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Distributors take back stocks
Suspecting the risk of credit defaults, a few distributors have started taking back stocks from sub-distributors having credit outstanding of more than 45 days. According to market sources, Redington has taken back stocks worth Rs 13 crore from various Bangalore sub-distributors in the month of January. Similarly in Mumbai too, several such instances have been reported.
Distributors are taking back stocks without any preconditions at the price of billing. A Mumbai-based distributor said, off-the-record, that they were more than willing to take the stock back since after three check bounces, they would have to virtually write off the credit outstanding as bad debts.
Some of these stocks are being diverted to B-and C -class cities. Shadow learnt that vendors are working in tandem with their distributors to balance off inventories in whichever way they can. Most in the channel see this as a positive step to ease the credit outstanding and inventory pile-up situation. However they warned that if vendors and distributors try to dump it in other markets or through LFRs at discounted rate, it will in no way solve the problem.
IBM’s rules of engagement
With many of IBM’s long-term and loyal partners dissatisfied with the vendor’s channel policies regarding customer account management and deal registration, the Big Blue has now decided to formulate its own set of rules of engagement like competitor HP.
A number of IBM partners who had fallen out with the vendor during 2008 due to its preferential treatment to select partners have now been approached by the vendor saying, it’s on the way to putting its house in order.
These partners have been accusing IBM of giving better deal registration terms and pricing support to select partners. In fact a couple of such partners, who spoke to Shadow on the condition of anonymity, said that due to IBM’s biased engagement they partnered with HP last year and have managed to convert 70 percent of their IBM clients to HP.
IBM has promised partners that within the next two weeks it will circulate the first draft of the rules of engagement and will hold an open house for partner feedback. |