Distis roll back handling charges

Following heavy pressure from the trader community across the country, the three major distributors–Ingram 

Micro, Redington and Tech Pac have decided to withdraw the newly imposed ‘handling charges’. However, it seems the credit period will continue to be 14 days and there is no change on that stance. Meanwhile, the resellers are demanding an official communication on this rollback from the distributors and are insisting that the distis should maintain a fair practice among the channels while implementing the new credit policy.

Meanwhile, Sneham and ITTA, the two key associations in Chennai which played a lead role in getting together all channel associations across south India in protesting this new rulings, have decided to keep up the momentum and demand for more changes in the business process. They are planning to hold a joint meeting of all associations across south India in Chennai to discuss and raise issues such as Dead on Arrival (DoA), over invoice reconciliation, incentive settlements etc. Today, they are having a crucial meeting to discuss and plan out their future course of action.

“These are long pending issues and we want to find a solution at least now. We (associations across south India) have planned to meet to jointly represent the issues of the trader community with the distributors. We will also arrange for an associations-distributors meet at the earliest,” disclosed I Sadiq Batcha, a key member of
Sneham.

Sneham and ITTA, which joined together raised the issue of ‘handling charges’, have forwarded letters to associations across south India to come together and fight it. They have sent communication to associations in Bangalore, Mysore, Hubli, Visakhapatnam, Hyderabad, Cochin, Trivandrum, Kollam, Coimbatore, Trichy, Madurai, Vellore, Salem etc. “We are quite hopeful that all the associations will extend their support as it is a burning issue for everyone across the markets,” said Sridharan, Secretary,
Sneham.

Meanwhile, the associations also want to push for a revision of credit period and are demanding the earlier period of 21 days.

“We have not got any response on this matter and we will insist on having the earlier credit period of 21 days,” said
Batcha.

However, the distributors have discounted this demand and said it is not possible. “There is no change in credit policy, but, we have withdrawn the handling charges for the time being. In fact, from last evening, we have started billing our channel partners on the earlier system. However, in IT business the commercials are valid for only one day and till further announcements, we continue to bill on the old system,” said Jitendra Kulkarni, CEO, Redington (India) Ltd. “We will send official communication for those who have demanded with us. Also, the company will continue to have its door-delivery system.”

“We are ready to welcome the new credit policy, provided it is maintained uniformly with all the resellers. In the past, the distributors have often changed their stand and offered different credit policies for different resellers. We agree that they can change their credit policy with unscrupulous players but not with everyone,” said MC Jain, Secretary,
ITTA.

Added Ratna Kumar, President, Sneham, “Credit policy is more of case-to-case basis and we are sure that distributors would not keep up their stance. We have seen this many times in the past. If they want to meet the targets at month ends, they will try to relax and agree with our terms to dump the goods. So, it will modify on its own.” However, the top officials of Ingram Micro and Tech Pac were not available for their comments on this issue.

In Delhi, the channel community met the distis in a meet organized by the later, where they were informed about the decision.

Said JP Bansal, Secretary, Delhi Computers Traders Association (DCTA), “We had a half an hour discussion with the distis and they informed us about their decision to withdraw the charges all over India. Though the credit policy remains unchanged.

But the earlier charges of transportation remains the same. We have told them to increase the freight if they want but they do not have any such intentions at the moment.”

According to Umang Mehta, Spokesperson of TAIT, “Last afternoon, we had a meeting with the three distributors; we made our presentation and they understood our points and agreed to remove the charges.”

Saurin Shah, President, NACIT, said, “This is the first achievement for NACIT after its formation, therefore it’s quite an achievement. The channel partners across the country were informed immediately, we made a presentation for the distributors which made facts clear to the distributors.”

Added Sudhir Budhey, President of Nagpur-based VCMDWA, “From the NACIT point of view, it is a great achievement, but they should continue to be receptive to channel needs and wants, and act fast. Now resellers in Nagpur can get back to business.”

Karma Negi,Nancy Sudheer&S Gopikrishna