Building Client Partnerships and Strategic Alliances
Transcript of Building Client Partnerships and Strategic Alliances
`Building Client Partnerships`Building Client Partnerships&
Strategic Alliances`
COLIN THOMPSON
Building ClientBuilding Client
Partnerships &Partnerships &
Strategic AlliancesStrategic AlliancesStrategic AlliancesStrategic Alliances
A Major Differentiation for DistributorsA Major Differentiation for Distributorsin a Commodity Worldin a Commodity Worldin a Commodity Worldin a Commodity World
HENRY DAVID THOREAU .
THINGS DO NOT CHANGE: WE CHANGE.
Answer 1 Questions Regularly:Answer 1 Questions Regularly:Answer 1 Questions Regularly:Answer 1 Questions Regularly:
How Can We Better ServeHow Can We Better ServeCustomers?Customers?
WHATEVER THE MIND OF MAN/WOMAN CAN CONCEIVEAND BELIEVE IT CAN ACHIEVE.NAPOLEON HILL
A Long Term,A Long Term,A Long Term,A Long Term,
NonNon--SimplisticSimplistic
ProcessProcessProcessProcess
COMING TOGETHER IS A BEGINNING;KEEPING TOGETHER IS PROCESS;WORKING TOGETHER IS SUCCESS
HENRY FORD
Driven by the Regularly AskedDriven by the Regularly AskedQuestion...Question...
How Can WeHow Can WeHow Can WeHow Can WeBetter ServeBetter ServeCustomers?Customers?Customers?Customers?
Who has aWho has aPartnershipPartnership
or Strategicor StrategicAlliancesAlliances
with a Prime Client?with a Prime Client?with a Prime Client?with a Prime Client?
ƒƒ Customers seek every opportunity to increase profitsCustomers seek every opportunity to increase profits
In a very competitive environmentIn a very competitive environment
Driving ForcesDriving Forces
ƒƒ In a very competitive environmentIn a very competitive environment
ƒƒ Drive out unnecessary costsDrive out unnecessary costs
ƒƒ Sales people must understand the customers economicsSales people must understand the customers economics
ƒƒ Create and drive business results for themCreate and drive business results for them
ƒƒ Not new, but global competition andNot new, but global competition and commodizationcommodization ofofmarkets makes this more a realitymarkets makes this more a realitymarkets makes this more a realitymarkets makes this more a reality
HP and FordHP and Fordƒƒ Objective: Consistent global printing and imagingObjective: Consistent global printing and imagingstrategystrategystrategystrategy
ƒƒ Save up to 30%Save up to 30%
ƒƒ Manage costsManage costs
ƒƒ Ford can focus on its businessFord can focus on its business
ƒƒ HP focus of imaging and printingHP focus of imaging and printing
ƒƒ Non piecemeal approachNon piecemeal approach
ƒƒ IntegrationIntegration
ƒƒ Total Print Management SolutionsTotal Print Management Solutions
The Simple Start:The Simple Start:
Ask Questions!Ask Questions!ƒƒ What are the customer's goals?What are the customer's goals?
ƒƒ How do they make money?How do they make money?ƒƒ How do they make money?How do they make money?
ƒƒ What can we do to help them expand theirWhat can we do to help them expand theirbusiness?business?
ƒƒ Who are the customer's customers?Who are the customer's customers?
ƒƒ How can we help add value added to the customer'sHow can we help add value added to the customer'scustomers?customers?
How can we save the customer $?How can we save the customer $?ƒƒ How can we save the customer $?How can we save the customer $?
ƒƒ How can we increase the customers' sales?How can we increase the customers' sales?
The Simple Start:The Simple Start:
Ask Questions!Ask Questions!ƒƒ How can we improve our services?How can we improve our services?
ƒƒ What can we do better?What can we do better?ƒƒ What can we do better?What can we do better?
ƒƒ How can we respond faster?How can we respond faster?
ƒƒ How can we change invoicing to make it easier forHow can we change invoicing to make it easier forour customers?our customers?
ƒƒ How can we be easier to deal with?How can we be easier to deal with?
ƒƒ How can we be less expensive?How can we be less expensive?
How can we drive out unnecessary costs?How can we drive out unnecessary costs?ƒƒ How can we drive out unnecessary costs?How can we drive out unnecessary costs?
ƒƒ What have we learned?What have we learned?
So What's New?So What's New?So What's New?So What's New?
SuccessfulSuccessfulDistributors HaveDistributors Have
Always Done This!!!Always Done This!!!Always Done This!!!Always Done This!!!
Why Partner?Why Partner?
ƒƒ Companies have no timeCompanies have no time
ƒƒ Require a broader range of servicesRequire a broader range of services
ƒƒ Both in print and nonBoth in print and non--print (the distributor'sprint (the distributor'sfocus and UNIQUEnessfocus and UNIQUEness
ƒƒ Multimedia inputs and outputsMultimedia inputs and outputs
ƒƒ Reducing risks of bad quality and missed deliveriesReducing risks of bad quality and missed deliveriesƒƒ Reducing risks of bad quality and missed deliveriesReducing risks of bad quality and missed deliveries
ƒƒ Companies must concentrate on their coreCompanies must concentrate on their coreproficienciesproficiencies
Our Agenda TodayOur Agenda Todayƒƒ What is a partnershipWhat is a partnership
ƒƒ StepStep--byby--step processstep processƒƒ StepStep--byby--step processstep process
ƒƒ Getting employees involvedGetting employees involved
ƒƒ Selecting prime prospectsSelecting prime prospects
ƒƒ Benefits to sellBenefits to sell
ƒƒ Creating a written agreementCreating a written agreement
ƒƒ Gives and getsGives and gets
ƒƒ Problem resolution, training, etc.Problem resolution, training, etc.
ƒƒ Goals for tomorrowGoals for tomorrow
Our Topic TodayOur Topic Today
I should provide an outline for a writtenI should provide an outline for a writtenƒƒ I should provide an outline for a writtenI should provide an outline for a writtenagreementagreement
ƒƒ This would be boringThis would be boring
ƒƒ Instead this is included with ideas on how toInstead this is included with ideas on how tosell the partnershipsell the partnership
DigitalPrint ResourcesDigitalPrint Resources
ƒƒ Planning and executing a printer's entry andPlanning and executing a printer's entry andsuccess in the digital worldsuccess in the digital worldsuccess in the digital worldsuccess in the digital world
ƒƒ From electronic prepress to multimediaFrom electronic prepress to multimediaoutputoutput
ƒƒ Digital printing, Internet, Home Pages, CDDigital printing, Internet, Home Pages, CD
ƒƒ Partnering, purchasing, pricingPartnering, purchasing, pricing
TrainingTrainingƒƒ TrainingTraining
ƒƒ Onto the 21st CenturyOnto the 21st Century
The World of Print TomorrowThe World of Print Tomorrow
ƒƒ Digital transformationDigital transformation
ƒƒ Stringer competition from partnershipStringer competition from partnershiporiented printers (FedEx a printer?)oriented printers (FedEx a printer?)
ƒƒ From customer satisfaction to client delightFrom customer satisfaction to client delight
ƒƒ Vertical concentration and knowledgeVertical concentration and knowledge
ƒƒ Print and multimedia integrationPrint and multimedia integrationƒƒ Print and multimedia integrationPrint and multimedia integration
ƒƒ Human resource is changingHuman resource is changing
ƒƒ The era of partnershipsThe era of partnerships
What Do You Gain?What Do You Gain?
ƒƒ Permanent relationship between partnersPermanent relationship between partners
Reduced paperwork for bothReduced paperwork for bothƒƒ Reduced paperwork for bothReduced paperwork for both
ƒƒ Greater profit potential for youGreater profit potential for you
ƒƒ Significantly reduced sales costsSignificantly reduced sales costs
ƒƒ Improved quality andImproved quality and communicationscommunications
ƒƒ Improved working relationshipsImproved working relationshipsImproved working relationshipsImproved working relationships
ƒƒ Team involvementTeam involvement
ƒƒ Enhanced serviceEnhanced service
What Do You Gain?What Do You Gain?
ƒƒ Volume commitmentVolume commitment
Cleaner order processingCleaner order processingƒƒ Cleaner order processingCleaner order processing
ƒƒ Prompt paymentPrompt payment
ƒƒ Market intelligence and feedbackMarket intelligence and feedback
ƒƒ LoyaltyLoyalty
ƒƒ Structured communicationsStructured communicationsStructured communicationsStructured communications
ƒƒ Prompt notification of errorsPrompt notification of errors
ƒƒ Growth commitmentGrowth commitment
What Do You Gain?What Do You Gain?
