Subscriber Discussion

Is ADI Not Paying Their Suppliers Since COVID-19?

For all of you manufacturers out there who sell their products through ADI- has your payment schedule been respected since the COVID-19 pandemic started? We are getting the serious run-around for the last 2 weeks.

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We are getting the serious run-around for the last 2 weeks.

What reasons are you being given? Can you provide examples?

In our recent survey, other manufacturers shared similar concerns in Coronavirus Hits Manufacturers, Standing Now, Worse To Come:

Concerns About Slow Pays

Several manufacturers specifically mentioned that problem of slow payment and that if collection costs go up, their companies are likely to face financial problems:

  • "Now, more than ever, smart salespeople have to be more in tune with the "we need to get paid" back-end part of the selling process. Just getting the PO and figuring someone else in the organization will deal with the financial details will no longer suffice. From a risk perspective, a caution is what seems like a sale now may turn into a collection issue down the road. We are already working with select customers to temporarily extend terms to allow them to ramp back up when they open."
  • "A big long term concern will be payments. It is one thing to ship units, it is another to get the prompt payment needed to keep things moving. The strength of our work long term will likely come down to funding and the length of closures/slowdowns. As a result, we may not see big changes flow through to us until summer, even if things have been opened back up."
  • "delayed payments"
  • "General signs trending: - delay of projects in all sectors - delay of payments from all parties ( system integrator and distributors ) - no communication physically with the clients that will be difficult to move things fast."
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We had no response for close to 2 weeks after repeated requests, both by phone and email. We had to copy in the "boss's boss" before someone answered.

The answer we got today was "sorry, we're not sure what's happening, we'll get back to you" nonsense.

Anixter and our smaller distributors have been paying normally. So far, this behaviour is only coming from ADI

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Just curious to follow up, did you hear anything back?

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They paid after about 4 weeks late. No reason given, just stalling.

we had to cut off shipping and threaten further action for them to finally pay.

In my mind, ADI is simply using this virus crisis to give themselves a short-term working capital boost. Stupid tricks, making their numbers look better to the detriment of their suppliers.

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