'Rules of Engagement' are all of the specific criteria that you must meet to do business with a customer and often, these are 'mundane' issues like payment terms and quality certification.

Think of these as the hurdles that you must clear in order to be a qualified supplier to your customer.

The rules of engagement identify the conditions that are necessary but not sufficient for your company to win the business. Consider them to be the minimum qualifications.
 
Your account managers must identify these rules of engagement for each of their selected accounts.

Although they are most important for prospects, you may be surprised to find what you will uncover during your investigation for existing customers. You may find that your existing business is at risk because you are not currently satisfying their minimum requirements!
 
The following is a partial list of the typical areas in which rules of engagement are enforced:
 
Inventory requirements
Credit terms
Payment terms
Returns policies
Contract pricing
Quality programs and certification
Integrated supply
Special shipping and handling
Drop ships
EDI – Internet communication capability
Credit card sales
Training
Strategic alliances
Consignment
Frequency of vendor communications

Rick Johnson, expert speaker, wholesale distribution's "Leadership Strategist", founder of CEO Strategist, LLC a firm that helps clients create and maintain competitive advantage. Need a speaker for your next event, E-mail rick@ceostrategist.com. Don't forget to check out the Lead Wolf Series that can help you put more profit into your business.