ƒƒ Guaranteed meeting of mutually set goalsGuaranteed meeting of mutually set goalsƒƒ Guaranteed meeting of mutually set goalsGuaranteed meeting of mutually set goals
ƒƒ SSignificant time savingsignificant time savings
ƒƒ Less mistakes and product not to specsLess mistakes and product not to specs
ƒƒ Relationship versus biddingRelationship versus bidding
Characteristic of a PartnershipCharacteristic of a Partnershipƒƒ Evolving process of mutual commitment & trustEvolving process of mutual commitment & trust
ƒƒ Joint acceptance of written expectationsJoint acceptance of written expectationsƒƒ Joint acceptance of written expectationsJoint acceptance of written expectations
ƒƒ Written guidelines vs. contractual agreementWritten guidelines vs. contractual agreement
ƒƒ Company wide effortCompany wide effort
ƒƒ Mutually interested in each others successMutually interested in each others success
ƒƒ Ongoing relationship based on criteria being metOngoing relationship based on criteria being met
ƒƒ Realistic profitsRealistic profits
ƒƒ Cost effective for bothCost effective for both
ƒƒ Time effective for allTime effective for all
Attributes of a PartnershipsAttributes of a Partnershipsƒƒ Not a contract but an agreementNot a contract but an agreement
ƒƒ Predefined standardsPredefined standardsƒƒ Predefined standardsPredefined standards
ƒƒ Pricing agreementPricing agreement
ƒƒ Joint trainingJoint training
ƒƒ Technological consultancyTechnological consultancy
ƒƒ TopTop--down & downdown & down--upup
ƒƒ NonNon--purchasing orientedpurchasing oriented
ƒƒ Top management involvementTop management involvement
ƒƒ A system vs. a contractA system vs. a contract
Who Seeks Partnerships?Who Seeks Partnerships?
ƒƒ Japanese style companiesJapanese style companies
German style companiesGerman style companiesƒƒ German style companiesGerman style companies
ƒƒ Overseas companiesOverseas companies
ƒƒ Large national companiesLarge national companies
ƒƒ Companies with repetitive orders on a tightCompanies with repetitive orders on a tightscheduleschedule
ƒƒ Quality driven companiesQuality driven companies
ƒƒ Smaller companies with no purchasing agentSmaller companies with no purchasing agent
Who are Your Future CustomerWho are Your Future CustomerPartners?Partners?
Advantages to PartnershipsAdvantages to Partnerships
ƒƒ Better planning for economical productionBetter planning for economical productionƒƒ Better planning for economical productionBetter planning for economical production
ƒƒ Volume commitmentVolume commitment
ƒƒ Prompt paymentPrompt payment
ƒƒ Accurate orders (via training)Accurate orders (via training)
ƒƒ More accurate market informationMore accurate market information
Prompt response to complaintsPrompt response to complaintsƒƒ Prompt response to complaintsPrompt response to complaints
ƒƒ LoyaltyLoyalty
Advantages to PartnershipsAdvantages to Partnerships
ƒƒ Cleaner order processingCleaner order processing
Familiarity with key contactsFamiliarity with key contactsƒƒ Familiarity with key contactsFamiliarity with key contacts
ƒƒ Prompt response to quotesPrompt response to quotes
ƒƒ Technical supportTechnical support
ƒƒ Market intelligence and feedbackMarket intelligence and feedback
ƒƒ Consistent qualityConsistent qualityƒƒ Consistent qualityConsistent quality
ƒƒ On time deliveryOn time delivery
ƒƒ Know costsKnow costs
Advantages to PartnershipsAdvantages to Partnerships
ƒƒ Structured communicationsStructured communications
ƒƒ Enhance financial stabilityEnhance financial stability
ƒƒ Better fit of jobsBetter fit of jobs
ƒƒ Enhanced pricing from providersEnhanced pricing from providers
Advantages to PartnershipsAdvantages to Partnerships
ƒƒ Operating efficiencyOperating efficiencyƒƒ Operating efficiencyOperating efficiency
ƒƒ Structured communicationsStructured communications
ƒƒ Technology hotlineTechnology hotline
ƒƒ Digital transformationDigital transformation
ƒƒ Prompt response to problemsPrompt response to problems
Technical supportTechnical supportƒƒ Technical supportTechnical support
ƒƒ HonestyHonesty
Benefits to Both PartnersBenefits to Both Partners
ƒƒ A permanent relationshipA permanent relationship
Reduced paperworkReduced paperworkƒƒ Reduced paperworkReduced paperwork
ƒƒ Computer ordering, tracking, shipping,Computer ordering, tracking, shipping,billingbilling
ƒƒ Know cost and profitsKnow cost and profits
ƒƒ Reduced sales and service costsReduced sales and service costsReduced sales and service costsReduced sales and service costs
ƒƒ Win/winWin/win
ƒƒ Enhanced peopleEnhanced people--toto--people knowledgepeople knowledge
Benefits to Both PartnersBenefits to Both Partners
ƒƒ The Team vs. The VendorThe Team vs. The Vendorƒƒ The Team vs. The VendorThe Team vs. The Vendor
ƒƒ Enhanced communicationsEnhanced communications
ƒƒ Technological compatibilityTechnological compatibility
ƒƒ Better schedulingBetter scheduling
ƒƒ Priority status at no additional costPriority status at no additional cost
Guaranteed businessGuaranteed businessƒƒ Guaranteed businessGuaranteed business
ƒƒ Guaranteed resultsGuaranteed results
Benefits to Both PartnersBenefits to Both Partners
ƒƒ Preselected criteria and specificationsPreselected criteria and specificationsPreselected criteria and specificationsPreselected criteria and specifications
ƒƒ Enhanced trainingEnhanced training
ƒƒ We know them and they know usWe know them and they know us
ƒƒ BondingBonding
ƒƒ Enhanced customer serviceEnhanced customer service
ƒƒ Better use of partner's people timeBetter use of partner's people timeƒƒ Better use of partner's people timeBetter use of partner's people time
ƒƒ Equivalent service, good & bad timesEquivalent service, good & bad times
Benefits to Both PartnersBenefits to Both Partners
ƒƒ Financial integrityFinancial integrityƒƒ Financial integrityFinancial integrity
ƒƒ Delivery guaranteedDelivery guaranteed
ƒƒ Custom packagingCustom packaging
ƒƒ Complimentary tests and creativeComplimentary tests and creative
ƒƒ Hot line, dedicated faxHot line, dedicated fax
InIn--house CSRhouse CSRƒƒ InIn--house CSRhouse CSR
ƒƒ Reduced estimatingReduced estimating
Building BlocksBuilding Blocks
ƒƒ Common objectivesCommon objectives
Listing of responsibilities and expectationsListing of responsibilities and expectationsƒƒ Listing of responsibilities and expectationsListing of responsibilities and expectations
ƒƒ Regular review and enhancementsRegular review and enhancements
ƒƒ Commitment of resources (people, time, $)Commitment of resources (people, time, $)
ƒƒ Requirements definedRequirements defined
ƒƒ Sharing of information (plans, progress andSharing of information (plans, progress andSharing of information (plans, progress andSharing of information (plans, progress andproblems)problems)
ƒƒ SShared risks & mutual support for QChared risks & mutual support for QC
Building BlocksBuilding Blocks
ƒƒ Open booksOpen booksƒƒ Open booksOpen books
ƒƒ Profits and costs savings to botProfits and costs savings to bothh
ƒƒ Technological exchangeTechnological exchange
ƒƒ IntegrityIntegrity
DesireDesire
Key Words in a Strategic AllianceKey Words in a Strategic Alliance
ƒƒ TeamworkTeamwork
DesireDesire ƒƒ DesireDesire
ƒƒ ResponsivenessResponsiveness
ƒƒ MotivatedMotivated
ƒƒ Results orientedResults oriented
ƒƒ Professional;Professional;
ƒƒ DesireDesire
ƒƒ proactiveproactive
ƒƒ CooperationCooperation
ƒƒ AdaptabilityAdaptability
ƒƒ DependabilityDependability Professional;Professional;
ƒƒ EnthusiasticEnthusiastic
ƒƒ Follow throughFollow through
DependabilityDependability
ƒƒ LoyaltyLoyalty
Creating UnderstandingCreating Understanding
ƒƒ Quarterly introduction meetingQuarterly introduction meetingƒƒ Quarterly introduction meetingQuarterly introduction meeting
ƒƒ Semiannual Introduction to PrintSemiannual Introduction to Printsemiannual seminarsemiannual seminar
ƒƒ Annual planning and review retreatAnnual planning and review retreat
ƒƒ Specially organized educational workshopSpecially organized educational workshopon specific issueson specific issueson specific issueson specific issues
ƒƒ Partnership Information manualPartnership Information manual
PricingPricing
ƒƒ Open booksOpen booksƒƒ Open booksOpen books
ƒƒ Estimates turnaround, formats,Estimates turnaround, formats,markupsmarkups
ƒƒ Outside suppliers and services costOutside suppliers and services cost
ƒƒ Author alterationsAuthor alterations
ƒƒ Labor costsLabor costsƒƒ Labor costsLabor costs
ƒƒ Billing formatBilling format
Selling the PartnershipSelling the Partnershipƒƒ Must sell as a consultantMust sell as a consultant
ƒƒ Sell up and down the executive ladderSell up and down the executive ladderƒƒ Sell up and down the executive ladderSell up and down the executive ladder
ƒƒ Including the CEO and CFOIncluding the CEO and CFO
ƒƒ Illustrate overall Impact bottom line profitsIllustrate overall Impact bottom line profits
ƒƒ Make the company more competitiveMake the company more competitive
ƒƒ Preserve capital for investmentPreserve capital for investment
ƒƒ Convert investments into superior resultsConvert investments into superior results
ƒƒ Improve the competence, knowledge andImprove the competence, knowledge andproductivity of employeesproductivity of employees
Selling the PartnershipSelling the Partnership
Develop alliances with functional managersDevelop alliances with functional managersƒƒ Develop alliances with functional managersDevelop alliances with functional managers
