Dealer Onboarding Checklist for Nepali Distributors: From Agreement to First Order

Appointing a dealer is easy. Appointing one properly is harder. A dealer who starts with unclear credit, an undefined territory and no training will cause months of arguments. This dealer onboarding checklist for Nepali distributors walks through the steps from agreement to first order, so the relationship starts on firm ground.

If you are new to the dealer model, read dealer and distributor management: primary vs secondary sales first.

Stage 1: Check before you sign

Know who you are dealing with

Collect the basic business documents. Typically that means registration, PAN or VAT details, the owner's identity copy, godown and shop addresses and bank details. The exact documents depend on your company policy and your lawyer's advice.

Visit the godown

Walk through the premises. Is there space for your volume? Is it dry and safe? Do they hold competing brands, and how do those brands do? A visit tells you more than a brochure.

Ask for references

Speak with one or two suppliers who already deal with the person. Ask about payment habits.

Stage 2: Agree the commercial terms in writing

Write each of these down, even if the relationship is friendly:

1. Territory: the area the dealer serves, and whether it is exclusive.
2. Products: the SKUs and packs the dealer will stock.
3. Price list: which prices apply. See dealer vs retailer price lists.
4. Credit limit and credit days: the maximum outstanding and the due period.
5. Payment methods: cash, bank transfer, cheque or wallets, and how each is recorded.
6. Targets and schemes: what is expected and what reward applies. See dealer schemes that pay for themselves.
7. Returns: what you accept back and when. See sales returns and damaged goods.
8. Reporting: the dealer shares monthly stock and sales to shops.
9. Exit: notice period and how stock and balances are settled.

Check the final agreement with your lawyer.

Stage 3: Set up the dealer in your system

A dealer who is not in your system will be managed by phone calls. Do this before the first delivery:

• Create the dealer as a party, with owner name, phone, PAN, address and map location.
• Enter the credit limit, credit days and price list.
• Link the shops the dealer will supply, so shop orders show who fulfils them.
• Create a login for the dealer if they will use an app to order and track.
• Set the yearly target.

Stage 4: The opening stock and first order

Do a physical opening stock count with the dealer present, and record it. Without a starting point, stock reports later turn into arguments. Then place a modest first order. A smaller first order that sells through builds more trust than a large one that sits.

Stage 5: The first 30 days

Week	What to do
1	Walk the dealer through ordering, returns and statements. Visit the dealer with your sales officer.
2	Check secondary sales: are orders reaching shops? Review the first stock report.
3	Review payments against the agreed due dates. Resolve any invoice questions.
4	Sit down and compare actual to expected. Adjust the credit limit or the order mix.

An illustrative example

These numbers are made up. A distributor appoints a dealer in a mid-sized town with a starting credit limit of NPR 300,000 and 30 credit days. The first order is NPR 150,000. By week three the dealer has paid two invoices on time and reports two stock-outs. The distributor raises the limit to NPR 500,000 and adds two fast-moving SKUs. A different dealer who pays late in week three stays at the starting limit for another month. The rule is the same for both: the limit moves with behaviour, not with a handshake.

Common onboarding mistakes

• Verbal credit. Without a written limit and due days, every late payment becomes a negotiation. See collecting payments on time.
• Starting without an opening count. You will never agree on what was there.
• Large first order. Slow sales early on poison the relationship.
• No review rhythm. A dealer you do not review drifts.
• Overlapping territories. Draw boundaries on a map, not in conversation. See geofencing territories and regions.

A second example: a stricter dealer, a different path

Another illustrative case. A distributor appoints a dealer in a remote town where the nearest alternative is half a day away. The dealer asks for NPR 800,000 credit on day one. The distributor cannot verify the dealer's history, so they agree on a different path: the first two orders are paid in advance (NPR 200,000 and NPR 300,000), the credit limit then opens at NPR 250,000 with 15 days, and it grows in steps after three on-time payments.

Compare the two dealers side by side:

	Dealer in the mid-sized town	Dealer in the remote town
Starting terms	NPR 300,000, 30 days	Advance payment first
Reason	Known payer, references checked	No history yet
First review	Week 3	After the second order
Limit moves when	Invoices are paid on time	Three on-time payments

The rule is the same, and the starting point differs because the information differs.

Common questions about onboarding

Should we charge a security deposit?

Some distributors do. If you do, write the amount, what it covers and when it is returned in the agreement, and check the wording with your lawyer. Do not rely on a verbal promise.

What if the dealer already sells a competitor?

It is common. Agree on your product range, display expectations and reporting, and watch the stock reports to see how your products actually move. Exclusivity, if you want it, must be in writing.

Who trains the dealer's staff?

Plan a short session in week one. Show the dealer's staff how to place orders, read statements and raise returns. The less they depend on phone calls to your office, the better.

How do we handle a dealer who orders too much?

Compare orders with shop sales in the stock report. A dealer who orders more than he sells to shops is building stock he may not sell, and it will come back as a return or a late payment. See reconciling dealer stock with secondary sales.

When should we say no to a dealer?

When the documents do not add up, when the godown cannot hold stock safely, when references are bad, or when the dealer will not accept written credit terms. A bad dealer is more expensive than an empty territory.

A one-page onboarding record

Keep a single sheet in the dealer's file with: date appointed, territory, products, price list, credit limit and days, opening stock count, first order, login created, target set, and the dates of the week 1 to week 4 reviews. When a new manager takes over, the whole history is on one page.

How GamiTrack helps with onboarding

In GamiTrack, add the dealer under Parties with the Dealer type, then set the credit limit, credit days and price list. Shops are linked to the dealer through the Supplied by field. A login with the Dealer role gives the dealer an app for placing orders and tracking them, and for stock reports and reminders, as described in how dealers order and track. Yearly dealer targets and schemes are set under Targets and Schemes. The help articles add parties and approve outlets and set targets and schemes cover the steps. You can try the set-up with a free trial.

Key takeaways

• Check the dealer, then write the terms down before the first delivery.
• Do an opening stock count together.
• Start with a modest order and review weekly for 30 days.
• Let credit limits follow payment behaviour.