The following guidelines set forth the methodology we have found
most useful for effectively working with our Contract Manufacturing clients:
The Beginnings of a Relationship
At the beginning of any relationship, there has to be a means of determining whether or
not the two parties understand and can work with each other. A Contract Manufacturing
arrangement should not be approached as a simple arrangement between a buyer and
seller of services. Our experience is that the degree of cooperation and understanding
that is necessary to successfully create a winning program requires that both parties
spend time at the beginning to get to know each other and make sure there is a meeting of
the minds. In order to encourage this, we strongly recommend that our customers plan on
visiting our manufacturing facility in Hong Kong for meetings with the management and
engineering staff who will be heading up your program.
The First Quotation
Often, we have found that the best way to begin the process of building a relationship is
with a preliminary quote for your product. This allows our two companies to mutually
determine whether or not there is a good fit with each other and it gives you an
opportunity to assess our capabilities and levels of expertise. We have found that this is
the best method by which you can judge our understanding of the technology needed for your
project and the level professionalism of our responses. The attached form indicates the
types of documentation we need in order to perform a detailed quotation for your project.
Since your project is a matter of extreme importance and we wish to treat it with the same
level of care as you treat it yourself, we encourage the use of a formal Non-Disclosure
Agreement to protect the confidentiality of your design. We can provide a sample of such
an agreement if you do not already have such a document developed.
Continuing the Dialog
Once we receive the materials for the quote package, our marketing staff organizes a
response by working closely with our purchasing, project engineering, and industrial
engineering staffs. At this time, a temporary project engineer is assigned to your project
to oversee all technical questions and make sure that we understand your project.
The Quote
The result of our investigation is a detailed quote providing a price, lead time,
anticipated test procedures, and the expected tooling costs for your project. This will
include any questions or conditions and assumptions which we used in the development of
the quote. We will generally provide a listing of the high cost components and the items
with the long lead times which dictate the final lead time for production. This quote is
given to you for your review and to begin the discussions on your project.
Reaching a Decision
We encourage extensive dialog on the details of the quote between our clients and our
factory. Often, it is possible to obtain a better view of the project from a perspective
of cost reduction and manufacturability after the completion of a quote for production.
This is the best time to enter serious discussions about the details of working together
to manufacture your project. We encourage to reduce pricing by sharing information on
alternative sources for components or different approaches to the design of the product.
If we can reach agreement on all of the key elements, we mutually decide to enter into the
contract manufacturing relationship and begin the steps to formalize the agreement through
Purchase Orders, Letters of Credit, Manufacturing Contracts.
Beginning Production
Once an agreement is reached, we proceed with the planning and implementation of the
production of your product. Communication intensifies and we encourage direct customer
service and engineering links with our factory via facsimile as we work together to
successfully bring your product to market.
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