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Sales Manual Last Updated: 2017 1
Sales ManualLast Updated: 2017
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ContentsHistory and Overview
History AOPD Distributors Why AOPD? AOPD Advantages
Securing AOPD National Contract Customers National Account Prospects Lead Sheet Account Information Sheet AOPD Regions Finding AOPD Opportunities Regional Sheet AOPD Marketing Materials Presentation Preparation Making Your Presentation Drafting an AOPD Proposal Sample Proposal
Contract Implementation Finalizing AOPD Contracts Preparing for Contract Implementation Sample Customer Endorsement Letter Contract Implementation Sales Call Reporting Some Practical Guidelines and Procedures AOPD Commission Program
National Contracts Management and Service Managing AOPD Contracts Updating Contracts Renegotiating an AOPD Contract
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History& Overview
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HistoryAmerican Office Products Distributors, Inc., AOPD, was formed in 1976 by the princi-pals of several prominent contract stationers. The purpose for AOPD was to combat the marketing efforts of Boise Cascade. Boise was securing national contracts because of their ability to offer nationwide distribution. Without the ability to service customers nationwide, independent contract stationers could not offer an alternative to customers. AOPD initially existed as an informal answer to sell and service regional and national accounts.
In 1978, fourteen distributors agreed to incorporate as AOPD. In a short time, client awareness and market demands dictated the need for additional distributors.
Today AOPD is the largest network distributor of office products in the world. AOPD quite effectively covers the USA and Canada and has affiliate partnerships with office products dealers in Australia.
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AOPD DistributorsQualified distributors must have a stable financial back-ground and be geographically advantageous to the ex-isting network. Membership is by invitation, however there have been some dealers who have inquired di-rectly with AOPD HQ. Distributors must meet require-ments that were established by the AOPD Board of Di-rectors.
Distributor Qualifications:
Strong Financial Background Strong Cash Flow with Growth Potential
LOCAL Fulfillment and Distribution Capabilities Experienced Customer Service/Sales Representatives
Average Sales Person has 20+ Industry Years’ Experience Average Customer Service Person has 20+ Industry Years’ Experience
Comprehensive IT Services Sophisticated on-line ordering platform
Proven track record Average AOPD Dealer is over 45 Years in Business
Upon acceptance as an AOPD member, and having signed a copy of the by-laws, dis-tributors are obligated to honor AOPD contracts and pricing negotiated by other distribu-tors or AOPD headquarters. Members agree to negotiate and service AOPD accounts in an assigned geographical area. This is called the dealer’s PSA, Primary Servicing Area. Each dealership appoints an AOPD Team consisting of a National Accounts Ad-ministrator (NAA), IT Manager (ITM), and National Accounts Sales Manager (NASM). Contract information must be kept current and updated promptly with any changes or additions.
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Why Dealers choose to join AOPD
New BusinessUse your AOPD affiliation as an Offensive Weapon to capture new business from re-gional or national customers that would previously not consider your company as their supplier because you did not have national distribution capabilities. Grow with the added advantages of AOPD’s proven national distribution network
Retain Existing BusinessMaintain current business and use AOPD as a Defensive Weapon to help you strengthen your relationship with existing and potential customers by letting all your cus-tomers know you are a member of AOPD. AOPD offers you, as an AOPD distributor, advantages that your local competition cannot meet. Companies and needs change, don’t lose a client or an opportunity by neglecting to discuss your national distribution capabilities.
Market ImageWith over 39 years’ experience, AOPD is an established name in the national accounts arena. Your AOPD distributorship will enhance your market image with all of your cus-tomers, even those who will never need a national distribution program.
NetworkAOPD gives you the ability to draw on the expertise from some of the most progressive independent dealers in the nation, making AOPD the strongest network in the industry. AOPD distributors can and are used as a resource for leads, presentation assistance, pricing guidance, and sales training.
Headquarters StrengthThe staff at AOPD HQ is available for assistance whenever needed. Sales and market-ing expertise, on-site training, marketing materials, presentation programs and materi-als, and custom information are always just a phone call or e-mail away. Operations support and training are also available to assist your administrative staff.
Additional AOPD Resources/ConsultantsAOPD has also reached agreements with three consultants to provide AOPD members with additional services at a pre-negotiated AOPD price.
Mike Mathews is AOPD’s Bid Manager Consultant. He works with AOPD dealer mem-bers to assist with professional state of the art contract RFP and pricing services. Mike, President of Dealer Pricing Services, brings to AOPD thirty years of industry experience in contract and bid pricing analysis for regional and national accounts. In the past Mike has worked for BT Office Products, Corporate Express, and various AOPD member companies.
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Tom Buxton, AOPD’s National Sales Manager Consultant is responsible for working with the AOPD dealers in the development of Regional and National Account Business. His responsibilities include: assisting AOPD dealers in the key areas of Target lists, Bid Analysis, High Level Account Presentations, and more importantly he has developed a systematic approach to training the AOPD dealers. He has been one of the key rea-sons AOPD’s Premier and NCPA program have grown at the rate they have. In reality AOPD feels so strongly about Tom's ability to lead in the National Account process that we offer his consultative services at no charge to our dealers. However, if you would like Tom to come out to your dealership to make a sales call with you, each dealership will then be responsible for his expenses during that trip.
Tom Buxton inherited a small family office supplies business known as International Of-fice Products, and it proceeded to grow at a faster rate than any local competitor. Tom sold the business to Corporate Express, a multinational office supplier, in 1997. Tom was originally hired to be an executive with Corporate Express, but during a nine-year corporate career he was promoted from Sales Manager to VP of Sales for the Colorado Division. After three years in that position, the corporate office created a new position for him with the title of Director of Strategic Relationship Management. After one year in that position he effectively worked himself out of a job by transitioning management of troubled accounts to the newly created Strategic Accounts organization. His last two years with the company were spent as a Director in the Margin Management depart-ment and as Director of Product Merchandising.
T.J. Crayne, AOPD’s IT Manager Consultant is responsible for working with the AOPD Board of Directors and staff in the development of a National Technology Strategy that will enable our dealers to differentiate themselves through his strong understanding of leveraging better business practices and technology. TJ is a veteran executive with a successful track record of leading dynamic organiza-tions to achieve growth and market presence. As a technology leader with over 30 years of experience, TJ has used his business understanding and creativity to help businesses expand market share, develop best business models, launch innovative new technology and build high performance teams. His strength in effectively collaborating with all segments of a business allows him to ex-ecute campaigns that have taken organizations to peak levels of performance. TJ was formerly Vice President, Reseller Technology for United Stationers where he was instru-mental in driving transformational technology offerings for United's reseller marketplace. TJ's leadership strength emerged early in his career as he founded United Business Computers and grew the company's installed base throughout the United States and Canada.TJ then merged United Business Computers with eCommerce Industries, the leading software vendor in the business products sector.
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LOCAL NATIONALAOPD Advantages
Comprehensive CoverageAOPD is the largest distribution network in the office products industry. With sales and distribution facilities covering the United States, Canada and Australia customers can enjoy the benefits of consistent products, competitive pricing, accurate reporting, and lo-cal delivery and service on a nationwide basis. AOPD gives you “national reach with a local touch.”
Established AOPD distributors include many of the largest and oldest independent distributors in North America. The average AOPD dealer has been in business for over 45 years. Many distributors have won industry awards of excellence. All distributors meet and maintain high standards of business ethics and performance, while upholding AOPD’s ideals and goals.
Guaranteed Quality & AvailabilityAOPD distributors offer a complete range of office supplies plus furniture, printing, ser-vice supplies, ad specialties Jan/San, IT supplies, breakroom and coffee services. Dis-tributors buy direct from manufacturers and maintain access to all product categories. National wholesalers play an important role in bringing inventory into our distributors warehouse when items are needed that aren’t normally stocked.
Local Service & Sales RepresentationDistribution and service is provided by local, on-site, people. Products are delivered from nearby AOPD distribution facilities. Standard delivery is within 24 hours by distribu-tor delivery personnel and trucks. Service comes from a person who lives in, and under-stands, the customer’s community. The AOPD sales and customer service representa-tives provide a personal touch to the servicing of all national contracts.
AOPD has a National Account Administrator (NAA) in each distribution facility to coordi-nate specifics of contracts. A National Account Sales Manager (NASM) at each facility coordinates servicing of contracts. Communication between AOPD headquarters and distributor distributors is constant. An IT Manager coordinates technical systems as-pects of servicing customer requirements
Guaranteed National PricingRegardless of individual location size, pricing is uniform and guaranteed through AOPD’s National Contract programs.
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AOPD National CatalogThe AOPD Catalog is produced for use as a national contract catalog. The 10,000+ items listed in this catalog are the most frequently requested items throughout the United States. When selling national contracts, present the AOPD catalog as the stan-dard list of products from which all customer locations can choose.
Standardization of purchases can produce as much as 30% additional savings on office products expense, and the AOPD catalog is a standardized list of products that are stocked throughout the AOPD distributorship. Additionally, the items in the AOPD catalog are stocked by S. P. Richards and United Stationers.
Established AOPD DistributorsBe sure to tap into the wealth of experience and information within the AOPD organiza-tion. Networking with AOPD distributors can offer valuable insight on securing, imple-menting, and managing national contracts. A call to a fellow AOPD member is sure to get you the information you need.
Money Stays LocalAll of the AOPD’s locally owned and operated dealers take an active role with in their business community. $0.68 of every dollar spent with a locally owned company will stay local compared to purchasing from a big box company. When a customer purchases their office products from an AOPD dealer, they know their dollars will stay local and help finance the infrastructure of their community.
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Securing National Contract Customers
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AOPD National Account ProspectsAny customer with at least one location in addition to the main or headquarters facility is a candidate for an AOPD Contract.
Types Of ProspectsIntrastate: A prospect or client with an office(s) outside a distributor’s normal delivery zone, but within the same state. Locations within the state may be closer to another distributor's servicing area and therefore would benefit from another distributor's assis-tance (State of Texas).
