November 29th, 2017
Best Practices for Effectively Working with Prototype Companies
For people to have effective relationships with prototype companies, they need to follow best practices. As a result, everything will run smoothly and effectively. By developing a strong business relationship with rapid prototyping companies, your manufactured parts and components can reach a much broader audience.
Rather than take an adversarial approach when negotiating with a rapid prototype supplier, which often leads to unnecessary tensions, consider the following best practices:
- Collaborated Management Effort – To maximize value for you and any rapid prototyping companies that you use, a positive and long-lasting relationship is imperative. This results in a more efficient negotiation process and allows for predictable negotiations in the future.
- Reassessment of Incentives – To improve the business relationship, focus more on reassessing the incentives based on the quality of the deal as opposed to just pricing. This best practice ensures that deals are carefully crafted based on vital business needs. Choosing a supplier that can meet various requirements but is not qualified to properly structure deals is a common mistake made by many companies. If this happens, there is no guarantee that the total value of the deal will be maximized for what your company feels is most important.
- Transitional Activities – Transitional activities come into play once a relationship with the supplier is formed. These include anticipating and preparing for challenges as a team, agreeing on procedures for decision-making and escalation in the event that a conflict arises, and defining health metrics for the relationship and shared performance.
Additional Best Practices
- Effective Team Management – Once a deal is formalized, it is essential that you have an effective team to manage it. This creates an environment in which sensitive issues can be handled in a professional manner. Good team management also aids with collaborative interactions, especially concerns or trust issues arose during negotiations.
- Enablement – This helps with effective implementation, enhances the healthy relationship between you and the supplier, ensures a seamless hand-off, and supports quick implementation.
- Working Mechanisms – For planning, working mechanisms make information sharing between you and the supplier easier. To meet goals, have a strong aligned long-term plan, create a platform for problem resolution, develop ongoing improvement goals that benefit both parties, and measure the performance of all objectives.
A global company based in the United States, GlobalTech Ventures offers prototype tooling, rapid prototype, and low-volume production services to the consumer goods, automotive, and aerospace industries. Because we follow these best practices, we are confident in the strong relationships that we have with our customers. To learn about our innovative services and solutions, please visit our website or contact a company representative today.