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Analysis and Recommendations

Service Level Agreements and Contracts

Product Lists

:: New Distribution

Change Facilitation

Product Development and Introduction

Establishing New Distribution

Description of Service

The controlled change from one supplier to another

Overview of Process

The process is dependant upon the nature of the operation, whether branded or with core values combined with the nature of the distribution chain required.

  • The product list is reviewed to avoid product duplication and is cross-referenced with existing manufacturer agreements
  • The consumption volumes are calculated by line so that this information can be communicated to the distributor
  • Bespoke lines and standard lines are introduced or transferred to the incoming distributor as applicable
  • Operational personnel are briefed regarding the new supplier. In particular, service levels are explained and new order sheets are distributed
  • Finally support is given in the consolidation of the contract. The swift resolution of queries / problems is the key to maintaining credibility in the eyes of the operator and will also ensure contract compliance.

Benefits / Results

The opportunity to move contracts is something that might happen every 2 or 3 years. There needs to be some very substantial commercial benefits to make the move worthwhile, particularly when one considers the amount of disruption can be caused if not handled correctly.

It is essential that the transition is carried out in a controlled manner. Apart from operational disruption, an additional side effect can be that units feel forced to purchase outside of the nominated system, which as a result can endanger any negotiated volume rebates. Once outside the system, it can take a lot of work to bring rebels back into the fold, so it is essential from a commercial point of view to avoid this happening.

Who would benefit

Companies that operate within the contract distribution market as well as larger companies that have formal agreements with wholesalers. This is really a service extended to chains.


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