1. c2c
Channel Management Services
June, 2010
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2. c2c
Channel Management Services
May, 2010
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3. Distribution Channel:
Key to Business Success
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4. Key Factors for Business Success
• Success of a Business
Success depends on quality product,
effective distribution and
efficient service
• Distribution is the channel
which links the company
with the customer
• Also, market feedback are
Product Distribution Service heard by distribution which
helps product & service
Manufa Distribution development /
cturing Channel improvements
• Thus, Channel Partners are
key to a Business’s Success
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5. Distributor – Your Link to the Customer
• As Mahatma Gandhi said:
“A customer is the most important visitor on our premises, he
is not dependent on us. We are dependent on him. He is not
an interruption in our work. He is the purpose of it. He is not
an outsider in our business. He is part of it. We are not doing
him a favor by serving him. He is doing us a favor by giving us
an opportunity to do so.”
• ‘Distribution Channel’ being the link between the Company &
the Customer thus takes a key role in the success of an
organization to make a Customer a part of the Company
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6. Channel Partner: Create a Virtuous Cycle
Your Success is dependent
Enable On the Success of your
Win-Win Distribution Partners
Improve
Know the
Cost -
Benefit Gaps
Improve Improve
Processes Relations
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7. Mutual Expectations
Of the Company Of the Distributor
• Good relationship with the • Multi level relationship yet
distributor with single point contact
• Improving quality business • Company’s understanding
• Efficient service ground realities
• Maintaining brand values • Schemes in line with market
• Compliance • Payment Terms
• Loyalty • Process efficiencies /
• Timely Payment removing bottlenecks
Enabling WIN-WIN Relationship with EACH of the
Distribution PARTNER is Key to business success.
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8. Approach to Improved Relations
Understanding Expectations
Personal Meetings Un-biased Discussions
Process Improvements
Identifying improvement opportunities Chalking out implementation plans
Managing Expectations
Creating positive expectations Clarity on un-realistic demands
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9. Who should do this activity?
• Most good companies keep doing this on a continuous basis
• However, there is still a gap between what is being done and
what could be done. Key reasons for the gap are:
– Making the partner to be ‘open’ to share problems, views and
opinions
– Having a ‘open mind’ without any bias to either party and more
importantly to ‘existing processes’
– Being ‘afraid’ of the ‘reporting structures’ in the organisation
– Lack of priority
• In light of the above, it is ideal that an ‘independent
professional’ handles the same who is:
– Directly appointed by ‘top management’
– Has ‘No bias’ and ‘No dilution of Focus’
– Understands the business with empathy for all concerned
– Professional Approach
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10. eFIN’s
Professional
“Channel Management Service”
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11. c2c: An Introduction
• c2c is an early entrant in ‘Channel Management Service’ with
over 10 years of experience – now part of eFIN, servicing
reputed clientele base
• Each assignment handled by qualified, experienced and
committed team
• With the highest level of service ethics:
– Assignments personally handled by Senior Management
– With top most confidentiality of the findings
– Focus on ‘long term’ mutually beneficial association
– Staying clear of ‘Conflict of Interest’ situations when coming to taking
up assignments
• Focus on ‘solutions’ & ‘implementation’ rather than
‘problems’ and ‘obstacles’.
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12. Our Philosophy: Set New Standards
“Whatsoever a great man does,
the same is done by others as
well. Whatever standard he sets,
the world follows”
(Verse 21, Chapter III,
The Bhagavad Gita)
We believe in being a Leader rather than a follower.
We look at Implementing new levels of standards
and set new Benchmark in the Industry
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13. Management & Advisory Team
K. Ramakrishnan J. Balasubramanian
• Management Graduate • A Chartered Accountant & Law
• 25 Years of Practice in Business Graduate with over 32 years of
Advisory & Capital Raising Industry experience with 20 years
• A Relationship oriented person of practice
• Brain behind the ‘Distributor • Focuses on Internal Processes
Services’ activities as a and Controls for enabling
Professional Service continuous improvements for
various companies
• Management Advisor to various
Mid size Companies • Member of various statutory
committees including ICAI
committee on Insurance
• A socially inclined and highly
respected individual
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14. Management & Advisory Team
G. Sundaresan K. Sridhar
• A Chartered Accountant with over • A Certified Financial Planner, CWA
20 years of experience and CS with 20 years of Industry
• Worked in both Public and Private experience with exposure to
Sector enterprises Finance & Systems Management
• Involved in setting up processes • Worked in the top management
and controls for Distribution of one of the leading Financial
Network of one of the leading Product Distribution Company
Pump manufacturer • Focus on Planning, Business
• Currently in practice with focus Strategy & its implementation
on Dealer Management V.Vijayabhaskar
• Acts as Management Advisor to • A Technically qualified person
various Mid size Companies
• Over 10 years of Business
Planning & Implementation
experience
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15. Our Clientele
Mandate from Specific Distributors of:
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16. Objectives achieved by our Customers
• Improved Dealer • Improved Understanding of
Relationship – Causes / Reasons for certain fast
– 360* understanding of moving / non moving products /
Dealers Requirements Distributors
– Sales Teams approach to – Potential for new services
Distribution – Best Practices of the network
• Improved internal Processes • Handling Problem Distributors
and Controls • Starting new lines of
• Competition Understanding businesses, specifically with
– Understanding Markets & respect to spares &
Competition consumables
– Exploring best practices • Regulatory compliance
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17. Channel Management Service:
Our Approach
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18. Multi Layer Approach
Customers
Distributor
Region /
Branch
Head
Office
Top
Mgmt.
