Negotiating a New Distribution Contract
A supply chain director meets with a potential new distributor to discuss terms, pricing, service level agreements (SLAs), delivery schedules, and geographical coverage for expanding product reach.
Dialogue
Listen and follow along with the conversation
Vocabulary
Essential words and phrases from the dialogue
partnership
A business relationship where two companies work together to achieve common goals, like expanding markets. Use it in negotiations to suggest collaboration.
distribution network
A system of warehouses, trucks, and partners that deliver products to customers. It's key in supply chain talks to describe how goods reach buyers.
service level agreement (SLA)
A contract that sets standards for service quality, like delivery times. In business, it's used to ensure reliable performance from partners.
on-time delivery rate
The percentage of shipments that arrive as scheduled. It's a measure of reliability in logistics; higher rates like 98% show strong performance.
lead time
The time between placing an order and receiving the goods. In supply chains, shorter lead times mean faster service and happier customers.
tiered commission structure
A payment system where commissions increase with higher sales volumes, like levels or tiers. It's common in sales to motivate distributors.
inventory management
The process of tracking and controlling stock levels to avoid shortages or excess. Essential in warehouses for efficient operations.
real-time tracking
Monitoring shipments or inventory instantly as events happen. It provides up-to-date information, useful for quick decisions in supply chains.
geographical coverage
The areas or regions a company serves with its services. In distribution, it refers to where products can be delivered effectively.
core competency
A company's main strength or expertise area. Use it to highlight what your business does best, like operating in specific markets.
Key Sentences
Important phrases to remember and practice
Thanks for coming in today.
A polite greeting to start a meeting, showing appreciation for the other person's time. Use it in professional settings to build rapport; simple present tense for ongoing courtesy.
We're very interested in exploring a partnership with your distribution network.
Expresses enthusiasm for potential business cooperation. Useful in negotiations to show intent; 'exploring' suggests initial discussion, and 'with' connects to the partner's asset.
Could you outline your primary expectations regarding service level agreements?
A polite request for information using 'could you' for formality. 'Outline' means to summarize key points; great for meetings to clarify terms like SLAs.
We're looking for an SLA that guarantees a 98% on-time delivery rate.
States specific requirements clearly. 'That guarantees' is a relative clause defining the SLA; useful for setting standards in contracts, with numbers for precision.
Are you open to a tiered commission structure based on volume?
Asks about flexibility in pricing models. 'Open to' means willing to consider; 'based on' explains the condition. Ideal for negotiation to explore options.
What are your capabilities regarding inventory management?
Inquires about strengths in a specific area. 'Capabilities' refers to skills or systems; use in business talks to assess partner's suitability, with 'regarding' for topics.
Our WMS integrates with most major ERP systems.
Describes technical compatibility. 'Integrates with' means works together seamlessly; useful to highlight tech advantages in supply chain discussions.
Perhaps we can schedule a follow-up to delve deeper into the contract specifics.
Suggests next steps politely with 'perhaps' for softness. 'Delve deeper' means explore in more detail; common in meetings to continue talks without pressure.
I think that's a great next step.
Shows agreement and positivity. 'I think' softens opinion; useful to affirm ideas in conversations, building towards positive outcomes.
We look forward to it.
Expresses anticipation for future actions. A standard closing phrase in business emails or talks; present tense for ongoing expectation.