Cost Reduction Efforts Clause Samples
The Cost Reduction Efforts clause requires one or both parties to actively seek ways to lower expenses related to the contract's subject matter. In practice, this may involve implementing efficiency measures, renegotiating supplier agreements, or adopting new technologies to reduce operational costs. The core function of this clause is to ensure that both parties are committed to minimizing unnecessary expenditures, thereby maximizing value and potentially sharing the resulting savings.
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Cost Reduction Efforts. Company and Jabil shall pursue continuous cost reduction initiatives to ensure that available Sustainable and Competitive Pricing opportunities are reviewed. Such initiatives may include supply chain redesign, review of available Component suppliers, improved logistics solutions, manufacturing processes and test efficiency/elimination improvements, and, if necessary, process(es) and any Company-product redesign. Commencing [*], the Parties will target [*] total cost reduction on released and active Products per year for the first [*] of the life of each new Product. Jabil will demonstrate cost reduction improvements and report such results to Company [*] as part of a rolling cost management process with a [*] outlook for each Product.
Cost Reduction Efforts. (A) Motorola and ASE agree to form a joint cost reduction task force focused on continuous cost improvements for Work on Contract Products, materials, and equipment. Demonstrated cost reductions resulting from joint efforts shall result in immediate prices decreases to Motorola of * of the cost savings if such cost reductions are implemented by ASE for other customers, or of * of the cost savings if limited to Work on Contract Products. ------------ * Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.
(B) If, in the reasonable opinion of both parties, Motorola is solely responsible for cost reductions associated with the performance of the Work, ASE shall immediately reduce the prices of the affected Contract Products by * of the per unit cost savings derived from such reduction. If such cost reduction results from the use of Motorola's Confidential Information (as defined in Section 23 hereof), ASE shall use such Confidential Information only with respect to the Work, and not any other work or services for other customers or suppliers unless, and only to the extent Motorola licenses such use.
(C) Motorola agrees in good faith to work with its suppliers who have Supplier Managed Inventory Agreements with Motorola to obtain the benefits of such agreements for ASE.
Cost Reduction Efforts. Both parties agree to cooperate in good faith to work towards reducing costs to manufacture Nevro Products. Yield improvements and cost reductions will be reviewed by Supplier and Customer quarterly (or more frequently) for potential inclusion into product pricing. For Cost Reduction Projects that have been funded by Supplier and approved by Customer, after full cost recovery, Customer will receive [***]% of the demonstrated cost reduction upon implementation. If due to any circumstance Customer is unable to release Supplier initiated and funded cost reduction changes (i.e. due to regulatory or product management restrictions) then Customer will reimburse Supplier for [***]. For Cost Reduction Projects that have been initiated by Customer and funded by Customer, Customer will receive [***]% of the demonstrated cost reduction upon implementation.
Cost Reduction Efforts. During the term of this Agreement, Provider agrees to undertake commercially reasonable steps to maximize the value of the Services to Recipient by, among other things:
(i) Instituting and maintaining internal programs to reduce the costs of providing the Services;
(ii) Complying with Recipient’s reasonable direction on capital investment, software and hardware procurement, and other issues intended to ensure compatibility of the Services with Recipient’s global operations;
(iii) Instituting and maintaining Recipient’s reasonable cost reduction initiatives generally applied to Recipient’s global operations; and
(iv) Instituting and maintaining Recipient’s reasonable targeted cost reduction measures applied to Provider’s operations.
Cost Reduction Efforts. (A) Motorola and ASE agree to form a joint cost reduction task force focused on continuous cost improvements for Work on Contract Products, materials, and equipment. Demonstrated cost reductions resulting from joint efforts shall result in immediate price decreases to Motorola of * of the cost savings if such cost reductions are implemented by ASE for other customers, or * of the cost savings if limited to Work on Contract Products.
(B) If, in the reasonable opinion of both parties, Motorola is solely responsible for cost reductions associated with the performance of the Work, ASE shall immediately reduce the prices of the affected Contract Products by * of the per unit cost savings derived from such reduction. If such cost reduction results from the use of Motorola's Confidential Information (as defined in Section 23 hereof), ASE shall use such Confidential Information only with respect to the Work, and not any other work or services for other customers or suppliers unless, and only to the extent, Motorola licenses such use.
