Committed to implement a new build-to-order model in order to counteract growing competition from the likes of Dell Computer Corp (CI No 3,201), Compaq Computer Corp has named a series of resellers who will be involved in its Channel Configuration Program. Earlier in the month Compaq said it wanted to reduce the number of computers sitting on its resellers’ shelves from four weeks to a maximum supply of two weeks and will, from now on, only build a computer when it gets an order from a reseller or customer. The company has announced nine resellers who will participate in the Channel Configuration Program, and each of them will perform final assembly of Compaq products, hopefully dramatically reducing the amount of finished goods stock that the distributor must maintain at any one time. The nine resellers are CompuCom Systems Inc, Entex Information Services Inc, General Electric Co Inc’s Capital Information Technology Solutions, Inacom Corp, Ingram Micro Inc, MicroAge Inc, Tech Data Corp, Vanstar Corp and Electronic Data Systems Inc. Compaq says it will be able to eliminate significant reconfiguration costs by operating via the CCP program and through selected channels, and should reduce channel inventories as well as its own. The program ties in with future plans involving an in-house Configure-to- Order operation, under which Compaq will configure products based on reseller channel orders at its own manufacturing plants.
