Global Sales and Channels Program Programs and Support Activities Cross National Business Rules for Field Sales Version: March 2013 – Version 2013-1 Collaboration across all sales channels to “sell locally and implement globally” Agilent Restricted Page 1 Introduction This document Contains the basic rules to follow in case of Export Orders compliant with Agilent Export Control- and Standards of Business Conduct policies Will serve as a tool to define the role of Global Sales in Cross National Business Shows that by linking stakeholders in various countries, assuring local supportability and avoiding costly and time wasting errors, will ultimately satisfy our customers Agilent Restricted Page 2 Cross National Business Rules for Field Sales Collaboration across all sales channels to “sell locally and implement globally” Agilent Restricted Page 3 Cross National Business Definition Cross National Business in general refers to the situation when a customer in one country wishes to order a product with final destination in another country, regardless of who is doing the transaction. Typically the following transactions exist 1. Multinational Orders (Transnational orders) Customer orders where the “Invoice-To” and/or “Ship-To”, are in countries outside the “Sold-To” (order point) country 2. Drop Ship Orders Customer orders where the “Sold-To” (order point) and “Invoice-To” are an Agilent country and the “Ship-To” country is an IDO country All these orders are considered Export Orders unless both countries are within the EU. However ALL orders require cooperation from multiple sites to win business and achieve excellent customer satisfaction. Page 4 Agilent Restricted Cross National Business Scenarios to encounter In general you will encounter one of the four following scenarios in Cross National Business: 1. From an Agilent-direct country to another Agilent-direct country 2. Requires coordination between 2 Agilent sales forces for order processing , fulfillment and support From a Distributor country into another Distributor country 3. Requires coordination between 2 Distributor sales organizations and agreements on how support and compensation are handled From an Agilent-direct country into a Distributor country 4. Drop Ship Orders. Requires coordination between 2 sales forces, decisions on orderprocessing and -fulfillment, support pricing and Distributor compensation From a Distributor country into an Agilent-direct country This situation is difficult and requires careful consideration of a number of factors, including order-processing & -fulfillment, warranty & support funding, Distributor compensation etc. All the above scenarios can be handled in a variety of ways depending on customer requirements. Terms & Conditions of Sale are typically complex and will vary according to country and sales territory. (see next page) Agilent Restricted Page 5 Cross National Business T&C’s are COMPLEX Global sales channels and contacts Export Control (embargoed countries, IVL, restricted parties) How to structure the order based on [Sold-To], [Invoice-To] and [Ship-To] Country Party making the quotation. IDR, Agilent Business Center, Agilent Sales Office Pricing. Sold-to-Country Pricing, or ICB Pricing Discounts. IDR, Global Major Account Contracts, etc. Payment Terms. Net 30 days, Letter of Credit, Advance payment, etc. I&F charges and DSS (Distributor Support Services) for Warranty, Training & Support Incoterms 2010. CIP, FCA or DDP Freight charges Order VAT handling for country specific scenarios Quota Splits Reseller Commission Compensation Bottom line: Each deal is different and needs the optimum combination of the above to meet customer expectations, while complying with international tax laws Agilent Restricted Page 6 Cross National Business Basic Rules Know the end-user, the end-use and the The following rules apply Only quotes from the Business Center are to final country of destination of the goods. be used. Price Surfer quotes should not be Define who will place the order and the provided. name and address of the Ultimate End The country of final destination management User (UEU) of the goods team determines the discount for the deal Contact Global Sales for advice and support and how to manage the deal (slide 10) Global Sales will then Decide who is best positioned to handle the quotation and advise on appropriate Incoterms, according to customer requirements Establish contacts between customers and appropriate Agilent or IDR sales team Ensure that quota splits follow Agilent guidelines Rules for I&F and Distributor Support Services as defined by the Business Center * Ensure support is available for all quoted items in the country of final destination (slide 10) AM and CPM are responsible for compliance with Export Control & Standards of Business Conduct (slide 12) Have a full understanding of service/warranty provisions (slide 11) Quota splits apply (slide 8) Reseller Commission Compensation for IDO countries as applicable per order * I&F in countries with an Agilent legal presence by default, for IDO countries DIST_SUPP_SERVICES as quoted by the distributor Agilent Restricted Page 7 Cross National Business Quota Splits For Cross National deals, a quota split is sometimes required. Basic LSCA rules on quota splits are: Destination country ….. 