(C) Motorola agrees in good faith to work with its suppliers who have Supplier Managed Inventory Agreements with Motorola to obtain the benefits of such agreements for ASE.
Cost Reduction Efforts. 5.3.1 The CMO and the Client shall cooperate reasonably with each other to achieve continuous reduction of the manufacturing costs of the AB-106 API. The CMO shall make all Commercially Reasonable Efforts to reduce the manufacturing costs of the products to be provided to the Client during the Term of this Agreement. The Client agrees to collaborate with the CMO to timely evaluate supply chain or other cost reduction plans and implement improvements thereon to facilitate the reduction of the unit cost of the AB-106 API.
5.3.2 Upon reasonable request of the Client, the CMO will provide the Client with feasible improvement plans and further negotiate with the Client whether and how to implement such plans.
Cost Reduction Efforts. Solectron feels there are opportunities for future cost reduction, illustrated in the following examples (but not limited to): - Automation of current test stations - Design future platforms to be similar, with configuration done at the very end of the manufacturing process (i.e. choosing frequency range) - Reduction of ESS testing (by going to sampling, etc.) PROJECT TEAM The following people from Solectron will form the main team dedicated to Netr▇, ▇▇ose main purpose will be to understand the transition requirements that will lead to full production of the radio product. - Henr▇ ▇▇, RF Training Manager - Tuy ▇▇▇▇▇, ▇▇ Test Engineer - Mina ▇▇▇▇▇▇, ▇▇nufacturing Program Manager - Fare▇▇ ▇▇▇▇▇▇▇-▇▇▇▇, ▇▇ Engineering Manager - Huss▇▇▇ ▇▇▇▇▇, ▇▇ Process Engineer - Vinc▇▇▇ ▇▇▇▇▇▇, ▇▇ocess Engineer - Mick▇ ▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇terials Manager This team also has the ability to bring in backup support from the attached resource list, as needed for functional area.
Cost Reduction Efforts. Solectron feels there are opportunities for future cost reduction, illustrated in the following examples (but not limited to): - Automation of current test stations - Design future platforms to be similar, with configuration done at the very end of the manufacturing process (i.e. choosing frequency range) - Reduction of ESS testing (by going to sampling, etc.) PROJECT TEAM The following people from Solectron will form the main team dedicated to Netr▇, ▇▇ose main purpose will be to understand the transition requirements that will lead to full production of the radio product. - [***], RF Training Manager - [***], RF Test Engineer - [***], Manufacturing Program Manager - [***], RF Engineering Manager - [***], RF Process Engineer - [***], Process Engineer - [***], Materials Manager This team also has the ability to bring in backup support from the attached resource list, as needed for functional area. [***] CONFIDENTIAL TREATMENT REQUESTED
Cost Reduction Efforts. During the term of this Agreement, Provider agrees to undertake commercially reasonable steps to maximize the value of the Services to Recipient by, among other things: [*] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
(i) Instituting and maintaining internal programs to reduce the costs of providing the Services;
(ii) Complying with Recipient’s reasonable direction on capital investment, software and hardware procurement, and other issues intended to ensure compatibility of the Services with Recipient’s global operations;
(iii) Instituting and maintaining Recipient’s reasonable cost reduction initiatives generally applied to Recipient’s global operations; and
(iv) Instituting and maintaining Recipient’s reasonable targeted cost reduction measures applied to Provider’s operations.
Cost Reduction Efforts. 5.4.1 The Company does hereby grant to Distributor the right to assist the Company with efforts to reduce the costs of manufacturing the Products which are the subject of this Agreement. The Company shall permit Distributor to confer and meet with Company’s personnel and the personnel at Company’s house factory in China on a regular basis for the purposes of permitting cost reduction efforts as set forth herein.
5.4.2 In the event that the Distributor and/or the Company are successful in obtaining and implementing any cost reductions, said cost reductions shall not alter or modify any of the pricing formulas set forth on Schedule B attached hereto.