The Bottom Line

Considering an Acquisition? Don’t Overlook Your Vendor Contracts

Posted by Brad Downs on Jul 18, 2017 9:00:00 AM

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Acquisition continues to be a preferred strategy for manufacturers seeking to increase revenue and create long term growth.  Early stages of a merger usually center on factors like strategic fit, market footprint and business integration. There is another less exciting but important factor to consider during these talks: vendor contracts which can cause costly, tactical headaches if not identified early in the process. However, if t

he contracts are assessed early enough in the acquisition process, a company can reap benefits greater than expected through a due diligence process.

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Topics: Manufacturing, Vendors & Contracts

Why Your Manufacturing Company Should Go to Bid During Vendor Negotiations

Posted by Patrick Goodwin, President on Jul 12, 2017 1:56:14 PM

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All manufacturers, distributors and retailers rely on vendors for products and services to support their operations. The relationships are typically governed by long-term agreements and when those contracts are up for renewal, the common reaction is to sign an extension with the incumbent. Assuming service levels have been acceptable, switching costs – especially for anything involving raw materials – tend to be so onerous (testing, certifications, regulatory compliance, etc.) that there’s rarely any appetite for the expense and resource diversion that accompanies a change.

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Topics: Manufacturing, Vendors & Contracts