360 Magazine recently conducted a nation-wide reseller survey to determine the extent of claims outstanding in the market. The findings were as expected there were huge sums pending in the market from even the bigwigs.
A surprise finding was the expectation from both the reseller and the
manufacturer. The claimant didn’t expect to get his due without a
fight. And the manufacturer didn’t think he had to pay up until he had “substantial time” to check the claims.
The survey revealed a level of distrust that was staggering. Both work closely with each other, both depend on the other to survive in a competitive market. And yet they work in an environment of distrust.
In a business relationship, there is bound to be some level of doubt.
But to work on a premise that says “Distrustful till proven trustworthy” is futile. Most of the partners, responding to the survey, said they didn’t think their claim would be settled. Most manufacturers stated that they had robust, responsive, backend system in place to settle claims.
The truth, as we, all know is different. No partner will let even a rupee go unclaimed, and no manufacturer will part with an unearned rupee. However, the reality is that this mistrusting environment has resulted in a situation where money starts moving only after 45 days on an average.
To ensure that the system works to everybody’s advantage, serious thought has to be put into working out the modalities of e-enabled claim process. Systems don’t lie; nor does it work on trust basis.
But the truth is neither does the channel, currently at least.