HP finally responds to CCMDA

HP has expressed regret over the remarks made by the the Raipur based-Chhatisgarh Computer and Media Dealer Association (CCMDA) over the ongoing issue of Priyanka Computer Services, sub distributor of HP, regarding the expired inkjet cartridges worth Rs 8 lakh.

"HP India deeply values it's relationship with trade partners in Chhattisgarh and we have nurtured this relationship on the basis of mutual trust, fair and ethical business practices and complete transparency over the last several decades," a company (HP) spokesperson said.

The DQ Week had earlier reported that Priyanka Computer Services had requested HP to take the cartridges back and return the money or replace the expired cartridge with new ones, but HP refused to do so citing policy reasons.

Taking stern action against HP, CCMDA has already given an ultimatum to the IT giant.

However, clarifying its stance, HP sent an explanation to The DQ Week in writing, stating, "HP as an organization is always willing to help our trade partners avoid such situations and further help resolve them once they arise, to the extent the reasons behind such a situation arising are justified. All cartridges have an expiry date and in general, our partners have a window of 1 to 1.5 years to sell these cartridges before the date of expiry, from the date the partners receive the cartridges. It is expected that all players in the value chain including the partners will follow FIFO way of managing logistics. Typically the cartridges move across the value chain to the end customer within three months. Therefore, the window of 1 to 1.5 years is a fairly long time for the cartridges to never reach the expiry date as long as FIFO is followed. However, it is a standard practice that cartridges are not covered against expiry as an industry policy."

The company further said, "In rare cases when the cartridges are closer to expiry date, the tier-1 distributor generally extends special discounts to tier-2 partners and the same is further extended from tier-2 to tier-3 partners to help liquidate the stock. All such transactions are duly documented between the selling partner and buying partner. However, in the event of any tier-2 or tier-3 partner receiving cartridges that are close to the expiry date or are already expired, without prior information backed by special discounts, they have an option to deny accepting the delivery."

Recommending possible solutions for such issues, HP also stated, "Proper order planning and a diligent following of the established stock-keeping norms like FIFO are two possible ways to prevent stock aging. Even if a partner has extra stocks because of wrong planning, the shelf life of at least 12 months serves as an adequate buffer."