National, Regional & International Contracts AOPD 101AOPD 101 The Contract ModelsThe Contract Models Americas ContractsAmericas Contracts Americas Contracts.

National, Regional & National, Regional & International ContractsInternational Contracts

•AOPD 101 AOPD 101

•The Contract ModelsThe Contract Models

•Americas ContractsAmericas Contracts

•Americas Contracts In Canada & the USAmericas Contracts In Canada & the US

•Drop Ship ContractsDrop Ship Contracts

•Hybrids - Reporting Sales - AOPD FormsHybrids - Reporting Sales - AOPD Forms

National, Regional & National, Regional & International ContractsInternational Contracts

•AOPD 101 AOPD 101

•The Contract ModelsThe Contract Models

•Americas ContractsAmericas Contracts

•Americas Contracts In Canada & the USAmericas Contracts In Canada & the US

•Drop Ship ContractsDrop Ship Contracts

•Hybrids - Reporting Sales - AOPD FormsHybrids - Reporting Sales - AOPD Forms

Operations

AOPD Contract Basics...AOPD Contract Basics...

AOPD 101… Basic InformationAOPD 101… Basic Information

•The customer- must have at least one location out The customer- must have at least one location out of the contracting dealer’s servicing area.of the contracting dealer’s servicing area.

•The contract- must name at least one other AOPD The contract- must name at least one other AOPD member as a servicing dealer. member as a servicing dealer.

•The servicing dealers honor pricing and service The servicing dealers honor pricing and service considerations set up by the contracting dealer.considerations set up by the contracting dealer.

Requirements…

Primary service area– The PSA will extend for 50 miles from the center of a

member’s HQ city

Secondary service area– All areas not designated a PSA will be an SSA– Any member can represent or service AOPD in a SSA

Independence

Sales & Sales &

Service Service

AreasAreas

Sales & Sales &

Service Service

AreasAreas Office EssentialsOffice Essentials

Smith & ButterfieldSmith & Butterfield

A–Z Office OutfittersA–Z Office Outfitters

American Paper & TwineAmerican Paper & Twine

Two Basic AOPD Contract TypesTwo Basic AOPD Contract Types

AMERICAS Drop Ship

A CLOSER LOOK AT...

AAmericasmericas

Description...Americas Description...Americas

Contracting Dealer – Handles customer service & order receipt

Servicing Dealers– Fulfill orders & provide back up customer service

Servicing Dealers send invoices to Contracting Dealer

Contracting Dealer invoices customer - pays Servicing Dealer

The The BASIC BASIC ModelModel

Americas - The BasicsAmericas - The Basics

Priced Order

Contracting DealerContracting Dealer

ORDER

CustomerCustomer

Servicing DealerServicing Dealer


CustomerCustomer

Invoices

&

Reports

Invoices






CustomerCustomer

Building an “Americas” ContractBuilding an “Americas” Contract

Get contract number - Contact AOPD HQ

COMPLETE... a. AOPD Contract Fact Sheet (CFS) b. Locations/Call Report Sheets for Servicing Dealers

- Copy AOPD HQ on all contract forms

a. Pricing structures - contract & non- contract

b. Ordering methods

c. Customer invoicing & reporting (per contract specs.)

d. Local Locations

SET UP - customer in internal computer system


e. Servicing Dealers(similar to “vendor set up”)

f . Remote locations Forward the “pre-priced” orders to servicing dealers So that orders do not affect your inventory After-hours customer calls from different time zones

SET UP - customer in internal computer system


Send to Servicing Dealers...

a. Completed Contract Fact Sheetb. Location/Call Report

(copies to AOPD HQ)c. Pricing Informationd. New Customer Intro Pack


Create Remote Location Invoices from: Original orders (may be already in your system) Invoices from Servicing Dealers

Treat Servicing Dealer sales as A/R “pass-through” - not your sales...

Create Usage Reports from: Orders received & maintained on internal computer

system


Receive CFS & Location/Call Report Setup...

a . Ship to addressesb . Bill to address (Contracting Dealer) c . Contact customer (per CFS instructions) d . Set up appointment - visit customer

“Pre-priced” orders come from Contracting Dealer Enter orders-ship productInvoice Contracting Dealer per contract specs.

Servicing “Americas” ContractsServicing “Americas” Contracts

Reference original order number on your customer order, packing slip and invoices back to the Contracting Dealer

Servicing Dealers must price orders as received

Remember … Contracting Dealers pay Servicing Dealers from original pre-priced orders

Subs allowed (unless “No Sub” specified)

ImportantImportantImportantImportant

Servicing “Americas” ContractsServicing “Americas” Contracts

Americas Americas Contracts Contracts

Between Between CCaannaaddiiaan n & & UU..SS. . DDeeaalleerrss

Americas Americas Contracts Contracts

Between Between CCaannaaddiiaan n & & UU..SS. . DDeeaalleerrss

Pre-Contract Set Up In Contact Negotiations Determine customer’s expectations

Be sure your customer understands: how the contract will work the differences in products why pricing may be different

The keys to success are communication!

