Compaq plan to cut distributors in US

Compaq plan to cut distributors in US

Following in the wake of the Australian channel rationalisation, Compaq are expected to significantly cut its distribution ranks in the United States.

Struggling with sluggish sales and poor financial returns acting CEO, Ben Rosen, has announced a new channel strategy that will include only the bare minimum of distributors, according to Compaq Australia sources. The slimmed down Compaq hopes to regain its competitiveness against the likes of direct PC vendor Dell by cutting costs and reducing its parts inventory.

The spokesperson from Compaq Australia reassures Australian partners that distributor places on this continent have been finalised and there are no plans to further diminish the current six.

Sourcing of Compaq products in this region will also remain unaffected according to the spokesperson, who explains that all products are assembled and shipped locally so any supply problems that might result from the severely altered US channel will not affect regional operations.

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