Regional: A prospect or client corporate purchasing authority covering a region or sec-tion of the United States (Northeastern Customer).
National: A prospect or client with offices throughout the United States.
International: A prospect or client with offices throughout the United States, Canada, and Australia. Note: International distribution is handled as an agreement coordinated between the countries. Differences in products, unit of measures and currencies can make many contract specifics impossible. Contracts of this nature are usually negoti-ated to allow flexibility in the product selection, services offered and contract terms. Buying/Marketing Alliances: Many prospects and/or customers belong to organiza-tions and consortiums that buy or market on their behalf. These organizations provide their members with pre-negotiated procurement agreements that allow them to save on supplies and services.
New BusinessProspects that need AOPD can be pinpointed in several places.
1. Companies Web-site and internet – Most companies that have more than one lo-cation will have a list of locations on their web-site. If they don’t have a location sec-tion you may also browse their careers sections to see if there are any job openings in another town.
2. Area Chambers of Commerce – Many times they will provide detailed listings of distributors with multiple locations.
3. Competitors - Many of the competitor’s customers will be viable candidates for AOPD national account services!
4. US Mail - Don’t forget to check the city postmark on payments from customers and advertisements that are sent to you. Checking out your junk mail can sometimes earn you a lead.
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5. Leads from AOPD Distributors - AOPD provides you with a Lead Sheet (next page) to conveniently inquire about prospects. Frequently you will find prospect cor-porate locations, subsidiaries, and/or affiliates currently doing business with another AOPD distributor -- whether or not the headquarters has negotiated a national con-tract.
Sometimes letting another AOPD dealer know that a company, and perhaps one of their existing customers, has locations in your market can lead to a presentation and a national contract. A benefit for them and you!
6. Talk to your Current Customers - An account information sheet is provided after the lead sheet, which is a good way to bring AOPD up and find out if they do have additional locations.
Existing ClientsSome of the most valuable prospecting is with existing clients. Introduce all your clients to AOPD.
10% - 20% of your current customers may have multiple locations and are poten-tial AOPD targets.
At some point, these accounts will be solicited by a national account pitch. If HQ goes down this road, you will likely lose your local business.
These national account pitches/evaluations are often made without your knowl-edge, as HQ may be in another market or the account assumes you are local and cannot possibly service their national needs. Many dealers are actually rein-forcing this limited image by featuring a local message on their literature.
Significant point - Important to let your customers know you have the ability to service their national needs to preempt this.
Once you are successfully servicing the account through AOPD, much harder to be dislodged by national competitors. May also make the competition look 'fool-ish' when they come in and discount/disparage your abilities to meet national needs.
Even if your customer is not interested or does not currently qualify for a national or regional contract, situations change. Your contact could move to a new organi-zation or the customer could be purchased by a larger organization.
Old LeadsCorporations change constantly. Mergers, acquisitions, new management, new pur-chasers, etc. can bring renewed interest in products and services. Re-presenting can often generate new interest and serve to remind the former customer of your presence and ability to service national contracts.
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Least Likely (or Desired) AOPD Prospects
Fortune 100 companies, as pricing is often in the gutter/insufficient profitability. Decision Makers who believe they need a 'large' vendor to service their com-
pany's needs. This is often the case with larger companies. Companies with (key) offices/geographic needs AOPD cannot adequately ad-
dress. Companies selecting suppliers based on lowest pricing in a multiple bid scenario. Companies with many small offices, as all your fellow AOPD dealers lose on
these contracts. Companies that just switched vendors. The decision maker often is unwilling to
make another switch as it might imply they made a bad decision in the first place. Companies that just awarded a multiple year contract. They will probably not
want to consider a switch until the final year. Companies that want, or expect, to be able to keep adding high volume off con-
tract items to their contract at lower margins. Companies that indicate they will be awarding their contract to multiple vendors
so they can cherry pick the lowest priced items from each. Companies that require pricing on every item. There is no reliable or efficient way
to provide a customer with this information today. Companies that do not have a good payment history.
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AOPD National Account Prospects – Lead Sheet
Here’s a lead from:Dealership:
Name:
Phone:
E-mail:
To:Dealership:
NASM Name:
Phone:
Fax:
About:Customer Name:
Address:
City, State Zip:
Number of Locations:
Number of Employees:
Contact Name:
Phone:
Fax:
Current Supplier:
Notes:Please Email back to [email protected]
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Finding AOPD Opportunities
Target Account Guidelines: Decision Maker is Located in Your Area for Office Products Spend Cate-
gory OP Business Relationship is Established With Your Company – (Primary or
Secondary Supplier) Account Should Have No More than 10 Locations Nationwide Total Office Employees- (200 Plus) Office Product Spend is Targeted at $100,000 Plus Annually -(Nationwide)
1. List the Name of the Target Account and Provide an Overview of Company- (Background, Mission Statement, Competitors, Business Strategy etc.)
2. What categories of product are you currently providing this target account, and what is associated annual revenue for each category?
3. Ship To’s: Please list all locations, with addresses if possible.
4. Web Address
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5. # of US and Canadian employees (if applicable)
6. Additional Office Product Suppliers (Nationwide)
7. Category Spend Potential (Office Products, Print, Furniture, Break-room etc.)
8. What do you envision the next step should be with this target account?
AOPD Marketing Materials
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AOPD-Produced Marketing Materials
AOPD Toolbox – www.aopdtools.com The Toolbox is an AOPD exclusive. This se-cure website gives members quick and easy access to the information that secures na-tional and regional accounts. The Toolbox is updated and maintained so you have an information source to use with confidence.The Toolbox includes the following downloadable information: Sell Sheets Prospecting letters Consumer Power Point Presentation Maps Operations forms Training AOPD Logos
Sell Sheets 19 individual sheets to mix and match to your customers interests
AOPD Letters 6 letters for prospecting 1 letter for inclusion in an RFP 1 customer endorsement letter 1 contract introduction letter
Consumer Power Point Presentation Presentation can be customized to your dealership and customers for your pre-
sentations. Specialized presentations focusing on the Premier (medical and non-medical) and the NCPA contract.
Other Marketing Materials – Available upon request
Custom Maps We can produce these for you showing customer locations and servicing dealers.
Custom Rosters to match your requirements AOPD locations with addresses phone & fax numbers, main contacts, NAAs
NASMs, etc.
Presentation Folders A professional presentation folder to wrap up your marketing materials.
Brochures Local Service, Nationwide Brochure
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4-Page, full color professional brochure that describes the AOPD program and our distribution capabilities (pre-printed)
You can download a high resolution PDF of it here: http://www.aopd.com/webdocs/4846_AOPD_brochure15_hi_res.pdf
America’s Choice Brochure If you are participating in this program it’s a brochure targeting public sector cus-
tomers
Premier Brochure Customizable brochure explaining the AOPD Premier Contract
2 NCPA Brochure’s A full color, four page tri-fold (pre-printed) brochure explaining NCPA and the
AOPD Contract A customizable one-pager explaining the AOPD NCPA Contract
Web site AOPD.com is an excellent source for potential customers to learn about AOPD. It
can also be used as a locator for AOPD locations.
AOPD Micro-site – “Buy AOPD” http://www.buyaopd.com/ is an excellent source for potential or current customers to
learn about AOPD through video animation. We also recommend putting this on your web-site. The html code is available on the Toolbox under the Sales and Mar-keting page called “Buy AOPD.”
AOPD National Catalog A universal catalog with marketing information for you and your customer.
AOPD Truck Signs Magnetic or vinyl 12 inches (H) x 24 inches (W)
If you would like any of the marketing materials sent to you please contact Angela at 630-761-0600 x 106 or via e-mail at [email protected].
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Presentation PreparationThe key to successful presentations is preparation.
Consider all the AOPD marketing tools and collateral materials you will need to be-gin putting the presentation together. The audience and situation will dictate the ap-proach you take in developing an effective format.
Customize presentation materials to include facts about the prospect. Maps show-ing customer locations matched by zip codes to AOPD facilities can be produced by AOPD HQ or by using programs such as MapPoint.
Incorporating client information will create conversation customers can respond to, give you points to which benefits can be linked, and create confidence in your pro-fessional abilities.
If available, visit the customer’s web site for additional information. Copying their logo, etc. into your presentation is an effective tool.
Prior to customizing your presentation, contact other AOPD distributors (through the Chat-room) to see if any are currently doing business with this prospect. Use this in-formation to make a more meaningful presentation. Be sure to review any issues in-volving lost business with this prospect before using information.
The client should be encouraged to ask questions. Asking questions will help to de-termine what specific benefits you can highlight in addition to setting up the final close. If the prospect has agreed with everything you have presented they will have a better mind-set at the time of close.
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Making Your AOPD Presentation The following outlines a typical presentation.
1. Introductions
2. Reason for presentation Give the prospect a better understanding of AOPD and your company’s commitment to the national/regional contract concept.
3. InquiryWhat are their expectations? What do they know about AOPD? What are they trying to accomplish? Show sincere interest in addressing the customer's needs, inquire about how they do things. Have they talked to or been approached by others?
4. A brief history of AOPD.
5. " AOPD: Gives YOU: "
Consistent products and pricing.
Service: AOPD has sales and customer service personnel nationwide. Continent- wide…even worldwide.
Order placement options: AOPD customers can use their favored order placement method.
Billing options: Single, consolidated, per shipment or custom invoicing…Sent to the corporate, regional office, or directly to the location. Usage reports and national billing information is available for every customer.
National and international face-to-face representation: AOPD is the largest office products distributor in the world with sales and distribution facilities in the United States, Canada and Australia.
Experience: AOPD has been implementing and servicing national contracts for more than 38+ years.
A Local Resource: Your money stays local, helping your locations be good corpo-rate neighbors.
