A new distributor is a big decision made small by habit: the paperwork is collected, a code is created, the first order ships. Weeks later the problems appear — outlets claimed by two distributors, credit given without anyone agreeing a limit, a scheme the distributor was promised but nobody recorded.
A written onboarding checklist turns appointment into a process.
The checklist
1. KYC and documents
- GST registration and PAN
- Business address proof, and godown address if different
- Bank details with a cancelled cheque
- Identity proof of proprietor or partners
- Category licences where needed (drug licence, FSSAI, fertiliser licence, etc.)
- Documents stored against the distributor's record
2. Agreement
- Territory and exclusivity
- Products covered
- Pricing and margin
- Credit days and credit limit
- Minimum stock or purchase commitments
- Schemes and claim process
- Returns, damages and expiry handling
- Termination and notice
3. Territory and outlets
- Territory defined (towns, areas, pin codes)
- Outlets assigned to this distributor — and removed from anyone else
- Beats planned for the distributor's salesmen
4. Commercial setup
- Price list for the distributor
- Credit terms entered, not just agreed
- Opening schemes recorded with their terms
- Targets for the first quarter
5. First 30 days
- Opening order delivered and invoiced
- First week of field orders reviewed
- First collection recorded
- 30-day review: stock, sales, outstanding, issues
Common mistakes
- Overlapping territories, discovered when two distributors fight over an outlet.
- Credit agreed verbally and never entered.
- Schemes promised at appointment that nobody can find later.
- KYC in an email, unavailable when it is needed.
How Zaqnet supports onboarding
In Zaqnet's dealer network, each distributor or dealer has:
- KYC documents stored on their record.
- Agreements and territories.
- Schemes and targets from day one — see dealer targets.
- A ledger that starts with the first invoice.
Field teams in GroundLink book outlet orders against the right distributor, and everything is reviewed in ControlRoom.
Onboarding is the first step. Everything that follows is covered on our distributor management software page.
A distributor set up properly in week one saves a quarter of arguments later.