50% Technical specifier * ….. 25% Order processing country ….. 25% * Technical specifier may be in either the destination country, or the order processing country The key is to engage the Global Sales team early in the process! They can help link you with colleagues in destination countries, assure local supportability, avoid costly and time wasting errors and ultimately satisfy your customers Agilent Restricted Page 8 Cross National Business Contact Persons in Global Sales When you as a field sales person comes across a Cross National deal, they should follow the basic rules in slide # 7 and contact either the Global Sales BDM you know best, or the BDM responsible for their geography. Country of origin of the enquiry Contact E-mail (preferred) Telephone Juergen Braun juergen_braun@agilent.com +49(2421)961043 EMEA (non-EU Member States, Africa, Middle East) Marcel Laane marcel.laane@agilent.com +31-118 671335 telnet 8671-335 North America / Canada Mike Testa, mike_testa@agilent.com +1 (678) 566-6058 telnet 566-6058 LAR (Middle/South America) Leslie Wooding leslie_wooding@agilent.com +1 (302) 636-1631 telnet 636-1631 SAPK, Japan Greater China & India (acting) Arnold Ong arnold-a_ong@agilent.com +65-6215-8998 telnet 215-8998 Global Competitive Accounts / HPI Becky Elmore becky_elmore@agilent.com +1 (972) 699-6455 telnet 699-6455 EMEA (EU Member States /Switzerland) EMEA (Russian Federation, CIS) Agilent Restricted Page 9 Cross National Business Support All orders require installation and familiarization (I&F) and sometimes training. For orders with final destination in IDO countries, a price quotation for I&F should be obtained from the IDR in the country of final destination. The same applies for other distributor support services like training, warranty and after-sales service. Any special terms (e.g. travel and accommodation) should be clearly mentioned in the quotation. I&F for orders with non-IDO countries as final destination is included in the “Sold-To” prices. Non-Agilent products and services should not be quoted or shipped without prior agreement of the destination country, in order to ensure supportability. Agilent Third Party Pass Thru Products and Services (3PP) policy applies. Agilent Restricted Page 10 Cross National Business Support & Warranty Although most LSCA instruments can be effectively supported in most countries, there are some countries in which local support is not available. Often, there are alternatives that may be acceptable to the customer, but this needs to be checked first and included in the quotation and purchase order terms. In-country warranty coverage for Cross National Business, delivery to Agilent direct (non-IDO) countries: Support provided by the corresponding Agilent organization in the country where Agilent delivered the system. In-country warranty coverage, delivery to Indirect (IDO) countries, 2 options: Distributor Support Services (DSS) included in quote and paid via Reseller Commission Compensation Order placed by Customer on Distributor directly Preferred for licensable products like ICP/MS and ECD http://www.chem.agilent.com/en-US/ContactUs/Pages/ContactUs.aspx Page 11 Agilent Restricted Last but not least Compliance Each person involved in Cross National Business is responsible for correct execution of the Agilent Export Control Policies and compliance with Agilent’s Standards of Business Conduct Export Control Information is available from http://wps.service.agilent.com/global_trade/export_control/screening/index.htm Guidance is available from http://wps.service.agilent.com/global_trade/export_control/contacts.htm Standards of Business Conduct information is available from http://sbc.corporate.agilent.com/ In case of doubt contact your Global Sales contact or your Global Trade representative. * With Cross National Business extra vigilance is required. Page 12 Agilent Restricted Thanks for your collaboration ! Agilent Restricted Page 13