What makes a strong relationship between Trading House & manufacturer?
• Responsibilities • Trust • Circumvention and short-circuiting • Pricing • Commitment • Mutual understanding • Transparency • Value addition • Capacity to supply • Long-term relationship • THE TRADING HOUSE NEEDS TO WATCH: • Payment terms: • Marketing: • Margins: • Fair Practices: • Communication: • THE MANUFACTURER NEEDS TO WATCH: • Fair practices: • Quality and delivery: • Advances: • Memorandum of Understanding (MOU): The arrangement between the manufacturer and the Trading House will work only if their is mutual trust, an appreciation of each others point of view and a commitment to fulfill the respective roles. The best drafted agreement will fail in the absence of these preconditions. Responsibilities The main responsibility of each partner is spelt out and is known. Mainly the Trading House deals with the foreign customer and the manufacturer produces the goods. In the actual working relationship however, their are often instances of one party or the other shirking responsibili
