Mawson Global Wraps Up Results for Logistics Company

Shrink-wrap. It can be used to bundle products, swaddle buildings, stabilize rooftops after a hurricane, or even cleaning up asbestos. However, for Kerry Logistics, one of the largest logistics companies in the world, shrink-wrap was a big factor in the company’s ability to win new business and increase its bottom line.

In April 2012, Kerry Logistics approached Mawson Global to help with the critical challenge of lowering its shrink-wrap costs. Doing so would allow the company to successfully compete for a large contract involving the unpacking of containers and wrapping them for delivery. However, the need for a solution was urgent, and a new supplier had to be located within a month in order for Kerry Logistics to bid on the contract.

As a leader in global market knowledge, Mawson Global was able to identify numerous suppliers in China’s Guangdong, Shandong, and Jiangsu Provinces that provide quality, low-cost machines and hand shrink-wrap. By implementing its highly effective ratings system to analyse more than 30 candidates, Mawson quickly confirmed several viable suppliers for Kerry Logistics, along with a handful of alternatives. Each of the potential suppliers demonstrated high levels of efficiency, reliability, and quality. They also all offered considerable savings on shrink-wrap.

The results of the supplier search were presented to Kerry Logistics in an informative and dynamic report just three short weeks after the company approached Mawson Global. The findings allowed Kerry Logistics to not only contract with a new, more cost-effective supplier, but also substantially boost its yearly profit to the tune of $96,642.

“Mawson Global sourced a new shrink-wrap supplier for us in Asia and, in the process, saved us a lot of time and money,” says Ian Trimboli, executive director (Australia) for Kerry Logistics. “Thanks to Mawson Global, our supply is now secure which helps ensure long-term business success.”

Kerry Logistics was so thrilled with the results achieved in the shrink-wrap sourcing that the company is expanding its relationship with Mawson Global. The company is now researching handling equipment, robotic warehousing systems, and mobile PCs for forklifts on Kerry Logistics’ behalf. 

What the Chinese New Year Means to Your Supplier

It’s the most important Chinese holiday of the year and one your supplier is likely looking forward to with great anticipation – Chinese New Year.

The Chinese New Year, known as Spring Festival in China, marks the beginning of the Chinese calendar year, the end of winter, and the first solar term of the Chinese year. This momentous cultural occasion is celebrated with festival that begins on the first day of the first month in the New Year and ends on the 15^th day of the year. During this time, migrant workers return home and gather for huge family reunions during which they catch up, feast, and wish each other peace and happiness.

Given China’s significant internal travelers, special arrangements are made with the area’s various methods of transportation, including buses, railways, and airlines, beginning two weeks before the holidays. This time period is called “chunyun,” which literally means “transportation during Spring Festival.” It is the world’s largest annual migration, and it could impact your company’s bottom line if you’re unprepared.

Given the massive relocation of its people, traveling to China during its New Year can be a fruitless endeavor. Suppliers may be difficult to reach or completely inaccessible beginning two weeks prior to the holiday as their workforces head home. During the Chinese New Year, many offices will be closed. Factories may operate on different time schedules -- closing early in the day and reopening much later than usual. Some may even close the week before the New Year and remain closed for the duration of February.

If your company is reliant on Chinese suppliers, you need a plan to ensure your business continues to operate during the holiday.

Mawson Global, a leader in global sourcing, can work with your organization and its Chinese providers to ensure everyone is on the same schedule during the holiday season. The Mawson Global team understands the importance of this holiday to Asian suppliers, and it can help your organization avoid delays and disruptions to its business before, during, and after the Chinese New Year.

The Western holiday season may be over, but for our Eastern friends, the celebrations are just around the corner. This year, the festivities kick off on Feb. 10. Make sure your suppliers can celebrate one of their favorite times of year and your business continues to run smoothly during the month February – contact Mawson Global for assistance with your global sourcing, marketing, and commerce solutions.