Contracts Between Canadian & U.S. DealersContracts Between Canadian & U.S. Dealers

Pre-Contract Set Up Make Contact

basic contract & location info list of proposed net priced contract items

Servicing Dealer cross-references the item numbers Apply competitive pricing specific to the Canadian or US market

make allowances for the differences in products and prices Verify non-contract pricing structures Possibly create a sister contract for the Canadian or US locations


InvoicingBest to set up... Invoices created by Canadian or US member for locations they are servicing Don’t promise this… Single invoice or invoices to customer corporate - in one currency

Involves currency conversion

Reporting Sales Easiest for everyone... Members report in their respective currencies

Kind of hard to do… Combined usage - Canada & US - in one currency


QuestionQuestions?s?


LET’S LOOK AT...

Contracts Contracts Utilizing Drop ShipUtilizing Drop Ship

AOPD Contracts AOPD Contracts Utilizing Drop ShipUtilizing Drop Ship

Description...AOPD Drop Ship Contract Description...AOPD Drop Ship Contract

Utilizes the major wholesalers to fulfill orders via drop ship programs– AOPD Servicing Dealers CAN BE USED TO...

• introduce contract program to locations • make sales calls on locations • provide emergency back up customer service • handle some services and orders, such as furniture

Order


ORDER

CustomerCustomer

Wholesaler Wholesaler

Drop Ship - The BasicsDrop Ship - The Basics

Drop Ship Invoices & ReportsDrop Ship Invoices & Reports

CustomerCustomer

Invoices

&

Reports


Local DeliveryServicing DealerServicing Dealer

CustomerCustomer

Local Service

Request


Using a Servicing Dealer for Local ServiceUsing a Servicing Dealer for Local Service

Local Service Request

Using a Servicing Dealer for Local Service Using a Servicing Dealer for Local Service

CustomerCustomer



First Steps...

Establish drop ship program with wholesaler Contact AOPD for assistance if needed

NAA sends to Servicing Dealers (if using) CFS & Location/Call Report

Building a Drop Ship ContractBuilding a Drop Ship Contract

a. Pricing structureb. Billing & reporting c. Customer Service & ordering methodsd. Local locations (Contracting Dealer is servicing) e. Remote locations in drop ship program

Setup...

Building a Drop Ship ContractBuilding a Drop Ship Contract

HHyybbrriidd Contracts Contracts

Mixed Contract ConstructionMixed Contract Construction

Why use a mix of USA & Americas?Customer has locations requiring more service (Americas) &

locations that do not (Drop Ship)

The customer has some locations in areas not covered by AOPD members (Drop Ship)

Customer has locations in Canada (Americas) (Wholesaler drop ship programs are not used by AOPD dealers in Canada)

USAUSA

Americas

Americas

Unique Contract ConsiderationsUnique Contract Considerations

AOPD contracts DON’T have to be exactly alike…

For instance… Customer wants to place orders and deal directly with a Servicing Dealer

Servicing Dealer could be invoicing the customer directly and handling payables

Contracting Dealer will have to contact Servicing Dealer for sales reports

Unique Contracts…an AOPD strength!Unique Contracts…an AOPD strength!

Cooperation

Communication

Service



Reporting AOPD Sales

Reporting AOPD Sales

Reporting SalesReporting Sales

Who: Contracting DealerTo: AOPD HQWhat: Servicing sales $$ totals When: MonthlyHow: Using Excel template reporting spreadsheet sent via e-mail by

AOPD HQ at the first of the month. Dealer completes and returns to AOPD.

AOPD FORMS & CHECKLISTSAOPD FORMS & CHECKLISTS

USED IN CONTRACT SET UPUSED IN CONTRACT SET UP

Contract Fact Sheet Contract Fact Sheet Worksheet

AOPD Locations/Call Report Contracting Dealer Checklist Servicing Dealer Checklist New Customer Intro Pack Checklist

Customer Endorsement & SupportCustomer Endorsement & Support

– Announcing New Program– Identifying AOPD Servicing

Dealers – Giving a Contact Name at HQ

A letter or memo from Corporate HQ

After the Contract is Implemented…. After the Contract is Implemented…. Follow Up!

After the Contract is Implemented…. After the Contract is Implemented…. Follow Up!

Review Call Reports WATCH Your Contract

– location & customer info– keep contract items & pricing current– service issues– participation

KEEP IN CONTACT WITH YOUR CUSTOMERKEEP IN CONTACT WITH YOUR CUSTOMER

QuestioQuestions?ns?

QuestioQuestions?ns?

Thank Thank You!You!

Thank Thank You!You!

National, Regional & International Contracts AOPD 101AOPD 101 The Contract ModelsThe Contract Models Americas ContractsAmericas Contracts Americas Contracts.

Documents

dealer customer slide

aopd contract basics

service aopd

contract forms

aopd member

ship slide

dealer invoices customer

contract specs