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In a creative effort to reduce channel inventory while helping to stimulate lagging consumer PC sales, Hewlett-Packard had begun a BTCO (Build-To-Custom-Order) program that gave its consumer customers the ability to order custom HP laptop computers and computer parts direct from the factory.

Beginning October 17, 2001 HP's BTCO program reduced the channel inventory of HP's OmniBook and Pavilion laptops by providing only a few actual systems to retail outlets as demos, said Lara Kahler, a product marketing manager for HP's mobile computing division. Customers will use the demos to get a hands-on idea of the laptops, then order custom versions for themselves using online kiosks set up by the retail outlets and linked to HP's retail Website via the Internet.

Participating retails included Best Buy, Circuit City, Office Depot, Office Max, and Staples, said Kahler.

With the BTCO program, HP's OmniBook and Pavilion Laptops can be customized with practically any available system feature, including wireless networking, a variety of CD-ROM and DVD options, a range of processor speeds and memory, and a choice of operating system, said Kahler.

All BTCO orders were built and shipped directly from an HP factory in Taiwan, but domestic rush orders for BTCO systems are available through common carriers, Kahler said. BTCO laptops will also be available through HP's own online retail sites beginning October 17.

Besides encouraging consumer customers to explore and purchase the range of laptop computer options and configurations offered by HP, the BTCO program also greatly reduced the number of actual laptop units needed to be shipped to retail stores, said Jim Burns director of worldwide supply chains for HP's mobile computing division.

BTCO also allowed HP to upgrade its portfolio of consumer laptop features more rapidly, with less concern for outdated configurations that could be still sitting on retail store shelves. The BTCO program benefits retail outlets as well by way of smaller inventory investments, said Burns.

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