After each point, highlight a benefit relating to the prospect. Words such as local ser -vice, extensive geographical coverage, established independent distributors, flexibility, comprehensive reporting and billing options and exceptional customer service should be used in benefit statements.
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6. How and why AOPD works so effectively. Points of interest to cover are:
Our network of sales and distribution facilities.
Flexible order placement - Locally, or centralized to contracting or servicing distribu-tor.
Billing options are available. Locally, centralized, consolidated and/or single invoice.
Detailed and customized management reports.
Programs to fit your needs and long term interests.
On-going management support and documentation.
Dedicated National Account Administrator, IT Manager, & National Account Sales Manager in each facility.
7. Highlight benefits Once AOPD has been covered, highlight the benefits, especially the ones that drew fa-vorable conversation. Note favored benefits as points of reference in the follow-up letter.
8. Close Most AOPD presentations require follow-up meetings to secure commitment. Each pre-sentation will lend itself to a particular approach to closing and scheduling a follow-up meeting.
9. Thank You!
10. Follow up Regardless of the outcome…always follow-up.
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Drafting An AOPD ProposalSome simple guidelines for drafting an AOPD proposal are:
1. Open with a statement of your interest in gaining the customer’s business.
2. Features of your distributorship and benefits related to the prospect.
3. Describe the partnership between AOPD and the member dealers.
4. "AOPD Flexibility". Few, if any, national contract organizations offer as many options and features and benefits that are of direct interest to prospects.
5. Detail the terms of the agreement.
6. Include a listing of AOPD locations corresponding to customer locations.
7. Include an appropriate AOPD Marketing Brochures.
The following pages contain a sample boilerplate proposal, which could be personalized and used as is, or used as a model in drafting an AOPD national contract proposal.
Also feel free to get AOPD headquarters involved or contact Tom Buxton our National Account Consultant.
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A presentation to
ABC Company
from
Customer’s Company Logo
HERE
Dealer Logo Here
SAMPLE PROPOSAL
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ABC CompanyJohn StAnywhere, USA
Dear John,
On behalf of American Office Products Distributors, Inc. (AOPD), XYZ Office Products is pleased to have the opportunity to present a national office products distribution program to ABC Company. AOPD's only business is implementing and servicing national contract customers like ABC Company, and we have been doing that successfully for over 38+ years.
AOPD is a network of the finest independent office product distributors through-out The United States, Canada and Australia. This network enables you to be serviced from over ### distribution centers, more than any organization in the country. Perhaps most importantly, it provides you with the unparalleled benefits of being serviced, at every location, by a responsive and flexible locally owned and managed company. This is what truly sets AOPD apart from the traditional national account programs in use today.
The office product distributors in AOPD belong to the largest office products buy-ing organizations in the world, accounting for over twelve billion dollars in pur-chases. This enables them to provide you with competitive pricing.
AOPD will provide ABC Company the high levels of management support that make AOPD a leader in the development of national office products distribution programs.
Our national distribution systems will meet your national office supply require-ments and exceed your expectations. AOPD gives you national reach with local touch.
Sincerely,
John SmithPresident
YOUR LETTERHEAD
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Table of Contents1. General Information........................................................................1
2. National Program / Capabilities......................................................6
3. International Support / Capabilities...............................................11
4. Product Offering............................................................................12
5. Ordering and Delivery Methods....................................................16
6. Pricing...........................................................................................20
7. Value - Added Service..................................................................22
8. Cost Reduction Tools and Ideas...................................................28
9. Executive Summary......................................................................29
Attachments......................................................................................30
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1. GENERAL INFORMATION
a. Brief History - Provide a brief history of your organization.
American Office Products Distributors, Inc. has, for over 38 years, developed na-tional contract agreements and provided nationwide distribution to customers. AOPD is the largest network distributor of office products in the world. Membership in AOPD is by invitation only; qualified distributors must meet strict requirements set by the Board of Directors. Upon acceptance into AOPD, distributors must sign the by-laws and are obligated to honor AOPD contract specifications, pricing, reporting and invoicing requirements.
At each location an AOPD Contract Team consisting of the National Accounts Ad-ministrator, IT Manager, and National Accounts Sales Manager insures efficient im-plementation and operation of each AOPD contract.
AOPD distributors provide reports, guarantee pricing integrity and consistency and produce invoices based on each customer’s needs. Your contract will be implemented and maintained by the AOPD Contract Team at the distributor location in your market who will work closely with the Operations Team at AOPD Corporate Headquarters in St. Charles, Illinois.
b. Experience - How many years has your organization been in business?
AOPD has been in business for over 38 years.
c. Differentiation from competitors - How do you differentiate your organization from your competitors?
American Office Products Distributors, for over 38 years, has been and continues to be the nation’s largest distribution network for office supplies.
AOPD distributors are all independently owned companies; in fact, AOPD is owned and governed by our member distributors. These owners and decision-makers are active members of AOPD, attending our meetings and serving on the AOPD Board of Directors.
AOPD’s only purpose is to develop national programs with consistent and competi-tive pricing, and dedicated local service.
The AOPD network stretches across the world with ## sales and distribution facili-ties, staffed with more than 7,900 sales and customer service associates.
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Since our beginnings in 1978, AOPD has developed and implemented national con-tract partnerships with flexible, customized programs that meet the unique supply requirements of each customer.
AOPD’s programs are not one-size-fits-all. Each and every AOPD National Con-tract program is individualized; built to fit our customer’s product and service specifi -cations.
Provide local service – you will have local distribution, and work with experienced people assigned to provide you with personalized service. Your sales representa-tives are a phone call away, and available to see you when you need them.
Offer unlimited order entry options – place orders your way. AOPD dealers offer you a choice!
A true national catalog – tailored to fit local preferences, or specific needs, the AOPD national catalog is designed by the membership and supported by the manu-facturing community.
Provide customized usage reports – with formats you pick - by department, cost center, budgeting unit, ascending or descending, by product, most frequently or-dered, by dollars, etc.
Guarantee consistent prices – no matter which AOPD distributor is your provider or even how you place orders – our sophisticated systems and programming insures that you will receive accurate pricing.
Do More – to support minority and women’s business enterprises. AOPD’s en-hanced system flexibility tracks purchases from MBE’s and WBE’s.
Give you the option to write one check – no matter how many locations, no mat-ter which AOPD distributor provides service. You can choose to have each location invoiced, and paying, separately.
Make it EASY to do business! – AOPD’s flexibility lets each customer location de-cide how they want to do business.
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d. Distribution Capacity - How many full-service distribution centers do you cur-rently operate in the United States? Please explain how you would service each of ABC Company office locations. Provide a map indicating the locations of all of your full-service stocking distri-
bution centers and sales office locations. (Please be sure to clearly differenti-ate between your distribution centers and sales locations. Do not include any cross-dock facilities).
Please indicate in our Office Locations.doc table your distribution centers that would be designated to service each of our offices. Please include name, city, and state.
Please indicate in Office Locations.doc your delivery commitment for each of our offices (i.e. – next day, second day, etc.)
AOPD's ### locations put product and service where needed AOPD has the most comprehensive coverage of the United States in the commercial office supply distri -bution business.
More distribution centers guarantees faster delivery to every customer location. Al -most 7,900 sales and service personnel ensure local service and national support for all AOPD customers.
Attached is a map indicating the locations of AOPD distribution centers and sales of-fice locations.
e. Representation - How many Sales / Account Representatives does your com-pany employ in the U.S.? In how many U.S. cities, other than where you operate a distribution center, do you currently have Sales / Account representation? In our Office Locations.doc table, list your local Account Representatives (including name, location, and telephone number) that would be responsible for each of our locations.
With ### locations, AOPD has the most comprehensive coverage in North America, more centers for commercial office supply distribution than anyone else.
Included in this proposal is a map indicating the locations of AOPD distribution cen-ters and sales office locations. A comprehensive spreadsheet, also enclosed, fur-ther details the AOPD locations by city and state.
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f. Computer Integration - Discuss your company’s current computer systems ar-chitecture. How does your company’s computer system guarantee that national account customers receive consistent product support, pricing, order processing and inquiry and management reporting?
AOPD utilizes the most advanced systems technology in the industry. AOPD mem-ber distributors operate the finest data communications systems to serve national contract customers. All customer information including contract terms, pricing, loca-tions, invoicing, and sales history is stored on the dealers’ management system. These systems are on-line seven days a week, 24 hours a day. The AOPD dealer network guarantees consistent product support, pricing, order processing and in-quiry, and management reporting in the following ways:
All orders flow through the distributor’s AOPD management system. The manage-ment system checks the customer order information for correct product codes and applies or verifies pricing
Once the order is in the dealers’ management system, the system sends a consis-tent and accurately priced order to the distribution center for fulfillment and holds on to the sales data to build invoices and usage reports.
The AOPD dealers’ systems are specifically designed with the flexibility to accommodate customer special needs. Or-ders are fulfilled at the local level and customer service questions, inquiries for returns and credits are handled by your local AOPD distributor. Customer locations contact the local distribution point to ask a question. Local repre-sentation with a designated National Accounts Administra-tor and National Accounts Sales Manager means you always receive quick, accurate and complete responses to any requests.
AOPD Offers National Reach with a Local Touch!
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g. References - Provide us with the three national references of similar size and scope as ABC Company (please use references that utilize your internet ordering solution and be sure to obtain references’ permission) : Company name Contact name and title City and State Phone Number Years serviced
If you are looking for a reference please contact Angela Sumner Price [email protected] to obtain them. She will go out to the dealers to find appropriate ones for your bid.
Company reference 1Address Ph. ###/###-####Contact – Name & Title## Years Serviced
Company reference 2Address Ph. ###/###-####Contact – Name & Title## Years Serviced
Company reference 3Address Ph. ###/###-####Contact – Name & Title## Years Serviced
h. Financial Strength - Provide a copy of your company’s most recent Annual Re-port or, if privately held, a copy of your most recent, audited financial statements.
