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Success Story 1:
What is the problem you faced?
Our Evolution Funeral Products business grew out of the Bartolomeo & Perrotto Funeral Home, where we provide family services to those who have lost a loved one. In our business, we have faced growing economic challenges. Specifically, the existing vendors for funeral products kept passing along rising costs for items like caskets and other supporting products. Unfortunately, our business could only absorb these rising costs for so long before having to in turn pass along higher costs. The reality we faced, though, was that our market would not accept rising costs. Economic pressures forced us to consider China sourcing for the supply of caskets. We asked vendors about China sourcing as a means of reducing costs, but they didn’t have answers. So we considered going direct.
What was the solution you needed?
We needed to find a consistent source of quality products—particularly caskets—to support our regular business operations. We believed China would be a good choice for sourcing these products, but needed assistance in making the decision of who would be the right supplier, including due diligence and bridging language and cultural barriers. The most difficult aspect was the language barrier—we had found that few who can speak Chinese can translate properly in business situations. Few people can convey the same concept in both languages.
What did Myland USA do for you?
Heidi Ames of Myland USA was able to help us find and qualify manufacturers of the caskets for our funeral services business. This included looking at a whole range of possibilities for caskets from top to bottom, with all materials including woods and metals being considered. Heidi accompanied me on a trip to China to evaluate a variety of potential suppliers before making a selection.
After manufacturers were found and qualified Myland remained involved, monitoring the quality of delivered products. Heidi stayed on top of things and acted as conduit, building relationships and trust between both parties along the entire transaction. She has also structured deals to keep the financials on a level playing field.
What have been the results?
Evolution has been sourcing for a year and a half, but we’re on the ground floor. With a small staff, we couldn’t manage this internally, but through Myland it is like having a dedicated staff member to work on these tasks. Heidi has a sharp understanding and knowledge of cultural differences, and lives in both worlds—she understands both U.S. and Chinese business culture and can articulate things well in both languages. And when it comes to negotiating on our behalf, Heidi knows when to push on, and when to pull back.
Evolution Funeral Products was created from the opportunity to source and resell imported caskets, and is now selling to other funeral homes in the local and regional areas, focusing on visibility. Exploring getting other funeral services products at equal quality but lower price is a priority as is managing growth of the expanding product line. But we want to keep control, maintaining a controlled pace of growth for the business.
At this point every purchase order goes through Myland. Evolution has integrated China sourcing more fully into their business model. Evolution has a successful, quality product line, and is working to expand that line. But Evolution is still on the ground floor, in the early stages of sourcing and growing the business. And Evolution knows that Myland is ready to support that growth along the way. Evolution is now expanding to supply a wider selection.
Success Story 2:
About Legendary Auto Interiors:
Legendary Auto Interiors, Ltd., was founded in 1985 to service reproduction automotive interior and exterior trim and soft parts needs for the auto restoration market. Legendary’s focus is on manufacturing exact reproductions of obsolete body & trim components for American cars, muscle cars, and special interest vehicles. Legendary produces headliners, carpets, trays, door panels, armrests, and more. Legendary operates as a manufacturer, distributor, wholesaler and retailer, and has revenues of approximately $7M annually.
Background:
Until recently, Legendary had endeavored to manufacture all of its products in the United States—the “Made in USA” label was considered a badge of pride for its products. But in the past ten years or so, many companies in this industry have shifted to sourcing internationally. As competitive pressures mounted, more attention has been focused on sourcing materials and manufacturing products overseas to contain costs.
Situation:
Producing domestically has finally become un-affordably expensive for Legendary, in light of not only the raw materials costs, but also the tools, stamping and machining of a labor-intensive finished product. Additionally, the volume of product produced at once tends to be low, often only a few hundred finished pieces at a time. Legendary concluded that the future of the company and the aftermarket industry necessitated sourcing overseas in order to provide a market-satisfying combination of quality and price.
Task:
A few years ago, Legendary hired a new CFO to reorganize the company and prepare it for the future. This professional came from a large company, and had extensive experience with overseas transactions. The CFO knew Myland USA’s Heidi Ames, and brought her in to assist with the increasing volume of China transactions. Legendary’s President Martin Beckenback had previously had only limited experience with China sourcing.
Actions:
Heidi Ames managed the overall sourcing process, finding suppliers, managing interactions, and managing every aspect of the relationship. Critically important to Legendary’s needs, Heidi has acted as a mediator, negotiator, and translator. Heidi has additionally helped with transactions and currency dealings, especially cultural and business nuances.
Results:
Legendary has been able to shift the supply source to China for almost 20 key products. Legendary has also been able to consider serving new markets that were previously cost-prohibitive and unattainable, leading to expanding the business.
Client Testimonials:
“Heidi has a knowledge of sourcing, including a database of contacts and an excellent overseas team. Heidi is native Chinese, so she is an excellent consultant and interpreter—she brings the whole package, including talent and knowledge. Heidi has been aggressive at researching and acquiring information to source what Legendary needs.
“Heidi has always been professional, and is always looking out for your interests. She qualifies the partners and suppliers in China, developing a good, trusting relationship. The key aspect is that companies looking to do business in China need someone to pre-qualify the suppliers and partners overseas, as there are many companies from which to choose. This is a major aspect, to say nothing of the quality coming out of those companies. Trust is the biggest issue—having a confident answer to the question of whether your supplier will use your tools to make parts for your competitors.
“Heidi has opened doors for Legendary. She has managed the process for two huge products and 6 other items that will be huge in Legendary’s future growth. Heidi continues to be effective in helping Legendary identify alternative suppliers for existing products.
“Heidi cares about her clients’ business, and is very talented. She can educate, groom and tutor those preparing to do business in China. She knows how to greet and introduce people.”
By Martin Beckenback, President, Legendary Auto Interiors