PhoneCo Simplifies Its Supply Chain

Selects wireless logistics services provider CellStar to facilitate direct-to-consumer sales, assist with product support

Carrollton, TX — April 15 — CellStar, a wireless logistics services provider, has signed an agreement with local and long-distance telecom company PhoneCo to provide logistical support for the company's new mobile virtual network operator (MVNO), PhoneCo Wireless, a pre-paid wireless company.

CellStar said its Omnigistics offering will provide forward and reverse logistics, integrating supply chain management services into PhoneCo's business model. On the forward side, CellStar will program, kit and package PhoneCo phones into retail-ready units. On the reverse side, CellStar will work on returns management and asset recovery, helping PhoneCo manage the returns, repair and warranty work.

"From competitively priced handsets to comprehensive logistics solutions, CellStar was able to meet all of our needs," said Ken Weaver, chairman of PhoneCo. "Without CellStar's Omnigistics solution, we would have been forced to manage multiple vendors. CellStar erased the confusion and simplified our supply chain. Now we can focus on doing what we do best: offering pre-paid packages that are superior to those offered by our competitors."

Laurie Stixrood, vice president, new business development for CellStar, commented, "Based on PhoneCo's success as a diversified telecommunications provider to the pre-paid market, we expect them to be even more successful in the wireless arena. And because we offer scalable logistics services, we look forward to growing our relationship as their business expands."

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