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How do you ensure effective communication and collaboration with your toll manufacturer?

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Toll manufacturing, also known as contract manufacturing, is a business arrangement where you outsource the production of your products to another company that has the expertise, equipment, and capacity to handle your orders. This can help you save time, money, and resources, as well as access new markets and customers. However, toll manufacturing also requires effective communication and collaboration with your toll manufacturer to ensure quality, consistency, and efficiency. Here are some tips on how to achieve this.

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Lance Harding

1 Define your expectations

Before you start working with a toll manufacturer, you need to clearly define your expectations and requirements for the products, such as the specifications, standards, quantities, timelines, and costs. You also need to establish how you will measure and monitor the performance and quality of the toll manufacturer, and what are the consequences for non-compliance. You should document these expectations in a detailed contract or agreement that both parties can review and sign.

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Lance Harding
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In some cases, you may have a separate quality agreement from the supply agreement that lays out which party is responsible for each of the quality details along with the overall expectation. For example, which party sets the specifications for each component, in-process testing and finished product testing. Also who is responsible for paying for component and testing costs.

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2 Communicate regularly

Communication is key to any successful relationship, and toll manufacturing is no exception. You should communicate regularly with your toll manufacturer, using the channels and methods that work best for both of you. You should provide feedback, updates, and guidance, as well as listen to their suggestions, concerns, and challenges. You should also be transparent, honest, and respectful, and avoid misunderstandings or conflicts. Communication can help you build trust, rapport, and loyalty with your toll manufacturer.

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Lance Harding
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One way to communicate with your CM is to rate them in specific areas such as on time delivery, deviations, rejected product and consumer complaints. The ratings can be tracked against expectations and over time.

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3 Collaborate on solutions

Toll manufacturing is not a one-way street, where you simply send your orders and expect them to be delivered without any issues. You should treat your toll manufacturer as a partner, and collaborate on solutions to any problems or opportunities that may arise. For example, you can work together to improve the efficiency, quality, or innovation of the products, or to adapt to changing market demands or customer preferences. You can also share best practices, insights, and resources, and leverage each other's strengths and expertise.

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4 Provide training and support

Depending on the complexity and uniqueness of your products, you may need to provide training and support to your toll manufacturer to ensure they can produce them according to your specifications and standards. You can do this by providing manuals, videos, webinars, or on-site visits, where you can explain and demonstrate the processes, techniques, and tools involved in making your products. You can also offer support by answering questions, providing feedback, or resolving issues that may arise during the production.

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Lance Harding
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Your and your CM's Standard Operating Procedures (SOPs) can be shared to communicate how various activities are conducted and documented. There can be a training on the more complex or important ones.

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5 Respect their autonomy

While you want to maintain control and oversight over your products, you also need to respect the autonomy and professionalism of your toll manufacturer. You should not micromanage, interfere, or impose unnecessary restrictions on their operations, as this can damage the relationship and reduce the efficiency and quality of the production. You should trust that they know what they are doing, and that they have your best interests at heart. You should also acknowledge and appreciate their efforts and contributions, and reward them accordingly.

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6 Review and improve

Finally, you should review and improve your communication and collaboration with your toll manufacturer on a regular basis. You should evaluate the results and outcomes of the toll manufacturing arrangement, and identify what is working well and what can be improved. You should also solicit feedback from your toll manufacturer, and address any issues or concerns they may have. You should also look for ways to enhance the relationship, such as by expanding the scope of work, offering incentives, or creating joint ventures.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Lance Harding
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At my previous company, we gave a few select annual awards to our best suppliers to help recognize and reward them for their great service.

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How do you ensure effective communication and collaboration with your toll manufacturer?

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3

4

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1 Define your expectations

2 Communicate regularly

3 Collaborate on solutions

4 Provide training and support

5 Respect their autonomy

6 Review and improve

7 Here’s what else to consider

Contract Manufacturing

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