Dear Value Suppliers,
Now Donaldson is in the 4th Quarter of our fiscal year 2015.One of this year projects that we need to work on is to minimize the tooling cost. Since we found that we spend a lot of money on this category and never get any reduction offer from our suppliers. The impact is we cannot control our tooling expense.
Thus, we will need to issue this agreement letter to you to ask for you review on your cost officially and will need to have an official price list for all the tools. This will help us to monitor the cost and control it effectively.
You, as a major tooling supplier for Donaldson Thailand, this project will be applied to the tooling list that we regularly purchase from you. The target is 5% - 8% reduction from the current price.
Please review the Target price list attached together with this letter and come back to us with your best offer by sending an official quotation on your company letterhead.
Please return the official quote by 6th July2015. The effective date of the new price should start from 1st August 2015 onward. Please state on your quote accordingly.
As a long term partnership, we truly hope that our suppliers will be able to meet the target price that we listed.
We are appreciated and sincerely thank you for the best service and support that you provide as always.