Since AOPD is a member owned cooperative group, providing combined financial in-formation is not applicable. However, AOPD’s Board of Directors and accountants conduct stringent annual audits of financial data to assure member’s financial strength and capability. Annual reports for individual distributors can be requested through AOPD Corporate Headquarters.
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2. NATIONAL PROGRAM / CAPABILITIES
a. National Account Program - Describe your national account program and how you will provide consistent and superior service to all of ABC Company office lo-cations.
AOPD is unique by focusing on offering customers choice. Some suppliers make you change the way you do business to fit their “one-size-fits-all” program. AOPD customers create their own programs by choosing from among the industry’s broad-est offering of products, services, and systems including, in many markets, the choice of servicing distributors.
AOPD offers superior local service through ### sales and distribution facilities throughout the United States, Canada and Australia.
Only AOPD offers a choice of servicing distributor in many markets, so you can maintain existing relationships.
AOPD provides programs and reporting to manage overall office expense, iden-tify trends, and forecast future needs.
AOPD distributors provide “one stop shopping” for such products as janitorial and cleaning supplies, beverages, lunchroom supplies, and promotional products.
A dedicated national account team at AOPD Corporate Headquarters, and each AOPD location, provides ease of communication to headquarters and each loca-tion.
AOPD distributors have won more industry awards than any other group in the office products industry.
AOPD distributors have served as president and board members of the industry’s largest trade associations more than any other organization in the office products industry.
AOPD distributors are the best in their respective markets. Each and every AOPD distributor has the finest ordering systems, warehousing techniques, and order fulfill -ment and delivery methods. We proudly boast an average fill rate exceeding 98%. AOPD and its Board of Directors are aware of each distributor’s performance and produce scorecards that address service issues. These scorecards and other per-formance rating tools such as customer surveys insure that our distributors are in the constant pursuit of excellence. Incomparable service is absolutely necessary to be a distributor in the AOPD network.
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b. National Accounts Experience – Detail your national account experience.
AOPD’s only business is developing and implementing national office products pro-grams and AOPD has the most comprehensive geographical coverage in the office products industry. AOPD is unique and the only network of its kind in the world.
c. National Accounts Organization - Describe the role of your Local Account Rep-resentatives and other resources that your company has dedicated exclusively to manage national accounts. Explain how they would service our ## offices. Pro-vide an organization chart that includes the names and titles of all of the person-nel dedicated to the servicing of national accounts.
Each AOPD distributor has a professionally trained and courteous Customer Care Department, headed by an experienced Customer Care Manager. Important cus-tomer service concerns or complaints are addressed by management for immediate resolution. Customer service representatives are usually assigned exclusively to handle designated customers’ orders, returns, product research, and complaints. In the case of large volume customers, customer service teams are assigned the re-sponsibility for all ordering and service transactions. The AOPD Corporate National Accounts Administrator and National Operations Manager are available to discuss service issues and will mediate if problems are not solved to a customer’s satisfac-tion.
All AOPD distributors measure customer satisfaction through periodic service evalu-ation programs. These include directed surveys and voluntary customer response evaluations. Dissatisfaction or negative responses prompt immediate action to ad-dress problem issues. Customer satisfaction is of the highest importance to every AOPD distributor. For a list of the specific people dedicated to the ABC Company AOPD contract, see page ##.
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d. National Account Representative - While local representation for each of our offices is of utmost importance to us, a National Account Representative from your company is also important to assure consistent service across the country. Explain how your National Account Representative would service ABC Company. Would the person or the service level change if ABC Company's national point of contact were re-located?
ABC Company's National Account Representative will be Jane Doe. Jane has over ## years of national account experience. She will ensure that your organization is being serviced in the best possible way and will accomplish this by monitoring each location to ensure that the level of service meets and exceeds your expectations.
The service level that ABC Company would receive would not change if ABC Com-pany’s national point of contact were re-located. There is a seasoned professional AOPD National Account Sales Manager available at every AOPD location to take over the responsibility as ABC Company’s AOPD national point of contact.
e. National Pricing – Would the price that ABC Company would be charged be the same for every location? If you have retail stores, would we obtain the same pricing as contract sales?
Yes, ABC Company would be charged the same for every location. We do not have retail locations.
f. Term of Contract – What is the minimum and maximum period for which you will enter into a national contract?
The minimum period for a national contract is one year. There is no maximum length to AOPD contracts.
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g. Implementation Process - Describe your company's process to ensure suc-cessful implementation and the on-going success of a national agreement. Dis-cuss any additional national account implementation issues that you feel are rele-vant to this agreement.
Implementing a national contract is very important. Getting national account pro-grams up and running right from the start requires strategic planning. AOPD han-dles the up-front efforts to make it easy and provides the level of control needed to reach corporate objectives.
The first step in developing a successful program is to meet with an experienced AOPD representative. Your needs and requirements are determined. AOPD then recommends a program to meet those needs.
Details including product selection, pricing for contract (core) items, order-ing and invoicing options, and man-agement reporting requirements are established. The implementation timetable is then developed.
Should there be a need to stock items in our inventories specific to the con-tract and/or individual locations needs these arrangements are made up front.
All contract information is entered into the AOPD dealer’s central system. Data is verified for accuracy and transmitted throughout the AOPD network. The National Accounts Administrator at each location distributes this information to the National Accounts Sales Manager and insures that each location is set up correctly.
An essential step is informing employees of the agreement. Corporate letters pro-viding contract details and introducing AOPD combined with contact from the AOPD servicing distributors will lead to successful implementation, and a greater participa-tion rate.
The National Accounts Sales Manager and/or a representative from the AOPD ser-vicing distributor will contact every branch location. Each location is informed of the agreement, presented a special new customer packet of specific information, order placement instructions, and any training that is necessary. Normal contract imple-mentation time usually varies between 30 – 90 days.
Every AOPD distributor provides experienced trained account representation and customer support. In addition to a comprehensive conversion plan, an ongoing ser-vice program is in place to review agreement terms, inform and educate customers about new product or alternate product availability, and recommend procurement system improvements. The more than 7,900 sales and customer service representa-tives throughout the United States, Canada and Australia will provide local and cus-tomized service.
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AOPD’s order fulfillment rate exceeds 98% for standard next day delivery. Cus-tomer locations will be surveyed for satisfaction levels regarding ongoing service, or-der fulfillment and conversion rate.
Customer satisfaction is reviewed with the National Account Manager and the dis-tributor sales person to ensure the long-term relationship of customer and distributor. Customers will be asked from time to time to participate in round table discussions at AOPD meetings and to evaluate their service as well as contribute ideas as to how things can be done better or differently to meet their needs.
Sales volume is reviewed along with customer usage reports to determine if contract line items require updating.
Recommendations for further enhancements can be customized for each location.
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3. INTERNATIONAL SUPPORT / CAPABILITIES - While ABC Company is primarily interested in service for the continental United States, we may want to expand ser-vice into South America, Europe, or Asia Pacific. If you can provide service outside the continental U.S., please respond to the following:
a. Experience - Does your organization maintain operations outside the continen-tal United States? If so, how many years has your company maintained opera-tions outside of the United States?
AOPD provides services throughout Canada and have a global affiliate in Australia. In additional countries around the world we can help you identify local dealers that can service your locations. However, since these locations are not members of AOPD, contract terms and pricing will need to be worked out on a per location basis.
b. Distribution Capacity - In what countries outside of the U.S. does your com-pany have full-service distribution centers? Provide a map indicating the loca-tions of all of your full-service stocking distribution centers and sales office loca-tions outside of the U.S. (Please be sure to clearly differentiate between your distribution centers and sales locations. Do not include any cross-dock facilities).
AOPD provides services throughout Canada and have a global affiliate in Australia.
c. Representation - How many Sales / Account Representatives does your com-pany employ in each country outside of the U.S.? In how many additional inter -national cities, other than where you operate a distribution center, do you cur-rently have Sales / Account representation?
In Canada, AOPD has ## Distribution Centers and ## Sales/Account Customer Rep-resentatives.
In Australia, AOPD has ## Distribution Centers and ## Sales/Account Customer Representatives.
Please see Attachment for the Numbers and Locations of AOPD Customer Service and Sales Representatives
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4. PRODUCT OFFERING
a. Traditional Office Supplies - How many office products does your company stock in its warehouses?
Each AOPD location stocks the most frequently pur-chased office products and has available over 25,000 office supply items for next day delivery.
b. Fill Rate – What is your company’s average rate for filling “complete” orders with next day deliv-ery?
Next day fill rates exceed 98%.
c. Copy Paper - Discuss your company’s ability to support our locations with a con-sistent brand of copy paper throughout the U.S.
We have quoted you on Xerox copy paper, which we can supply consistently throughout the United States. We have quoted as an alternate, a more cost-effec-tive copy paper, which will vary slightly from distributor to distributor. The quality of these papers is fully guaranteed.
d. Electronics Supplies - Discuss your company’s ability to support our locations with consistent brands of printer toner cartridges, etc. throughout the U.S.
Except as noted, all printer toner cartridges, etc. will be new, national brands, such as Hewlett-Packard, Lexmark, Canon, Epson, Brother, Okidata, etc. However, if you would like to discuss remanufactured options, we do have several manufacturers that can provide you with increased savings.
Multi-Vendor Capability - In addition to the products your company supports, de-scribe your company’s ability to partner with other suppliers that support additional administrative products and services (stationery, furniture, etc.) through a single-point ordering, delivery and/or invoicing process.
e. Stationery - Does you company handle stationery, business cards, etc. with our company letterhead? If so, how does this work? Is turn-around time the same for office supplies? If not, please describe.
AOPD distributors will stock and distribute site specific stationery, business cards, and other printed items with the required letterheads. Turn-around time will be the same as for office supplies.
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f. Office Furniture - Does you company handle office furniture? If so, do you offer any type of national furniture standards program and if so, how does it work? Is delivery time the same for office supplies? If not, please describe.
