PTDA seeks to improve distributor/manufacturer relationships.

Press Release Summary:



The PTDA released a publication, "A Discussion on Processing Debit Memos," following a survey of its members that identified distributor/manufacturer relationships as one of the top issues that will impact businesses over the next 3-5 yr. A PTDA-commissioned task force discovered that the process of issuing debit memos and granting credits is more complex than originally thought. Located at www.ptda.org/DebitMemos, the paper offers suggestions for improving the process.



Original Press Release:



PTDA Develops Tools to Improve Distributor/Manufacturer Relationships



Chicago, Ill. - October 31, 2008 - Bringing together distributors and manufacturers in the power transmission/motion control industry has been the Power Transmission Distributors Association's (PTDA) niche in the industry for nearly 50 years. PTDA members know that improving communication and building trust between trading partners improves efficiency and lowers the cost of operations, allowing them to deliver exceptional customer service, innovative solutions and cutting-edge technology to their mutual customers. In fact, in a membership survey conducted earlier this year, PTDA members identified distributor/manufacturer relationships as one of the top external and internal issues that will impact their businesses over the next three to five years.

In continuation of its ongoing efforts to facilitate the exchange of transactional information between distributors and manufacturers, the association followed up its publication of inventory returns policies last year with a new publication focused on processing debit memos.

A Discussion on Processing Debit Memos

In the world of power transmission/motion control distribution, it would seem that the process of issuing debit memos and granting credits to reconcile those memos would seem straightforward. Distributors issue debit memos to manufacturers to seek a credit. The manufacturer reviews the debit memo and grants a credit on an outstanding invoice. All is good.

A PTDA-commissioned task force discovered that, in practice, the process is much more complex. Distributors may or may not issue debit memos, instead opting to take a credit when making payment on an invoice. Manufacturers may be slow to process the debit memo, leaving the distributor with an unreconciled credit. In the Association's efforts to reduce the causes of friction between channel partners, the debit memo process was investigated. While there are no right answers, this paper offers suggestions for improving the process. Read more by downloading the complete report from www.ptda.org/DebitMemos.

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 205 power transmission/motion control distribution firms that generate more than $10 billion in sales and span 3,500 locations in North America and 12 other countries. PTDA members also include 194 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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