profit. Yet the path to successfully achieving this isn’t always clear-cut or easy to follow. There are many ways a company can grow its business and bottom line, and one of the best is by reducing costs through global sourcing.

Mawson Global helps companies achieve this objective by offering global sourcing solutions that dramatically reduce their costs and improve their bottom line. Our mission is to reduce your risk by providing comprehensive assistance, valuable expertise, and effective solutions to your most challenging global sourcing needs. In 2012 we saved our clients more than $19 million.  

It’s easy to make claims of savings grandeur, but we back ours up with a complimentary quick look analysis.

This snapshot shows you exactly how much you can save by partnering with us to source a particular product. Each quick look analysis provides vital stats on the product you’re considering sourcing, including:

• How much the product will cost landed at your location including the current cost per unit, FOB cost, and estimated landed cost.
• How much you could save shown as total annual savings, three-year savings projection, savings per unit, and potential profit percentage.
• Approximate annual volume.
• Basic product specifications.
• A product image.

The QuickLook analysis is completely free, and you’re under no obligation to partner with us… although, most companies do when they see how much they can save!

All you need to do to start this process is take our Money Savings Challenge online at www.MawsonGlobal.com/Ten-Product-Challenge

Reliable and affordable global sourcing solutions are within reach -- find out how much you can save by requesting your quick look analysis from Mawson Global today. If you require further information from Mawson Global, please contact us at +61 8 7123 2601 or online at mawsonglobal.com/contact.