A national furniture standards program is not always practical, because each of your locations has different needs, space requirements, and budgets. What is practical is standardization for each location. As such, where needed and desired, AOPD furniture experts will develop standards customized to the specific needs of individ-ual locations.
This approach guarantees your employees the choice of furniture that works best for them.
g. Janitorial / Sanitary Products - Do you handle janito-rial / sanitary products? If so, discuss your company’s current offering in this area.
AOPD features one-stop shopping, including janitorial products, sanitary supplies, break room supplies, and bev-erage service. This feature is especially helpful to your smaller offices.
h. IT Supplies - Beyond toner cartridges what other IT supply items does your com-pany offer? Discuss your company’s ability to provide these products on a na-tional basis.
On a national basis AOPD can provide: toner cartridges, antiglare filters, cables, cleaning supplies, data switches, keyboards, media storage, network supplies, surge supplies, tool kits, power backup equipment, security systems, all media, including tape cartridges, CD-ROMs, data cartridges, as well as printer parts, inkjet supplies and ribbons.
i. Copier Supplies – Besides paper, do you handle supplies (toner, fixer, etc.) for copiers? If so, which manufacturers and how does it work?
AOPD handles supplies for most well-known copiers including: A.B. Dick, Canon, Copystar, Gestetner, Kodak, Konica, Lanier, Minolta, Mita, Panisonic, Ricoh, Savin, Sharp, Toshiba, and Xerox.
j. Coffee, snacks, and refreshments - Does your company handle coffee sup-plies, snacks, and other forms of refreshments? If so, how does it work? Is de-livery time the same for office supplies? If not, please describe.
As part of its one-stop shopping program, AOPD offers coffee supplies and service, snacks, bottled water and other refreshments. These items will be delivered with your office supply order.
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k. Advertising Specialty / Promotional Products - Do you handle these types of products? If so, discuss your company’s current offering in this area?
AOPD has created numerous ad specialty programs with items such as binders, cof-fee mugs, water bottles, legal pads, etc. Because of the unique requirements inher-ent in ad specialties, and because they are special order items, they are best han-dled on an individual basis. Trained AOPD representatives, will work with each customer who wants and needs an ad specialty program to develop a goal-oriented, results-oriented program.
For frequently used items, AOPD will store and deliver. This saves soft cost dol-lars and helps reduce paperwork, on-hand inventory, and waste. In addition it in-creases usage accountability and budgetary control. Our trained representatives will workout the details for each customer that wants and needs an ad specialty pro-gram.
l. Other product offerings – Does your company offer any other products that might benefit ABC Company and differentiate you from the competitors?
The following is a listing of many of the other products and value added services of-fered by AOPD distributors.
Departmentalized packing programsWrapping and packing complete orders individually by department, or cost center. This saves considerable time on order distribution for customer staff.
One-stop shoppingJanitorial products, break room supplies, beverage services etc. (A real ad-vantage for small offices.)
Ad specialtiesImprinted products for giveaways and promotions frequently used by many customers: cups, bags, pens, water bottles, etc.
Printing services/warehousing Printing and forms management. Distributor stocking and JIT replenishment of forms and printed materials saves time and storage space for customers.
Special stocking programsStocking products used exclusively by certain customers, such as legal filing products for law firms.
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Needs assessment & consultation services. This is helping our customers choose products and services that save money and best fulfill expectations. Easy access to customer service and product specialists saves time and frustration for customers.
Automatic ordering & product replenishmentLarge volume and frequently purchased products can be scheduled for auto-matic order and delivery.
On-site product/manufacturer shows Tabletop shows of new and time saving products for our customers to see and try. Small shows with 6 to 8 manufacturer reps take little time or space and are very beneficial.
Productivity seminarsInformative seminars on time-saving products and processes that work well in our customer’s workplace.
Customized reportsWhat do our customers want to know about purchases? How can AOPD be helpful in the procurement reconciliation processes? Reports reflecting M/WBE purchases, contract/non-contract purchasing, cost center/department usage, etc.
Backorder reportingNotifying our customer of backorders and determining a course of action. No-tification during or right after orders are placed, assures the customer the op-tion to order another product.
Same day deliverySame day delivery for “emergency orders” is a real helping hand.
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5. ORDERING and DELIVERY METHODS
a. Catalogs
Primary Catalog - Does your company produce its own catalog or use one of the national office products wholesaler’s catalog with a custom cover for your company? How many products are contained in the current edition of this catalog? Include a copy as an attachment. Do your prices reflect Manufacturers List Price or your List Price?
AOPD produces its own catalog; a copy of the current catalog is enclosed. This cat-alog has more than 10,000 items (accounting for 95 plus percent of the most com-monly ordered items).
The AOPD catalog reflects manufacturer list price.
Secondary Catalog - Does your company offer any additional catalogs with either more or less items as in your Primary Catalog? If so, how many products are con-tained in the current edition of this catalog? Would you propose that this Secondary Catalog be incorporated into this agreement? If so, why? Include a copy as an at -tachment.
Each AOPD distributor can offer your locations catalogs ranging from full-line wholesaler catalogs with 25 plus thousand items to on-line electronic catalogs customized for specific companies and their locations and/or departments.
AOPD can accept orders from your requisitioners using any catalog: the AOPD cata-log; individual distributor's catalogs; wholesaler catalogs; competitor’s catalogs.
AOPD has produced more custom catalogs than anyone in the office products in-dustry and was the first to match custom catalogs with customized requisition forms. There are no additional charges unless there is an unusual or costly request as part of the production.
Whether a specific catalog is, or isn’t, part of this agreement the products are still available to you. The choice of catalogs is something your individual locations and AOPD distributors determine together to meet your unique requirements.
AOPD offers state of the art Internet ordering solutions. For customers who want to mix Internet with electronic or manual solutions, the AOPD system is unique in its ability to accommodate a customer’s most sophisticated needs.
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Other Product Catalogs - Does your company offer any additional product catalogs that you would like to incorporate into this agreement? If so describe them and in-clude samples as attachments.
We can offer a number of full-line catalogs with 25,000 plus items, to catalogs cus-tomized for specific departments. However, we believe the AOPD catalog is still your best choice. Our own national contract catalog carries the most frequently or-dered items in the industry and is supported by both major industry wholesalers, S.P. Richards and United Stationers.
b. Telephone Orders - What is your process and how do you ensure that only au-thorized orders are accepted? Toll Free / Nationwide Access - Does your company offer an 800 number
for our locations to place phone and fax orders?
YES, all AOPD member distributors offer toll free 800 telephone and fax numbers to their respective customer service departments.
We will accept orders only from the authorized user list provided to us by ABC Com-pany.
c. Fax Orders – What is your process and do you provide forms tailored to our ac-count?
All AOPD distributors accept faxed orders. We can and will provide forms tailored to your site-specific needs.
d. Internet Ordering
All AOPD distributors offer Internet ordering as a service to their customers. Some of the features that make Internet ordering fast and easy to use are:
Clear digital images so you can see what you are ordering. Easy to understand product descriptions, both simple and expanded versions. Intuitive screen navigation. On-line help. Custom favorite item lists by user, to keep favorite products handy for quick re-
order. Product searches by description, by manufacturer, or by product number. Compare like-products on-line to find the best value for you. Approval levels based on amount of sales, product type, budget amounts.
Only authorized users are able to log on and purchase from your AOPD Internet Or-dering site. You can also set limits on, and personally approve purchase orders.
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e. Standing Orders – Does your system have the ability to handle standing orders (i.e. – an order, say for copier paper, which is automatically processed every two weeks)?
YES
f. Automated Order Confirmation - Our locations may require an automated con-firmation of orders that were placed with your company, regardless of the order-ing mechanism. How would your company fulfill this need?
We can provide via fax or email an automated order confirmation if needed.
g. Procurement Cards - Is your company capable of handling orders from cus-tomers who prefer to use a corporate procurement or credit card? If so, discuss your company’s specific capabilities.
AOPD accepts all corporate procurement cards. Procurement card orders may be placed by fax or via Web-site. All Procurement Card orders are shipped with a priced and extended receipt in package.
Procurement Card processing is completely seamless. Our Customer Care Repre-sentative enters the Procurement Card Number in the order system. The Order Sys-tem then transmits the Procurement Card information directly to the Procurement Card company. The card numbers are not visible in our system and do not appear on packing lists, receipts or labels.
A Procurement Card order may also be placed through the Internet ordering site by the end user entering their card number. The end user may choose whether to cap-ture that number in the web site for re-use on subsequent orders, or may elect to en-ter the card number each time an order is placed.
h. Delivery Methods – How are deliveries made? How would you handle express, rush, or emergency deliveries to ABC Company?
Deliveries are made next day by AOPD distributor’s trucks and drivers. For areas that fall outside of a distributor’s immediate servicing area, a reliable contract deliv-ery service, such as UPS, may be used. Next day delivery is available nationwide.
Same day, rush and emergency, delivery are available by request.
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6. PRICING ABC Company realizes that everyone is entitled to make a fair but competitive profit. In order for us to properly evaluate prices, we require you to strictly adhere to the re-quests below. Failure to comply with this specification will disqualify your bid.
a. Office Products / Core Items – For the “Top 175 Core Items” listed in our Price List.xls, indicate your proposed overall average discount from current Manufactur-ers’ Suggested List Prices.
Office Products / Core Items average discount = ##%
Submit your detailed bid pricing on each of the items listed in Price List.xls along with the current Manufacturers’ Suggested List Price as it appears in the catalog(s) you are submitting in Section 5.
Specified Product Section - On the left half of the spreadsheet, you must quote only on the exact items specified. If you do not offer the exact product specified, you must leave that item blank.
Alternate Product Section - On the right half of the spreadsheet, you may rec-ommend alternates, of equal or better quality, to the specified product if you carry a different brand than that specified, if you offer a lower cost alternative product.
b. Office Products / Non-Core Items – For items in your catalogs other than the “Top 175 Core Items”, will the discount be the same as that on the Core Items?
