As retailers push inventory back up the supply chain

By Staff -- Logistics Management, 6/1/1999

As retailers push inventory back up the supply chain, manufacturers are pushing it down. For example, Compaq Computer Corp. has announced that through its new North American Distributor Alliance Program, it will reduce the number of destinations it ships to by 70 percent. The world's second-largest computer manufacturer says the move will allow the company to forecast and manage inventory levels accurately, reduce transportation costs, focus channel resources, and increase customer service. Compaq's distribution partners--Ingram Micro, Merisel, and Tech Data--will handle the second tier of distribution by marketing and selling commercial business products to channel partners and resellers in North America.