Agreement With Manufacturer

A second reason for the decentralization of strategic alliances is the final devaluation of what was new and unique in the product. This problem is particularly pronounced in the high-tech arena, where products have such a short lifespan. Like comodifie products, oeMs get a wide selection of interchangeable suppliers. Take the case of PCs: many were originally built by brand owners. Subsequently, surface assembly technology, the increasing coding of knowledge and the routineization of internal processes facilitated the assembly of personal computers and thus in the framework of external suppliers to which the work was outsourced. Today, most PCs are generic products made up of motherboards, fans and hard drives purchased by a local assembler to the specifications of an OEM. Your business is unique, the terms and terms of your agreement should directly reflect your business model and the restrictions imposed by your manufacturer and supplier. Managers could be expected to be aware of the risk of outsourcing core skills. So why do they seem to camp so zealously? The answer can be found in several counter-impacts. First, management`s propensity to offload tangible assets to increase the company`s return on assets and return on investment – and to be richly rewarded for that. In addition, downsizing generally allows managers to improve productivity relationships and avoid lengthy and laborious negotiations with unions; Changing suppliers is certainly much easier. IBM essentially created the PC industry. However, it won`t be long before the PC sign disappears and IBM leaves the company, with the exception of the recent joint venture it recently created with PC manufacturer Lenovo.

Founded in 1984 as a distributor of devices from IBM and other companies in China, Lenovo will finally put its own logo on PCs. Certainly, Lenovo has come a long way. As well as Sanmina-SCI, the real manufacturer of some IBM COMPUTERS in the United States: it recently acquired some of the factories where computers are manufactured. Like Lenovo, Sanmina assembles products for a variety of well-known brand owners. However, the company has expanded and expanded its role and is now also developing custom electronic components. Both companies are representative of a large number of former anonymous producers of branded products that strengthen and set aside the brands themselves. Indeed, the complexity of ibM`s environment calls into question the common vision of labour-based production, which is no more or less than the anxiety-inducing place of large brand owners who suffer from reduced profit margins. You may have already registered your patents, trademarks or copyrights in your main markets and in China. Such registrations may prevent the export of counterfeit goods from China and prevent a competitor from registering the same intellectual property in China. If your basic IP know-how and trade secrets cannot be protected by formal registration, CMs should agree in the delivery agreement that you possess these know-how and business secrets as well as all new intellectual property rights, including new know-how and business secrets generated by the manufacture of your products as part of the delivery contract.

Determine precisely whether the CM can work for other customers in a competing field (and the duration of such a period without competition) and, if so, whether and how production teams and production lines are separated. Also make sure to resolve any potential leakage product issues, including the disposal of defective products. IP protection is another area in which the prevention of damage in liquidation can be useful. Surprisingly, many strategic alliances are transformed into temporary market agreements.