Oil shock
The European division (EMEA) of global distributor Ingram
Micro has announced it will no longer absorb “significant” freight costs for
shipping products to customers, and will now be passing on the full cost in the
form of an itemised “freight charge”.
The reason given is that, like everyone else, Ingram is feeling the pinch from
record-high fuel prices. The EMEA press release affirmed the company’s
commitment to getting products to customers in a “timely and efficient manner”
and said it still offers “the best way to get technology from those who make it
to those who use it”.
“Rapidly rising costs, especially energy costs, require that we address the
matter of shipping costs related to our products,” said Ingram Micro EMEA EVP
and President Jay Forbes. “Accordingly, Ingram Micro EMEA will implement
policies and processes to recover the full cost of shipping products to our
customers. We understand this decision will be challenging for our customers,
and will work with them to make the transition as smooth as possible.”
Understandable though it is that a distributor should shrink from shouldering
the entire burden of rising fuel costs, ending the logistics subsidy will be a
double hit to the channel’s cost of buying from Ingram. If the newly announced
measure is not mirrored by other disties, it could put a decidedly “challenging”
strain on Ingram’s customer relationships.
Press release: INGRAM MICRO EMEA TO PASS ON FULL FREIGHT EXPENSES TO CUSTOMERS DUE TO INCREASING ENERGY COSTS
