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ACHIEVING WIN-WIN
OUTSOURCING RELATIONSHIPS
It is important that a multi-year manufacturing agreement be established between the client and contract manufacturer prior to beginning work. This ensures that mutual expectations are clear and that 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, key performance measures and program support staffing. Contract negotiation is often expeditious, 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 contract manufacturer can make reasonable and acceptable profit given the client’s requirements – a "win-win" business relationship. | 
