Protect proprietary company information: People & Companies

Requests for company information come in many forms. Some requests are general, like a business’ hours of operation or company history. Other times, people ask for sensitive information, like financials and personal details about the owners and managers.

Complying with sensitive information requests may be necessary in some circumstances, such as when applying for an equipment loan or line of credit. Nonetheless, the company owner or a high-ranking manager should carefully vet such requests to determine if the information should be provided. Sometimes it’s possible to provide too much information, which might expose proprietary processes and technology and put a company at a competitive disadvantage. Providing the least amount of information that’s required avoids that risk while consuming less time and fewer resources.

Our shop recently received a request from an OEM seeking a quote for fabricated and machined components in sizable amounts. To provide a good bid, we worked on our response for a few weeks—ironing out many details and making sure we understood the requirements of the job.

The OEM visited our shop and received our ideas favorably, and we established a good rapport. At the time that this column was written, the order was pending but looked good. The job would be our largest single order in several years and would last a year or longer.

As part of the quoting process, the OEM understandably asked for information about our company’s history, owners, capabilities and equipment. Then, as we were closer to signing the agreement, the OEM requested credit and financial records. This also is understandable, as an OEM can’t risk giving a large project to a shop that isn’t capable or doesn’t have the necessary financial strength.