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.

How to Mitigate Risk in Your Global Supply Chain

Around the middle of last year, a study sponsored by international logistics group, UPS Capital Corporation, was conducted at the University of Tennessee’s Global Supply Chain Institute.

The key takeaway of the study was simple;  risk mitigation in global supply chain management is dangerously lacking in the vast majority of businesses.

A frightening 90% of the 150 surveyed firms didn’t formally quantify supply chain risk when sourcing and manufacturing equipment globally. And not a single one consulted a third party specialist prior to taking on global sourcing additions to their supply chain.

Considering that many executives are aware of the highly undesirable outcomes of supply chain problems, it was a pretty shocking set of results. Dr Paul Dittmann who headed up the investigation stated simply that:

“Any business that does not have some basic form of risk mitigation plans in place is simply gambling with its existence.” Yes, it’s that serious.

So how can you mitigate risk in your global supply chain? Here’s a how-to guide on thinking both strategically and tactically so you’re in good shape to avoid the worst happening to your business.

1. Minimise exposure to risk

First up, it’s important to minimise the amount of risk to which you’re exposed in the first place.

A good place to start here is to sit down and look at each individual component in your supply chain and give it a risk rating of 1 to 10. Next, consider what strategies or alternatives could be used that would potentially pose a lower risk rating.

For example, if you’re gather components from a country that’s known to be earthquake prone, consider if there are other countries with similar deals on the table that are not susceptible to natural disasters.

It’s easy to become comfortable with the way your supply chain is set up. But when something goes wrong, you’ll wish you’d taken the time to minimise your exposure to risk.

2. Prepare for what-if scenarios

Another great exercise is to prepare for the “what if” scenarios.

Begin by listing all of the worst-case scenarios of things that could go wrong in your current supply chain setup. What would you do if one of those scenarios happened first thing Monday morning?

Set up at least two separate contingency plans, making the necessary phone calls and doing the necessary research for each one to ensure that it’s implementable should the worst happen.

Taking the time to prepare these scenarios upfront can save you a fortune and perhaps even your business should the manure hit the fan at the 11th hour. It’s often as simple as making sure you have more than one supplier for your most important items.

3. Re-examine global approach frequently

Sourcing globally can save huge amounts of money, often in the region of 40% to 70%. But it can bring further considerations for risk, and increased exposure to the macroeconomic climate is one of them.

Schedule a time in your calendar once every month, three months or six months (whichever you deem appropriate) to assess your supply chain. Check for legislation changes, new political parties coming into power or other potential or economic shifts that could affect your global approach.

By keeping on top of things, not only will you spot problems before they arise, but you’ll operate your business with peace of mind knowing that you’re on top of your supply chain.

4. Consider how one change affects all areas

If you followed the above steps, you’ll have a series of potential problematic scenarios that can affect your global supply chain. Take a bird’s eye view on these and consider how each event’s knock-on effect may hinder other parts of the chain.

Thinking in terms of the big picture is a cornerstone of good supply chain management. But, with global considerations, it’s especially important to cultivate this kind of top-down perspective.

5. Use rigorous quality standards for new suppliers

Finally, and perhaps not surprisingly, comes the idea of applying rigorous quality standards to new suppliers. Don’t make the mistake of jumping on board with someone too soon because they have attractively low prices. It’s an age-old mistake, even if it remains tempting.

A small investment in quality control conducted by an independent third-party inspector can save enormous amounts of money later on. Stay on top of your quality control.

Want to speak to a professional about supply chain risk mitigation? Contact one of our specialists today for a quick conversation with a qualified global sourcing specialist who takes financial savings just as seriously as quality control.

Annual Cost Savings of more that $133,956

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. 

Purchasing Best Practices that Help Supply Chain Agility

Picture this. You wake up one morning, head to the office, sit down with your morning coffee and check the orders that came in overnight. That’s when you see it.

It’s one of those orders you’re always hoping for in the back of your mind. One of the really big ones that make a significant contribution to your company’s annual turnover.

The rest of your staff arrive and promptly start making the calls. But wait, there’s a problem… One of your suppliers can’t make an essential contribution to help fulfil that huge order.

The crippling reality of your sluggish supply chain hits you. It’s time to implement some supply chain agility best practices.

Perform due diligence to find the right partner for the long term

Getting the right supplier matters. Naturally, you must protect your bottom line so price is critical, but the major temptation to choose a supplier on price alone can land you in trouble. Let's say you opt for one that offers products or materials 5% cheaper than the closest competitor.

At first, you’re happy about saving 5% on the purchase price. But later, you realise that a little additional research would have highlighted a number of problematic qualities with your new supplier such as long lead times, high number of RMA’s or slow response times. None of which are properly compensated for by your 5% saving.

Always do your due diligence research before signing up with new suppliers. Look for testimonials from people who’ve worked with the company in the past to make sure their service is as competitive as their prices.

You should be especially vigilant when signing on international suppliers. You need to understand a country's logistics landscape because the last thing you need are problems happening on the other side of the planet. For that reason, it’s crucial to contact people with inside knowledge of both the country and the supplier you’re considering.

A little time extra spent here can save you a fortune in long run.

Consider refund and returned items costs

Depending on your industry, refund and returned item costs can accumulate into serious amounts of capital getting tied up. If you were to opt for the cheapest possible partner to get a 5% saving purchase prices but there return costs were high, the cumulative expenses could make that 5% reduction in purchase price irrelevant.

This is especially true when large equipment is involved that must be transported using specialist international logistics companies. So, pay extra attention to this factor when you research your new suppliers.

