PTDA Template guides distributor/manufacturer agreements.

Press Release Summary:



PTDA has developed Guidelines for Developing a Distributor/Manufacturer Agreement: A Components Checklist, that outlines parameters of mutually profitable partnership. Guidelines are analyzed for perspectives of small, mid-sized, and large companies; distributors and manufacturers; and relationships and processes. Grouped into 6 main sections, each of its 38 contract clauses includes description of when clause may be applicable and provides sample language for writing contract.



Original Press Release:



PTDA Introduces New Resource for Developing Distributor/Manufacturer Agreements



Chicago, Ill. - Identified by members of the Power Transmission Distributors Association (PTDA) as one of the top ten issues between a distributor and manufacturer, 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:

o Introductory Clauses

o Terms and Conditions Clauses

o Product and Price Policy Clauses

o Sales Policy Clauses

o Inventory Clauses

o 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," 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.

Power Transmission Distributors Association

230 W. Monroe St.

Ste. 1410

Chicago, Illinois 60606-4703

www.ptda.org

Voice: +1.312.516.2100

Fax: +1.312.516.2101

E-mail: ptda@ptda.org

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