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

Doing Business in Asia: Making a Good Impression

It may go without saying that first impressions are important in business, but they are particularly crucial when you’re doing business in Asia.

Your image matters. Looking polished and sharp in a business meeting not only reflects well on you and your business; it also indicates respect for your host.

Proper Attire
For example, wearing an open-neck shirt, and going without a tie, is usually appropriate when you’re visiting suppliers, particularly if you’re touring factories. However, for other business meetings the dress code is stricter. Men may need a suit and tie, and women should wear a skirt or dress that falls below their knees, along with a jacket or sweater that covers their arms. All dress should be weather appropriate; wearing a heavy suit in a humid city can be uncomfortable and can interfere with the impression you want to create. You also need to make sure your socks are in good condition as shoes are prohibited in certain places in Asia, including some restaurants.

Business Card Etiquette
Business cards are another crucial consideration. Make sure you have plenty, because you’ll be giving away a lot of them, especially when you meet potential clients for the first time.

Following these tips can help you avoid cultural business-card gaffes:

·         Use both hands when presenting and receiving a card. Using one hand in Asia is considered casual to the point of rudeness.  Although it is common to slide you cards over a table like dealing at a casino in the West this is not done when making a good impression in Asia.

·         Properly acknowledge your associate. You do this by accepting his or her card and examining it carefully.  If you are not sure how long this should take be guided by how long they look at your card.

·         Ask, “how should I address you?” Asian businesspeople are keenly aware of position and hierarchy. Titles are important, so don’t guess; ask! Do not be afraid to write down their preferred title so you can refer to it during the meeting.  When you make the effort to be respectful it is noticed and the other “mistakes” you will make are excused.  Also, never use a client’s given name unless he or she invites you to do so.

·         Keep the client’s business card on the table during your meeting. It is also acceptable to place it in a cardholder. Either way, leaving the business card in full view for the duration of your meeting will show appropriate respect.

Mawson Global can help you navigate the process of doing business in China and other Asian countries – and making a good impression while you’re there! In addition to arranging hotel and flight bookings, Mawson Global’s on-site staff can advise you on the proper way of dealing with Chinese businesspeople, along with briefing you on local businesses practices, business development, and the country’s customs, holidays, and practices. 

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 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!

A Can’t-Miss Event: The 2013 Canton Fairs

The China Import and Export Fair, also known as the Canton Fair, is the oldest and most comprehensive trade event of its kind. It’s a showcase of more than 24,000 of China’s corporations. And it’s something your company may want to attend if it’s interested in partnerships with Chinese suppliers.

The Canton Fair is held each spring and fall in Guangzhou, China and includes a broad array of foreign trade companies, manufacturers, research institutes, private organizations, as well as foreign-invested and wholly foreign-owned companies. Since its inception in 1957, the fair has become a platform for the movers and shakers of China’s import and export industry.

“Canton Fair is an important window of China's opening up, a vital platform of foreign trade, and also a starting point for the transformation of foreign trade development mode and the adjustment of structure,” said Liu Jianjun, spokesman for the Canton Fair and director general of China Foreign Trade Centre during the November 2012’s opening event.

The fair is an excellent way to get an appreciation of just how many products you can source from China.  If sourcing products direct from Chinese suppliers is on your radar for this year, or the near future, you should seriously consider making the trek for this biannual event.

While the fair is a great showcase we do not recommend it as the place to source long term supply partners as most of the exhibitors at the fair will be commission agents and distributors.  So visit the fair to get ideas and contacts then make sure you do your homework on the suppliers you intend to trust your business success with.

Navigating the Canton Fair and travels through China can be a challenge, especially for those who’ve never been to the country. Mawson Global can provide support before, during, and after travels to the country to companies in need of assistance. We can also act as a liaison during the fair and ensure your organization finds a long-term supplier, rather than a short term agent.

For more information on Mawson Global’s travel support services, as well as sourcing assistances, please visit our website or call 1300 723 246.

Choosing a Customs Broker – What You Don’t Know Could Hurt You

Customs Brokers – What do they actually do?

The work of a customs broker can seem rather mysterious because when managed properly, the customs clearance process should be seamless and invisible to you.  In an ideal situation, customs clearance of your imported or exported goods should “just happen.”