For new products, involve suppliers in development to ensure quality

Dealing with suppliers who are also involved in the development of products is a great way to ensure quality. Having your supply chain bogged down with quality issues is far from ideal when you’re focused on improving agility.

By working with partners involved in development to ensure a high quality product, you’re making an investment in the robustness of your supply chain, allowing it to be more agile too.

Create clear, easy to read contracts

There was a time when lengthy contracts and plenty of small print were a necessity for supply chain management. But, these days, the internet with its review websites, social media and more easily spread word-of-mouth holds businesses much more accountable for their actions.

Consequently, a clear, easy to read contract is a necessity. Should any kind of disagreement become apparent, the last thing your supply chain needs is for legal teams to get involved and tackle disputes.

Nothing will slow down the supply chain quite like a courtroom. Agile supply chains should respond quickly to shifts in demand both between you and your supplier as well as from you and your customer. So a straightforward contract with a well researched supplier is the way to go.

Review issues as they emerge to create fast response

Issues with your supply chain should be dealt with as when they arise. Sure, it’s tempting to add them to your to-do list as something that needs tackling later down the line. However, the longer these problems are left unchecked, the less agile your supply chain can become.

Make sure you tackle issues as they arise and implement processes that eliminate any points of delay. Because, after all, you never know when one of those huge orders is just around the corner.

One of many reasons Mawson Global saved our clients over $20 million in the past 12 months is because we take supply chain agility very seriously. Next year, we’re expecting that figure to grow. If you’d like to find out how much your business could save, get in touch for a QuickLook analysis, free of charge.

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.

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

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.

Distributor of name brand beverages, snack foods and confections experiences enhanced savings

Organization: Distributor of name brand beverages, snack foods and confections

Looking to Source: Soda bottles

Results:

• Annual cost savings of more than $200,000.
• Rapid procurement of multiple sourcing options.
• Diverse pricing options from a variety of qualified suppliers.

The Objective

For 13 years, our client has been the state distributor for Cadbury Schweppes beverages, which includes Pepsi Cola, Gatorade, Spring Valley and Red Bull. The company also bottles its own line of specialty soda drinks.  The company contacted Mawson Global in order to improve its bottom line by discovering a reliable global sourcing partner to save on the cost of materials for soda bottles.

The Approach

After learning of Mawson Global’s proficiency in sourcing materials, our client engaged us to identify reliable global sources for its soda bottle business.

Our China-based staff researched a variety of suppliers, along with the company’s product specifications for the bottles, 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 a number of days, we presented the client with four soda bottle supplier 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 $200,000.

Outstanding ROI: Because Mawson Global operates on a fee-for-service model; the client only pays once for the process that now will save it significant costs for years to come.

Less Stress & More Flexibility

Multiple sourcing options: Mawson Global was able to identify a number of suppliers to fit our needs.

Future options: Because of Mawson Global’s approach, the client not only has acquired a provider for its current needs, but also has direct access to suppliers for future glass projects.

Comprehensive approach: Mawson Global not only conducted its Sourcing Project to identify the best soda bottle partner(s) for the client, but also conducted our Quicklook analysis, as well as our Research Project.

Quick Results

High Efficiency: Mawson Global sourcing experts conducted a timely and robust search for suppliers that not only could provide the required materials, but also could do so with significant cost savings.

Skilled, professional staff: Our staff in Asia has 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, is why we were able to quickly address our client’s request for global sourcing options for its soda bottle business.

Global Sourcing Leads to Big Cost Savings for Mawson Global Client

Organization: Developer and manufacturer of flavors and fragrances

Looking to Source: Onion powder and other ingredients

Results:

* Annual cost savings of more than $248,000.

* Rapid procurement of multiple sourcing options.

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

The Objective

During the past seven years, our client has developed into one of the leading flavor houses in Australia. With its own flavor development laboratory and factory located with its home office, the company is has an impressive portfolio of clients that seek its flavors and fragrances. Searching for a way to save on the cost of the ingredients for a variety of its products, the company reached out to Mawson Global in an effort to reduce its expenses on raw materials, as well as identify a reliable global sourcing partner. 

The Approach

Mawson Global’s reputation as a leader in globally sourcing materials led the client to engage us to identify reliable global sources for its onion powder and other ingredients.

The client has been expanding its business into Asian markets, so our China-based staff was able to strengthen these ties by identifying a variety of suppliers that meet the client’s product specifications and price point.

Using our proven rating system to identify the top suppliers, we were able to present the client with five different supplier options in China via our informative, easy-to-read Sourcing Report.

The Benefits

Significant Budget Benefits

Bottom line results: Because of Mawson Global’s global sourcing expertise, the client partnered with a vendor that will provide an annual cost savings of more than $248,000.

Perpetual bonus: Mawson Global operates on a fee-for-service model, which means there are no hidden costs or fees. It also means that the client pays for the service once, but will enjoy the benefits for years to come.

Flexible Alternatives

Multiple sourcing options: Mawson Global identified five reliable suppliers that matched the client’s requirements.

Growth potential: Because of Mawson Global’s efforts, the client now has the ability to quote more jobs and grow its business.

Future options: Because Mawson Global conducts a comprehensive search for sourcing partners, the client not only has acquired a provider for its current needs, it also has direct access to suppliers for future sourcing requirements.

An experienced team: One of the benefits of working with is that we maintain a staff in Asia. These team members have been with the company and average of six years, and during that time, they have sourced everything from colored glass to bubble wrap. They’ve also maintained a high rate of success thanks to a streamlined process for selecting trustworthy, reliable suppliers.