What to ask your distributor for every month
Short answer: Ask for seven things every month: stock at every level, sell-in against sell-out, deductions with the reason for each, returns and write-offs, money owed and when it will be paid, which stores carry the product, and whether agreed promotions actually ran. Weekly store-level sales show demand. The monthly review shows whether that demand is turning into cash, and where money is leaking on the way.
Many brands only look at sell-in, the stock the distributor has bought from them, and discover a problem when deductions or returns arrive months later. The list below is meant to be written into the distribution agreement, so the data arrives without having to be requested each time.
The seven items
| # | Item | Why it matters | Warning sign |
|---|---|---|---|
| 1 | Stock by level: distributor warehouse, retailer distribution centre, stores (if available) | Shows whether stock is moving or piling up | Weeks of cover rising month after month |
| 2 | Sell-in vs sell-out | Sell-in is stock shipped to the channel; sell-out is what shoppers bought | Sell-in steady while sell-out falls |
| 3 | Deductions, line by line, with reason and supporting document | Rebates, markdowns, promotion costs and penalties reduce what you are paid | Lump sums with no breakdown |
| 4 | Returns, damaged goods and expiry write-offs | Shows quality, handling or shelf-life problems | Write-offs concentrated in one batch or area |
| 5 | Payments: amount due, due date, overdue | Cash planning | Payment dates slipping without explanation |
| 6 | Store coverage: stores carrying the product, gained and lost | Coverage changes before sales change | Store count falling while the report says "stable" |
| 7 | Promotion execution: what ran, where, with what result | You may be paying for activity that didn't happen | Promotion charges without store evidence |
Items 1, 2 and 6 overlap with the weekly sales table described in how to track 7-Eleven sales by store. Monthly, you only need the totals and the trend. Items 3, 4, 5 and 7 are the ones a weekly sales table doesn't show.
A one-hour monthly meeting
- Ten minutes on numbers: the seven items, compared with last month.
- Twenty minutes on exceptions: any line that moved more than you agreed in advance. Set this threshold together, for example "any deduction line over an amount we fix now" (the amount is yours to choose).
- Twenty minutes on next month: stock orders, promotions, stores to recover.
- Ten minutes on open questions: who will answer what, by when.
Keep the same format every month. A report that changes shape each time makes trends impossible to see.
How to read deductions
Channel costs in Thai modern trade come under several names: listing fees, rebates, markdowns, promotion and display costs, penalties for stock-outs. Each should trace back to something agreed: a clause in the trade terms, a promotion you approved, a documented penalty. Ask for the supporting document for anything you don't recognise. See listing fee, GP, rebate and markdown for the terms.
Put it in the agreement
- The seven items, the format and the delivery date each month.
- Who pays for promotions and how execution is evidenced.
- How returns and expired stock are handled and charged.
- That store-level data, where the distributor receives it, is shared with you.
If you are about to sign, the master distributor agreement checklist covers the licence and exit clauses that sit alongside this.
Limits
- What a distributor can share depends on what it receives from the retailer and on your agreement; some data may be aggregated.
- The seven items are a working method, not a legal or accounting standard.
- Thresholds and amounts in examples are for you to set; none are industry benchmarks.
FAQ
Our distributor says it can't share store-level data. What then? Ask what level it can share (area, distribution centre) and agree a fixed format. Even area-level data with stock and sell-out is far better than sell-in only.
Is monthly enough? For money, stock and deductions, usually yes. For sales after a launch or a promotion, look weekly.
Who should attend from our side? Someone who reads numbers and someone who can approve orders and promotions, so decisions are made in the meeting.
Sources
- Subpayanunt, FMCG distribution strategy (sell-in and sell-out; Thai): https://www.subpayanunt.com/post/distribution-strategy-fmcg-thailand
- Subpayanunt, hidden costs in modern trade (listing fee, rebate, markdown, penalties; Thai): https://www.subpayanunt.com/post/modern-trade-hidden-costs-listing-fee
Related guide: Getting Into 7-Eleven Thailand: How to Find an FMCG Distributor and Negotiate a Master Distributor Deal
Get Flowup to help: Listed in 7-Eleven Thailand but not selling? Fix it before delisting
Next step: Not sure where your product should start? Send the Flowup team your product and where it sells today, on LINE or by email.
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