ƒƒ How to improve their operationsHow to improve their operations
ƒƒ When to improve their operationsWhen to improve their operations
ƒƒ Where to improve their operationWhere to improve their operation
ƒƒ How can what you do affect their operationsHow can what you do affect their operationsHow can what you do affect their operationsHow can what you do affect their operations
ƒƒ "I want to work with you""I want to work with you"
Selling the PartnershipSelling the Partnership
ƒƒ Alliances with purchasing managersAlliances with purchasing managersƒƒ Alliances with purchasing managersAlliances with purchasing managers
ƒƒ Value considerations must replace priceValue considerations must replace price
ƒƒ Develop profit improvement proposals inDevelop profit improvement proposals incollaborationcollaboration
ƒƒ Develop and implementation exchangeDevelop and implementation exchange
ƒƒ Access to higher managementAccess to higher managementƒƒ Access to higher managementAccess to higher management
ƒƒ Access to informationAccess to information
Customer "Gets"Customer "Gets"
ƒƒ ConfidentialityConfidentiality
ƒƒ Prompt response to problemsPrompt response to problems
ƒƒ Employee trainingEmployee training
ƒƒ Better proceduresBetter procedures
ƒƒ Know pricingKnow pricingƒƒ Know pricingKnow pricing
ƒƒ Self analysis via suppliers, customers, employees &Self analysis via suppliers, customers, employees &implementation of action planimplementation of action plan
Stages to Building PartnersStages to Building Partners
implementation of action planimplementation of action plan
ƒƒ Implement action plans via customer service, employeeImplement action plans via customer service, employeetraining and measurementtraining and measurement
ƒƒ Evaluate potential partners and selectEvaluate potential partners and select
ƒƒ Establish mutual goals, agreement to gives & gets, mutualEstablish mutual goals, agreement to gives & gets, mutualperformance standardsperformance standards
Maintain partnership via self analysis, goal review, settingMaintain partnership via self analysis, goal review, settingƒƒ Maintain partnership via self analysis, goal review, settingMaintain partnership via self analysis, goal review, settingnew goals and strategiesnew goals and strategies
Question andQuestion andCommentsCommentsCommentsComments
Evaluations & OrderEvaluations & OrderFormsForms
Additional InformationAdditional InformationAdditional InformationAdditional Informationto Build Yourto Build YourPartnershipPartnership
Knowledge andKnowledge andWritten AgreementWritten Agreement
Knowledge andKnowledge andWritten AgreementWritten Agreement
AdditionalAdditional
ƒƒ Potential partner analysisPotential partner analysis
Setting performance standards &Setting performance standards &ƒƒ Setting performance standards &Setting performance standards &measurementsmeasurements
ƒƒ Selecting potential partnersSelecting potential partners
ƒƒ Mutually agreed upon goals and objectivesMutually agreed upon goals and objectives
ƒƒ Standards to be setStandards to be set
ƒƒ TrainingTraining
ƒƒ Yearly review processYearly review process
Stage 1Stage 1 -- Potential Partner AnalysisPotential Partner Analysis
ƒƒ Begins with survey and auditsBegins with survey and audits
Cover letter from the President explaining whyCover letter from the President explaining whyƒƒ Cover letter from the President explaining whyCover letter from the President explaining why
ƒƒ Obtain client perceptionsObtain client perceptions
ƒƒ Report back results to clients, employees & vendorsReport back results to clients, employees & vendors
ƒƒ Begin with surveying employeesBegin with surveying employees
ƒƒ Then vendorsThen vendorsThen vendorsThen vendors
ƒƒ Repeat every two to three yearsRepeat every two to three years
Stage 1Stage 1 -- Potential Partner AnalysisPotential Partner Analysis
ƒƒ Rate scale 1 t0 10 (Absolutely important 10; of noRate scale 1 t0 10 (Absolutely important 10; of noRate scale 1 t0 10 (Absolutely important 10; of noRate scale 1 t0 10 (Absolutely important 10; of noimportance 1)importance 1)
Courtesy & helpfulness of customer serviceCourtesy & helpfulness of customer service
Phone calls returned promptlyPhone calls returned promptly
Reliable, technical knowledgeReliable, technical knowledge
Relaying of critical information prior to problemRelaying of critical information prior to problem
Timely estimatesTimely estimates
Suggestions on how to improve qualitySuggestions on how to improve quality
Stage 1Stage 1 -- Potential Partner AnalysisPotential Partner Analysis
Rapid response to service needsRapid response to service needs
FollowFollow--up on specs and instructionsup on specs and instructionsFollowFollow--up on specs and instructionsup on specs and instructions
Suggestions to improve quality or valueSuggestions to improve quality or value
Timely proofs, correct, easy to understandTimely proofs, correct, easy to understand
OnOn--time deliverytime delivery
Responsiveness to rush requestsResponsiveness to rush requests
Flexibility to meet unusual requestsFlexibility to meet unusual requestsFlexibility to meet unusual requestsFlexibility to meet unusual requests
ƒƒ What else?What else?
Stage 2Stage 2 -- Implement ChangeImplement Change
ƒƒ Set performance standards & measurementsSet performance standards & measurementsSet performance standards & measurementsSet performance standards & measurements
Prompt & accurate invoicesPrompt & accurate invoices
Accurate packing listsAccurate packing lists
Carton markingCarton marking
PackagingPackaging
Manufacturing standardsManufacturing standards
What else?What else?
Stage 2Stage 2 -- Implement ChangeImplement Change
ƒƒ Create special product & service satisfiesCreate special product & service satisfiesCreate special product & service satisfiesCreate special product & service satisfies
Electronic orderingElectronic ordering
Dedicated fax or personsDedicated fax or persons
800 number800 number
ee--Mail and CRMMail and CRM
Warehousing or JITWarehousing or JIT
Stage 3Stage 3 -- Select Potential PartnersSelect Potential Partners
Review entire list of clients & prospectsReview entire list of clients & prospectsƒƒ Review entire list of clients & prospectsReview entire list of clients & prospects
ƒƒ Review business news for partnership cos.Review business news for partnership cos.
ƒƒ Initiate top level discussionsInitiate top level discussions
ƒƒ Partnering surveyPartnering survey
ƒƒ Industry awarenessIndustry awareness
Stage 3Stage 3 -- Select Potential PartnersSelect Potential Partners
ƒƒ Gives & getsGives & gets
ƒƒ Preliminary pricingPreliminary pricing
ƒƒ Open booksOpen books
ƒƒ Review proceduresReview procedures
Stage 3Stage 3 -- Select Potential PartnersSelect Potential Partners
ƒƒ SelectSelectƒƒ SelectSelect
ƒƒ Determine what they wantDetermine what they want
ƒƒ Visit your plantVisit your plant
ƒƒ Visit their facilitiesVisit their facilities
ƒƒ Top level executive involvementTop level executive involvement
Key people meetKey people meetƒƒ Key people meetKey people meet
ƒƒ Develop benefit statementsDevelop benefit statements
Select Potential PartnersSelect Potential Partners
ƒƒ Divorce proceduresDivorce proceduresƒƒ Divorce proceduresDivorce procedures
ƒƒ Attributes and standardsAttributes and standards
ƒƒ Automatic renewalAutomatic renewal
ƒƒ Written agreementWritten agreement
ƒƒ SigningSigning
Copy distributionCopy distributionƒƒ Copy distributionCopy distribution
ƒƒ Training programsTraining programs
Select Potential PartnersSelect Potential Partners
ƒƒ Communications systemsCommunications systemsƒƒ Communications systemsCommunications systems
ƒƒ Regular monitoringRegular monitoring
ƒƒ Regular meetings & performanceRegular meetings & performance
Stage 4Stage 4 -- Select Gives & GetsSelect Gives & Gets
ƒƒ Mutually agreed upon goals and objectivesMutually agreed upon goals and objectivesMutually agreed upon goals and objectivesMutually agreed upon goals and objectives
ƒƒ WrittenWritten
ƒƒ Formal review every 3Formal review every 3--6 months6 months
ƒƒ Technology team to discuss results andTechnology team to discuss results andadvancements plannedadvancements planned
ƒƒ Shared cost of experimental workShared cost of experimental workƒƒ Shared cost of experimental workShared cost of experimental work
ƒƒ Assignments of specific employeesAssignments of specific employees
Stage 4Stage 4 -- Select Gives & GetsSelect Gives & Gets
ƒƒ Joint trainingJoint training
ƒƒ Communication systemsCommunication systems
ƒƒ Agreement on warehousing, JIT, shippingAgreement on warehousing, JIT, shipping
ƒƒ Sharing of office spaceSharing of office space
ƒƒ Computer links, dedicated faxComputer links, dedicated fax
ƒƒ Dedicated CSR and/or estimatorDedicated CSR and/or estimator
Volumes expected, $, products , whenVolumes expected, $, products , whenƒƒ Volumes expected, $, products , whenVolumes expected, $, products , when
ƒƒ Clean ordersClean orders
Stage 4Stage 4 -- Select Gives & GetsSelect Gives & Gets
ƒƒ Structured pricing inc. AAsStructured pricing inc. AAs
Delivery & scheduling enhancementsDelivery & scheduling enhancementsƒƒ Delivery & scheduling enhancementsDelivery & scheduling enhancements
ƒƒ Overs and undersOvers and unders
ƒƒ Improvements in communicationsImprovements in communications
ƒƒ Shipping notification, billing, etc.Shipping notification, billing, etc.
