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To: jim kelley who wrote (33522)3/10/1998 8:58:00 AM
From: Geoff Nunn  Read Replies (2) | Respond to of 176387
 
Jim, you and several others on this thread have accused CPQ of "stuffing" the channel. Yet, I haven't seen anyone be definite about how CPQ is able to do this, or even define what the term means. Sorry if I've missed it. But several questions:

1. Does the term channel stuffing necessarily imply inventory inefficiency (bloat), or does it merely suggest premature reporting of actual sales? Is it operating inefficiency or accounting legerdemain (or both)?

2. When a box leaves CPQ and enters the channel, it is because someone - a reseller - has agreed to buy it...correct? How, then, does the channel get stuffed, if that term means overstating of actual sales? And if some CPQ boxes entering the channel have NOT yet been bought, then what financial arrangement exists between CPQ and the end- channel vender? Are these boxes "sold" on consignment?

Hope you can shed some light on these issues. Thanks in advance.

Regards,

Geoff