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    Vani Agencies: Presented by Vishakh.S Gokul Ram

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    Vishakh Subbayyan
    Vani Agencies is an authorized dealer of industrial products like woodworking machines, power tools, and air compressors. They supply these products to 165 customers, including large companies like BHEL and Hindustan Aeronautics Ltd. However, they face problems with high bad debt write-offs from their small-scale customers who are given 30-160 days of credit. They also struggle with replacing machines for customers who use them inappropriately without following instructions. This strains their relationships with suppliers. The consultant would advise reducing the long credit periods, providing training to customers on machine usage, and focusing on repair over replacement to improve relations with suppliers and reduce expenses.

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    Vani Agencies: Presented by Vishakh.S Gokul Ram

    Uploaded by

    Vishakh Subbayyan
    544 views8 pages
    Vani Agencies is an authorized dealer of industrial products like woodworking machines, power tools, and air compressors. They supply these products to 165 customers, including large companies like BHEL and Hindustan Aeronautics Ltd. However, they face problems with high bad debt write-offs from their small-scale customers who are given 30-160 days of credit. They also struggle with replacing machines for customers who use them inappropriately without following instructions. This strains their relationships with suppliers. The consultant would advise reducing the long credit periods, providing training to customers on machine usage, and focusing on repair over replacement to improve relations with suppliers and reduce expenses.

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    business marketing

    Original Title

    Vani Agency

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    Vani Agencies is an authorized dealer of industrial products like woodworking machines, power tools, and air compressors. They supply these products to 165 customers, including large companies like BHEL and Hindustan Aeronautics Ltd. However, they face problems with high bad debt write-offs from their small-scale customers who are given 30-160 days of credit. They also struggle with replacing machines for customers who use them inappropriately without following instructions. This strains their relationships with suppliers. The consultant would advise reducing the long credit periods, providing training to customers on machine usage, and focusing on repair over replacement to improve relations with suppliers and reduce expenses.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    544 views8 pages

    Vani Agencies: Presented by Vishakh.S Gokul Ram

    Uploaded by

    Vishakh Subbayyan
    Vani Agencies is an authorized dealer of industrial products like woodworking machines, power tools, and air compressors. They supply these products to 165 customers, including large companies like BHEL and Hindustan Aeronautics Ltd. However, they face problems with high bad debt write-offs from their small-scale customers who are given 30-160 days of credit. They also struggle with replacing machines for customers who use them inappropriately without following instructions. This strains their relationships with suppliers. The consultant would advise reducing the long credit periods, providing training to customers on machine usage, and focusing on repair over replacement to improve relations with suppliers and reduce expenses.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 8

    VANI AGENCIES

    PRESENTED BY
    VISHAKH.S
    GOKUL RAM

    CASE SUMMARY
    Vani Agency- Authorized dealers of various
    industrial products.
    Products- Wood working machines, Grinding,
    Drilling and Welding machines, Power tools,
    Air-compressors.
    Vani Agencies suppliers- Mico-Bosch, Hitachi,
    AEG-Atlas, Ralliwolf.
    Credit period by above mentioned suppliers15 days.

    Vani Agencies Customers: 165


    customers, BHEL, Hindustan
    Aeronautics Ltd, Ashok Leyland.
    65% sales from above mentioned
    customers and 35% comes from small
    scale customers.
    Credit given by Vani Agency to its
    customer- 30-160 days.

    Problems faced by vani


    agencies
    Small Scale customers closed their
    factories.
    Write-off bad debts of 200000-300000
    every year from 2004 to 2006.
    Replacement of machines and
    equipments to customers inappropriate
    usage.
    Suppliers of Vani Agency refused to
    give further replacements.
    Strained relation with Suppliers.

    Issue with
    customer relation
    Highly customer
    focused

    35-160 days credit

    Approached supplier
    frequently for repacement

    Instruction for usage not


    followed by customers

    Replacements

    Strained
    relation with
    supplier

    Reasons for debt written of

    Malfunctioning of
    machines

    Credit period is high


    No background check at the
    time of supplier selection.
    No track of customer market
    or business.
    No formal agreements with
    the customers.
    Focused on increasing
    number of customers

    Instructions are not


    followed.
    Complicated instructions.
    Language.
    User is uneducated.
    Solution:
    Change the instruction
    format.
    Train the end user.

    Questions
    If you were the consultant for Suresh Babu? What
    would you advice him and why?
    No need of giving 30- 160 days of credit for customer.
    65% of sales come from high profle customers and
    35% of sales comes from small scale customers. So
    Dont give high credit facility to small scale customer.
    Give training to sales person.
    Give training to customers regarding the machine ie
    how to use that and maintain the product.
    Repair the machine instead of replacement.
    Maintain good relation with the customer not by
    incurring expense

    THANK YOU !!!

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