ƒƒ Confidentiality, financial info sharingConfidentiality, financial info sharingConfidentiality, financial info sharingConfidentiality, financial info sharing
ƒƒ Setting of standardsSetting of standards
Standards to be SetStandards to be Set
ƒƒ Standards could include:Standards could include:
Quantities per cartonQuantities per cartonQuantities per cartonQuantities per carton
Specs ink colorSpecs ink color
Stock paper and specsStock paper and specs
Obtaining nonObtaining non--stock paperstock paper
Normal delivery time on typical orderNormal delivery time on typical order
Overs and undersOvers and undersOvers and undersOvers and unders
Price increasesPrice increases
Standards to be SetStandards to be Set
ƒƒ Standards could include:Standards could include:
Loss or damagesLoss or damagesLoss or damagesLoss or damages
Creative assistanceCreative assistance
Payment termsPayment terms
Cancellation situationsCancellation situations
Stage 4Stage 4 -- Select Gives & GetsSelect Gives & Gets
ƒƒ Change situationsChange situations
Order acknowledgmentOrder acknowledgmentƒƒ Order acknowledgmentOrder acknowledgment
ƒƒ Rescheduling on delaysRescheduling on delays
ƒƒ Inventory levelsInventory levels
ƒƒ Communications standardsCommunications standards
ƒƒ TrainingTrainingƒƒ TrainingTraining
ƒƒ Joint effortsJoint efforts
ƒƒ Dot gainDot gain
ƒƒ Densitometer readingDensitometer reading
ƒƒ Proof typeProof type
ƒƒ SquarenessSquareness
Quality GoalsQuality Goals
ƒƒ Densitometer readingDensitometer reading
ƒƒ Color barsColor bars
ƒƒ GATF targetsGATF targets
ƒƒ GhostingGhosting
ƒƒ MoiréMoiré
ƒƒ HickeysHickeys
ƒƒ SquarenessSquareness
ƒƒ Page countPage count
ƒƒ BindingBinding
ƒƒ Packing & markingPacking & marking
ƒƒ OversOvers && undersunders
ƒƒ Review processReview process
ƒƒ Paper & ink specsPaper & ink specs ƒƒ UpgradesUpgrades
ƒƒ Bad materialsBad materials
Pricing GoalsPricing Goalsƒƒ Job costingJob costing
ƒƒ MarkupMarkupƒƒ DiscountsDiscounts
ƒƒ Interest on late payInterest on late payƒƒ MarkupMarkup
ƒƒ AAsAAs
ƒƒ Paper costsPaper costs
ƒƒ Increased costsIncreased costs
ƒƒ Estimate formatEstimate format
ƒƒ Billing proceduresBilling procedures
ƒƒ Interest on late payInterest on late pay
ƒƒ Distribution of estimatesDistribution of estimatesand invoicesand invoices
ƒƒ Quarterly reviewQuarterly review
ƒƒ WarehousingWarehousing
ƒƒ FulfillmentFulfillmentBilling proceduresBilling procedures
ƒƒ Automation &Automation &computerizationcomputerization
ƒƒ FulfillmentFulfillment
ƒƒ Prepaid postagePrepaid postage
ƒƒ Print terminologyPrint terminology
Training GoalsTraining Goals
Print terminologyPrint terminology
ƒƒ Print processPrint process
ƒƒ Job flowJob flow
ƒƒ Estimating & costingEstimating & costing
ƒƒ People familiarityPeople familiarity
ƒƒ Technology updatesTechnology updatesƒƒ Technology updatesTechnology updates
ƒƒ DesktopDesktop
Training GoalsTraining Goals
ƒƒ DigitalDigital
ƒƒ CreativeCreative
ƒƒ The Strategic Alliance systemThe Strategic Alliance system
Training ProgramsTraining Programsƒƒ Order entryOrder entry
ƒƒ DesignDesignƒƒ DesignDesign
ƒƒ CreativeCreative
ƒƒ DesktopDesktop
ƒƒ SchedulingScheduling
ƒƒ Computer entryComputer entry
ƒƒ DigitalDigital
ƒƒ ShippingShipping
ƒƒ TerminologyTerminology
Yearly Review ProcessYearly Review Process
ƒƒ WhoWho
Items coveredItems coveredƒƒ Items coveredItems covered
ƒƒ New print product additionsNew print product additions
ƒƒ Old products eliminatedOld products eliminated
ƒƒ Change in standards and specificationChange in standards and specification
ƒƒ Expected volumes and specsExpected volumes and specsExpected volumes and specsExpected volumes and specs
ƒƒ PositioningPositioning
ƒƒ Adherence to goals and standardsAdherence to goals and standards
Communications GoalsCommunications Goals
ƒƒ Prime contactsPrime contacts
Estimating, planning, customer service, sales,Estimating, planning, customer service, sales,ƒƒ Estimating, planning, customer service, sales,Estimating, planning, customer service, sales,executives, shipping, proofs, changes,executives, shipping, proofs, changes,problemsproblems
ƒƒ Secondary contactsSecondary contacts
ƒƒ Design, DTP, type, copy, proof, creativeDesign, DTP, type, copy, proof, creative
Turnaround on estimatesTurnaround on estimatesƒƒ Turnaround on estimatesTurnaround on estimates
ƒƒ Order writeOrder write--upup
Communications GoalsCommunications Goals
ƒƒ Specifications confirmationSpecifications confirmation
Turn on schedulingTurn on schedulingƒƒ Turn on schedulingTurn on scheduling
ƒƒ Progress updateProgress update
ƒƒ Normal turnaroundNormal turnaround
ƒƒ Rush, overtime, weekends, holidaysRush, overtime, weekends, holidays
ƒƒ DelaysDelaysƒƒ DelaysDelays
ƒƒ Priority shipmentsPriority shipments
ƒƒ PartialsPartials
Communications GoalsCommunications Goals
ƒƒ CSR, sales and executives roleCSR, sales and executives roleCSR, sales and executives roleCSR, sales and executives role
ƒƒ Quarterly & yearly reviewsQuarterly & yearly reviews
ƒƒ Delivery time specsDelivery time specs
ƒƒ Call frequency (CSR & sales)Call frequency (CSR & sales)
ƒƒ In plant officeIn plant office
ƒƒ Priority communications systemsPriority communications systemsƒƒ Priority communications systemsPriority communications systems
ƒƒ Hotel visitsHotel visits
Stage 5: Quarterly & Yearly ReviewStage 5: Quarterly & Yearly Review
ƒƒ WhoWhoƒƒ WhoWho
ƒƒ WhenWhen
ƒƒ WhereWhere
ƒƒ TopicsTopics
ƒƒ StatisticsStatistics
Short fallShort fallƒƒ Short fallShort fall
Stage 5: Quarterly & Yearly ReviewStage 5: Quarterly & Yearly Review
ƒƒ Changes initiatedChanges initiatedƒƒ Changes initiatedChanges initiated
ƒƒ New standardsNew standards
ƒƒ Technological trainingTechnological training
ƒƒ New needsNew needs
ƒƒ Written promise to adhere to the terms of theWritten promise to adhere to the terms of theagreementagreement
Promises to Adhere To!Promises to Adhere To!
