A global distribution partner can become part of your long-term business success. Selection—and the vetting process—is critical. The benefits are both in establishing and incentivizing the growth of your international business while minimizing risk. ATC Distribution & Services offers a 10-step overview to help you begin the process.

1. International Business
10 Questions to Ask When Vetting a Global
Distribution Partner

2. 2
Vetting a Global Distribution Partner
Moving into international markets entails risk. But you can mitigate that
risk through careful selection of your global distribution partner.
Your partner can lay the pathway
for your success, so your choice
is important.
We have outlined the 10 key questions that can help in your selection
process

3. 3
BEFORE YOU BEGIN
The selection of the right distribution partner is
your first, most critical step.
 Think Long-Term
An international distributor is your trusted business partner—
your best option is to leverage their expertise for lasting results.
A strong vendor relationship is structured for the long-term.

4. 4
BEFORE YOU BEGIN
The selection of the right distribution partner is
your first, most critical step.
 Be Prepared to Invest in Success
Consider establishing incentives for attaining your business
goals. For example:
 Offer national exclusivity.
 Establish goals such as customer acquisition or new product sales.

5. 5
BEFORE YOU BEGIN
The selection of the right distribution partner is
your first, most critical step.
 Keep 3 Criteria Top-of-Mind
1. Integrity
2. Credibility
3. Expertise

6. 10 Questions to Ask When Vetting Your
Distribution Partner
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7. 7
Why?
 Documents play a major role in
international trade, and standard payment
procedures rely on them.
 Letter of credit will continue to play a
vital role, increasingly as a form of
payment security.
 What your company can do is governed
by what is legal in the U.S. and the host
country’s laws treaties and acts.
 They must add value and help you grow,
while maintaining full compliance with
international laws and regulations, in an
ethical manner.
What You Should Learn:
 What is their familiarity and experience
with the local region (everything from
currency to customs)?
 Can they demonstrate their
understanding of legal compliance?
 Are there any red flags you need to
know about from their past or present
business relationships?
 Can they supply examples of document
from actual customers?
What is your experience in managing shipping,
trade, and banking export documentation
specific to my business and industry?
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8. 8
Why?
 They must understand how to bid for
government or even private customer
tenders in the country you are doing
business.
 Your global distributor MUST win
tenders in target markets and present
new opportunities prior to a tender being
published.
What You Should Learn:
 Can they explain their methodologies
and approach in detail?
 Can they demonstrate their
understanding of what differentiates
your service offering from your
competitors?
 Can they provide examples of how
they met with the key requirements of
the tender in the past?
Do you understand our new market’s local
tender processes?2

9. 9
Why?
 Mitigate the risk of working in foreign
exchanges.
 Fluctuating currencies cannot be
managed on a spreadsheet.
 Accounting standards are still
evolving, and there are now clear
differences between countries.
 Many customers do not wish to go
through the hassles of dealing in
foreign exchange.
What You Should Learn:
 What methods do they use to eliminate
or manage foreign exchange (FX) risk?
Have you worked specifically in our new
market’s local currency?3

10. 10
Why?
 Developing strong relationships in
local markets has enumerable
advantages.
What You Should Learn:
 How do they plan to target your specific
customers?
 What training do they provide and/or
require for their salespeople?
 Can they provide detailed data on the
local current market and financial
performance?
Do you have the necessary connections to
establish a local salesforce?4

11. 11
Why?
 Minimize your legal risk.
 Build your corporate reputation.
 Compliance is never optional,
regardless of a particular country’s poor
reputation for doing business.
What You Should Learn:
 In relation to the law, can they provide
examples of how they tackle bribery
issues?
Can you demonstrate compliance with the U.S.
Foreign Corrupt Practices Act?5

12. 12
Why?
 You need the right amount of
inventory, in just the right places, to
meet customer service and revenue
goals.
What You Should Learn:
 Do they use and provide real-time web-
based inventory reports?
 Can they provide real-life examples?
 What is their on-time delivery record?
 How does their real-time order tracking
system work?
Can you effectively manage and optimize
inventory stock specific to our industry?6

13. 13
Why?
 Strategic marketing is a joint venture.
 Who you select is critical when
introducing a new product or reaching
out to new market segments.
 Your success in a new market
requires timely responses to local
market feedback.
 Adjustments will need to be made as
you grow and move beyond your core
customer base.
 Different markets favor different sales
and marketing approaches.
What You Should Learn:
 In what way are they incentivized to
market your business?
 Do they conduct detailed local market
research, and can they provide
examples?
Can you demonstrate your awareness of
emerging trends in local markets?7
In countries that value personal
relationships such as Japan, selling
products and services through local
partners achieves faster success than
direct sales models. Also, the biggest
challenge companies face with
incorporating local insight tends to be
communication.

14. 14
Why?
 To provide the kind of service to your
customers that builds business and
closes orders.
What You Should Learn:
 Can they provide examples of how
they’ve managed local sourcing with
other clients?
 Can they provide examples of how
they’ve managed critical services with
other clients?
How do you manage local sourcing and critical
services?8

15. 15
Why?
 The use of technology, and industry
specific KPIs should lead to better
analysis, conclusions and future
performance.
What You Should Learn:
 Request and review their automation
tools for collecting and monitoring
performance.
 Can their tools provide reporting specific
to your KPIs and expectations?
 How do they objectively measure the
success of your business and marketing
strategy?
Have you embraced technology and metrics in
your reporting?9

16. 16
Why?
 Selecting the right partner to represent
your company in a foreign market is vital
to your success. It’s difficult to change
partners and distribution structures once
established.
What You Should Learn:
 Get it right from the start.
This one you’ll want to ask yourself:
Corporate ethos is a bottom line, am I
confident in their reputation?
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17. Provided by ATC Distribution & Services
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This overview is based on our experience in providing best-in-class
customer service and product life-cycle management support.
Contact us for a comprehensive solution, including industrial products,
custom engineered packages, and turnkey repairs and services.
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