PARTNER CORNER
DEALING WITH SPIRALLING BUSINESS CHALLENGES AMID COVID 19 Among many markets, Indian ICT channel market is really disturbed due to the pandemic. We have tried to collate their opinions and find the ways and means to the solutions.
“WHAT I THINK IS THAT GETTING BUSINESS WILL NOT BE A PROBLEM, AS THE DEMAND IN THE MARKET WILL STILL BE THERE. THE PAYMENT CYCLE LOOKS TO BE A PROBLEM AS DUE TO NO BUSINESS DURING LOCKDOWN THE FIXED EXPENDITURES HAVE EATEN OUR RESERVES.”
DEVANG JASANI CEO, MERIDIAN INFOTECH
“OPINION THAT THE ORDERS BELONG TO Q4 FOR WHICH DELIVERIES GOT AFFECTED DUE TO COVID19, ENTERPRISE CUSTOMERS ARE IMPOSING FORCE MEASURE. THEY DEFER THE DELIVERY DATES AND ASKING FOR EXTENDED CREDIT PERIOD FOR THE DUE PAYMENT ALSO. AS PER THEM DUE TO LOCKDOWN, THE MANUFACTURING AND SCM GOT DISTURBED AND IT HAS MAJOR EFFECT ON CASH FLOW..”
BHAVESH SHETH DIRECTOR, POWER SOLUTIONS
VIPUL DATTA CEO, FUTURESOFT SOLUTIONS
“ADVICES TO WORK WITH BETTER MARGINS AND DON’T DO NEGATIVE DEALS AT ALL.”
The global pandemic - COVID 19 has not only put everyone locked down in their respective homes but also kept all the businesses shot down. This has reasoned for sluggish business environment. On the one side when there has been no abetment of technology consumption, on the other side, there has been growth in consummate delayed payments although work from home has enhanced the demand for end computing devices and security platforms. Although from the vertical market point of view, many sectors
36 SME CHANNELS APRIL 2020
RAKESH GUPTA PROP SI COMPANY MAINLY IN GOVT BUSINESS
have contracted their operations and sales. Even some including automotive, aviation, hospitality, tours and travels among many have stopped their operations due to non- availability of buyers. On top of it there is no signs of relaxation as the cases of COVID 19 victims are growing in India and no one in the global scale are ready to work with China although China is believed to have opened their operations in major cities including Wuhan. Rakesh added: “The effect of payment delay will be on all businesses, specifically on B2B business. Monetary Govt help to us is least expected. What we can do is to shorten the payment cycle by controlling it at the level of B2C business.
“VERY TRUE. CUSTOMERS ARE NOW ASKING MORE AND MORE CREDITS AND IF THE CURRENT VENDOR REFUSE THEN THEY ARE SAYING OTHER VENDORS ARE PROVIDING MORE CREDIT. SO, WE ARE LOSING THE BUSINESS. NOW IT’S A TIME OF OUR UNITY SO CORPORATES WILL NOT TAKE ADVANTAGE OF THE SITUATION.” GANESAN VELUSAMY DIRECTOR, INDSYS INFOTECH SERVICES INDIA
“CUSTOMERS MOSTLY BUY FROM ONE VENDOR, THEN IF HE INSISTS ON PAYMENT, HE WILL GO TO OTHER VENDOR AND REFUSE TO PAY THE FIRST ONE. THERE SHOULD BE UNITED EFFORT TO CONTROL THIS. WE SHOULD HAVE A COMMON METHOD TO ASSESS THE CREDIBILITY OF THE CUSTOMER. A CENTRAL DATABASE WHERE WE CAN PUT THE DEFAULT CUSTOMER. IT WILL BE MUCH USEFULLY FOR VENDOR COMMUNITY.” The customer also will try to take advantage of the situation. In my opinion we should create a common data bank of customers (both corporate and Govt) who intentionally delay payments and should try to put collective pressure by way of not providing him services/ products.”