There are a lot of businesses out there that depends on the manufacturers of their products, also called Electronic Manufacturing Services (EMS). The success and failures of such endeavors greatly depend on the quality of the relationship both parties have. It’s not just about the money. It’s not just about the quality of the products. A huge portion involves the quality of their relationship.
Most of established businesses executives can attest the truth around this notion. There are instances in a business’ timeline when the thorns on the bed of roses are felt. Moreover, these situations can be avoided if only a solid relationship between the contract manufacturer and vendor has been established.
We’ve compiled a few tips on how to build the best relationship with electronic manufacturing companies.
Know them up close and personal
One tip in finding the right manufacturer to partner with is by doing some research on your prospects. Meeting with them personally is much better than just by communicating with them over the phone or by email. Set some time to visit his office or his factory.
Going up close and personal is the best method to know the important information you’ll need before jumping on a deal.
In short, know the character of the person that you are dealing with. Learn about the history of their company, their current business atmosphere, the clients they serve, and the quality of the products they manufacture.
Share information about your competitions
It is best to lay down your cards at the very start. Don’t hesitate to share with your future manufacturer the competition you face in your line of business.
Show the quality of the products, the chain of supply, the transit schedule, and whatnot. Check if the manufacturer can match or provide better products than your competitors. This will show that you’re intending to become a major player in the industry.
Of course, you wouldn’t want to work with your competitor’s manufacturer. An NDA (nondisclosure agreement) can keep your IP (intellectual property) safe,
Avoid Lowballing
This tip is for first order situations. There are secrets of the trade that every negotiator should learn. We all want the best price but it doesn’t necessarily mean it’s the lowest price. Negotiating to a point where there’s still some profit that can be made is enough. This is to show that you are serious in working together.
Once you get both the trust and confidence of your manufacturer, both of you can discuss for a better arrangement that’s amenable for both parties. When both parties are happy, the relationship will ultimately strengthen through the years that lie ahead.
Show them that your relationship matters
Find time to connect with your manufacturer most importantly during special occasions like birthdays, holidays, and after a successful production cycle. We constantly connect with our EMS partners and customers through social media and other forms of communication. It’s just that easy.
Conclusion
The electronic manufacturing industry is a global stage. Cultures are way much different compared to what we have here in the US.
There are certain aspects in the business wherein knowing your partners at a personal level can help in nurturing the relationship. This is very important especially with electronics manufacturers who are based overseas, like China, for example.
Follow the tips presented and it will surely lead to a better and genuine relationship with your manufacturers. There’s nothing to lose and it will be advantageous to you in the long run.
