Channel Focus March 2010
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Channel Focus March 2010

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Presentation to largely manufacturer audience on channel needs

Presentation to largely manufacturer audience on channel needs

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Channel Focus March 2010 Channel Focus March 2010 Presentation Transcript

  • Credit Flex Channel Focus March 2010 Edward Pacey FICM FACP Director Credit Services Bell Microproducts
  • Event recognition
    • World Economy - green shoots, strong in places, fragile in others
    • UK Recession - deeper than expected – looming election
    • Credit Crunch – hurt the big boys
    • Confidence - returning, but very slowly
    • Credit Insurance – fell off a cliff, shattered, but re-building
    • Insolvency - expected to rise significantly in 2010
    • Financial sector meltdown – still turbulent
    • Consolidation
    • Project spend deferral/cancellation
    • Cloud computing, Virtualisation, SaaS, Annuity billing – new funding challenges
    • Banks
    • Manufacturers
    • Distributors
    • Resellers
    • Finance Lease
    Channel Participants
  • Banks
    • Low interest rates – but not if you borrow from Banks
    • Enterprise Finance Guarantee (EFG) has not delivered
    • Unwillingness to lend despite efforts to suggest otherwise
    • Radical review of investment portfolios
    • Greater Security and tighter more rigorous lending criteria
    • In “recovery and protective” mode
    • Allow suppliers some security
    • Bad press
  • Manufacturer
    • Need to support the transaction all the way down – it’s a customer engagement model not buy-sell
    • Market and actively sell own brand finance and leasing options
    • Re-assess quarter-end target culture (channel stuffing)
    • Accredit/train/reward Resellers in provision of vendor financing
    • Do not desert traditional markets with financial solutions
    • Fairer pricing/less rebates
    • Consider extended terms to Distribution
  • Distributor
    • Manage risk more efficiently
    • Talk to Resellers more often
    • Focus of provision of real value-add and client/supplier relationships
    • Measured control of credit line review and term negotiation
    • Provide a full range of credit and financial support programs
    • Accommodate and adjust principles and offer flexibility where required or merited
    • Corporate recovery and financial assistance must be considered a value-add proposition, not an inevitable cessation of business
    • You’re a funder – “think” like a bank but don’t become one
    • Now is not the time for trench warfare or siege mentality
    • Support credit lines to those who subscribe to CreditPal™
  • Reseller
    • Select Distributor partners more carefully
    • Embrace a model that supplies finance options – this should include Finance, Operating & Software Leasing
    • Work with supplier credit and financial service offerings
    • Provide security where requested
    • Focus on cash conversion cycles and return on working capital
    • Review banking and funding arrangements if providers attitude and support is restrictive or inflexible
    • Involve partners and suppliers in planning and forecast process to instil the required confidence in your business
    • Ensure financial controls and accurate delivery of information
    • Subscribe to Creditpal™ – a new way to increase your own credit
  • Finance leasing
    • Aligns cost of solution with benefits
    • Improves cash flow and liquidity
    • Facilitates budgeting through predictable payment
    • Bundling of solutions now widely available, H/W, S/W, airtime and maintenance more common
    • Now more than ever – makes sense to avoid capital purchase
    • Overcomes budgetary constraints and opens pipeline
    • Easy quoting tools available online with tailored flexible packages available
    • Lease renewal, customer retention and up-selling added products a significant benefit
    • No cost to the Reseller and so easy to offer