The tendering process is a day-to-day experience for some within the supply chain industry. The construction world has provided a timely reminder that you should never enter a tender unless you actually want to win.

Distributors seeking business are delighted when they secure a sole supply agreement with a customer group. No competitor gets a look in for the period of the agreement. Typically an agreement might run for anything between one to five years. Any longer period comes up against EU inspired competition rules that make the agreement unenforceable (an exception occurs where after five years less than 80% of goods must be purchased from the distributor). Negotiations are all important to achieve this.

Long term customers dissatisfied with the condition or quality of goods supplied can usually resolve the complaint by discussion with the distributor. At the other end, a wholesaler making a single sale may face a difficult customer taking issue without apparent justification. The suspicion naturally arises that the customer is trying to duck payment, but how can you deal with this?