Supply Chain is a network of various components like suppliers,manufacturers,distributors. The Distributor is the link between manufacturer and the consumer.Hence the distributor is responsible for supplying the right quality product at correct time. There is a need to have an efficient technique for the selection of the best distributor.The multi agent technique provides a flexible solution to the problem of selection of distributor as well as the negotiation between distributor and manufacturer.The framework of agents has been developed using Java Application Development Environment(JADE).