How to Negotiate Flexibility Into a Manufacturing Collective Agreement
- 1
Contract manufacturingcell phone image by sonya etchison from Fotolia.com
Research the interest of the company that you represent and determine the most favorable outcome for the laborers as well as the investors over 1-, 5- and 10-year periods before entering into negotiations for contract manufacturing. - 2
Consumer interestconsumer girl image by Lev Dolgatshjov from Fotolia.com
Survey a significant percentage of the OEM market, meaning the population that buys products manufactured by one company and distributed by another, to determine the interest of the consumers in exchanging their hard-earned dollars for your product. - 3
Sufficient income to stay in businessmoney money image by Valentin Mosichev from Fotolia.com
Assess market directions and derive a ballpark rate of inflation, giving you sufficient room to maneuver so that at either the conservative or high side of the numbers, your company will have sufficient income to stay in business and keep its workforce paid. - 4
Investigate OEM fundamentalsfinancial charts image by Chad McDermott from Fotolia.com
Investigate the history and fundamentals of the OEMs that you are entertaining for your product. Make sure that they are financially solid and have a background of flexibility in negotiating agreements to allow for labor, material and global economic resource fluctuations. - 5
Legal team with experienceTeam work image by Ricardo Verde Costa from Fotolia.com
Hire a legal team that has extensive background in contract manufacturing, in the international OEM market, and preferably experience in negotiating a manufacturing collective agreement. - 6
Preferred end resultthe best result. image by Yuri Bizgaimer from Fotolia.com
Write out the preferred result of the negotiations in full detail. This will help bring to light issues that need to be handled. - 7
Explore all solutions and write down the best.book image by Kkatka from Fotolia.com
Determine the opposition that the contract manufacturing companies may have to your proposals. Find a solution for them so that all opposition is resolved at the start of the negotiations. The best way to enter a negotiation is knowing that your proposal is a win for both parties. The preparation for the negotiations gives you the opportunity to find out what it will take to get a unanimous decision. - 8
International lawlaw courts image by Peter Helin from Fotolia.com
Assign the legal team to identify and incorporate all laws pertaining to the OEM market and the country of the labor team assembling the product. - 9
Levels of flexibilityspiral close up image by Aleksandr Ugorenkov from Fotolia.com
Storyboard the process of the negotiation: how you want the negotiations to proceed. This will help you prepare for areas of disagreement that you have already identified. Being prepared for every eventuality is one of your strongest tools. Once you have the background of all the issues that you know could arise, you can build in levels of flexibility with which you know your company and the contract manufacturing companies can agree. Any new issues will be easy to resolve because the entities assembled are already in a pattern of agreement. Then all that is left for everyone involved is to sign the paperwork.
Source...