agreementagreement
ƒƒ Agreement to conduct a formal review of the successAgreement to conduct a formal review of the successand failures of the agreementand failures of the agreement
ƒƒ The importance of customer /user satisfaction inThe importance of customer /user satisfaction indefining all potential strategies for a successfuldefining all potential strategies for a successfulpartnershippartnership
Working together to establish mutual sales goals andWorking together to establish mutual sales goals andƒƒ Working together to establish mutual sales goals andWorking together to establish mutual sales goals andmarketing plansmarketing plans
ƒƒ Mutual opportunities for investing in productMutual opportunities for investing in product
The Partnership AttitudeThe Partnership Attitude
Should IncludeShould Include
resign or designresign or design
ƒƒ Management: unique skills within theManagement: unique skills within themanagement can be sharedmanagement can be shared
ƒƒ Facilities such as warehouse planningFacilities such as warehouse planning
ƒƒ Manpower: share training capabilitiesManpower: share training capabilitiesManpower: share training capabilitiesManpower: share training capabilities
ƒƒ Support in good and bad timesSupport in good and bad times
ƒƒ Efficient communicationsEfficient communications
The Partnership AttitudeThe Partnership Attitude
Should IncludeShould Include
ƒƒ Price has often erroneously been equated withPrice has often erroneously been equated withpartnering, even though price concessions arepartnering, even though price concessions arepartnering, even though price concessions arepartnering, even though price concessions arenot the purpose of a partnering relationship. Tonot the purpose of a partnering relationship. Toput the issue up front and get it over with, forput the issue up front and get it over with, forthose agreements that address price as anthose agreements that address price as anissue, the following terms may be consideredissue, the following terms may be consideredfor possible inclusion.for possible inclusion.for possible inclusion.for possible inclusion.
The Partnership AttitudeThe Partnership Attitude
Should IncludeShould Include
ƒƒ 1.1. A condition covering distributor profit/loss ifA condition covering distributor profit/loss ifthe partner fails to fill contracted capacitythe partner fails to fill contracted capacitythe partner fails to fill contracted capacitythe partner fails to fill contracted capacitywould probably become an issue only if thewould probably become an issue only if theagreement was for a product line that hadagreement was for a product line that hadorders in excess of capacity, and if otherorders in excess of capacity, and if otherorders were turned away due to theorders were turned away due to thecommitments made to produce the partner'scommitments made to produce the partner'scommitments made to produce the partner'scommitments made to produce the partner'sproducts.products.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Include
ƒƒ 2.2. On stock items, depending upon volume, some agreedOn stock items, depending upon volume, some agreedto pricing structure to make doing business easier and moreto pricing structure to make doing business easier and moreto pricing structure to make doing business easier and moreto pricing structure to make doing business easier and moreconsistent for both parties. It may be advantageous toconsistent for both parties. It may be advantageous toinclude cost up and cost down indexing parameters toinclude cost up and cost down indexing parameters toprotect both parties in the event of unusual price increases orprotect both parties in the event of unusual price increases ordecreases. These pricing structures are typically based ondecreases. These pricing structures are typically based onthe partner's volume projections after a careful analysis of histhe partner's volume projections after a careful analysis of hismarketing plans and current business conditions has beenmarketing plans and current business conditions has beenmarketing plans and current business conditions has beenmarketing plans and current business conditions has been
made.made.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Include
ƒƒ 3.3. Special terms of payment may beSpecial terms of payment may benegotiated with higher prompt pay and othernegotiated with higher prompt pay and othernegotiated with higher prompt pay and othernegotiated with higher prompt pay and otherdiscounts offered for certain volume, productdiscounts offered for certain volume, productmixes, or turnaround on invoices.mixes, or turnaround on invoices.
ƒƒ 4. Quality standards and specifications4. Quality standards and specifications
ƒƒ 5. Quality charge5. Quality charge--back provisions are usuallyback provisions are usuallyincorporated into partnering agreements.incorporated into partnering agreements.incorporated into partnering agreements.incorporated into partnering agreements.Some examples of items included are:Some examples of items included are:
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Include
ƒƒ A.A. A chargeA charge--back that may be some percentback that may be some percentof the purchase price to compensate for theof the purchase price to compensate for theof the purchase price to compensate for theof the purchase price to compensate for theinspection and handling required to take careinspection and handling required to take careof a defective product.of a defective product.
ƒƒ B.B. Procedures for handling reprints that coverProcedures for handling reprints that coverimmediate response to customer need as wellimmediate response to customer need as wellas a way to assign the costs of a rerun oras a way to assign the costs of a rerun oras a way to assign the costs of a rerun oras a way to assign the costs of a rerun orrepair.repair.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Include
ƒƒ C. Procedures for handling the costs ofC. Procedures for handling the costs offinancing accounts receivable while thefinancing accounts receivable while thefinancing accounts receivable while thefinancing accounts receivable while thenonconforming product is being repaired ornonconforming product is being repaired orrerun and the end user is holding up paymentrerun and the end user is holding up paymentuntil the issue is resolved.until the issue is resolved.
ƒƒ D.D. Procedures for handling anyProcedures for handling anyunrecoverable costs associated with rectifyingunrecoverable costs associated with rectifyingunrecoverable costs associated with rectifyingunrecoverable costs associated with rectifyinga quality problem, such as travel to a customera quality problem, such as travel to a customerfacility or shipment costs.facility or shipment costs.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Include
ƒƒ E.E. Procedures for addressing costs incurredProcedures for addressing costs incurredby the distributor for cleaning up a poorlyby the distributor for cleaning up a poorlyby the distributor for cleaning up a poorlyby the distributor for cleaning up a poorlyspecified order.specified order.
ƒƒ F.F. Guidelines for mistakes made in orderingGuidelines for mistakes made in orderingraw materials for a job when the error restsraw materials for a job when the error restswith the customer. Such items as millwith the customer. Such items as millrestocking charges and materials made torestocking charges and materials made torestocking charges and materials made torestocking charges and materials made tospecial order might be considered.special order might be considered.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Include
ƒƒ G.G. Procedures to follow when theProcedures to follow when theG.G. Procedures to follow when theProcedures to follow when thespecifications on a quote do not match thespecifications on a quote do not match theorder. These may address different areas oforder. These may address different areas ofresponsibility and costs associated with suchresponsibility and costs associated with sucherrors.errors.
ƒƒ H.H. Requirements for notification of materialRequirements for notification of materialsubstitutions or other changes to the originalsubstitutions or other changes to the originalsubstitutions or other changes to the originalsubstitutions or other changes to the originalspecifications of a job.specifications of a job.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Include
ƒƒ 6. Delivery promises, delays, mistakes6. Delivery promises, delays, mistakes6. Delivery promises, delays, mistakes6. Delivery promises, delays, mistakes
ƒƒ A.A. Detailed procedures for late deliveries canDetailed procedures for late deliveries cancover such issues as expedited shipments atcover such issues as expedited shipments atthe manufacturer's expense when the deliverythe manufacturer's expense when the deliverywas not in compliance with the delivery goalswas not in compliance with the delivery goalsof the agreement.of the agreement.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Include
ƒƒ B. Stipulations may be made for exact shipmentB. Stipulations may be made for exact shipmentquantities or reduced over/quantities or reduced over/undersunders from industryfrom industryquantities or reduced over/quantities or reduced over/undersunders from industryfrom industrystandards. When these terms have been agreedstandards. When these terms have been agreedupon, there is usually some provision for shortupon, there is usually some provision for short--shipsshipsand overand over--ships to compensate for excess inventoryships to compensate for excess inventory
or costs incurred with early restockingor costs incurred with early restocking..
The Partnership AgreementThe Partnership Agreement
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ƒƒ 7. Communications7. Communications
A. It is wise to spell out just what each partyA. It is wise to spell out just what each partyƒƒ A. It is wise to spell out just what each partyA. It is wise to spell out just what each partyexpects from the other in this most critical of allexpects from the other in this most critical of allconsiderations, business communications.considerations, business communications.Some items to be considered are:Some items to be considered are:
ƒƒ B.B. How orders are to be entered, how artworkHow orders are to be entered, how artworkwill be received, turnaround time forwill be received, turnaround time forwill be received, turnaround time forwill be received, turnaround time foracknowledgments, proofs, etc.acknowledgments, proofs, etc.
The Partnership AgreementThe Partnership Agreement
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ƒƒ C.C. If special account representatives will beIf special account representatives will beassigned, their duties and responsibilities shouldassigned, their duties and responsibilities shouldassigned, their duties and responsibilities shouldassigned, their duties and responsibilities shouldbe spelled out. Some items to be considered arebe spelled out. Some items to be considered areturnaround time on phone messages, quoteturnaround time on phone messages, quoterequests, and shipment status requests. Somerequests, and shipment status requests. Someother considerations may include:other considerations may include:
ƒƒ D. What happens when the specialD. What happens when the specialƒƒ D. What happens when the specialD. What happens when the specialrepresentative is unavailable, on vacation, orrepresentative is unavailable, on vacation, orabsent.absent.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Include
E. The training responsibilities one partnerE. The training responsibilities one partnerƒƒ E. The training responsibilities one partnerE. The training responsibilities one partnerhas to the other partner's customer supporthas to the other partner's customer supportrepresentatives, such as inrepresentatives, such as in--house tours andhouse tours andproduct training sessions.product training sessions.