Mawson Global’s Dynamic Approach to a Canned Product Quandary

When ABC Sales and Marketing (ABCSM) -- one of Australia’s largest snack food importers -- needed assistance researching the profitability and feasibility of a new canned vegetables line, the company turned to Mawson Global.

Finding quality overseas suppliers in a timely manner can be a challenge for domestic companies who lack the time and resources to conduct a proper search. Fortunately, it’s one of Mawson Global fortes given its broad global market knowledge and long-standing expertise.

“After seeing the wide range of services Mawson Global offered, we could instantly see how they could streamline our business and take the hassle out of sourcing high-quality products,” says Matthew Parry, national account manager at ABCSM.

Mawson Global’s team in China quickly went to work using a proven and effective rating system to review more than 30 suppliers for ABCSM. In analyzing six different types of canned vegetables, there were some suppliers offering very cheap options. However, only those with a track record for high quality, reliability, and efficiency made the shortlist. These dependable suppliers in Qingdao, Xiamen, and Tianjin earned their spot on the list by scoring highest on Mawson Global’s ratings card. ABCSM deals with large national retail chains whose customers demand excellence, quality, and value; so cut-rate suppliers were not an option.

Three weeks after starting the search, Mawson Global delivered a comprehensive, streamlined sourcing report outlining its unbiased supplier recommendations for ABCSM. Using the material in the report, ABCSM was able to make an informed decision and forge a solid partnership with a reliable supplier. This new partnership allowed the company to successfully launch its canned vegetable line, and it’s now projecting an annual profit increase of $42,000. The company is also projecting a long-term relationship with Mawson Global.

“In our industry, we are constantly asked by national retail chains to find and present new products,” Parry says. “We now use Mawson Global on a regular basis and are always impressed with their level of service, attention to detail, and business integrity.”

To download full Case Study, please Download a copy here

What Does China's New Leadership Mean for Your Business?

With the successful transition to new leadership in November, mid-size global companies trading with China have been carefully assessing what the new leadership means for them. The simple answer is, in the short-term, there will be little impact because the new leaders want policy continuity and stability. In the long run, companies buying from and selling to China may need to find partners that focus on innovation, efficiency, and productivity improvement in the face of a changing macro environment.

The new state president of China, Xi Jinping, has lived through personal hardships and governed from the grassroots at every level of the Chinese government.  He is a down-to-earth, pro-business, and pro-market person who favors innovations and new ideas. He is known to connect well with Chinese society at large. He is also expected not to change policies radically, but to experiment with changes at the grassroots level first.

To maintain continuity and stability, the new Chinese government will follow a similar pro-growth strategy while tackling the problem of rising income inequality. In the past 12 years, labor costs in China have risen 10 to 20% a year. While exact productivity numbers are hard to determine, China has experienced a considerable productivity growth due to urbanization and an inflow of foreign investment and technology. Traditionally, Chinese workers have been flexible in adapting to the rapidly changing environment. With the new leadership’s emphasis on innovation and technology, productivity gains should continue to offset wage increases, just as in the past.

The implication for mid-size businesses is that they must partner with companies that focus on improving productivity. According to a recent Ernst & Young survey, to offset the slowdown in profitability due to slowing global growth and rising costs, companies need to pursue productivity as a strategic goal. This means that while understanding the national policy direction is important, finding a business partner that focuses on improving efficiency is even more crucial. 

China’s determination to fight corruption, reduce bureaucracy, and extravagance should benefit Western companies, especially those in countries which uphold stricter business standards. State President Xi had been a governor in three dynamic regions in China. This may point towards more government support for smaller businesses, allowing mid-size foreign companies to locate better partners in China.

As China seeks to re-balance growth away from investment to domestic consumption, some slowdown in growth is inevitable. Mid-size businesses trading with China are well advised to seek business partners who will focus on increasing productivity to offset the expected growth slowdown and rising operating costs.

Mawson Global has on the ground experience in supply partner selection which will allow you to concentrate on making productivity gains in your own business.

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!