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Power Transmission Distributors Association is...

more than 370 power transmission/motion control distribution and manufacturing companies, representing over $16 billion in product sales.

Resources | Executive Management Resources | Relationship Management | Distributor/Manufacturer Agreement

Guidelines for Developing                 
a Distributor/Manufacturer Agreement:
A Components Checklist 


The strength in any agreement is asking the question, “How will we work together?” and then acting on the answers that arise. By preparing for the best possible outcomes, planning a coordinated response to contingencies and acting in accordance with your agreement, trust is built and earned. Every opportunity you have to identify and act on shared expectations is a fresh and powerful opportunity to deepen distributor/manufacturer relationships.

It is with this purpose that PTDA undertook the development of a template for a distributor/manufacturer agreement. Identified by PTDA members as one of the top 10 issues between a distributor and manufacturer, the former Industry Relations Committee sought to create a comprehensive 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.

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.

Read an excerpt on freight policy clauses.

PTDA Members:  Download the “Guidelines for Developing a Distributor/Manufacturer Agreement: A Components Checklist” .

Not a member of PTDA? Purchase the “Guidelines for Developing a Distributor/Manufacturer Agreement: A Components Checklist".