ƒƒ F.F. A defined chain of command andA defined chain of command andunderstood procedures that can be followed byunderstood procedures that can be followed byunderstood procedures that can be followed byunderstood procedures that can be followed bythe representative when problems arise.the representative when problems arise.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Includeƒƒ G. A defined procedure for keeping theG. A defined procedure for keeping therepresentative aware of changes in the partner'srepresentative aware of changes in the partner'srepresentative aware of changes in the partner'srepresentative aware of changes in the partner'sbusiness environment: new personnel, etc., newbusiness environment: new personnel, etc., newproduct emphasis, new pricing, and any newproduct emphasis, new pricing, and any newprocedures that have been agreed to by partners.procedures that have been agreed to by partners.
ƒƒ H.H. The expected quality of communicationsThe expected quality of communicationsbetween the two parties should be detailed andbetween the two parties should be detailed andbetween the two parties should be detailed andbetween the two parties should be detailed andshould include provisions for dealing with shortfallsshould include provisions for dealing with shortfallsin performance. Some items to consider include:in performance. Some items to consider include:
The Partnership AgreementThe Partnership Agreement
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ƒƒ I. Quality and clarity of all specificationsI. Quality and clarity of all specificationsƒƒ I. Quality and clarity of all specificationsI. Quality and clarity of all specificationsgiven a manufacturer.given a manufacturer.
ƒƒ J.J. Timing and clarity of all acknowledgmentsTiming and clarity of all acknowledgmentsissued by the manufacturer or the distributor.issued by the manufacturer or the distributor.This may include a statement indicating theThis may include a statement indicating theresponsibility of the parties for checking allresponsibility of the parties for checking allresponsibility of the parties for checking allresponsibility of the parties for checking allacknowledgments, and procedures to followacknowledgments, and procedures to followwhen errors or omissions are discovered.when errors or omissions are discovered.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Includeƒƒ K.K. Detail on any requirements for the specialDetail on any requirements for the specialhandling or ordering of proofs, including the type of proofhandling or ordering of proofs, including the type of proofhandling or ordering of proofs, including the type of proofhandling or ordering of proofs, including the type of proofthat should be considered standard, turnaround time,that should be considered standard, turnaround time,order hold status during the proofing process, andorder hold status during the proofing process, andresponsibility for errors not detected during the proofingresponsibility for errors not detected during the proofingprocess.process.
ƒƒ L.L. Special services such as dedicated phone lines,Special services such as dedicated phone lines,dedicated faxes, or special order entry systems anddedicated faxes, or special order entry systems anddedicated faxes, or special order entry systems anddedicated faxes, or special order entry systems andprocedures designed to enhance the effectiveness ofprocedures designed to enhance the effectiveness of
communicationscommunications..
The Partnership AgreementThe Partnership Agreement
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ƒƒ 8.8. Procedures for a formal review process.Procedures for a formal review process.ƒƒ 8.8. Procedures for a formal review process.Procedures for a formal review process.Such a process should detail how often theSuch a process should detail how often thepartners will meet, what topics will bepartners will meet, what topics will bediscussed, and when the regularly scheduleddiscussed, and when the regularly scheduledpartnering performance reviews will occur.partnering performance reviews will occur.
The Partnership AgreementThe Partnership Agreement
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ƒƒ 9.9. Procedures for goalProcedures for goal--setting meetings tosetting meetings toƒƒ 9.9. Procedures for goalProcedures for goal--setting meetings tosetting meetings toinclude the renewal of the agreement and toinclude the renewal of the agreement and togenerate ideas for enhancement to thegenerate ideas for enhancement to thepartnership. These considerations maypartnership. These considerations maylogically follow a review process, or they maylogically follow a review process, or they mayintentionally be scheduled at a different time.intentionally be scheduled at a different time.
ƒƒ 10. Shipping, Labeling and Packaging10. Shipping, Labeling and Packaging
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Includeƒƒ A.A. How goods are shipped and quality of the shippingHow goods are shipped and quality of the shippingservices may be an issue with the parties involved. Someservices may be an issue with the parties involved. Someservices may be an issue with the parties involved. Someservices may be an issue with the parties involved. Someareas that may require documentation with the agreementareas that may require documentation with the agreementcould include:could include:
ƒƒ B.B. AgreedAgreed--upon transportation companies and levels ofupon transportation companies and levels oftransportation service (i.e., when expedited shipments willtransportation service (i.e., when expedited shipments willbe used and the cost allocations for those services).be used and the cost allocations for those services).
ƒƒ C.C. Treatment of charges for freight, who bills whom, andTreatment of charges for freight, who bills whom, andƒƒ C.C. Treatment of charges for freight, who bills whom, andTreatment of charges for freight, who bills whom, andat what point in the order cycle.at what point in the order cycle.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Includeƒƒ D.D. Charging structure, if any, and procedures for multipleCharging structure, if any, and procedures for multipleship locations on orders as well as requirements forship locations on orders as well as requirements forship locations on orders as well as requirements forship locations on orders as well as requirements forspecial labeling, packaging, skids, bar coding, etc.special labeling, packaging, skids, bar coding, etc.
ƒƒ E.E. Responsibilities for tracing lost shipments.Responsibilities for tracing lost shipments.
ƒƒ F.F. Procedures for informing the distributor, and theProcedures for informing the distributor, and thedistributor in turn notifying the customer, of deviations indistributor in turn notifying the customer, of deviations inthe expected ship date or the condition of the shipment,the expected ship date or the condition of the shipment,including the size of cartons, labeling and internalincluding the size of cartons, labeling and internalincluding the size of cartons, labeling and internalincluding the size of cartons, labeling and internalpackaging.packaging.
The Partnership AgreementThe Partnership Agreement
Could IncludeCould Includeƒƒ 11.11. Procedures for notification of nonconformanceProcedures for notification of nonconformanceto any of the conditions included in the agreement.to any of the conditions included in the agreement.to any of the conditions included in the agreement.to any of the conditions included in the agreement.
ƒƒ 12. Sharing of market intelligence. The benefits12. Sharing of market intelligence. The benefitsthat can accrue to the customer and distributor fromthat can accrue to the customer and distributor fromsharing market information cannot be stressedsharing market information cannot be stressedenough. If handled properly, this may perhaps beenough. If handled properly, this may perhaps bethe most important benefit of any partneringthe most important benefit of any partneringthe most important benefit of any partneringthe most important benefit of any partneringagreement. Some items to be considered include:agreement. Some items to be considered include:
The Partnership AgreementThe Partnership Agreement
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ƒƒ A. The means for conveying to partners newsA. The means for conveying to partners newson market and product conditions ason market and product conditions ason market and product conditions ason market and product conditions asdetermined by the distributorship's sales force.determined by the distributorship's sales force.Meetings can be conducted for this purpose onMeetings can be conducted for this purpose ona regular basis.a regular basis.
The Partnership AgreementThe Partnership Agreement
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ƒƒ B.B. A means for conveying to a distributor any leadsA means for conveying to a distributor any leadsthat a customer has developed, and the responsibilitythat a customer has developed, and the responsibilitythat a customer has developed, and the responsibilitythat a customer has developed, and the responsibilityof the distributor for following up on such leads.of the distributor for following up on such leads.
ƒƒ C.C. Details on who within each organization isDetails on who within each organization isresponsible for conveying and acting upon suchresponsible for conveying and acting upon suchinformation.information.
ƒƒ D.D. Issues that relate to the confidentiality of theIssues that relate to the confidentiality of theitems discussed between the partners.items discussed between the partners.items discussed between the partners.items discussed between the partners.
The Partnership AgreementThe Partnership Agreement
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ƒƒ 13.13. Parameters for sharing financialParameters for sharing financialinformation to ensure that each company hasinformation to ensure that each company hasinformation to ensure that each company hasinformation to ensure that each company hasthe ability to handle added volume, a newthe ability to handle added volume, a newaccount, or product development.account, or product development.
ƒƒ 14.14.Ground rules for joint ventures in productGround rules for joint ventures in productdevelopment or account/market penetration.development or account/market penetration.
15. Employee training.15. Employee training.ƒƒ 15. Employee training.15. Employee training.
The Partnership AgreementThe Partnership Agreement
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ƒƒ A greatly desired benefit for both parties isA greatly desired benefit for both parties isemployee training. Both parties to a partneringemployee training. Both parties to a partneringemployee training. Both parties to a partneringemployee training. Both parties to a partneringagreement can offer experiences that willagreement can offer experiences that willbenefit the overall effectiveness of each other'sbenefit the overall effectiveness of each other'semployees. A provision to be considered in anemployees. A provision to be considered in anagreement is the responsibility of each party toagreement is the responsibility of each party toassist in the training of the partner'sassist in the training of the partner'sassist in the training of the partner'sassist in the training of the partner'semployees.employees.
