This glossary is the list of keywords used by the Search Engine Competitions. Each keyword is automatically updated by the latest EU and national jurisdictions of the e-Competitions bulletin and competition review. The definitions are included in the DG COMP glossary on EU competition policy concepts (© European Union, 2002) and the OECD glossary of competition rules (© OECD, 1993). When distributors and suppliers woo each other, there are several priorities: higher sales, better profit margins, greater market share, extensive geographic coverage and much more. The often laborious and boring details of a distribution agreement do not attract the attention of the distributor or the supplier. As long as the relationship is flourishing, most parties spend little time reading or checking words in the distribution agreement, which are usually stuffed into a black cabinet. If the glamour of the relationship begins to fade, one or both parties probably hunt after the agreement and begin to take a closer look at the document. The distribution agreement defines the responsibilities of both parties during and after the duration of the agreement. All distributors and manufacturers understand that the responsibilities of the parties must be defined during the period of operation of the agreement. However, fewer people really understand that responsibilities must be defined for the period following termination. Distributors and manufacturers must decide in detail what products can be returned to credit and when to return them. A reliable distribution contract must clearly state the responsibilities and obligations of both parties during the term of the contract, in the event of termination and after the official termination of the contract. During the multi-year management of relationships and contracts between distributors and suppliers, both as distributors and as a supplier, I concluded that lack of diligence was the main cause of the failure of these relationships.
The balance between distributors and suppliers is very similar to the balance between brides and grooms. During the ball, both sides observe the best attributes and often ignore the worst attributes of their future mates. Relationships between manufacturers and distributors are organic. They were born. They`re growing. They`re growing up. They`re maturing. They`re disintegrating.
They ended up perishing. External factors regularly put the distributor and manufacturer under pressure. These pressures sometimes change the distribution agreement. If the agreement allows for changes later this year, there are few problems. However, if the agreement allows for changes only once a year, one or both partners must face undue pressure until the agreement can take such an annual change into account. The best distribution agreements allow for changes during the year. Nicolas Feuillatte Champagne and two importing distributors for maintaining exclusive import agreements in the French West Indies – Background According to a report by the French Directorate General for Competition Policy, Consumer Affairs and Fraud Enforcement (DGCCRF), the Authority (…) One of the main causes that leads suppliers and distributors to disputes during termination is often a poorly formulated distribution agreement. Most of the time, litigation could be avoided through better contract design. Most sales contracts benefit from auditing by people with experience in establishing and negotiating contracts.
Sometimes lawyers check contracts. Sometimes sales managers with the distribution agreement check the experience in checking contracts. The best results are achieved when a legal professional and an experienced sales manager verify the distribution agreement.