Exclusive Distribution And Business Rules In The Supply Chain

When developing and contacting customers, some customers will directly ask if they can be our exclusive distributor in a certain regional market. At this point, it is easier to know the concept of the exclusive distributor, including some of his basic business rules, common sense, etc. So what is an exclusive distribution? What is an exclusive distribution agent? An exclusive distribution agent is a supplier and distributor who enter into an exclusive agreement that allows only the distributors specified in the agreement to sell certain products. It is a distribution type where only one distributor is certified and authorized to sell a particular product in a particular region, which means that it is an exclusive sole agent. There is a document that has to be mentioned, that is, the two sides reached an exclusive distribution agreement, which will involve a lot of terms and conditions. So what's usually in the exclusive agreement? The content of the exclusive distribution agreement An exclusive distribution agreement will normally contain the following terms and conditions: The first is the agency/distribution area: this area can be large or small, can be a country or a region, divided by region; The second is what kind of products the agent/distribution is, and the lowest sales target of the agent/distribution; and the order processing in the distribution process; how to share the expenses incurred in the middle; And of course the responsibilities of both sides; rules to follow; for example, trademark and logo property rights, which will indicate when the distributor can use the manufacturer's trademark and intellectual property rights, and when the use is not allowed; Among them, some have the clause in the agreement: passive sales terms which refers to the authorized distributors of parts manufacturers who will keep themself directly to the authorized sales of exclusive regional power, for example, after authorized sole distributor, manufacturer authorized area does not take the initiative to sell to customers, but if customers find a factory direct purchase in this area, the manufacturer for this passive sales terms and conditions can accept and cooperate directly. Some foreign trade friends may want to say that why do we need to do this kind of knowledge reserve. Basic business rules If we understand these basic business rules, including some foreign supply chain structures, customer types, role relationships, etc., then we can not only improve our professionalism in dealing with some customer replies, but also better grasp every opportunity. As we mentioned at the beginning, if this potential customer replies to our development letter, which indicates that he will be the exclusive distributor when cooperating with any supplier, and asks if he can be our exclusive distributor in a certain regional market? How will you reply to him at this time? Is it better to reply that or to set him a buffer period? We all know that during development, when a customer replies to your first email, how you respond is critical. A good response may be directly related to whether you can seize the opportunity to cooperate with this customer. So as a distributor's customer, what kind of suppliers will he prefer to cooperate with? First, one of the most important basic requirements is to be professional and understand business rules. If you don't even know the business knowledge of this book feeling free to reply to the customer, they would think you don't understand their market, or your sales is not professional, and they may not be interested in replying to you. This is also one of the reasons why the customer no longer replies after some foreign trade friends have replied to customer. The first time a client replies to your email is a great opportunity to show that he is interested in your email. If you are very unprofessional, it is difficult for the client to establish a sense of trust in you. So we usually must pay attention to the accumulation of foreign trade and business knowledge reserves. If you want to find the problem that the customer does not reply to the email, you must carefully consider the email that the customer replies to you, learn more about the other party's needs, how to gain the customer's trust, enhance the customer's impression of you, and improve our own professional degree. These are questions that we need to keep learning and thinking about. So knowing some basic business knowledge and understanding some of the customer's supply chain knowledge are very helpful for foreign trade friends. Only by constantly expanding our knowledge structure reserves, such as understanding the supply chain structure of foreign markets and the relationship between the roles of the supply chain, etc. can we better understand the market front end, communicate with customers in depth and grasp more opportunities.

Related Articles

Full Details  31+ country import export data Foreign trade database
import export trade data