EPTDA pursues its efforts towards improving best practices between the manufacturer and the distributor in the PT/MC industry by promoting its Required Information Change Process guidelines.
The Required Information Change Process (RICP) constitutes a basic "Code of Conduct" between a Manufacturer and its Distributor, with regard to exchange of information, data format, and timelines for delivery of same.
In this section you will learn more about:
The RICP formalises "best practice", ensuring that all existing EPTDA members, and subsequent applicants, understand what is required.
In order to further promote these best practice guidelines and reach out to all our members throughout Europe, the RICP document is available soon in several languages:
At the association's "All Committees' Days Meeting" in September 2007 in Monaco, the members of the EPTDA Distributor and Manufacturer Council gave the finishing touches to the much-awaited EPTDA Required Information Change Process (RICP) project, a major advancement towards defining the standards of operation and business of the PT/MC Industry and EPTDA.
This initiative was first kicked off in 2004 and the foundations of this project were built upon the need to define standards that would facilitate a clear definition of the market segment served by both manufacturers and distributors, who will on their end, share obligations and responsibilities. The objectives of the project also focused on establishing clear timescales and format for notification of item number changes, and for item price and discount changes.
The RICP project started on the foundations of outlining and implementing recommendations and general principles, as suggested by EPTDA to both its Distributor and Manufacturer members for forming the basis of individual negotiations. After endless efforts and a series of though-provoking discussions, EPTDA is pleased to inform you that the official RICP manual for our industry is now finalised and ready for distribution. Although the RICP manual is a result of the best practice techniques of our industry, which we want you to follow and benefit from, it is intended to be a living and working document which can be adapted by both parties to best suit their needs and requirements. Under no circumstances, should this manual be used for dealing with pricing decisions and negotiations outside the scope of this project and EPTDA.
The RICP manual is a recommendation! All points outlined and all fields and data definitions will be applicable in all cases, and we recommend that they be used in the same sequence and format as outlined in this RICP.
THE MANUFACTURER
1. a) Will preferably give TWO clear months notice of price changes to Distributors. In exceptional circumstances one month's notice will be acceptable.
b) All Price Changes will be supported by full and accurate information on the new prices, electronically, and/or in hardcopy, depending on the agreements between the Manufacturer and individual distributors, in accordance with the structure shown in appendix I.
2. Will advise part number changes at least one month prior to any price list change, and preferably as soon as possible before that. The information will be supplied electronically and/or in hard copy, depending on the agreements between the Manufacturer and individual Distributors in accordance with the structure outlined in Appendix II. (Price and part number may be given simultaneously if this improves accuracy, but only when the full 2 months notice is given).
3. There will be separate files for price changes and for item number or other information changes. In the event that more than just the part number is changing then a separate file from any price changes with columns for both the old and new variation will be supplied in the same structure outlined in Appendix II as outlined in 2 and with Existing Part Number the first field in each row, with old and new fields paired adjacent to each other.
4. Will ensure that ALL versions of the Item & Price information are identical i.e. all types of electronic, paper and any other media contain IDENTICAL information. Particular attention will be paid to "rounding" that can result in differing printed and electronic versions, and differences between electronic formats.
5. All Standard Stock New Products will be supported by full and accurate information on the new items, electronically, and/or in hardcopy, depending on the agreements between the Manufacturer and individual distributors the minimum being in accordance with the Mandatory Fields in the structure shown in appendix II.
6. Will individually have clearly defined, logical and supportive policies that encourage their distributors, so that the efforts of the Manufacturer and Distributor are mutually supportive in respect of:
Distributors - Manufacturers should clearly state what is the minimum criterion required by the Manufacturer before awarding distributor status to any individual company. This could include minimum turnover targets, commitment to carry appropriate stock and product knowledge.
Segments / channels that the manufacturer works in and defines.
Many of the conflicts that exist could be minimised if Manufacturers stated clearly what they require from a distributor, in terms of performance, commitment and loyalty.
THE DISTRIBUTOR
1. Will honour their joint mutual agreements i.e. to promote the Manufacturers' brands and to meet their agreed terms and conditions of supply, etc.
2. To mutually agree the level of support to the manufacturers marketing programmes, which will be to the highest degree possible.
3. To support the training opportunities offered by the Manufacturer, to the highest degree possible, and to provide time and facilities for appropriate staff to attend training sessions.
4. Will provide market feedback to the manufacturer.
5. Will give as much feedback as possible to manufacturers on the desirable types of training.
6. Not knowingly deal in counterfeit product.
7. Will add value to the manufacturers channels and brands.
EPTDA members have committed to endorse or use the RICP in their daily business:
EPTDA RICP Users
EPTDA RICP Endorsers
In case your company name does not appear in this list, please contact EPTDA and the list will be updated accordingly.