Distributor Assessment Questions

General
1. Annual Sales, sales break-out by key operating unit 2. Company Sales Trends vs. Previous Year ? Last 3-5 years ? 3. Margins 4. # Employees 5. # employees touching our business 6. Key personnel career biographies 7. Grocery Products as a core component (vs. Personal Care, General Merchandise) 8. Enthusiasm for our proposal & CEO commitment 9. What would your plan be if you received our business ? 10. Pharmacy, Food Service, Small Store coverage capabilities 11. How do they manage a client ? Brand Managers etc. 12. Who are your largest competitors ? 13. How do you see the evolution of the market ( channel shifts, consolidation etc.) ? 14. How do you measure success: 15. Trade references: 16. What will you be doing different in 2008 ? 17. Why are you the best ? 18. Company Mission Statement 19. Top Management Succession Planning 20. How do you train your people ? 21. How are your sales people/top management incented (bonus program etc.)

Supply Chain:
1. # Warehouses/locations/chilled capability ? 2. # Trucks 3. Order delivery cycle 4. Avg. Days/stock item 5. Inventory turns 6. EDI Capable ? 7. Order Fill/Case fill measures 8. On -time delivery rate 9. Order process

Technology:
1. # Computer System Overview 2. # Handhelds for salesmen ? 3. Software 4. Spaceman - Vivid Imaging 5. Category Management Software ? 6. RW3 or other in store management tools ? 7. IRI/Nielsen usage

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Financial:
1. Collections/Bad Debt risk 2. Days outstanding 3. Terms with trade and clients 4. ABC work (Cost to serve Customers/Principals) 5. Deduction handling 6. Damage Goods policy 7. Financial Stability 8. How do you determine your margin/commission structure ?

Sales:
1. Management By Objective /Prioritization 2. Shelf standards 3. How do you evaluate sales representatives ? 4. # of salesrepresentatives vs. merchandisers 5. Sales Organization strategy 6. Coverage frequencies/total stores covered 7. Blitz/Special Sales Coverage capacity 8. How many stores/day for retail sales rep. ? How many hours per store ? 9. Key account management system 10. Category Management process

New Item Launches:

1. 2. 3. 4. 5. 6. What is your process ? How long does it take to launch (new item launch meeting to 80 % retail availability) What does it cost to launch a new line ( avg. 3 items) in your territory ? How do you measure success of a new item ? How do you track a new item launch ? Examples/ Success stories

Clients
1. List each one 2. Length of service with each 3. Rank by size 4. References 5. Which clients have you gained/lost in last 18 months ?

Legal
1. Contracts with clients 2. How do you determine fees 3.Length of Contracts 4. Who handles import/export requirements ?

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