Ranchi implements NOC for vendors

With the NOC in place, the local assocition has already stopped Samsung, HP and D-Link from bringing in changes in it's own channel structre at will

Announcing its displeasure with major vendor's policy of appointing and removing regional distributors at will, Jharkhand Computer Dealers Association (JCDA) has implemented a new policy whereby a vendor will be needing a ‘no objection certificate' (NOC) from its existing sub-distributors before bringing in any striking change in the local channels hierarchy.

The NOC terms also extends to vendors regarding raising sales targets at will. 8 sub-distributors in Ranchi (members of JCDA) have already signed the legal agreement consenting to abide by the terms of the NOC.

The new policy implemented over the last 3 months has already met with success with JCDA able to stop Samsung, HP printers and D-Link from appointing new partners.

"The problem with us (sub-distributors) is that vendors often gets too ambitious with their sales targets and sets an unachievable slab for the channels. On the other hand, it can also be that a performing partner may temporarily become unstable for a month. In this circumstance, instead of helping the partner to get back in shape, the vendor removes him from distribution and appoints a new one", said Sushil Kumar, president, JCDA.

According to Kumar, this phenomenon leads to market instability and in a smaller market like Ranchi this leads to channels imbalance.

Members of JCDA opined that the targets the vendors sets for them has to be just as one cannot perform or sell beyond the market's strength.

"During the last 5 years, the local market hasn't grown much, but there was too much rotation of partners by the vendors which led to market instability and created a lot of problem for the sub-distributors here", Kumar opined.

JCDA has formed a new committee named Health and Hygiene which will monitor the NOC with the objective to have a more transparent and just IT market in the state.