2016: The Year of the Monkey and What it Means

For much of the world, January 1 heralded the beginning of yet another New Year. In an era where global interconnectedness is more immediate than ever, it can be easy to forget that not every country strictly adheres to the Gregorian or “Western” calendar.

Chances are you’ve heard of the Chinese New Year (also known as the Spring Festival). You may also know that each year is associated with an animal from the Chinese Zodiac. If so, you’re off to a good start! But did you also know that the Chinese New Year is the also most important annual event in China?

In 2016, the first day of the Chinese New Year is Monday, 8th February. This will begin the Year of the Monkey. Celebrations of fireworks and lantern-lighting will mark the New Year in major cities all across China.

 

A Bit of Background

Understanding a bit about the history and tradition surrounding the Chinese New Year can prove incredibly valuable in building and furthering your supplier relationships in 2016.

Scholars believe the Chinese calendar dates back to the Han Dynasty, sometime between 206 BC and 220 AD. The calendar itself runs on a 12-year cycle, where each year is connected to an animal found on the Chinese Zodiac. Each animal personifies specific qualities. For example, people born in the Year of the Monkey are thought to be especially intelligent or witty. Furthermore, each animal is associated with one of five elements: earth, metal, wood, fire, and water; collectively known as “Wu Xing.”

 

Deconstructing the Monkey

Individuals who are (or were) born in the Year of the Monkey are considered intelligent and have engaging personalities. These are characteristics that are desirable in supplier relationships no matter the year, but given the emphasis on the monkey this year, be thankful for those sharp, gregarious suppliers!

With that said, keep in mind that it may not be the wisest move to comment on a supplier’s “improved intelligence this year” while speaking with them! Keep in mind we’re still talking about astrological information, and some people may give it more credence than others.   

 

The Bottom Line

In anticipation of the Chinese New Year and the Year of the Monkey, now is a great time to get in touch with your suppliers. Talk with them and convey your needs for the next several months. Let them know that you are aware of their upcoming holiday and wish them the best for the coming year. Establishing this dialog reminds your supplier what your goals and needs are, and simultaneously demonstrates respectful social and cultural understanding of this time of year.

 

Annual Cost Savings of over $200k through Global Procurement

Industry: Building and construction

Looking to Source: Construction Materials

Results:

*Annual cost savings of more than $220,000.

* Rapid procurement of multiple sourcing options.

* Multiple pricing options for several qualified suppliers.

* A sense of loyalty to Bank for introducing the company to Mawson Global.

 

The Objective

Our client is a steel fabricator and manufacturer and has a niche market in the installation of balconies on apartment buildings. The company wanted to investigate whether or not it could save money on balustrade posts of metal and, by the suggestion of its bank, contacted Mawson Global with hopes of not only identifying cost savings, but also a reliable global source.

 

The Approach

The client reached out to Mawson Global per the recommendation of their bank. The bank, which has been working with us for a number of years, advised the client that we would be a good resource for global sourcing options.

After discussing their sourcing needs and goals, our China-based staff researched a variety of suppliers – taking into consideration the client’s product specifications – and we were able to recommend reliable suppliers producing the posts in several China provinces.

We employed our proven rating system to identify the top suppliers by marking efficiency levels, reliability, and quality. Within a few days, we presented the client with four different options from different suppliers in China in our informative, easy-to-read Sourcing Report.

 

The Benefits

Significant Annual Cost Savings

Substantial Savings: Because of Mawson Global’s global sourcing assistance, the client chose a vendor that will help it experience an annual costs savings of more than $220,000.

Awesome ROI: As a result of Mawson Global’s fee-for-service model, the client pays once for the service, yet reaps the benefits for years to come.

Future Options

Multiple sourcing clients: Mawson Global was able to identify several suppliers that fit the client’s needs and product specifications.

Future flexibility: Because of Mawson Global’s results, the client now has the ability to quote on more jobs as the business can concentrate on installation, not manufacturing.

