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Eastman is an invaluable strategic partner. We were able to attain valuable funding for our project working with their team in Austin.
Supply contracts are rarely just about product and price: B2B contract negotiation with large buyers often requires suppliers to be quick on their feet in costing supply solutions that involve complex delivery models – and risk. Terms and conditions which may include penalties for late delivery, can drive suppliers to re-evaluate their proposals: delivery conditions, in particular, can drive up logistics costs and, ultimately, risk.
Having a local U.S. business partner, like Eastman, is strategic in being able to quickly solution and cost delivery as commercial opportunities arise in the U.S. – import fees, duties, warehousing, local sourcing and so on – and as they morph during negotiations with buyers.
Resourcing
Producers of complex goods and services are always evaluating ways of reducing materials and resource costs without sacrificing quality. European companies competing for U.S. buyers may consider “finishing” their products in the U.S.. Some of the services we have provided in this context are:
- local supplier identification and qualification
- bill of materials quotations (eg. UL listed components)
- onboarding locally licensed trades partners
- R&D subcontractor selection
- services company acquisition – candidature and pre-screening
- local warehousing solutions
- temporary resource planning (compensation and insurance)
Tendering
While open tendering is the main tender procedure used by the public sector, many private sector companies prefer selective tendering which excludes those companies from submitting proposals that are deemed less qualified. For competent smaller and out-of-country manufacturers and service providers, identifying projects and pre-qualifying for participation in RFPs has to be part of a strategic and deliberate way of doing business.
Acquiring a project contract from an RFP process requires an extraordinary team effort that terminates in the submission of a well thought out proposal that is fruit of an exceptional project or product delivery plan that echos exactly what the customer has requested.
Ask about the value of adding us to your team both for identifying and qualifying your company for new business in the U.S. and negotiating the proposal submittal process.
Selection
Each business opportunity must be measured against the long term strategic goals of a company. It’s not always evident if a deal is ultimately right until the contract is on the table. Small suppliers, for example, can be crushed in the squeeze applied by large buyers. Navigating negotiations is particularly difficult for our international clients, that have the additional complications of international logistics.
The proposals process requires an extraordinary effort from sales, contracts and proposals managers. As most proposals don’t work out, failing fast is imperative. Overseas suppliers do well to partner with local U.S. business developers, with a reputation for strong customer engagements, to avoid misunderstandings and accelerate the selection process, ultimately saving money.
Fail fast. Determine quickly if an opportunity aligns with your company goals.
Proposal Development
Manufacturers practicing just-in-time delivery strive to finish and ship product just ahead of their customers’ needs, thus reducing inventory and cost: warehouse space costs and so does maintaining inventory. Such manufacturers push suppliers to fulfill smaller orders, more quickly. Providing for fast turnaround on orders for non-U.S. companies with U.S. customers, usually means setting up 3rd party warehousing and fulfillment.
Third-party logistics (or 3PL) normally refers to the outsourcing of ecommerce logistics processes to a third party business, including inventory management, warehousing, and fulfillment. For small manufacturers that do not have access to warehousing in the U.S., 3PL providers can help win supply contracts with U.S. manufacturers and assemblers that prioritize small order size and fast delivery. 3PL providers allow suppliers to accomplish more, with the tools and infrastructure to automate order fulfillment, providing both supplier and buyer real-time stock levels.
If you are an Italian manufacturer looking at B2B opportunities in the U.S., ask us how we can identify and cost the right 3PL services, quickly, and boost your access to large supply contracts.
Two or more companies may team up to win a contract. Joint venture partnerships are common in large construction projects where scope can be easily divided based on competency. Commercial partnerships, on the other hand, are usually driven by access (or lack thereof) to specific geographical markets, clients or opportunities.
Eastman Partners has experience in identifying and screening, interviewing and meeting with potential U.S. and international partners, on behalf of Italian manufacturers. This is activity comes under the heading of business development and is often part of putting together proposals during public tenders, where competing proposals must be formulated and submitted under a tight deadline.
If a buyer is interested in an existing product from a supplier, but requires modifications, a different coordinated multi-level engagement is required between buyer and supplier: design, engineering, manufacturing, testing, standards and compliance. With a strong technology background and experience developing customized products, Eastman Partners has supported this type of engagement, throughout the sales process:
- identifying and development of the opportunity
- building relationship with U.S. buyer’s procurement and engineering teams
- defining requirements for customization, prototyping and compliancy testing
- facilitating proof of concept with customer engineering teams
- identifying and costing options for U.S. warehousing and just-in-time delivery
- guiding the drafting of technical and commercial proposals
- meeting with the procurement director to finalize contractual details