Thread: PCB costs
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Old May 6th 04, 02:59 PM
Dave Shrader
 
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basketball_jones wrote:

SNIP

Once again, I CAN'T get that
price until I am ready to sign and I can't be ready to sign until I
get that price.

K.


Isn't that the definition of Catch-22??

Seriously, you need a sit down negotiation session with your potential
suppliers, AND HAVE YOUR PURCHASING AGENT/LAWYER PRESENT. Part of your
strategy is to let your potential suppliers know right up front that it
is a competitive procurement based on either lowest price or best value
[whatever your criteria may be][The stated criteria is common to and
binding on all potential suppliers [you can't change the rules without
inviting a rebid from all suppliers]]. In my experience, once we moved
from the technical issues I yielded all related business risk issues to
the Purchasing Agent or Lawyers. Engineering should NEVER sign a
purchasing contract. The US DOD and my company used legal professionals
to definitize the purchasing agreements/contracts.

Review your potential supplier's quality programs, manufacturing
capacity, inventory levels, their supplier vulnerabilities, [you don't
want your long term sales jeopardized by a sub-supplier's strike etc.,],
cash flow requirements [do you make a partial payment up front or is it
post delivery billing], backlog [you don't want your schedules held
hostage by a supplier's backlog issues]; these are business issues that
exceed 'lowest price' criteria.

Negotiation is more a part of business than creative design. In many MBA
programs there are courses in negotiation. Remember, your supplier NEEDs
business; and, wants to MAXIMIZE their profit also.

Deacon Dave, W1MCE