For the CSP (consumer system products) division of Canon India, the preparatory month of June 2017 before the implementation of GST (Goods and Services Tax) on July 1st 2017 in the country, harbingered the arrival of a nasty phase in the operational ecosystem of the company as its distributors started destocking printers from their godowns. The nervousness thoroughly gripped the channel folks as they widely believed that once GST came into effect, the prices of their stocked printers would nose dive to a thud. The lurking ambivalence resulted into frantic sales of even their strategic inventories. Obviously, the nervous sales of the stocks by distributors stirred unease in the Canon leadership at Gurgaon.
But, to the amazement of Canon and its distributors and channel partners alike, the month of July 2017, and then August, and then September 2017, brought with them unexpected bounties as the sales of printers—especially laser printers—simply skyrocketed. More than 100,000 units of printers were sold in the JAS (July-August-September) quarter. “From the perspective of supply chain, June gave a body blow as the month saw frantic destocking of printers by our distributors. With whatever inventories left with us, we strove to meet the demand surge generating during the quarter. We could hardly meet half of the demand for Canon printers during the quarter”, says C Sukumaran, Assistant Director, Consumer System Products (CSP) Division, Canon India Pvt Ltd. “It is only the beginning of OND (October-November-December) quarter, when the demand spikes have started coming back to normalcy”, says Sukumaran.
There is no doubt that GST has been one of the most audacious decisions in the financial history of India, where the sheer scale and the involved procedures have hurled challenges at every stakeholder. Despite, differing views on the merits of GST, the JAS quarter saw strict and sincere adherence to the new taxation regime by entrepreneurs and businesspeople, where they were instructed to file GST returns every month. Now, filling GST returns require certain degree of automation of invoicing and other accounting documents. Thus, the demand of basic IT platforms including printers sprang up. Rest is history for Canon in India
However, return to normalcy is accompanied by the seasonal sales of printers—more so with inkjet printers—during the Diwali festivities. For that, Canon has strengthened its supply chain further with its 14 nationwide warehouses working diligently. Replenished sumptuously, and powered by Oracle SCM (supply chain management) software application, Canon is all set to engage and delight entrepreneur India with its wide range of SOHO (small office home office) and consumer printing solutions cutting across laser as well as inkjet printers. There’re double bonanzas for Canon and its channel fraternity.