COMPAQ: Compaq names reseller channel partners for U.S. product
configuration program
JUL 30, 1997, M2 Communications - Furthering its drive to set a new
standard for the industry's most satisfying ownership experience,
Compaq Computer Corporation (NYSE:CPQ), the world's leading supplier of
personal computers and distributed enterprise solutions, today
announced that nine reseller channel organizations have been named for
its U.S. Channel Configuration Program (CCP).
The nine CCP partners are CompuCom Systems, Inc., EDS, ENTEX
Information Services, Inc., GE Capital Information Technology
Solutions, Inacom Corp., Ingram Micro Inc., MicroAge Inc., Tech Data
Corporation and Vanstar Corporation. Each of the nine will begin
performing CCP product configuration as they complete the program
requirements. This rollout begins in the fourth quarter of this year.
Additional channel organizations may be added to the configuration
program in the future.
The configuration program is another important element in the
recently announced Optimized Distribution Model (ODM), designed by
Compaq to deliver the latest product innovations to customers at the
highest quality and lowest total cost of ownership.
"Compaq continues to make bold moves to satisfy our customers with
the products they want, when and how they want them, at the lowest
total delivered cost in the industry," said Jim Schraith, Vice
President and General Manager, Compaq North America. "By extending our
Optimized Distribution Model strategy, Compaq and our resellers will
continue providing customers with excellent products and superior
services which will result in greater product value and ultimately
higher satisfaction for customers."
Optimized Distribution Model
With ODM, Compaq is leading the industry in meeting customers'
requirements for value throughout the entire ownership experience cycle
of acquiring, using and upgrading their computer products and
solutions. On July 10, Compaq launched the first phase of ODM in North
America: Build-to-Order, a set of integrated business processes that
span the length of the supply chain from suppliers to end customers.
Compaq also announced the first products shipping under this model, a
new generation of Compaq Deskpro products that have been built to
actual reseller channel orders rather than built to forecast. By
building products to orders, Compaq is able to achieve greater product
availability and predictability and significantly lower product costs.
CCP Products
In the fourth quarter, Compaq will begin providing base model Deskpro
desktop products to qualified CCP channel partners who will, in turn,
perform final product configuration to meet the needs of specific
business customers. Through the CCP program, Compaq and the
participating channels will eliminate substantial reconfiguration
costs. By leveraging the existing reseller channel configuration
capabilities, CCP will eliminate inefficiencies associated with
re-configuring products while simultaneously reducing inventories both
at Compaq and in the channel.
Configure to Order Programs
The CCP program is complementary to future plans involving Compaq's
own in-house Configure-to-Order (CTO) operation. Under CCP, Compaq will
leverage channel partners' capabilities to provide product
configuration services. Under CTO, Compaq will configure products based
on reseller channel orders at Compaq manufacturing facilities. Through
both programs, Compaq is eliminating reconfiguration inefficiencies and
providing customers with an efficient and effective way to obtain
products that are configured to their required specifications. Reseller
channels that do not participate in the CCP program will have access to
the same configurable products through Compaq or from a CCP partner.
The decision as to where the products will be configured will depend on
the business model efficiencies and the capability to most effectively
meet customer requirements.
Channel Partner Selection
Channel participation in the CCP program is based on stringent
standards that ensure Compaq quality and reliability will not be
compromised while meeting customer requirements for value. The nine
channel partners were identified based on several criteria including
the ability to configure products, manufacturing and material control,
systems and business processes, documentation and adherence to Compaq
quality standards.
Company Background
Compaq Computer Corporation, a Fortune 100 company, is the fifth
largest computer company in the world and the largest global supplier
of personal computers, delivering useful innovation through products
that connect people with people and people with information. The
company is an industry leader in environmentally friendly programs and
business practices. Compaq is strategically organized to meet the
current and future needs of its customers, offering Internet and
enterprise computing solutions, networking products, commercial PC
products and consumer PCs. As the leader in distributed enterprise
solutions, Compaq has shipped over a million servers. In 1996, the
company reported worldwide sales of $18.1 billion. Compaq products are
sold and supported in more than 100 countries through a network of
authorized Compaq marketing partners. Customer support and information
about Compaq and its products can be found at compaq.com or
by calling 1-800-OK-COMPAQ. Product information and reseller locations
can be obtained by calling 1-800-345-1518.
Channel Executive Quotes
CompuCom Systems, Inc
"Compaq continues to strengthen its bond with the reseller
community," said Ed Anderson, CEO, CompuCom Systems, Inc. "Through the
Compaq Channel Configuration Program, we can further eliminate costs
and significantly enhance the product and delivery process for
customers who require specific configurations."
EDS
"At EDS, our most important consideration is customer satisfaction.
Through Compaq's new Channel Configuration Program, EDS will be able to
incorporate new technologies quickly and have more control over the
final configuration of products, which will help better satisfy our
customer's requirements," said Bob Neighbors, EDS Customer Services.
ENTEX Information Services
"Compaq's Channel Configuration Program should ultimately reduce
expenses at the manufacturer and channel levels, while helping to
improve the total customer experience. Moving forward, we expect to
significantly reduce the purchase of components and products that may
not match customer demand, therefore reducing risk and overhead at the
channel level while improving product availability and turnaround times,
" said Dale Allardyce, Executive Vice President, Operations, ENTEX
Information Services.
GE Capital IT Solutions
"Compaq's Channel Configuration Program is another great example of
how Compaq continues to evolve the distribution model," said Gerald A.
Poch, President and CEO, GE Capital IT Solutions Worldwide. "This
program will enable the channel to provide customers with value-added
services enhancing our competitive advantages over the direct model."
Inacom Corp.
"Inacom's designation as a Compaq CCP provider is a continuing and
welcome step in our efforts to take costs out of the procurement
model," said Mike Steffan, president, distribution and operations,
Inacom Corp. "Our clients demand quick, accurate delivery at a
reasonable cost, and we're well positioned to deliver that model.
Compaq's program will help Inacom continue to be very competitive."
Ingram Micro
"Ingram Micro is excited to see Compaq embrace programs which
recognize the customer's strong preference for buying the industry's
leading Compaq brand through resellers," said David R. Dukes, Vice
Chariman, Ingram Micro. "This program should lead to increased
operating efficiencies and thus to even higher levels of customer
satisfaction for timely and accurate delivery of Compaq product."
MicroAge
"Compaq is creating a new, more powerful distribution model that
leverages the true value of the channel," said MicroAge President Bob
O'Malley. "By combining Compaq's brand with streamlined channel
assembly processes, together we can offer customers a wide range of
custom configuration choices not available from direct players. Our
combined strength will allow us to compete on price with direct
providers such as Dell, while providing customers greater flexibility
and superior solutions."
Tech Data Corporation
"We are pleased to see Compaq taking these steps to further
strengthen its commitment to the reseller channel," said Tony Ibargen,
President and Chief Operating Officer, Tech Data Corporation. "This
commitment will allow us to continue providing our customers with the
quality and reliability of the Compaq brand name while delivering the
unique specifications required by individual customers."
Vanstar Corporation
"Today's announcement will enable the reseller channel to more
effectively compete with the direct vendors," said Bill Tauscher,
Chairman and CEO, Vanstar. "By eliminating the inefficiencies in the
configuration process, resellers will further improve profitability as
well as meet specific customer requirements."
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