• COVID-19

    • Government Sector Whitepaper
      Effective management of information systems and communications is critical for the success of the public sector.

      Mining Sector

      Increase productivity & build a culture of innovation

      Financial Sector

      Meet the challenges of disruption & cyber security

      Healthcare Sector

      Empower your patients & leverage data by deploying customised solutions

      Retail Sector

      Embrace the changing retail landscape & know your customer

      Government Sector

      Use digital transformation to grow the economy & build capacity

      Industries Overview >

    • Innovation Through Simply Navigating The Complex

      Specialized digital diagnostics, solutioning, consulting, development and maintenance across legacy and cloud-based systems.

      Digital Innovation Awards

      Enter the 2020 BCX Digital Innovation Awards

      BCX Exa

      Innovation through simply navigating the complex

      Digital Transformation

      Intelligent systems upgrading

      Analytics

      Data that works for you

      Applications

      Tools to streamline operations

      Services

      Strategies for efficient ICT

      Cloud

      Computing for today & the future

      Cybersecurity

      Protection for your critical systems

      Devices

      Processes & network foundations

      Connectivity

      Connections within & without

      Partners

      Partnerships moving business forward

      Solutions Overview >

    • Speak To An Expert
      We'll need just a few details from you, and one of our specialists will be in touch as soon as possible.
      BCX HEAD OFFICE

      Employee Entrance:

      1021 Lenchen Avenue North
      Centurion
      Gauteng
      South Africa
      0157

      Contact Us:

      +27 (0) 11 266 5000

      Visitors Entrance:

      1266 South Road
      Centurion
      Gauteng
      South Africa
      0157
Home > Channel, Covid-19 and the requisite medicine

Channel, Covid-19 and the requisite medicine

28 May, 2020

Covid-19 is playing havoc with the way resellers do business in the ICT space, not least in the instability of exchange rates and a stronger dollar, which is probably the most pressing channel problem that will influence the way companies decide on IT spend.

The second problem facing the channel is the slowdown of flights causing delays of stock – including mission-critical components – by as much as two to three months.

There is no question that coronavirus has caused a slowdown in world trade, and the disruption in global supply chains is already evident. South African companies that have built markets on the back of a global trade network need to be aware of how vulnerable they are and the importance of acting swiftly.

These are some of the challenges that Bennie Strydom, BCX managing executive for its Integrated Technology Solution Sales, sees as pivotal to addressing supply chain management and the ability of resellers to assist their customers.

“We’ve seen statistics that indicate that there are industries that are going to struggle to recover, and others that look set to surge,” says Strydom. “However, given that the majority of CIOs recently surveyed by IDC researchers intend pursuing existing vision and strategy, the ICT channel needs to be putting contingency plans in place to meet their demands. Only a meagre 1% of CIOs are stalling or cancelling all current and new initiatives.

“In the working from home (WFH) context, there will be spend on devices and smartphones, security and teleconferencing and putting emphasis on the digital employee experience and digital workspaces. Spend is also still planned on hardware, storage and networking.”

“In sourcing stock, we believe that the purchasing calls distributors are making now are good in terms of buying in larger volumes. We also agree with every possible way of de-risking on the exchange rate. It’s the distributors that are geared to buy, however the prices from distributors affect how we work within our arenas and pricing will need to be very carefully managed.”

The silver lining for the channel, he says, is in providing cloud and virtual platforms, where there is both opportunity and the need to protect the supply chain. With conferencing applications, he says there is going to be a big drive to cloud and particularly local cloud because international clouds are linked to the dollar and are thus expensive.

“We also see the need for security, more than ever. Secure access to IT services is the top short-term priority for 91% of CIOs, based upon a recent IDC survey. We see a trend of digital empowerment – more work stations, data and fibre in the telecommunications side. There’s been a huge uptake in participation in online meetings, seminars and distance learning which is underlining the value of this new digital cloud.”

With cloud and social distancing, Strydom believes companies will be making more investments in AI and machine learning projects to digitise customer interactions such as virtual assistants and call centres. He also sees the need for data analytics as companies try to plan and forecast disrupted supply chains.

Transportation will be a big issue for resellers, stresses Strydom again, describing the exponential increase in cost per kilo to import – a cost anticipated to increase more than three-fold in the second quarter.

“The challenge is that everything is currently imported and as the rand to the dollar fluctuates, this cost is passed on to the consumer. Add to this the reduction in flights, which delays factory production. The software industry is different because there is no stock, so this industry is still healthy.

“Essentially all the factors affecting the supply chain, including the severe disruption, is, or already has caused, a reduction in demand and the need has come for the rethinking of technology projects and how these are going come to fruition in the short- and medium-term,” he concludes.

Editorial Credit: ITWEB 

Share

SPEAK TO AN EXPERT

 We'll need just a few details from you, and one of our specialists will be in touch



RELATED POSTS