No
If no, please explain how you would price these and indicate your proposed dis-count percentage(s) from Manufacturers’ Suggested List Prices:
Category of Products DiscountOffice Supplies / Non-Core Items ##%
Office Furniture ##%
Office Equipment (Electronics) ##%
Electronics Supplies (Toner, etc) ##%
(Be specific as to which catalog(s) you are quoting, as being submitted per Section 5, and how many items are in that catalog.) You must provide a complete list of any exceptions to your non-core item pricing approach, including the product code, de-scription, manufacturer, unit of measure and net price.
The above quoted discounts are based on the AOPD National Account Catalog that contains over 10,000 items.
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Copy Paper - While copy paper is included in the Top 175 Core Items for compari -son purposes, we realize that copy paper prices fluctuate. Please explain how you would competitively price copy paper. (i.e. - would it be a percentage above your cost? Would the prices remain constant for 3-month intervals?)
Pricing on copy paper is guaranteed for ## days. Any price increases or decreases will be at the exact percent of change from the mill. Documentation can be provided to ABC Company for auditing purposes.
c. Other Products or Services – For any other products or services outside of your catalog that you can provide, please explain how you would price these and indicate your proposed profit mark-up percentage:
Other Products or Services profit mark-up = ##%
d. Price Guarantees – Would all prices and discounts quoted herein be guaranteed for the term of the agreement? If no, please explain.
Due to manufacturers increasing costs we would reevaluate the pricing once a year on the anniversary contract start date. Toner should be reviewed once a quarter.
e. Delivery Costs – Are there delivery charges associated with your delivery op-tions described in “5-M”? If yes, please explain how you would price each method.
YES All shipments direct from AOPD distributors will be net F.O.B. destination with the exception of special delivery and/or air shipments requested by customer loca-tions. Special delivery and/or air shipment charges shall be prepaid and invoiced to the requesting customer location.f. Program Audits - Subsequent to award of the contract, ABC Company will audit
shipments and invoices to ensure that: 1) the products being shipped are the same as the Core and Non-core items quoted herein, and; 2) the prices charged are exactly as quoted herein.
ABC Company will debit the supplier $## per incident of unauthorized product substitution and failure to comply with quoted pricing.
ABC Company reserves the right to terminate the agreement for repeated inci-dents.
Please confirm your understanding and acceptance of these audits and debits Initials: ______
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7. VALUE-ADDED SERVICE
a. Account / Sales Representation & Service - How will ABC Company be as-sured of local service in each of our offices? Please indicate in our file, Location-s.xls, who from your organization will be the primary contact for each of our of-fices.
b. Customer Service – If there is a problem, what is the process we would use for customer service?
All of our customers require, expect, and receive the highest levels of service. Each AOPD distributor has a professionally trained and courteous Customer Care depart-ment, headed by an experienced Customer Care Manager. Customer service repre-sentatives are usually assigned exclusively to handle designated customers’ orders, returns, product research, and complaints. In the case of large volume customers, customer service teams are assigned the responsibility for all ordering and service transactions.
All AOPD distributors immediately address any service issues involving orders or products. Important customer service concerns or complaints are addressed by management for immediate resolution. The Customer Care Managers, AOPD man-agement teams, and corporate managers are all part of resolving problems and de-termining suitable solutions to prevent future problems. The AOPD Corporate Na-tional Accounts Administrator and National Operations Manager are available to dis-cuss and mediate if a problem is not solved to a customer’s satisfaction.
c. Invoicing & Payment Terms - Discuss the invoicing options your company of-fers and the payment terms for each. Will you charge a penalty if invoices are not paid within 30 days? If so, how
much?No
Will you provide an additional discount if invoices are paid within 15 days? If so, how much?
Additional discounts are based on sales volume. If you provide us with an accurate projection of your annual volume we would be amenable to discussing early pay-ment discounts.
Your company may choose the invoicing methods that fit your specific requirements. AOPD offers all standard formats plus the ability to customize to meet even the most sophisticated needs. AOPD can invoice your locations via mail, or in any electronic format. AOPD can invoice in any format.
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d. Credits & Returned Goods Policy - Discuss your company’s process and pol-
icy for handling merchandise to be returned for credit.
If you are not completely satisfied with the products you receive, we will replace the item or credit your account. To return an item it must be inspected within ten [10] business days from the date of delivery to check for broken or damaged items. Each location can return the item for full credit or replacement. Credits are issued on your next invoice and the shipment of new or replacement items will be handled as quickly as possible. Items must be in the original manufacturer’s carton. Include all components and manufacturer’s documentation. Products must be in good or sellable condition if not damaged on receipt.
The return of items begins with contacting your local customer service rep-resentative. They will determine with you the options available for returning the product and begin the process of crediting your account.
e. Usage Reporting - In addition to discussing your capabilities in this area, please provide samples of your usage reporting.
A major benefit of a national distribution program with AOPD is nationwide product usage information, information essential to manage overall office products expense.
Product usage data tracks trends, making it possible to analyze expenditures and forecast future budget needs. Additionally, usage reporting can be used to suggest lower-priced alternatives for the most frequently ordered products.
AOPD distributors transmit product usage data through the AOPD network. This data is used to generate usage reports at either the local level or through the Con-tracting Dealer’s central system.
The standard report formats available: Product Code Sequence Product Code by Department Number Product Code by Location Number Product Code by Location Number within Department Number Product Code By Department Number within Location Number Product Code Sequence/Descending Order by Times Sold Custom format as determined by ABC Company
Reports can be generated to show product usage on a national or local level as re-quired. Customer internal product numbering systems can be included in the re-ports.
Reports are available either monthly or quarterly, with year-to-date information.
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f. Total Quality Process Overview – Does your company have a formal Total Quality process in place today? If so, what performance indicators do you moni-tor that would be of benefit to ABC Company? Please provide samples.
The key to AOPD’s success in servicing national contracts is a focus on total cus-tomer satisfaction. AOPD requires each distributor to maintain a company policy and process of continually looking for a better way of doing things. The goal is com-plete satisfaction for the customer.
AOPD’s network of National Accounts Administrators and National Accounts Sales Managers is the first line in insuring customer satisfaction. These experienced pro-fessionals are dedicated to national contracts. Constant communications throughout this network insures needs are anticipated and met, and problems solved immedi-ately.
AOPD distributors are carefully chosen, and must meet a strict set of standards to qualify for membership. The AOPD Board of Directors regularly reviews member qualifications. AOPD Corporate Headquarters administers the day to day sales, mar-keting, operations and data processing functions. AOPD members are also subject to regular performance evaluations by AOPD Corporate Headquarters staff.
AOPD also holds an annual meeting and regional round table meetings to discuss every aspect of servicing national accounts.
Our 38 years of developing and servicing national account contracts gives us an edge. AOPD’s success is directly tied to your satisfaction.
g. Minority Business Support Program – Does your company work with any MWBE suppliers? If so, discuss your program.
AOPD distributors encourage and support minority and woman owned businesses by selling and stocking the products MBE/WBE businesses produce and distribute. AOPD distributors offer standard usage reports that track sales and usage of prod-ucts manufactured and distributed by minority and woman owned business ventures.
Several AOPD distributors are themselves MBE/WOSB, VOSB, HUB including:
A&W Office Supply - SDVOSBAAA Business Solutions - SDVOSBApex Office Products - MBE Bulldog Office Products - WOSB Business Essentials – WOSB/HUBEconomy Office Supply - WOSBEl Paso Office Products - MBE/HUBEON Office – WOSDBFSIoffice - WOSBGBP Direct, Inc. - WOSBhsc*officeproducts - MBE/VOSBInnovative Office Solutions - WOSBKeeney’s Office Supply, Inc. - WOSBMiller's Supplies at Work - WOSBMySupplies - WOSB
Navajo Office Products - Hub Office Edge - WOSB/HUB Office Solutions - MBE/WOSDBOfficewise Furniture & Supplies - VOSB/HUB Preferred Office Products - VOSBRudolph's Office & Computer Supply MBE/WOSB Sandia Office Supply - MBEStrickland Companies – WOSBTejas Office Products - MBE, HUB, 8A The Supply Room - WOSB V-Quest Office Machines & Supplies - WOSB/HUB
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h. Monitoring Customer Satisfaction - Does your company measure and react to customer satisfaction? If so, discuss the process.
The tools for evaluating customer satisfaction include directed surveys and volun-tary customer response evaluations.
A National Accounts team is in place at every AOPD distributor location, dedicated to customer satisfaction. The local team for ABC Company consists of -
Jane Doe - Distributor sales representative Mary Doe - Customer service representative Elaine Doe - National Accounts Administrator Jim Doe - National Accounts Sales Manager
Each distributor representative is knowledgeable about the AOPD national account program and up to date on the specifics of your national account. If a question arises concerning your satisfaction with product or service and an answer is not immediate from your distributor location a team is in place at AOPD Corporate Headquarters to get you quick and thorough solutions:
Executive Director: Mark Leazer Director of National Operations & Marketing: Angela Sumner Price Director of Business Development: Joe Breczka Finance & Contract Manager: Shelley Tousignant Contract Sales Administrator: Kimberly Hammer
AOPD Consultants National Sales Manager: Tom Buxton National Accounts Bids & Contracts Manager: Mike Mathews National IT Manager: T.J. Crayne
Each AOPD distributor has a professionally trained and courteous Customer Care department, headed by an experienced Customer Care Manager/Director. Impor-tant customer service concerns or complaints are addressed by management for im-mediate resolution. Customer service representatives are usually assigned exclu-sively to handle designated customers’ orders, returns, product research, and com-plaints. In the case of large volume customers, customer service teams are as-signed the responsibility for all ordering and service transactions. The AOPD Corpo-rate National Accounts Administrator and National Operations Manager are available to discuss service issues and will mediate if problems are not solved to a customer’s satisfaction.
