In our recent YouTube Live Session with Mr. Sandeep from Sri Skanda Tyres (star distributor for Ceat Tyres), we successfully gained an SME owners’ perspective on Small Businesses and Digitization in Lockdown and Beyond.
While Shwetha, our Customer Success Manager brought the panel together and shared an introduction to Sri Skanda Tyres. Our Sales Head Mr. Ashish began the session by throwing light on the significance of SMEs in India and how they make for a staggering 30% (approx..) contribution to India’s total GDP. And, this is why the SME sector holds its fort in the development of the country.
He further moved on to ask Mr. Sandeep on how the current lockdown is impacting SMEs like Sri Skanda, and its entire customer engine. And what the future holds in store.
Sandeep shared that owing to the current lockdown SME payables/receivables are at a standstill. While future turn over also seems bleak for a few months, even once the lockdown is relaxed for obvious reasons.
However, he believes that the digitization of SME value chain that HyloBiz offers by integrating with different ERPs is something that can be the game changer for SMEs like him, in times to come.
He shared that while HyloBiz already offers features like automated invoicing, reconciliation reports, and assists in receivables tracking with constant automated payment reminders, once the friction in accepting digitization eases further, it can be of far greater assistance in times to come.
He was of the opinion that Hylobiz can play a major role in assisting Sri Skanda dealers come under the umbrella of a Smart Inventory Management System, where Sri Skanda is in the know of dealer inventory status at all times and push the product in the correct channel, as soon as it goes down in a swift and transparent manner.
Sandeep shared great optimism and suggested that there is already a 50% penetration of digitized systems in their value chain, which is only increasing by the day.
Three Key Action Points that he shared before closing the discussion were:
Digitizing the complete payment process and bidding goodbye to cheques and cash for a button click record keeping and quick decision making
Digitalizing within the Skanda Value Chain by enabling DSEs with updated inventory status and dealer payable/receivable status
Handholding and resolving digital friction at the dealer end for a seamless acceptance
Most importantly, while answering to Ashish’s query on the Working Capital challenges after Lockdown, Sandeep mentioned that a precise digital mapping of payables, receivables, outstanding, inventory levels etc. allows a transparent view of the business health to investors. And, that would help in gaining investor confidence to achieve a Working Capital inflow in the business after the lockdown. He expects an enhanced partnership with HyloBiz at every step of the way, to make this possible. And, we are delighted!