- Define what objectives or behaviors you are trying to achieve with Ts&Cs: OEMs have historically struggled between accomplishing two goals: keeping Ts&Cs simple and introducing elements that will encourage their dealers to adapt certain desired
- Do not underestimate or oversimplify the task: Evaluating changes to Ts&Cs is not an easy task. It can take several months. And it is complex… really complex. Changing even one lever can have implications across the entire supply chain. For instance, let’s say the OEM decides to change emergency order cut-off times.
- Evaluate scenarios that are win-win strategies: This step is just as difficult as building a Ts&Cs model. Could you convince your dealers
- Keep your dealers informed and involved: Imagine the chaos if your dealers do not hear about the planned changes, or their possible impact, until you suddenly
Friday, June 14, 2013
Terms and Conditions Design Considerations
If you manage the supply chain spend at your company, then you definitely know this piece of paper. You know that it has a significant impact on both your parts revenue and your cost structure. It defines how you do business with your customers and what you will pay to provide a certain level of service. In fact, it is probably one of the most important documents on your desk. If you’ve guessed that this document is your “Terms and Conditions” or “Ts&Cs”, then you are absolutely correct. (If you answered “My pay stub”— that too, arguably, does help drive revenue and provide customer satisfaction.) At Carlisle, we have been collecting, studying and designing OEM Ts&Cs for a long time. We’ve seen some major trends evolve, and also learned what works and what does not. If you have decided that it’s time to revise your Ts&Cs for the better, here are some things to keep in mind: