Hewlett Packard?s quest to eradicate loss leading among its distributors intensified this week when the auditor was called in to Frontline after Ingram Micro received a clean bill of health.
Paul Burwood, HP marketing manager for printer products, confirmed that an audit had taken place on 21 August and there was no evidence of Ingram Micro selling HP products below the cost price.
?Ingram worked well with us and helped the auditor to do the audit,? said Burwood. ?It has turned out very positively for both of us.
Nigel Judd, Ingram director of marketing, said the distributor had fully co-operated with HP and its auditor James & Cowper.
Burwood disputed the claims that the audit process was a public relations exercise, stating that the auditor had looked closely at the sales ledger and invoices for any evidence of loss leading.
A representative of Frontline confirmed that the auditors were called in 1 September and said: ?We expect a clean bill of health when the report comes out next week.?
Burwood said: ?We have reason to believe that a member of the channel is loss leading but we wouldn?t point the finger at one player.?
HP has vowed to audit all of its distributors and carry out its promise to withdraw marketing funds from loss leading firms.
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