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.

2015 Forecast for Global Sourcing

The sheer quantity of savings available through global sourcing has made the supply chain strategy increasingly popular over the past few years.

With big improvements in global communications and data analytics, and with the previously slow recovery from the 2008 financial crisis finally picking up momentum, 2014 witnessed businesses shift from fiercely protecting budgets to carefully investing in relationships with a view to break open new markets.

With 2015 now upon us, economic indicators across the board continue to improve. And yes, that means there’s every good reason to stay ahead of the curve by knowing the global sourcing trends you can expect to see in 2015.

Increased adoption of global sourcing

Although many large businesses (such as key players in the semiconductor industry) have taken advantage of global sourcing and manufacturing for many years now, small to medium enterprises (SME’s) have only caught on more recently.

It’s still a relatively new phenomenon and, as awareness of the considerable savings on offer continues to spread, we can expect to see more businesses take advantage in 2015.

Last year, and as predicted, SME’s began partnering with qualified, experienced global sourcing specialists and used the savings on offer to leverage growth. This year, and with the global economic situation improving, we can expect more of the same.

Greater competition in overseas markets

In developing countries, global sourcing is largely seen as a business opportunity for the West, but naturally the domestic markets benefit, too. This year we can expect to see countries with strong manufacturing backgrounds (such as Japan) set up in South-East Asian countries to tailor to the needs of the West.

Consequently, there will be greater competition in global sourcing locations such as South America and the ASEAN. China is increasingly seeing global sourcing as an investment opportunity and will continue to establish facilities both at home and in other countries with low labour costs such as Africa.

Increased nearshoring

As the US economic recovery continues and fracking legislation promises the country a much needed cash injection, it’s likely we’ll see many US businesses adopting nearshoring strategies to outsource manufacturing operations to countries such as South America.

With increasing amounts of manufacturing done overseas in developing countries, greater global sourcing opportunities could arise.

Big data tools increased transparency and cost tracking

We’re increasingly move into the world of “big data” with ever more readily available cloud computing services capable of serious number crunching. When combined with the inevitable adoption of the so-called “Internet of Everything”, global sourcing will become increasingly easier to manage for suppliers, buyers and logistics companies alike.

With more accurate tracking capabilities, realising the financial benefits from value chains will become easier, making it simpler to justify the move to global sourcing, further exacerbating its increase in popularity.

A maturing sector

All of the above trends culminate in what could be described as a maturing of an industry. Many factors come together to make global sourcing not only more accessible, but more efficient and potentially with even with bigger savings on the table.

If you’d like to learn more about how to stay ahead of your competition by freeing up cash flow  through sourcing globally, contact Mawson Global for a QuickLook Analysis today.