The truth is, the cross-border clearance of goods that change hands from one party to another can be a complex undertaking that is fraught with potential risk, extended delays and excessive taxes or other unexpected costs.  

Customs brokers are responsible for managing the end-to-end process that starts with identifying goods that need to be shipped from one location and finishes with the successful delivery of those goods to a final destination.  Brokers handle the paperwork, taxes, shipping details and customs compliance requirements at every step in the process.

The Good, the Bad and the Ugly

You have endless choices available to you when it comes to selecting a customs broker. There are large variances among brokers in terms of cost, technical knowledge and overall competence.  Some brokers provide specialty expertise for certain industries or in transporting goods among specific countries.  Certain brokers have tightly managed internal controls and well established processes and procedures; others do not.

Perhaps crucially, some customs brokers actively seek to minimise customs clearance lead times but at the potential expense of full compliance.  Other brokers lack formal representation in the relevant locations and so rely on informal “arrangements” to get the job done. 

In the eyes of the authorities, you are responsible for the decisions made by the broker on your behalf, so it is essential that you can trust the customs broker you choose and that you share common objectives.

Customs Broker Checklist

When interviewing prospective customs brokers to facilitate your importing or exporting activities, be sure to cover the following points:

• Ask the broker what roadblocks are likely to be encountered with your particular customs clearance needs
• Ask how they handled a tricky situation in the past and what creative solutions they were able to implement.  For example, what steps do they take when a shipment is stuck at a border entry point behind a backlog of other shipments due to an extreme weather delay?
• Ensure they have 24/7 shipment tracking facility, not just online but on the phone with a real person
• Confirm that they will provide upfront and in writing a complete itemisation of the tariffs that you will be responsible for paying – in other words, total landed cost
• Ask for at least two references that you can personally ring to obtain a first-hand account of how the broker performed for other clients, ideally from your industry.  Then ring those clients.

The team at Mawson Global work with a variety of reputable, proven customs brokers every day and are here to help you with your broker selection process.  Please contact us if we can answer any questions for you.

Mawson Global’s Quick Look 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 quick look 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 Ten Product 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.

Delays in Shipping and Logistics

The Scenario:

Your product has been shipped and you have promised a delivery date to a client. You now are hearing it has been delayed for an extra 12 days in Singapore. Your client is on the phone every 2 hours demanding to know when it will be delivered and you wish your freight forwarder would just call you back!

Although logistics is usually only a small part of the total cost of an imported item it is what can give you some of your largest headaches.  It is also the easiest part of the process for your suppliers to blame for delays.

The best way to resolve most of these problems is to choose a freight forwarder with exceptional service.  The ocean or air rates will all be quite similar between forwarders so choose the one who can provide instant answers on the status of your shipment. 

Also make sure they provide all the options on routes before you book.  It may be only cost $100 more to get a direct line and avoid the risk of transhipment delays (like in our Singapore scenario!)

Another good tip for less than container amounts of goods is to ship them as a full container.  Your freight rate per item will increase but you will have total control over where the container is going.

Remember that for you and your clients bad news about delays is better than confusion!

Overcoming Changing Sourcing Costs

What do you need to consider before making the decision to change suppliers (especially if it is offshore)?

The Scenario :

You have identified the perfect product online and have told your existing supplier they are too expensive and to never call you again!  You place your order and find the cost quoted online has just doubled.

What do you do? To avoid to above scenario from happening with your business, consider all additional expenses outside of the original quote, especially if your product is currently sourced locally.

Additionally, follow these 5 tips to ensure you have a realistic initial quote.

1. Get your specification absolutely correct so the supplier quotes for what you want
2. Get multiple quotations from different manufacturers
3. Work with manufacturers rather than agents
4. Always allow some “slippage” in the total cost - around 10%

Global sourcing can be very cost effective for your business, if you approach it intelligently. However, the process can be time consuming. Moreover, fostering a relationship with suppliers overseas costs not only money, but also time and energy. Most likely a lower priced, higher quality manufacturer does exist, but make sure you don’t jump ship on a current relationship solely because the grass appears greener on the other side.

 If you would like help assessing your supplier options, the professionals at Mawson Global can give you peace of mind. 

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.