All AOPD distributors measure customer satisfaction through periodic service evalu-ation programs. These include directed surveys and voluntary customer response evaluations. Dissatisfaction or negative responses prompt immediate action to ad-
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dress problem issues. Customer satisfaction is of the highest importance to every AOPD distributor.
i. Partnering Opportunities – Describe any opportunities you may see for your firm and ABC Company to partner for mutually beneficial business propositions.
AOPD and its local distributors will be pleased to work with your marketing staff to develop a mutually beneficially business partnership.
j. Start-up kits – ABC Company is constantly mobilizing new job site offices. Does your company have the ability to assemble a standard start-up kit for office sup-plies, etc.? If so, please explain how this would work.
We can provide a template for ordering a standard list of supplies or develop an agreed upon standard start-up kit which would be ordered under one unique sku number.
k. Continuous Improvement - How does your company work to continuously im-prove the products and services that you provide?
All AOPD agreements are subject to a full review, usually on a quarterly basis. Trained AOPD representatives, using the massive reporting capabilities of the deal-ers’ central system will meet with your headquarters and branch locations. This will involve a “traditional” business review but will go beyond to provide cost-effective im-plementation of adjustments. Our office products experts will analyze the reports and take purchasing through comprehensive reviews of items purchased, core list utilization and non-core purchases.
Following the review process many things may happen. For example, non-core items consistently purchased may be added to the core list at a contract price. Blocking items or groups of items from ordering accessibility can help contain unnec-essary purchasing.
As part of the review the reports being generated for you will be reviewed to determine if these are providing the necessary information for reconciliation and budgeting. If additional information is needed, new reports will be de-signed and customized.
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8. COST REDUCTION TOOLS & IDEAS
a. Lowering Your Customer’s Office Supplies Costs - Discuss your company’s ability to work with your customers to continuously lower their cost of office sup-plies.
Process Cost Savings – Studies conducted by the National Association of Pur-chasing Managers show that the normal process for ordering, receiving, distributing and paying for office products often accounts for administrative costs that can be as much as three times the value of the products being ordered.
Our national account programs are designed to eliminate or reduce the costs of:
AcquisitionDistributionPossessionAccounting
Our stockless inventory program will –
Reduce inventory and your investment Reduce paper handling Reduce personnel and distribution expenses Reduce obsolescence Provide management controls Improve your cash flow
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9. EXECUTIVE SUMMARY - How do you truly separate yourself from your major com-petitors? What do you do better, or what are your unique features, that you have not already explained, that you feel will help us with our decision?
AOPD is the world’s largest network distributor of office products. National contracts are AOPD’s reason for existence. Our total corporate focus is on you, our customer, and a successful relationship over many years to come.
Corporate DistributorsAOPD distributors are selected after passing a rigorous qualification process that in-cludes studies of financial stability, systems capabilities, stocking levels, personnel ex-perience and staffing, and customer service at the highest level. Only after passing ex-amination is a distributor added to AOPD Corporate.
CoverageAOPD offers more extensive coverage than any other organization. With ### distribu-tion centers throughout the US, we can boast a 98% + next day delivery rate, with the ability to provide emergency service to any location as needed.
ConversionAOPD has an extensive and thoroughly tested conversion process. Once awarded the contract, AOPD team members will initiate a multi-step process to contact all of your lo-cations, set up orientation appointments with all locations, and complete on-site training to custom tailor an office product procurement program to fit each location’s needs.
Pricing and Product Selection – One Stop ShoppingAOPD Dealers belong to purchasing groups that have combined purchasing power of over $15 billion. This allows AOPD distributors to have the power to take advantage of deep manufacturer discounting – meaning deeper discounts to you, our customer.
AOPD offers over 25,000 products from every major manufacturer in the industry. We offer the full spectrum of products, from commodity items such as paper clips and binders to IT supplies, furniture, janitorial, break room – virtually any item related to an office environment.
Customer CareAOPD members stay in touch with customers to ensure their continued satisfaction. We continuously assess needs and our response to those needs. Your level of satisfac-tion is important and with AOPD, your voice is heard. We survey our customers on a yearly basis, and we conduct purchasing evaluations to ensure our customers are get-ting the best service and value on contract items. Surveys are reviewed and acted upon by upper management at AOPD Corporate Headquarters.
Service, pricing, conversion assistance, and attention to you, our customer. Everything adds up to the fact that AOPD is the best choice for you.
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Attach maps, locations list, sample reports, etc. here.
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ContractImplementation
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Finalizing AOPD Contracts
AOPD Contracting Dealer Checklist
Recommended Steps in Setting Up a New Contract Date Tasks Completed
Contract/Customer Company Name is
1. Customer signs contract after negotiations are completed and all ser-vice and pricing parameters are determined
2. Customer provides Contracting Dealer with location information
3. Contracting Dealer matches up customer locations and determines which dealers will be assigned as Servicing Dealers
4. Contract Fact Sheet is completed and sent to AOPD HQ
5. AOPD Headquarters assigns a contract number to the new contract and contacts the Contracting Dealer with the new number
6. Contract Number is _______
7. Customer locations are setup in the Contracting Dealer’s system
8. Pricing is setup in the Contracting Dealer’s system
9. Billing method is set up in the Contracting Dealer’s system
10.
Contract Fact Sheet is send to Servicing Dealers. (The net priced con-tract item is also sent in cases where the Servicing Dealer is receiving orders directly from the customer location.)
11. Customer Locations and Call Report(s) are sent to Servicing Dealers
12.
Customer Introductory packets (if being used are sent out to Servic-ing Dealers. (A Customer Introductory checklist is included on page 48 of this manual.)
13. Contracting Dealer has received call reports from Servicing Deale
14. Follow-up call made to all Servicing Sealers.
15. Contracting Dealer reports sales totals to AOPD HQ monthly
16. Contracting Dealer sets up contract review and update schedule
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Preparing For Contract ImplementationImplementation will be carried out by the contracting distributor's NAA. It is imperative the NAA has all necessary information.
1. Contract price list.
2. Completed AOPD Cost Information Form for specially negotiated vendor supported pricing on contract items or proprietary items.
3. Customer's location list including contact name, address, phone number, and loca-tion code if required by customer.
4. Draft of completed contract fact sheets.
5. Any additional contract specifications not included on contract fact sheets.
6. Copy of customer's correspondence to locations introducing the AOPD contract. A sample letter is included on the following pages.
IF POSSIBLE, ALLOW A MINIMUM OF THIRTY (30) DAYS FOR FULL IMPLEMEN-TATION BY ALL SERVICING DISTRIBUTORS.
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Sample Customer Endorsement Letter
(Date)
(Customer Contact)(Company name)(Address)
Dear (name):
(Company/Corporate name) and American Office Products Distributors have agreed to become active business partners in a national agreement for the procurement of office products. This agreement will begin (Date) and extend through (Date).
American Office Products Distributors, Inc. (AOPD) has over 38 years’ experience in national procurement agreements and is the world's largest network distributor of office supplies. AOPD offers (Company name) locations high quality products, competitive prices and exceptional ser-vice from over ### sales and distribution locations nationwide.
AOPD is comprised of the top office supply distributors in the U. S. and Canada; independent distributors who are business leaders in their respective communities and who continuously re-ceive industry awards for excellence. Some of the benefits (Company name) locations can ex-pect to receive with the new agreement include:
* Minimum XX% discount on off contract items* Price guarantee for one year on contract items* Value-added services such as central or single invoicing and reporting* Flexibility to negotiate contract items and pricing to meet your local needs
The AOPD distributor in your area (AOPD distributor name) will be contacting you shortly to schedule a convenient time to review the (Corporate name)/AOPD office supply program with you. In the meantime, if you have any questions regarding our AOPD agreement please con-tact me. We are excited about our new partnership and strongly encourage your participation in our AOPD national office products procurement program.
Thank you.
Sincerely,
Customer Company Letterhead
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Contract ImplementationThe National Accounts Administrator (NAA) will handle implementation. The NAA should be fully aware of all aspects of the contract, including conversations with the cus-tomer or any exceptional expectations or promised services.
Contact ItemsThe items most frequently requested, and used, by employees.
Non-Contract ItemsThe customer must be aware of specifics relating to non-contract items.
Identification of LocationsCompany locations, subsidiaries, and affiliates covered by the contract, with full ad-dress, phone number, and contact names. Additional information, such as number of employees, type of business, annual amount of purchases and frequency of orders, is also helpful to servicing dealers in contacting a location and setting up their account.
Reporting RequirementsChoose wisely…What management or usage reports does your customer need? Help you customer choose reports that are right for them. Avoid overkill with too much detail, but above all, be certain the customer’s understanding is the same as what you have agreed to provide.
Billing RequirementsAgain, be certain the billing set up is exactly what the customer needs and always be sure your customer understands what information their billing provides them. Also, be sure to set up the correct billing cycle.
Payment TermsTerms of payment are to be established according to the billing option. Prompt pay-ment is important in cases where special discounts and/or rebates apply.
Order Entry The method by which the customer will place orders needs to be established prior to im-plementation. This option should be fully detailed in all documents announcing pro-grams to employees.
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Contract Implementation
Approval LetterA letter of approval and endorsement sent to each of the customer's locations goes a long way in effectively implementing a program for your customer. The letter should come from upper management and clearly state overall benefits to the company. A statement of corporate support and endorsement is most helpful. A listing of the AOPD servicing distributors will help eliminate confusion when contact is made.
Implementation TimeframeIt is important the timeframe for implementing a national contract is understood by the customer. In most cases 30 – 90 days is needed to input program information, verify in-put, and contact all serviced locations.
Since the beginning of a new relationship is important, it is better to plan for additional time to get a strong start, than to rush and risk problems. A more effective and control-lable program can result from taking the time necessary.