ƒƒ A visit to the plant or distributor's office is aA visit to the plant or distributor's office is acommon approach to basic employee training. Itcommon approach to basic employee training. It
The Partnership AgreementThe Partnership Agreement
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common approach to basic employee training. Itcommon approach to basic employee training. Itis also one way to improve communicationsis also one way to improve communicationsbetween the companies. Some distributors andbetween the companies. Some distributors andpartners have formal inpartners have formal in--house programs to whichhouse programs to whichthe other's employees may be invited. Still othersthe other's employees may be invited. Still othersmay consider sharing the costs of sendingmay consider sharing the costs of sendingmay consider sharing the costs of sendingmay consider sharing the costs of sendingpersonnel to appropriate educational programs.personnel to appropriate educational programs.
ƒƒ Training should develop a specific guide forTraining should develop a specific guide fordeveloping a training path for both distributordeveloping a training path for both distributor
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developing a training path for both distributordeveloping a training path for both distributorsales and customer support personnel.sales and customer support personnel.Aspects of this training path can beAspects of this training path can beincorporated into the partnering agreement,incorporated into the partnering agreement,and expectations for each party's complianceand expectations for each party's compliancewith formal employee training can be made awith formal employee training can be made awith formal employee training can be made awith formal employee training can be made apart of such an agreement.part of such an agreement.
ƒƒ The real success of a partnering agreementThe real success of a partnering agreementrests on how well and with what level ofrests on how well and with what level of
The Partnership AttitudeThe Partnership Attitude
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rests on how well and with what level ofrests on how well and with what level ofenthusiasm the companies' employeesenthusiasm the companies' employeesunderstand and carry out the agreedunderstand and carry out the agreed--uponuponprocedures. The more the employees knowprocedures. The more the employees knowabout the agreement, the reasons behind it,about the agreement, the reasons behind it,and the progress each company is making inand the progress each company is making inand the progress each company is making inand the progress each company is making inmeeting the goals of the agreement, themeeting the goals of the agreement, thestronger the relationship will be.stronger the relationship will be.
ƒƒ When people are informed, they can offerWhen people are informed, they can offerideas on how to make improvements. Aideas on how to make improvements. A
The Partnership AttitudeThe Partnership Attitude
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ideas on how to make improvements. Aideas on how to make improvements. Acompany's employees are its greatest enginecompany's employees are its greatest engineto produce positive change, and information isto produce positive change, and information isthe fuel that fires up the engine.the fuel that fires up the engine.
ƒƒ Another critical aspect to the success of aAnother critical aspect to the success of a
The Partnership AttitudeThe Partnership Attitude
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ƒƒ Another critical aspect to the success of aAnother critical aspect to the success of apartnering agreement is the personality of thepartnering agreement is the personality of thecompanies involved. The corporate personalitycompanies involved. The corporate personalitywill dictate how well the partnership will work.will dictate how well the partnership will work.
ƒƒ Especially for termination, the procedures to beEspecially for termination, the procedures to befollowed have to be carefully considered before hand.followed have to be carefully considered before hand.
The Partnership AgreementThe Partnership Agreement
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followed have to be carefully considered before hand.followed have to be carefully considered before hand.It is only reasonable to expect that certain businessIt is only reasonable to expect that certain businessrelationships will fail to meet the expectations of therelationships will fail to meet the expectations of theparticipantsparticipants -- or even fail altogether. This may beor even fail altogether. This may beespecially true of partnering agreements that areespecially true of partnering agreements that areformed hastily and without the necessary selfformed hastily and without the necessary self--formed hastily and without the necessary selfformed hastily and without the necessary self--evaluation and mutual evaluation required.evaluation and mutual evaluation required.
ƒƒ None of these benefits should be automaticallyNone of these benefits should be automaticallyassumed to be included in an agreement. Ifassumed to be included in an agreement. If
The Partnership AttitudeThe Partnership Attitude
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assumed to be included in an agreement. Ifassumed to be included in an agreement. Ifpartners decide that certain benefits will be anpartners decide that certain benefits will be anintegral part of their agreement, then theseintegral part of their agreement, then theseparticular benefits need to be detailed inparticular benefits need to be detailed inwriting. This will give each party a clearwriting. This will give each party a clearunderstanding of the other's intent and canunderstanding of the other's intent and canunderstanding of the other's intent and canunderstanding of the other's intent and cansave a lot of time clearing upsave a lot of time clearing upmisunderstandings later.misunderstandings later.
ƒƒ Changes and Termination . There are manyChanges and Termination . There are manyreasons to change or even terminate areasons to change or even terminate a
The Partnership AgreementThe Partnership Agreement
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reasons to change or even terminate areasons to change or even terminate apartnering agreement. To avoid bad feelings orpartnering agreement. To avoid bad feelings orstraining the relationship, and to provide for astraining the relationship, and to provide for asmooth transition if either of these actionssmooth transition if either of these actionsbecomes necessary, the partnering agreementbecomes necessary, the partnering agreementshould clearly describe the procedures forshould clearly describe the procedures forshould clearly describe the procedures forshould clearly describe the procedures formaking the change.making the change.
ƒƒ StandardsStandards -- the standards by which the distributor operatesthe standards by which the distributor operatesshould be clearly detailed. Quantities per carton, ink colors,should be clearly detailed. Quantities per carton, ink colors,
The Partnership AgreementThe Partnership Agreement
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should be clearly detailed. Quantities per carton, ink colors,should be clearly detailed. Quantities per carton, ink colors,delivery times, and stocked and not stocked substrates shoulddelivery times, and stocked and not stocked substrates shouldbe explicitly understood and provision made for requests thatbe explicitly understood and provision made for requests thatdeviate from standard. Some of these deviations may bedeviate from standard. Some of these deviations may beperformed gratis for certain customers (such as for Aperformed gratis for certain customers (such as for A--levellevelpartners) but will remain billable for other accounts. To avoidpartners) but will remain billable for other accounts. To avoidmisunderstandings, charge factors should be detailed in themisunderstandings, charge factors should be detailed in themisunderstandings, charge factors should be detailed in themisunderstandings, charge factors should be detailed in theagreement.agreement.
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ƒƒ Some areas of the agreement are moreSome areas of the agreement are moreamenable to change than others. Therefore,amenable to change than others. Therefore,each section of the agreement (such aseach section of the agreement (such aspricing, delivery, training, etc.) should addresspricing, delivery, training, etc.) should addressthe procedures for making changes for thatthe procedures for making changes for thatparticular area.particular area.
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ƒƒ ErrorsErrors -- although errors should be minimizedalthough errors should be minimizedwhen a sound partnering relationship haswhen a sound partnering relationship haswhen a sound partnering relationship haswhen a sound partnering relationship hasdeveloped, they will occur. Both partners mustdeveloped, they will occur. Both partners musthave a procedure for the expeditious handlinghave a procedure for the expeditious handlingof any complaint. Keep in mind that theof any complaint. Keep in mind that theultimate measure of the success of anyultimate measure of the success of anypartnering agreement is the satisfaction of thepartnering agreement is the satisfaction of thepartnering agreement is the satisfaction of thepartnering agreement is the satisfaction of thepartner customer.partner customer.
ƒƒ Min/Max OrdersMin/Max Orders -- if a thorough job was done during theif a thorough job was done during themutual criteria evaluation process then the distributormutual criteria evaluation process then the distributor
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mutual criteria evaluation process then the distributormutual criteria evaluation process then the distributorshould have a clear understanding of what is an acceptableshould have a clear understanding of what is an acceptableorder level. Often this is an area that causesorder level. Often this is an area that causesmisunderstandings. The partner should spell out howmisunderstandings. The partner should spell out howrequests for deviations, especially orders that don't meetrequests for deviations, especially orders that don't meetthe minimum, will be handled. For instance, would athe minimum, will be handled. For instance, would areasonable upreasonable up--charge be incurred and, if so, under whatcharge be incurred and, if so, under whatreasonable upreasonable up--charge be incurred and, if so, under whatcharge be incurred and, if so, under whatcircumstances?circumstances?
ƒƒ Price IncreasesPrice Increases -- changing market conditions,changing market conditions,such as paper price increases and capacitysuch as paper price increases and capacity
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such as paper price increases and capacitysuch as paper price increases and capacityvariations, should be relayed to the distributorvariations, should be relayed to the distributorpartner immediately so that both partners canpartner immediately so that both partners canplan the best way to implement the neededplan the best way to implement the neededchanges without disrupting service to the endchanges without disrupting service to the enduser/customer or risking the partnership.user/customer or risking the partnership.user/customer or risking the partnership.user/customer or risking the partnership.
ƒƒ Lost or Damaged ShipmentsLost or Damaged Shipments -- it may beit may be
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Lost or Damaged ShipmentsLost or Damaged Shipments -- it may beit may beadvisable for the distributor to assumeadvisable for the distributor to assumeresponsibility for pursuing claims with theresponsibility for pursuing claims with thecarrier. Generally, partner's have morecarrier. Generally, partner's have moreinfluence with trucking companies thaninfluence with trucking companies thandistributors do.distributors do.
