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Published on October 13th, 2021 | by Newt Rayburn


Vendor Non Compete Agreement

A reflection to be recognized is the value of an established relationship with a factory. If your supplier has been in business longer than you in a given region, they have probably been working with some of the same factories for a long time. Your supplier is often able to negotiate these relationships to work in your favor, for example.B lower prices or shorter lead times for production. Suppose you need to arrange an inspection at the Cambodian factory that makes your furniture and you don`t have a non-compete agreement between you and your seller. If your supplier wants to hide the factory from you, the process can go like this: if your supplier is willing to sign a non-compete agreement, you may be able to examine the factory they work with before spending money on an order. Once the supplier is familiar with providing information about the factories they work with, it is much easier for you to assess the plant by visiting or performing an audit. A small entrepreneur formulates his business strategy partly on the basis of maintaining and developing his business base and, in part, on the strategy of his company`s competitors. The business owner receives information from their competitors to understand the threats to those competitors and uses the information to influence a competitor`s reaction to their own company`s strategy. However, such practices are not found only on a single company. As a result, a vendor with access to a customer`s confidential information can use it to improve the performance of a company`s competitor, or even that of its own company. For example, a supplier may sell products to the customer`s customers or share product information with its competitors.

This is why the protection of proprietary information and customers is essential to the well-being of a company. This is why companies use non-competition rules from suppliers. Any feedback you receive on solutions to your product`s problems should be forwarded by your external inspector or supplier. This can complicate the situation in the event of a dispute over the inspector`s behaviour or the results of the inspection report. Instead of being able to speak to a factory representative present at the inspection, you are forced to rely on the supplier with their relatively limited perspective. 6. Without the factory details, contact the seller and you will complain about the delay. More levels between you and the factory often make it easy to lose detail in translation.

You may even realize that your voice is not listened to at all by the people who actually make your product. However, if you speak directly to plant management and employees – with the written agreement of the supplier – you can quickly resolve issues while getting more reliable feedback. . . .

About the Author

Newt Rayburn founded THE LOCAL VOICE in 2006. Previously, Newt was Editor of PROFANE EXISTENCE in Minneapolis, Minnesota, and Art Director for Ole Miss' LIVING BLUES magazine. Newt won a National Magazine Award in 1999 for his SOUTHERN MUSIC ISSUE with THE OXFORD AMERICAN. A seventh-generation Lafayette County, Mississippian, Newt is perhaps best known as the leader of the Mississippi RocknRoll band THE COOTERS, but he also has the Country & Southern Rock group, HAWGWASH. Newt is a Photographer, Writer, and Civil War Enthusiast.

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