Hewlett Packard is reviewing all channel programmes across Europe from this month as part of a drive to force its partners into being more efficient.
All programmes will be monitored to assess whether or not they facilitate the increase of return on capital employed (ROCE) for resellers and distributors.
This month also sees the introduction of Select Express, a programme in which HP configures servers and delivers direct to the user, calling in resellers for installation and services.
The decision follows a six-month pan-European pilot in which the vendor altered five distributors' supply chain processes, measured by management consultancy Via International. In the UK, CHS Electronics and Computer 2000 were assessed (PC Dealer, 11 November 1998).
As part of the project, HP introduced the Top Value and Automated Inventory Replenishment (AIR) programmes for its PC and printer channels. Both were devised to combine inventory tracking on a daily sell-out basis with forecasting from distribution via EDI links, in a bid to cut lead times to 15 days and forecast sales to within four-week cycles. The schemes were adapted from a system used in the food retail industry.
Tino Canegrati, European PC and wholesaler sales manager at HP, said future initiatives will be tested from November to ensure they are capable of lowering costs and raising efficiency.
'Top Value and AIR will increase the volume of sales because they will be priced competitively and the visibility from a daily sell and forecast will allow more efficient component buying and lower price protection costs,' he added.
Julian Dent, chief executive of Via International, said: 'HP is measuring programmes to test whether they expand the business, are within budget and have a neutral or positive effect on ROCE.'
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