ƒƒ Product Design/Material ChangesProduct Design/Material Changes -- the partnerthe partnershould be notified before the distributor makesshould be notified before the distributor makes
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should be notified before the distributor makesshould be notified before the distributor makesany changes in product specifications from aany changes in product specifications from aprevious order or from the specifications sentprevious order or from the specifications sentby the distributor. Facts on materials used,by the distributor. Facts on materials used,such as economy grade papers, need to besuch as economy grade papers, need to beclearly defined and understood by both parties.clearly defined and understood by both parties.clearly defined and understood by both parties.clearly defined and understood by both parties.
ƒƒ Payment TermsPayment Terms -- payment terms shouldpayment terms should
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Payment TermsPayment Terms -- payment terms shouldpayment terms shouldconsider the time it takes the distributor andconsider the time it takes the distributor andpartner to process the invoice and how long itpartner to process the invoice and how long ittakes the shipment to reach the customer ortakes the shipment to reach the customer orthe distributor's warehouse. Until electronicthe distributor's warehouse. Until electronicinvoicing and payment become the norm,invoicing and payment become the norm,reasonable time also has to be considered forreasonable time also has to be considered forreasonable time also has to be considered forreasonable time also has to be considered forthe mail.the mail.
ƒƒ InterInter--Computer CommunicationsComputer Communications -- aside from theaside from the
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ƒƒ InterInter--Computer CommunicationsComputer Communications -- aside from theaside from theobvious advantages to the ordering process, there areobvious advantages to the ordering process, there aremany other uses for computer links with distributors.many other uses for computer links with distributors.New product releases, special discount offers,New product releases, special discount offers,shipment status and notification, and materialshipment status and notification, and materialavailability and pricing updates can be sent to anavailability and pricing updates can be sent to anelectronic mailbox or some other communications link.electronic mailbox or some other communications link.electronic mailbox or some other communications link.electronic mailbox or some other communications link.
Ultimately technologies such as EDI (electronic dataUltimately technologies such as EDI (electronic data
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ƒƒ Ultimately technologies such as EDI (electronic dataUltimately technologies such as EDI (electronic datainterchange) will make such services routine, but todayinterchange) will make such services routine, but todaythey need to be carefully considered, planned, andthey need to be carefully considered, planned, andbudgeted.budgeted.
ƒƒ Drop ShipmentsDrop Shipments -- drop shipments aredrop shipments arefrequently requested by customers. Under thefrequently requested by customers. Under the
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frequently requested by customers. Under thefrequently requested by customers. Under theterms of the partnering agreement, it may beterms of the partnering agreement, it may beadvantageous to spell out what will beadvantageous to spell out what will beconsidered routine and nonconsidered routine and non--chargeable andchargeable andwhat will be chargeable. Items such aswhat will be chargeable. Items such aslabeling, packaging, minimum quantities, andlabeling, packaging, minimum quantities, andlabeling, packaging, minimum quantities, andlabeling, packaging, minimum quantities, andshipping methods need to be considered.shipping methods need to be considered.
ƒƒ Order CancellationsOrder Cancellations -- even if a policy exists, iteven if a policy exists, itshould be reviewed with an eye to eliminatingshould be reviewed with an eye to eliminating
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should be reviewed with an eye to eliminatingshould be reviewed with an eye to eliminatingpotential problems. Terms and conditions thatpotential problems. Terms and conditions thatremain the same as current ones still benefitremain the same as current ones still benefitfrom review and restatement.from review and restatement.
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ƒƒ Change OrdersChange Orders -- distinctions need to bedistinctions need to bemade for changes that impact the materialmade for changes that impact the materialmade for changes that impact the materialmade for changes that impact the materialcomponent of an order, special materialscomponent of an order, special materialspreviously ordered, and changes that increasepreviously ordered, and changes that increasethe costs of composition or other services.the costs of composition or other services.There is a cost associated with every changeThere is a cost associated with every changeorder, and how those costs will be billedorder, and how those costs will be billedorder, and how those costs will be billedorder, and how those costs will be billedshould be clearly spelled out.should be clearly spelled out.
ƒƒ Requirements for CopyRequirements for Copy -- clean orders are one ofclean orders are one ofthe inherent benefits of selecting qualifiedthe inherent benefits of selecting qualified
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the inherent benefits of selecting qualifiedthe inherent benefits of selecting qualifieddistributors with which to do business. Cleandistributors with which to do business. Cleanorders and cameraorders and camera--ready copy are minimumready copy are minimumexpectations of the partner. Should compositionexpectations of the partner. Should compositionbe required, what constitutes acceptable proofsbe required, what constitutes acceptable proofsand when jobs are entered for production duringand when jobs are entered for production duringand when jobs are entered for production duringand when jobs are entered for production duringthe proofing process all need to be spelled out.the proofing process all need to be spelled out.
ƒƒ If the capability exists for accepting computerIf the capability exists for accepting computer
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disks or modem transmissions of designs anddisks or modem transmissions of designs andorder specs, then procedures and levels oforder specs, then procedures and levels ofresponsibility need to be assigned and agreedresponsibility need to be assigned and agreedupon.upon.
ƒƒ Order AcknowledgmentsOrder Acknowledgments -- this has alwaysthis has alwaysbeen a thorny issue between partners andbeen a thorny issue between partners and
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been a thorny issue between partners andbeen a thorny issue between partners anddistributors. Responsibility needs to bedistributors. Responsibility needs to beassigned for the proper handling of orderassigned for the proper handling of orderacknowledgments. The agreement needs toacknowledgments. The agreement needs tobe developed by both parties and, oncebe developed by both parties and, onceestablished, adhered to.established, adhered to.established, adhered to.established, adhered to.
ƒƒ Rescheduled or Delayed ShipmentsRescheduled or Delayed Shipments -- proceduresproceduresmust be established for notifying the customer ofmust be established for notifying the customer of
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must be established for notifying the customer ofmust be established for notifying the customer ofdelayed or rescheduled ship dates. Ampledelayed or rescheduled ship dates. Amplenotification needs to be given to protect thenotification needs to be given to protect thecustomer. Formal procedures that flag a job ascustomer. Formal procedures that flag a job assoon as it misses any of its projected completionsoon as it misses any of its projected completiondates will allow the distributor to advise thedates will allow the distributor to advise thedates will allow the distributor to advise thedates will allow the distributor to advise thecustomer of any potential problems and arrangecustomer of any potential problems and arrangealternative solutions.alternative solutions.
ƒƒ A procedure must be formalized to allow theA procedure must be formalized to allow the
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A procedure must be formalized to allow theA procedure must be formalized to allow thecustomer to obtain order status promptly. Acustomer to obtain order status promptly. Aweekly update is often not adequate,weekly update is often not adequate,especially as the job nears the completionespecially as the job nears the completiondate. This is an area where electronicdate. This is an area where electroniccommunication can provide great benefits.communication can provide great benefits.
ƒƒ VolumeVolume -- distributors expect a certain volumedistributors expect a certain volume
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of work from their partners. What constitutesof work from their partners. What constitutesthat volume and any categorization of thethat volume and any categorization of theproduct line that might be contained within theproduct line that might be contained within theunderstanding should be spelled out. Agreedunderstanding should be spelled out. Agreed--upon times for measuring promised volumeupon times for measuring promised volumeshould also be specified.should also be specified.should also be specified.should also be specified.
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ƒƒ Inventory LevelsInventory Levels -- there may be product typesthere may be product typesthat require special materials upon which thethat require special materials upon which thethat require special materials upon which thethat require special materials upon which thecustomer relies but which the distributor doescustomer relies but which the distributor doesnot normally stock. In order to ensure timelynot normally stock. In order to ensure timelydelivery and reasonable cost, the partner maydelivery and reasonable cost, the partner mayagree to stock a certain volume of the material.agree to stock a certain volume of the material.Ownership of the material and when it will beOwnership of the material and when it will beOwnership of the material and when it will beOwnership of the material and when it will bepaid for must be clarifiedpaid for must be clarified
ƒƒ These are but a few of the many items thatThese are but a few of the many items that
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ƒƒ These are but a few of the many items thatThese are but a few of the many items thatcan be addressed in a partnering agreement.can be addressed in a partnering agreement.Although no one agreement will encompassAlthough no one agreement will encompassevery possible item, it is far better to decideevery possible item, it is far better to decideahead of time what is required than to face aahead of time what is required than to face adisappointment or misunderstandingdisappointment or misunderstanding
COMING TOGETHER IS A BEGINNING;KEEPING TOGETHER IS PROCESS;WORKING TOGETHER IS SUCCESS
HENRY FORD
TO THE SUCCESSFUL FUTURE
THANK YOU FOR THE OPPORTUNITYTHANK YOU FOR THE OPPORTUNITY
COLIN THOMPSON
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