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


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


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


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


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


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


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


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


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


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


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


ƒƒ Gives & getsGives & gets

ƒƒ Preliminary pricingPreliminary pricing

ƒƒ Open booksOpen books

ƒƒ Review proceduresReview procedures


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


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


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


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


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


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



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.



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.



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:



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.



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.



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.



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.



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.



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..



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.



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.



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.


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:



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.


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..



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.



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


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.


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.


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:



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.



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.



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.



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



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



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



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



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



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.



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



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



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,



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.



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.



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



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



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



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



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



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



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



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



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



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.



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



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



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



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



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



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



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.



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



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

[email protected]

WWW.CAVENDISH-MR.ORG.UK

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COPYRIGHTCOLIN THOMPSON

• THIS WORK IS PROTECTED BY COPYRIGHT. THE RIGHTS COVEREDBY THIS ARE RESERVED, IN PARTICULAR THOSE OF TRANSLATING,REPRINTING, RADIO BROADCASTING, REPRODUCTION BY PHOTO-MECHANICAL OR SIMILAR MEANS AS WELL AS THE STORAGE ANDEVALUATION IN DATA PROCESSING INSTALLATIONS EVEN IF ONLYEXTRACTS ARE USED. SHOULD INDIVIDUAL COPIES FORCOMMERCIAL PURPOSES BE MADE WITH WRITTEN CONSENT OF THEPUBLISHERS THEN A REMITTANCE SHALL BE GIVEN TO THEPUBLISHERS IN ACCORDANCE WITH SECTION 54,PARA.2 OF THEPUBLISHERS IN ACCORDANCE WITH SECTION 54,PARA.2 OF THECOPYRIGHT LAW. THE PUBLISHERS WILL PROVIDE INFORMATIONON THE AMOUNT OF THIS REMITTANCE.

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