Office Reboot: How to enable vendor efficiency?

Here is how IT companies and start-ups can lead vendors back to complete efficiency with responsibility, consciousness and cost-effectiveness.

Introduction

The much-awaited proverbial light at the end of the tunnel appears to be quickly approaching for the Indian economy, and all the companies that function within it. Although the Covid-19 pandemic has far from run its course, with a large chunk of the population vaccinated, big and small IT companies are considering flinging open their doors and many already have. Some are mulling or going with, a complete return to the office, while others are playing it cautious with a hybrid model. Either way, it is safe to say that shutters have finally been raised after months of complete closure, or only partial headcount.

The return to the workplace – as many of you may have personally experienced – has boosted employee morale, driven motivation levels upwards and delivered a generally more positive business environment. This has prompted a significant number of IT companies and start-ups to return to the office space in full swing and need their vendors to operate efficiently from the get-go. Without reliable vendors, start-ups and small companies may struggle to optimize their performance when they return back to the office.

Role of vendors

That said, there are a host of conveniences and small firms that allow small- to large-size IT companies to function optimally. Behind every successful company, is a series of small, supportive and efficient vendors.

Let’s have a look at who some of these vendors might be:

Suppliers of raw materials for products and services: You need deliveries as per the same timelines you worked on previously (with any additional Covid-19 precautions in place).
Security service providers: Security levels and checking procedures must – of course – remain at optimal levels (with additional adherence to sanitisation, social distancing and other Covid-19 protocol).
Cleaning crew/ housekeeping service management: In the wake of the pandemic, sanitized premises are non-negotiable. For closed spaces like offices, you need to ensure daily housekeeping, cleaning, and sanitation of commonly touched surfaces.
Cafeteria service: You need your cafeteria service to deliver the same delectable fare as before (with special attention to hygiene and food safety amid Covid-19).
Repair and maintenance contractors: You need cleaning, repair and maintenance, possibly desperately, after the long break and you want these to be taken care of with efficiency and immediacy.
Transportation, including travel agents: You need transportation to get back on track, but with special attention to Covid-19 precautions.
This is a generalized list, but every sector and every company might have a few other vendors on their list.

Chief logistical challenges for IT companies as they reopen

Amid the pandemic lull, if IT businesses felt the pressure on their bottom line, it is not difficult to imagine the financial implications on businesses with lower capital reserves and thinner cash flow. Moreover, medium and small companies need their vendors to function optimally, in order to receive efficient service, so that they can continue to maintain their market position.

However, companies do need to consider that a lot of their vendors – being small businesses – might not be able to get back off the ground without some form of cash flow support. The reserves of a lot of small businesses were depleted due to a low business volume during the past 18 months.

Help your vendors to help you

In the pre-pandemic world, your vendors enjoyed sustained business and as a result, despite being small businesses, enjoyed sufficient cash flow efficiency to receive payments 45 to 90 days after product/service delivery.

However, mid-pandemic, this might not be an option for your vendors who might be unable to deliver services without an advance payment, or immediate payment upon product/ service delivery. Or at least a shorter payment cycle than 45 to 90 days.

This means that companies need to get their supply chain financing in order so as to continue receiving the support and services that effectively keep them going. You can do this easily – without affecting your own cash flow – on CredSCF.

CredSCF to the rescue

Supply chain financing from CredSCF can help your vendors receive payments immediately or as desired, so that they have the financial resources to continue serving you at the levels of quality and efficiency that you are used to. We have launched Rs. 100 Crore Supply Chain Finance program to aid IT companies to start #BackToOffice effectively and smoothly.

A unique edge CredSCF users enjoy is exposure to multiple lenders on an integrated platform. Our marketplace model gives you the freedom to choose an offer most lucrative for your company. You also get access to instant capital via a blockchain-based digital process.

CredSCF’s clients benefit from an end-to-end supply chain financing platform that delivers increased efficiency, lower risk and advanced monitoring. This means that your business’ interests are taken care of and protected, even while your suppliers are handed a lifeline.

Tap into a large pool of investors on CredSCF for all your supply chain financing needs. CredSCF will allow you to finance your supply chain for multiple vendors via multiple lenders. Streamline your supply chain operations with CredSCF that allows your business with purchase order financing, sales bill discounting, and vendor invoice prepayment.

Moreover, CredSCF has already developed experience across 15 key sectors.

Here is a list of products that you can opt for on the CredSCF platform:

• Trade Receivable Securitization: This is a low-cost method for your company to finance a diversified trade receivables portfolio through the market.
• Purchase order funding or receivable finance solution: Use your upcoming payments due to receive upfront capital.
• Vendor/dealer financing: CredSCF can also offer purchase order funding to your vendor. Another option with the same fundamentals include sales invoice discounting.
• Dynamic discounting: Use your investible surplus to help your vendors get back off the ground by having CredSCF prepay their invoices.

Enjoy the CredSCF edge with a performance analysis report, access to a powerful dashboard, risk & fraud management solutions. Businesses with bulk invoicing can also automate their invoice processing with CredSCF and reduce overheads significantly!

Conclusion:

Whether your vendors are being stubborn about payments or genuinely have their hands tied, larger businesses have the ethical responsibility to help smaller companies stay afloat. It is also probably in your best business interests to stick with suppliers you know and trust, to ensure that your own product or service is up to standard.

Moreover, there can be no excuse for not performing due diligence towards your company’s supply chain efficiency when the financial support you need for the same is just a click away.

Enhance your supply chain financing efficiency through cost-effective, tailormade supply chain financing on CredAvenue’s CredSCF.