Fill in one sheet per distributor at the end of each quarter. Use the three monthly reports the distributor sent, not its purchase orders. Agree the bands and weights below before the quarter starts, and write any change on this sheet before the review.

The reasoning behind each line is in China distributor KPIs: a scorecard beyond the sales target.

Brand: ____________________ Distributor: ____________________

Quarter: ____________ Territory and channels covered: ____________________

Replenishment lead time (weeks): ________ Cover band (weeks): ________ to ________

Agreed outlet list (count): ________ Agreed marketing budget: ____________

Reviewed by (brand): ____________________ (distributor): ____________________

Score the eight lines

A line in band scores its full weight. Half points score half the weight. Anything else scores zero. These weights are TheChinaPath’s recommended starting point; replace them with the ones in your contract.

KPI	Full points	Half points	Weight	Result	Points
Sell-out	90% or more of the quarterly sell-out plan	75% to 89%	25	________	________
Weeks of cover	Lead time plus up to four weeks	Up to four weeks outside the band	15	________	________
Store coverage	90% or more of agreed outlets sold at least once	75% to 89%	15	________	________
Price discipline	No stock traced to an unapproved channel; promotions only from the agreed calendar	One breach, stopped within 14 days of notice	10	________	________
Payment days	Every invoice paid on contract terms	One invoice up to 30 days late	10	________	________
Marketing spend	90% or more of the budget spent, with proof	70% to 89% with proof	10	________	________
Reporting	Monthly sell-out and stock report by SKU, on time three months out of three	One month late or incomplete	10	________	________
Team	Agreed named staff in place all quarter	A vacancy filled within the quarter	5	________	________

Total score (of 100): ____________ Last quarter: ____________

SKU means stock-keeping unit. Count store coverage from outlets with at least one sale in the quarter, not from the outlets listed.

Two rules before you add up

No report, no score. If the reporting line scores zero, score sell-out and weeks of cover zero too. Nothing on the sheet can be checked without the report.

Score price on channels, never on resale price. Fixing a distributor’s resale price, or setting a minimum one, can breach Article 18 of China’s Anti-Monopoly Law. Record where leaked stock appeared and the batch codes it carried. Do not record a “price below” breach.

Unapproved channel listings found (platform, date, batch code): ____________

What the score triggers

Total	Decision	Record
80 or above	Terms stay; discuss growth, credit days or the next rebate tier	Growth topic agreed
60 to 79	Two fixes for next quarter, each with a named owner	Fixes, owners, due dates
Below 60, two quarters running	Start the remedy route in the contract	Notice date and clause used

Fix one: ______________________ Owner: ____________ Due: ____________

Fix two: ______________________ Owner: ____________ Due: ____________

Next review date: ____________________

Brand sign-off: ____________________ Distributor sign-off: ____________________

Keep this sheet with the three monthly reports it was scored from. Before a contract notice goes out, have a lawyer qualified in China read the clause you are using.