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 !!!