Helping the Top Management
understand the distributor
& customers better
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19. Key Steps in Multi Layer Approach
• Appointed by the Principal
– By the Managing Director with no dilution on the focus of the project
– Access to Principal’s information about the Distributor
– Understanding the Policies and Procedures followed by the Principal
• Meeting with the Business / Branch / Region of the Principal
– The team which services / sales from the distributor
– Get to know their view on the distributor and his overall performance
– Understand the strengths and weaknesses in their view
• Analysis of the data
– Of Distributor performance – Stand Alone, Relative etc.
– Market potential
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20. Key Steps in Multi Layer Approach
• Meetings and Discussions with the Distributor
– Understand the distributor from various angles:
• Principals policies and procedures
• Bottlenecks and shortcomings as faced in the operations
• Financial & specifically cash flow related issues having a bearing on the
business
• Viability of the business based on past experience
• Support required for improvements
– Understand his view on the team servicing / selling to him from the
Company
• Market Survey:
– Visit & get feedback from few clients of the Distributor
– Seek information with respect to the quality of distributors service
– Get information about Competition & Other Distributors
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21. Key Steps in Multi Layer Approach
• Analyse the accounting records of the Distributor (Where
necessary)
– Accounting policies, Review of past accounts & financials
– Loans & Limits enjoyed by distributor, Repayment history both with
the Principal as well as with the Banks
– Debtors and Creditors, Stock Records, Invoicing and Tax records
• Feedback from Competition /Other Distributors
– About the distributor and his practices
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22. Having a Comprehensive Approach
• Review of Accounts
Finance • Credit History
• Banks, Creditors, Debtors
• Customer Feedback
Operations • Distributor Feedback
• Records Verification
• Principal (Top and Local
Business Team)
• Competition & Peers
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23. Key Deliverables
• We take each assignment and create the approach ‘tailor
made’ to the requirements of the specific project
• Not Internal Audit. Focus on Relationship & Process
Improvements rather than fault finding & exception reporting
• Some of the key requirements catered to by c2c’s channel
service include:
– Improving Distributor Relationship
– Performance Enhancement
– Identifying Root Cause of various distribution related issues
– Handling ‘Problem’ distributors
• Typically one time study will help ‘maintaining the
relationship’ for around 2-3 years.
• Ideally, to be repeated every 2-3 years for effective
‘continuous improvement’ for each Distributor
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24. Key Activities Involved
• Review of existing policy
• Analysis and understanding of the business including
competition
• Perception of the other party by both the Principal and the
Partner
• Understanding the role and activity of the Principal’s
interaction with Partners (Branch / zonal network, Accounts /
Marketing etc.)
• Analysis of ‘Receivables Systems’
• Customer Perception & Expectations Survey
• Management Audit to the extent of ‘Channel’
• Continuous Improvements
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25. Last Line we Stand By
“Speak the Truth; Speak Pleasantly;
Do Not Speak Untruth; Do Not
Speak Unpleasantly; also do not
Speak Untruth that is Pleasant”
Manu Smrti
Expect us to find and share the truth irrespective of
if it is pleasant or not. Playing to the Gallery is not in our
Culture.
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26. Customer References
• Ms. Dhamayanthi Ramachandran, Texmo Industries
• Mr. Paresh Saraiya, MD, Transpek Silox
• Mr. Sune Axelsson, Finance Director, SKF Bearings
• Mr. Mohammed Ansari, MD, Literoofings
• Mr. Jamnadas Hansraj Asher, MD, Jeevandas Lalji & Sons
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27. Thank you
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