Effective supply and distribution contracts are crucial to many San Diego businesses. Well-crafted supply, licensing and distribution contracts help to efficiently manage the successful relationship between your company (as a supplier) and those businesses who distribute the products and/or services your company creates.
If your company licenses services or builds a product or integrates technology, sub-assemblies or other supplies and components into your final product you require precision relationships throughout the supply channel to maximize production and associated profitability.
What are the Various Types of Supply and Distribution Agreements.
Generally, supply and distribution agreements are usually either exclusive in nature, selective, non-exclusive or sole (territorial).
In an exclusive distribution agreement, your company would appoint a single vendor or “distributor” within a specifically defined region or territory that has the exclusive rights to sell your company’s products and/or services. In these types of effective supply and distribution contracts your company agrees not to sell directly to customers within that “exclusive” region or territory.
A selective distribution agreement is usually implemented when your company’s products require experts to sell and support them, or when other businesses may want to add enhanced services or value to the end product. In a selective distribution agreement our customers usually want to control the types of customers the vendor can sell to and limit distribution to unauthorized customers or other resellers.
Non-exclusive distribution contracts provide the right for the distributor to buy and resell your products or services within a specific territory, but there is no limitation on how many distributors you may wish to establish within that region or territory. These agreements are usually much easier on both parties from the terms and conditions point of view.
A sole distribution contract limits distribution to one vendor per territory. However, in a sole distribution agreement your company will retain the right to sell directly to customers within the territory as well.
Contracts with vendors and distributors can be quite complex, and each contract must clearly position your company to be able to complete successful business transactions, as well as hold those vendors who do not perform accountable.
Effective Supply and Distribution Contracts in San Diego and Southern California
The Watkins Firm brings more than 40 years of experience to supply and distribution contracts and relationships. Our experienced San Diego business attorneys understand that supply and distribution contracts are crucial to many San Diego and Southern California businesses. We have developed a proprietary library of proven, battle-tested supply and distribution contracts. This allows us to custom tailor a proven contract to your unique and specific requirements while saving time and money.
We carefully craft supply and distribution contracts ensure smooth transactions and timely performance by those who distribute goods and services through or for your company. We work to anticipate every foreseeable contingency to reduce the likelihood of disagreements, disputes or business litigation. Our experienced contract attorneys incorporate proven strategies which quickly identify potential challenges while providing a timely and cost-effective process for resolution.
Supply and distribution contracts are crucial to many San Diego businesses in this fast-paced and competitive marketplace. They provide the ability to expand into new geographic and vertical markets through distributors and vendors while ensuring protections for your business.
We invite you to review our podcast Episode 15 – Contract Law as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
