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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (27262)	6/7/1998 4:09:00 PM
From: Eddie Kim	Read Replies (1) \| Respond to of 97611

Assembling Channel Assembly -- A long time coming, channel assembly is just now rolling out the door: techweb.com Program outline: Compaq's Optimized Distribution Model (ODM) has three elements: Build to order (BTO), where Compaq builds standard SKUs against orders that come in from the 34 channel partners who buy direct; configure to order (CTO), where Compaq builds nonstandard SKUs to orderfrom a list of approved components, both Compaq and third-party; and theChannel Configuration Partner program (CCP), which is channel assembly. Compaq authorizes channel partners to build systems on its behalf using components supplied by Compaq. The company expects channel assembly to offer 10 to 15 percent savings. ---------------------------------------- Compaq's New Rules of Engagement -- Faced with a growing structure, Compaq considers going direct to its top accounts: techweb.com "Compaq wants to own the [customer] relationship, but it's going to let the channel provide some of the product in some of the cases," says a channel source, who declined to be identified. "In other cases, it's going to deliver the product direct, to selected people. The largest percentage is going to go through the channel."