Alliance-building is very much on the mind of the Packaging Machinery Manufacturers Institute, too. At PMMI's 2006 Annual Meeting held September 20-22 in Toronto, the program included a panel session called "Achieving Sales Growth Via Alliances--a Customer's View." Panel participants were Richard Bahr, CEO/President of MGS Machine Corp.; Martin Beriswill, General Manager/VP Operations at Doyen Medipharm; and Michael Bergey, VP Business Development at Cardinal Health. Together they outlined a process by which close cooperation between MGS and Doyen Medipharm resulted in a successful installation of primary and secondary packaging of medicated strips that Cardinal Health produces and packs for contract customers. Session attendees were given seven steps to follow on the way to a mutually beneficial alliance between packaging machinery OEMs:
*LOOK AROUND. The companies you know are the best place to begin. Look for companies that add value to what you want to accomplish in the marketplace and do not compete with you. Consider companies making equipment that typically operates immediately upstream or downstream from where your equipment operates in a packaging line.
*DO SOME PROFILING. Seek a company similar in size to your own. Close geometric proximity might be an advantage. Make sure that those making decisions about the alliance are at a high level in the two companies.
*INITIATE CONTACT. Face-to-face is best. Sign a mutual non-disclosure agreement.
*SHARE. Share ideas and concepts of how the two OEMs, by uniting in an alliance, will appeal to potential customers. Build enough trust so that potential product development plans and market focus ideas can be discussed.
*AGREE ON PROTOCOL. How will leads be handled? Who is the primary contact at each OEM? Who quotes on potential business, or will it be done jointly? Will marketing efforts be combined, at shows for example? Make sure terms‹installation, training, warranties‹are level. Walk before running.
*EXAMINE SALES CHANNELS. Any conflicts? How will sales compensation need modification? Work to coordinate sales calls.
*LAUGH A LITTLE. Learn to like your new partner. Be willing to accept short-term pain for long-term gain. Build trust.