Added bonus: The client previously didn’t have a passport before its alliance with Mawson Global, and within four months, it was importing the posts after visiting and verifying the recommended suppliers.

 

Strong Loyalty to the Referrer

Instilling trust: The bank has been working with Mawson Global for a number of years, and provided the pathway for the client to find a dependable and experienced global sourcing partner it can trust. The bank’s relationship with the client was also strengthened through the global sourcing process because it demonstrated that the bank has the best interests of the client in mind.

Comprehensive Approach: Mawson Global provided a full array of services for this client, including its QuickLook Analysis, Supplier Research, Supplier Visits and Sourcing Project Management. 

Business Goals in 2016

Another year has come and gone and here at Mawson Global, and we’re eager to jump full-force into 2016.

As a new year approaches, now is the time to outline your ambitions and goals for 2016.

Setting attainable goals can seem incredibly daunting at times. However, our goals also serve as “navigational beacons” that keep us on a successful path, even when things get tough. By knowing what our goals are, we can more easily ensure we don’t veer off course.

Whatever your goals for the year may be, make sure they’re S.M.A.R.T; that is Specific, Measurable, Actionable, Relevant, and Timely. Utilizing this methodology drives you to sit and think about the substance of your goals. Why is this goal more relevant or pertinent than that goal now? Thinking of your goals in these terms reinforces the whys and hows.

Once you’ve set your goals, share them with people you trust. These people will serve as your support and accountability partners. When you outline your goals clearly, you and your support team have baselines and benchmarks you can reflect on to measure success and realign moving ahead.

Do your 2016 goals include ambitions of working with overseas suppliers? If so, 2016 is gearing up to be another banner year for Chinese manufacturing and trade. Researching and analyzing whether or not global sourcing is the right fit for you and your organization can be intimidating. Sourcing, though, can provide significant cost and time saving benefits, while increasing profits and strengthening the overall business.

At Mawson Global, we understand your concerns and needs, which is why we have developed the “Are you ready for Asia?” audit. Ask yourself, “How do you think Asia is impacting your business?” You may be able to come up with a number of responses to that. We believe that, largely, it boils down to two points: reducing costs by importing and increasing sales by exporting. If you fall into either of these camps, click here to learn more about the “Are you ready for Asia?” audit

Business in Asia The Social Aspect of Doing Business

Just imagine it.

You’re in the meeting. The one you’ve been anxious about for over two months. As much with the anticipation of visiting Asia for the first time as the amount of money it could make for your business.

If it’s successful… If you don’t do anything embarrassing that breaks local etiquette and wipes your credibility off the face of the earth in a single, fleeting moment.

Until you’ve spent time in Asia, it’s easy to underestimate just how different these cultures are and how easy it is to create an awkward situation with a seemingly innocuous action or comment.

Not only that, but following proper local etiquette truly lights up the faces of those you’re with, building serious rapport in the process.

That’s why we’ve put together this list of social faux pas for you. There are over 40 countries in Asia, so a list of every potential etiquette beach for each country would take a medium-sized paperback book.

That said, here are the main ones to highlight just how different or unusual some of them can seem to us. We’ll have plenty of examples from China as it’s such a massive global business hub.

 

Eating at restaurants

There are a few things to bear in mind when eating out in Asia.

The first is to ensure you get your chopsticks skills honed if you’re going somewhere that uses them as the primary table utensil. Impress your dinner guests and save yourself the embarrassment of asking the waiting staff for fork. If you don’t find that idea cringeworthy, you should.

In some parts of Asia, it’s considered the height of rudeness to finish all the food on your plate, so check for the specific country you’re visiting. You may need to leave a small portion to one side to signify that you’re satisfied rather than suggesting that they’ve not provided enough food.

Some Asian countries consider it good manners to burp at the end of a meal, too.

As a final note, if you’re in China, placing your chopsticks in your rice neatly upright (a 90° angle to the table) is considered to signify death. Awkward silences may ensue!

