The SLA Distribution agreement is essential for businesses operating in Indonesia that require a formal framework for product distribution with specific service level commitments. This document is typically used when a supplier or manufacturer needs to establish a distribution relationship with clear, measurable performance standards and service level requirements. It combines elements of a traditional distribution agreement with specific SLA metrics, making it particularly suitable for industries where consistent service quality and performance measurement are crucial. The agreement ensures compliance with Indonesian distribution regulations, including Trade Law No. 7 of 2014 and relevant Ministry of Trade regulations, while providing a robust framework for managing the distribution relationship through defined KPIs and service standards. It's particularly valuable for businesses requiring strict quality control, specific delivery timeframes, or detailed performance monitoring in their distribution operations.
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1. Parties: Identification of the parties entering into the agreement, including their legal names, registration numbers, and addresses
2. Background: Context of the agreement, relationship between parties, and general purpose of the distribution arrangement
3. Definitions: Detailed definitions of terms used throughout the agreement, including technical and operational terminology
4. Appointment and Territory: Scope of distributor appointment, territorial rights, and exclusivity provisions
5. Service Level Requirements: Core service levels and performance metrics that the distributor must maintain
6. Distribution Rights and Obligations: Detailed rights and responsibilities of the distributor, including minimum purchase requirements and sales targets
7. Supplier Obligations: Obligations of the supplier, including product supply, support, and training commitments
8. Quality Standards: Required quality standards for product handling, storage, and service delivery
9. Performance Monitoring: Methods and frequency of performance measurement and reporting
10. Pricing and Payment Terms: Pricing structure, payment terms, and financial arrangements
11. Term and Termination: Duration of the agreement and circumstances for termination
12. Intellectual Property Rights: Protection and usage rights of trademarks, patents, and other IP
13. Confidentiality: Provisions for handling confidential information
14. Dispute Resolution: Process for resolving disputes under Indonesian law
15. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Marketing and Promotion: Specific requirements for marketing activities and brand promotion, include when distributor has marketing responsibilities
2. Training Requirements: Detailed training obligations and standards, include when specific technical or product knowledge is required
3. Insurance Requirements: Specific insurance coverage requirements, include for high-value products or regulated industries
4. Data Protection: Specific data handling and protection requirements, include when personal or sensitive data is involved
5. Import/Export Compliance: Requirements for international trade compliance, include for cross-border distribution
6. Environmental Compliance: Environmental standards and requirements, include for products with environmental impacts
7. Sub-distributor Rights: Rights and conditions for appointing sub-distributors, include when sub-distribution is permitted
1. Schedule 1 - Service Level Metrics: Detailed service level targets, measurement methods, and KPIs
2. Schedule 2 - Territory Definition: Detailed description of geographical territory and any exclusions
3. Schedule 3 - Product List: Complete list of products covered by the distribution agreement
4. Schedule 4 - Pricing Schedule: Detailed pricing structure, discounts, and commercial terms
5. Schedule 5 - Reporting Requirements: Templates and specifications for required performance reports
6. Schedule 6 - Quality Control Procedures: Detailed quality control processes and standards
7. Appendix A - Contact Details: Key contact information for both parties
8. Appendix B - Service Credit Calculation: Formula and examples for calculating service credits or penalties
9. Appendix C - Technical Requirements: Technical specifications and requirements for service delivery
Relevant legal definitions
Clauses
Relevant Industries
Consumer Goods
Technology and Electronics
Pharmaceuticals
Automotive Parts
Industrial Equipment
Food and Beverage
Healthcare Products
Telecommunications
Software and IT Services
Chemical Products
Construction Materials
Relevant Teams
Legal
Operations
Supply Chain
Commercial
Sales
Distribution
Logistics
Quality Assurance
Compliance
Business Development
Procurement
Relevant Roles
Commercial Director
Distribution Manager
Supply Chain Manager
Operations Director
Legal Counsel
Business Development Manager
Contract Manager
Sales Director
Logistics Manager
Quality Assurance Manager
Compliance Officer
Regional Sales Manager
Channel Partner Manager
Chief Operating Officer
Procurement Manager
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