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Compaq plans to cut distributors in US

Compaq plans to cut distributors in US

Following in the wake of its Australian channel rationalisation, Compaq is expected to significantly cut its distribution ranks in the US from 39 to four members.

The new look Compaq distribution channel will be comprised of Ingram Micro, Tech Data, Merisel, and Inacom, all selected because of their long-standing relationship with Compaq.

Ultimately this move, dubbed the North American Alliance Program, will reduce Compaq's shipping destinations by 70 per cent.

However, according to a Compaq spokesperson in Australia, sourcing of Compaq products in this region will remain unaffected. "All products are assembled and shipped locally," the spokesperson said, claiming any supply problems that might result from the severely altered US channel will not affect regional operations.

Struggling with sluggish sales and poor financial returns, acting Compaq CEO Ben Rosen announced the new channel strategy will include only the bare minimum of distributors in order for the company to regain its competitiveness against the likes of direct PC vendor Dell.

Compaq said the slimmed down channel will cut costs, reduce parts inventory, focus channel resources more specifically and increase sales and marketing efforts.

The spokesperson from Compaq Australia's channel marketing group wanted to assure Compaq's Australian partners that distributor places here have been finalised and there are no plans to further diminish the current six, announced only recently.


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