 

Going for drinks

Certain etiquette must be observed when out for drinks in Asian countries and China is another good example here.

First is toasting. The host will typically make the first toast, so don’t jump the gun if you’re the one who’s been invited out. Instead of “cheers”, you’ll hear either "gan bei" (bottoms up) or "kai pay" (drain your glass) but whatever Asian country you’re visiting, look up this word before you go. Don’t be left looking around wondering what’s going on.

Also, in China, the level of your glass must be below the person you’re “cheersing” if you wish to signify respect. Otherwise, you’re stating that you consider yourself somehow “above” them.

Similarly, you’ll typically want to finish the whole glass. Don’t worry, the glasses over there aren’t as big as the pints you may be used from some countries, so you’ll still be able to hold together a conversation after sinking two or three.

If you’re unable to drink alcohol and need to decline, be aware that this could be seen as rude and make sure do so very respectfully. Explain that you’re very honoured by the generosity but are unable to drink and ask them to suggest a substitute drink so you can be part of their hospitality.

 

Taboo conversations

It’s good to remember that different political events are illustrated differently in different countries. That means, the narrative of global politics that your Asian counterparts know will be very different to yours.

Typically, it’s best to avoid these conversations. Whatever you’ve heard on the news, don’t insult the monarch, governments or establishment of an Asian country. Leave your political views in the hotel room. And make sure they know your government’s views don’t necessarily represent your views as an individual.

 

Contraband

What constitutes as contraband varies around Asia. A good example here is that drugs legislation particularly strict in countries such as Thailand or the Philippines. Some products that may even be available over-the-counter in the West could carry very serious penalties.

If you must carry pharmaceuticals around with you, check the specific legislation for that item in the country you’re visiting before you go.

Another good example is chewing gum in Singapore. It’s illegal to chew or be in possession of chewing gum in Singapore, even if you brought it there by accident.

 

Body language and physical contact

Realistically, the number of times you would touch somebody on the head in a business social outing are relatively slim. However, after a few drinks and a lot of rapport built, it might be feasible.

In much of Asia, touching someone on the head is considered incredibly rude and/or condescending. Similarly, pointing at someone with your feet or hands is best left avoided.

Putting feet on a table is rude (like much of the West) but unlike much of the West, showing the soles of your feet is considered very rude. Examples include Thailand and some other Southeast Asian countries, so be careful of resting an ankle on a knee to show the soles of your feet.

 

Declining invitations

As a final point, if you’re not big on socialising in general, you may want to revise that policy while in Asia. It can be taken as a serious insult, especially if it’s a senior member of another business who invites you out.

And when you do go out, well, it’s a lot to remember. If you’re worried about slipping up and ruining that business trip, or if you want to know more about sourcing globally from Asia, it’s worth getting in touch with an expert.

Our staff are happy to take your call and offer you a QuickLook Analysis to see how much money we can save your business.

 

Specialised Garden Products lead to Savings of more than $485,000

Organization: Designer and supplier of wholesale garden products

Looking to Source: Specialised Garden Products

Results:

* Annual cost savings of more than $485,000.

* Rapid procurement of multiple sourcing options.

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

 

The Objective

In the past 20 years, our client has been designing some of Australia’s leading garden and landscape products. Many professional landscapers, construction companies, as well as DIY enthusiasts, utilize the company’s product exclusively. In an effort to realise cost savings on its raw materials, the company contacted Mawson Global with hopes of identifying a reliable global sourcing partner to save on the cost of materials for its products.

 

The Approach

Because of Mawson Global’s expertise in sourcing materials, the client engaged us to identify reliable global sources for its materials.

Our China-based staff researched a variety of suppliers, also taking into consideration the client’s product specifications, and we were able to recommend reliable suppliers producing the material in several China provinces.

We utilized our proven rating system to identify the top suppliers by marking efficiency levels, reliability, and quality. Within days, we presented the client with three sourcing options from different suppliers in China in our informative, easy-to-read Sourcing Report.

