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It is very important that a manufacturing agreement be established between
the client and contract manufacturer prior to beginning work. This ensures
that mutual expectations are clear and mechanisms are in place for
continued improvement. The structure and content of the contract will vary
considerably depending upon individual client needs. Typical negotiable
elements include product and service pricing, nature and frequency of cost
and price reviews, cost improvements and how shared, performance measures
and program support staffing. Contract negotiation can be expeditious with
good preparation, though a program’s complexity may require that more
time be spent on the process.
During contract negotiation, CMC can act as a facilitator between the two parties or work behind the scenes in an advisory
capacity.
In either role, our involvement in contract negotiation includes helping achieve the lowest possible pricing at which the provider of electronics manufacturing services can make reasonable and acceptable profit given the client's requirements - a
"win-win" business relationship.
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