If the customer wants consolidated reporting and/or billing options, you might consider starting the contract at the beginning of a month. This timeframe will produce a full month of usage and billing and is an easier transition for the customer.
Regional RolloutsCustomers, with many locations may benefit from a regional rollout. Under this plan, the contract is implemented in smaller geographic segments or regions. Documenta-tion of success becomes more meaningful, because early success stories can result in a more favorable overall outcome. Conversely, any problems are easier to handle and correct before a massive rollout that can fail when problems multiply.
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Sales Call ReportingSales call reporting (the form is on the next page) can directly contribute to the success of your AOPD contract and keep your corporate customer aware of participation by their locations in the national purchasing program.
AOPD dealers have used sales call reports successfully for years. A sales call report is now sent to servicing dealers as part of their location information. The servicing dealer completes the report after the customer location has been contacted and returns it to the contracting dealer. This information lets the contracting dealer know:
1. When and how the location was contacted. (sales rep made on site visit on 02/04 etc.)
2. Information regarding the result of the call. (customer is set up and buying)
3. If there are concerns that need to be addressed with the location or with the corporate office. (customer does not want to participate)
Sales Call Reports provide the contracting distributor details on the participation or non-participation of an assigned client location. They also allow the contracting dealer to know of local preferences or specific service requests by the location.
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AOPD Locations/Call ReportDate:
Contract and Customer Information - (to be completed by Contracting Dealer)
Contracting Dealer:
Contract Name: Contract Number:
Contact/Contract Negotiator:
Phone: Fax:
Email address:
Information for Servicing Dealer
Customer Location Name:
Address:
City: State: Zip Code:
Person to Contact:
Phone: E-mail address:
Customer Call Report - (to be completed by Servicing Dealer)
Date customer was contacted:
Account Rep assigned to this customer:
Rep’s phone: Email address:
Customer with whom you made contact:
Their Phone: Email address:
Customer has catalogs and ordering process was explained (Y/N):
Pricing & billing process was explained (Y/N):
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Customer has committed to the AOPD contract program being offered (Y/N):
Comments: Please email or fax this completed form back to the Contracting Dealer
Some Practical Guidelines & Procedures
SalesInvolve the National Account Administrator (NAA) from the beginning.
Survey servicing distributors before making unusual promises.
Work for a mandatory contract. (Highlight the advantages of contract pricing and com-plete reporting).
Offer special/unusual contract requests such as performance reports or weekly backo-rder reports as available on mandatory contracts only.
Offer the AOPD catalog as the common catalog to assure the customer that AOPD can offer consistent product and pricing.
PricingSpecific product pricing levels and overall strategy are the responsibility of the contract-ing dealer. However, contracting dealers are encouraged to discuss all pricing and ser-vice issues with the respective servicing dealers prior to final customer presentation.
ImplementationEncourage customer participation. An introductory letter from the customer headquar-ters will smooth the way for servicing distributors.
Fill in the contract fact sheet with the customer. This will help eliminate any misunder-standings.
Do not implement a contract until the NAA has the completed Contracting Dealer Checklist, Contract Fact Sheet, pricing, and Location/Call Reports.
Credit InformationThe contracting distributor, in effect, guarantees the customer's credit when sending out the contract. Servicing distributors have the right to check customer credit when receiv-ing a servicing assignment. We encourage the servicing distributor to contact the con-tracting distributor for this information.
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Item SubstitutionsThe contract should allow substitutions of products of equal or greater quality. Substitu-tions will not affect price.
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Catalog ChargesThe contracting distributor pays production and freight costs for the initial shipment of special catalogs unless otherwise negotiated. The servicing distributor pays production and freight costs for subsequent catalogs.
Freight Charges between DistributorsIf specialty items, including imprinted and non-industry products, are purchased from the contracting distributor, the contracting distributor pays the freight.
Delivery Charges Distributors are required to deliver product as specified in the contract. A distributor's obligation is limited to its primary servicing area. Any delivery commitments outside pri -mary servicing areas (within secondary servicing area) must be reviewed and approved
by the assigned servicing distributor prior to final contract negotiations.
Restocking ChargesA restocking charge is not mandatory; however, if a distributor wants to institute a re-stocking charge, the following are acceptable:
No restocking charge should be levied on stocking items returned in sellable condi-tion and in original packing.
A restocking charge, based on manufacturer's restocking charge should be levied on non-stocking items returned for reasons other than damaged when received.
Specially ordered and custom items (items not regularly stocked, to include, but not limited to imprinted items) may not be returnable or may be subject to manufac-turer's restocking charges.
RebatesIf a rebate will be required, an effective option is to tie the rebate percent to customer purchase volume. For instance, a one-percent rebate for sales up to $300,000, one and a half percent for sales from $300,001 to $500,000, and a two-percent rebate on sales of $500,001 and up.
Manufacturer Contract Pricing If a dealer negotiates special pricing from a manufacturer on items for an AOPD con-tract customer, the special pricing can be extended to servicing distributors. Contract-ing dealers should notify servicing dealers when special contract pricing exists and pro-vide them with the necessary information to allow them to take advantage of the re-duced costs.
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Single InvoiceSingle invoice systems can be attractive to customers because it means the customer only has to issue one check per month. This can provide administrative savings to the customer. AOPD dealers can provide single invoices to their AOPD customers.
However, single invoicing may not always be to the customer's advantage. For exam-ple: Are administrative costs and procedures simply being shifted from branch locations to headquarters? If reconciliation is necessary will the customer's headquarters be asked to shoulder an unfair portion of the task? Before deciding for a single invoice, your customers should weigh the pros and cons.
Single Invoicing GuidelinesIt is the contracting distributor's responsibility to pay the servicing dealers - whether the contracting distributor has been paid or not. The Contracting Dealer must have all in-voices from the Servicing Dealer on the last day of the month. If you have invoices from the end of a month and you don’t, or aren’t able to, get them to the contracting dealer by the last working day of the month, the invoice will be billed the following month.
It is strongly recommended there is an understanding with the customer that invoices will be paid as presented. Any discrepancies will be handled between payment and presentation of the next invoice.
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AOPD Commission ProgramAOPD has developed a commission program to encourage salespeople to bring their Regional and National account business to AOPD. On all new contracts, a 2% commis-sion will be paid to the contract salesperson, based on the reported sales from each of the servicing dealers. Any contracts written prior to 2006, will receive a 1% commission on servicing sales. This commission is paid on a quarterly basis, by AOPD Headquar -ters. There is a $50.00 commission minimum per quarter, which is equal to $2500.00 in servicing sales. If you don’t reach the minimum in a quarter, it can be reached in subse-quent months as long as it is in the same calendar year. A commission cap of $20,000.00 per contract, per year, is also in place.
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National Contracts Management
& Service
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Managing AOPD Contracts – The Contract Negotiator’s Responsibilities1. Review contract information periodically
2. Provide contract updates and/or pricing changes to NAA 30 - 45 days prior to effec-tive date.
3. Review AOPD sales call reports for concerns, and solutions to problems.
4. Watch for locations that are not ordering. Find out why there are “0” sales and take appropriate action. Keep it firmly in mind that locations may be reassigned to an-other AOPD servicing distributor if the customer is experiencing dissatisfaction or service issues.
5. Provide prompt response and action to servicing distributor requests.
6. Monitor contract expiration.
Keep your contract expiration date current and, if necessary, extend contract ex-piration date until review and contract extension is finalized with client.
The contracting distributor remains the sole authorized AOPD representative until the contract is deleted and AOPD HQ is notified.
Updating Contracts: Are there location changes, additions, deletions, title changes, phone numbers, product changes or operational changes that will effect servicing dis-tributors? The AOPD Contract Negotiator and Corporate Sales Representative is re-sponsible for maintaining current information. Obviously, this requires regular communi-cation with the client and NAA.
Servicing dealers will service customer's locations based upon information and direction provided by the contracting distributor. If contract changes are not communicated throughout the distribution network, servicing consistency will be compromised.
Changes being implemented by the contracting distributor must be communicated to the NAA for proper implementation throughout AOPD.
Credit Hold: Under no circumstances are AOPD contract locations to be put on credit hold, or reported to a collection agency, without first notifying the contracting distributor.
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Existing Relationships: Occasionally, AOPD contracts involve locations you have as local customers. When this occurs, you must inform the location of the details just as you would with AOPD contracts involving new clients.
Fully discuss contract details to eliminate any confusion about current services that are not included in the AOPD contract. If there are services, prices, or arrangements out-side the contract that the client wishes to continue, the contracting distributor must be informed.
In some cases, locations to be serviced may be taking advantage of a local contract be-cause of an affiliation. (This is prevalent in the health care industry.) The contracting distributor must be informed immediately and will provide direction to satisfy the client. If this creates concerns with the present relationship, it is your responsibility to reach a satisfactorily resolution with the contracting distributor.
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Re-negotiating Your AOPD ContractAs a contract approaches renewal, the re-negotiation process can allow for increased sales, profitability, and solution of any ongoing service problems. If the sales represen-tative has properly monitored the account, he or she will know what problems exist and where new opportunities lie. Re-negotiations can then focus on solutions rather than pricing.
What you need to know…
1. Are the locations participating and placing orders?
2. Are any locations creating problems concerning proper ordering procedures or ex-pectations?
3. What items are consistently ordered off contract? Should those items be on the new contract item offering?
4. How is the servicing dealers’ relationship with the customer's locations? Are they
holding up their end of the bargain?
5. What portion of the business is considered unprofitable with respect to sales per lo -cation, freight expense, or pricing?
Here are some questions that should be addressed in the new proposal.
1. Are there additional locations?
2. Would the customer like a presentation on new and innovative items that should be considered for purchase?
3. Is the customer interested in changes in invoicing procedures?
4. Does the customer know of problems that need to be discussed?
5. Are there going to be other distributors bidding for the customer's business? Who?
When all of this is taken into consideration, the foundation can be laid for a renewal of the contract emphasizing services, products, and benefits.
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