 

The Benefits

Significant Annual Cost Savings

Substantial Savings: As a result of Mawson Global’s global sourcing expertise, the client selected a vendor that will help it experience an annual cost savings of more than $485,000.

Outstanding ROI: Mawson Global operates on a fee-for-service model, so the client only pays for our service once and reaps the benefits for years to come.

 

Flexible Alternatives

Multiple sourcing options: Mawson Global was able to identify a handful of suppliers to fit the client’s needs.

Growth potential: Now that the company is global sourcing, it has an opportunity to supply more retailers with its product in the future.

Future options: Because of Mawson Global’s approach, the client not only has acquired a provider for its current sourcing needs; it also has direct access to suppliers that can assist with sourcing other items.

Comprehensive approach: Mawson Global not only conducted its QuickLook Analysis, but completed a Research Project for the client as well.

High Efficiency: Mawson Global sourcing experts conducted a timely and robust search for suppliers that can provide the same high quality products at a significant cost savings.

Skilled, professional staff: Our staffers in Asia have been with Mawson Global an average of six years, and they streamline the process of selecting trustworthy, reliable suppliers that meet our high standards for quality and customer service. This team, combined with our proven supplier ratings system, is why we were able to quickly address our client’s request for global sourcing options for its business.

 

 

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!

Mawson Global Improves Customer Loyalty

Organisation: A turn-key construction solutions company

Looking to source: Access equipment

Results:

·         Annual cost savings of more than $133,956.

·         Rapid procurement of numerous sourcing options.

·         Multiple pricing options for several qualified suppliers.

·         A sense of loyalty to the bank for introducing the company to Mawson Global.

The Objective

One of Australia’s top turnkey construction solutions companies recently contacted Mawson Global in order to improve their cost savings on access equipment. The construction company was in need of a reliable global sourcing partner that could help it save on equipment costs and improve its bottom line.

The Approach

The company initially reached out to Mawson Global after its bank referred them to us. The bank, which has been working with Mawson Global for several years, encouraged the client to contact us in order to help with their global sourcing efforts.  

Our China-based staff reviewed approximately 30 suppliers, along with the company’s product specifications for its access equipment, and we were able to recommend reliable suppliers producing the equipment in several China provinces.

We used our proven rating system to identify the top suppliers, marking efficiency levels, reliability, and quality. Within 21 days of submitting their request, we presented the client with three access equipment options from different suppliers in China in our informative, easy-to-read Sourcing Report.

The Benefits

Significant Annual Cost Savings

Substantial savings: With Mawson Global’s global sourcing assistance, the client selected a supplier partner that will help it experience an annual cost savings of $133,956.

Outstanding ROI: Our fee-for-service model means the construction company will continue to experience significant cost savings for years to come – at not additional cost.

Less Stress & More Flexibility

Hassle-free sourcing management: The client was so pleased with Mawson Global that it’s outsourced the management of its sourcing efforts to us – enabling the company’s leadership to focus on more pressing matters, like growing the business.

Rental opportunities: Mawson Global’s sourcing efforts also helped to provide our client with the opportunity to rent its access equipment when it’s not in use, which will allow the company to gain rental revenue on its machines.

Quick Results

High efficiency: Mawson Global sourcing experts quickly and thoroughly assessed those suppliers that could best meet the client’s needs and provided the cost-saving options it needed to remain competitive in the construction sector.

Skilled, professional staff: Our staffers in Asia have been with Mawson Global an average of six years, and they have streamlined the process of selecting trustworthy, reliable suppliers that meet our high standards for quality and customer service. This team, combined with our proven supplier ratings system, are why we were able to quickly address our client’s request for global sourcing options for its access equipment.

Greater Loyalty to the Referrer

Instilling trust: The bank’s previous work with Mawson Global was a conduit to providing the construction company with a dependable and experienced global sourcing provider that it can trust. The client’s relationship with its bank was also fortified during the global sourcing process because it proved that the bank has its client’s best interests in mind. 

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.