Cellnet to review freight charges

ASX-listed distributor, Cellnet (ASX: CLT), will introduce a flat freight charge to reseller invoices under plans to simplify purchasing.

National sales manager, Aidan Fitzgerald, said its previous freight handling costs were determined by the weight of the product and the Australian region it was being shipped to. Under the new arrangement Cellnet will introduce a flat fee on all purchases.

“Our [freight] system is a very exact system but it’s difficult for sales people within a reseller to work out the costs,” he said. “Transparency is the name of the game here – resellers want simplicity and that’s what we want to provide.”

The distributor has not yet set a timeframe on when the freight procedures will change but Fitzgerald predicted it could be as soon as next month.

“Oil prices have come down so we’ve got more leeway to better decide what to do,” he said.

Those resellers with existing Cellnet freight arrangements shouldn’t be affected by the changes, Fitzgerald said.

“The changes will be fully explained to our resellers and we’ll have a phased implementation – we don’t plan on just introducing something on a Tuesday that will come in Wednesday,” he said. “This is making it easier for the thousands of opportunistic purchases to figure out the cost of purchases.”

Over the past month, several distributors have begun investigating ways to accommodate increasing freight costs brought about by higher oil prices, falling product costs and tougher market conditions. In the US, Ingram Micro, Avnet and Tech Data have already flagged new fuel surcharges or handling fees to compensate for higher costs.

Last month, Ingram’s Australian managing director, Guy Freeland, told ARN the company was investigating whether to introduce a fuel surcharge or similar fee locally.