Vendor Sales Agreements (2008)

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Description

Vendor Agreements are being used by many retailers to guide and control the trading partner relationship. Covering areas from floor ready requirements and routing procedures to indemnifications and billing terms, many departments within a vendor company must be involved to evaluate the company’s ability and willingness to comply. The process a company uses to coordinate this trading partner “dance” and manage all of the pieces of the agreement can either help or hinder the ongoing relationship as well as contribute to its compliance performance.

Sales Agreements are “deals” that sales people often make with their customers to incent them to place orders. These might include special pricing terms, markdown money, special advertising and other trade promotion programs. While most of these deductions have been preauthorized, many companies do not have a systematic process to document, communicate and track these agreements thereby making the review and approval very time-consuming inefficient.

This report is divided into the following sections:

  1. Vendor Agreements
    – Review and Approval Process
    – Ability to Affect Change
    – Challenges
  2. Sales Agreements
    – Survey Results
    – Case Studies
    – Challenges
  3. Appendices
    – Retailer Grid