PTDA Introduces New Resource for Developing Distributor/Manufacturer
Agreements
Chicago, Ill.—July 6, 2010—Identified by PTDA
members as one of the top ten issues between a distributor and
manufacturer, the Power Transmission Distributors Association (PTDA) has
created a comprehensive distributor/manufacturer agreement template
focused on the elements that need to be considered when entering a
formal relationship. The "Guidelines for Developing a
Distributor/Manufacturer Agreement: A Components Checklist" is a
powerful resource for outlining the parameters of a mutually profitable
partnership.
Rex Davis, VP Supply Chain, Warehouse and Aerospace Division, IBT
Inc., served as chair of the task force charged with developing the
guidelines. "PTDA is an association of both distributors and
manufacturers. We need to work together to deliver solutions to
our mutual customers. To do that effectively, we have to be solid
in our business relationship and understand what each of our strengths
are. We analyzed these guidelines from many different perspectives:
small, mid-sized and large companies; distributors and manufacturers;
relationships and processes. The input we received from PTDA
manufacturer and distributor members throughout the development process
influenced the committee to create a usable resource that is relevant to
all of our members."
The "Guidelines" include practical, customizable language for 38
contract clauses grouped in six main sections:
- Introductory Clauses
- Terms and Conditions Clauses
- Product and Price Policy Clauses
- Sales Policy Clauses
- Inventory Clauses
- Concluding Clauses
Developed using sample agreements from many of PTDA's member
companies, each clause includes a description of when the clause may be
applicable and provides sample language to use in writing a mutually
acceptable contract. Recognizing that manufacturers and
distributors must reach their own individual business decisions in
determining which components to include and the content of each
components of any agreement, the "Guidelines" also include a Word
document, allowing you to edit, delete or add to each of the sample
clauses.
"Communicating on important issues and laying out the expectations in
advance with our distributors make it possible for us to focus our joint
efforts on helping the customer rather than going back and forth about
transactional details," said task force member Dennis Tanrikulu, vice
president of aftermarket sales for NTN Bearing Corporation. "A written
agreement that addresses all of those details allows us to spend our
time on the activities that drive profitability for both of us. These
Guidelines will help both parties ensure that each of the components of
an agreement are discussed and negotiated before an issue can
arise."
The "Guidelines" are available for purchase at $349 for non-members at
www.ptda.org/Agreement.
As a benefit of membership, PTDA member companies can download the
"Guidelines" at no charge.
Founded in 1960, the Power Transmission Distributors Association
(PTDA) is the leading association for the industrial power
transmission/motion control (PT/MC) distribution channel. A
U.S.-based trade association, PTDA represents 185 power
transmission/motion control distribution firms that generate more than
$10 billion in sales and span 3,500 locations in North America and 11
other countries. PTDA members also include 181 manufacturers that
supply the PT/MC industry.
PTDA is dedicated to providing exceptional networking, targeted
education, relevant information and leading-edge business tools to help
distributors and manufacturers meet marketplace demands competitively
and profitably. For more information, visit www.ptda.org.
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