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How you can save on delivery costs

QUESTTON:

a,GILEASE discuss thc economics of f(l) Driver unloading; (2) Ride-along helpcr to help unload; (3) warehouse or store employec unloading.

ANSIVER:

For illustration purpos€s, prcume that drivcrs, helpers, warehousc and store cmployecs are all compensated at the same hourly rate and work a 50 hour weck. Thc truck being uscd is a 2Vz ton flat bd dump. The basic wage is $6 hourly. Pcrsonncl costs are listed in chart.

Each year, in a public relations offering, the Hcrtz Co. publishes opcrating costs for the scveral commercial vehicles in their fleet. Thesc costs are not rental rates, but "costs to op€rate and maintain ownership," An operator's salary is not included in the figures and their per mile cost of $l.Z) (approx.) is based upon driving 15,000 miles annually. This information, combined with personnel costs developed above, is shown as total delivery costs for a2Yz ton delivery truck. Esentially, from wherever an addi- tional person is recruited to help on the delivery truck, per the example shown, the cost of delivery goes up almost 3590 when a helper is added. From the income, or sales side, the numbers can indicate a point where practicability will allow for another person on the truck, Experience has shown tlat the classic lumber dealer averages about $600,000 per year in delivered sales per truck operated. Delivered sales of $6m,000, that cost $38,592 to make, generate a 6.40/o delivered sales ratio. Using these figures, it is possible to compute no loss - delivered sales dollar value points for a driven distance with either one or two people on the truck.

The chart shows that the cost of one person operating a truck for a 20 mile trip (10 mile radius) is $51.40. When a second person is added, the cost of the same trip is $78.80. To recover the "one man" cost (6,490) $803.13 must be delivered. To not increase the 6.40/o dilivery cost ration, the "two man" trip of the same distance must deliver $1,231.25 (6.40/o of $1,231.25 equals $78.80). At a 20 mile radius, the numbers are $1,606.25 and $2,446.88, and at a 30 mile radius the numbers are $2.409.38 and $3,693.75. To hold the percentage of cost at the same level, when a second person is added, the value of what is delivered must increase by almost 3590 over what the one man crew delivered. When the no lossdelivered sales dollar value points are exceeded with either mart power configuration, the company's delivery costs, as a percent of sales, are reduced and conversely when they are not met delivery costs as a percent of sales go up.

Generally, full time helpers want to be something else. Warehouse people love to ride in the trucks, but it disrupts the yard rirutine. Salespeople don't like to ride in the trucks because they are not dressed for the task. If a helper is put on a truck, make sure that the addition is both economically and psychologically effective.

"Manogement Sumeys the Black Hole of Delivery, " divided into three separate dollar volume manuals, under $2 million, $2-5 million and over S5 million, is ovoilable for W5 from Builders Express Inc., 1/'550 Plano Rd., Dallos, Tx. 75243.

Don't Burn The Wood

Dealers should caution customers that it can be dangerous to burn treated lumber in a freplace or any open flame fire. Poisons released into the air can cause serious illness.

Treated lumber should be used only for its intended purpose in building. Scraps which can not be utilized in small projects should be buried according to industry experts.

Champion Supports Olympics

Champion International Corporation will be the only forest products company among several dozen American corporations sponsoring telecast coverage of the Summer Olympic Games in Los Angeles in July and August.

In addition to a series of commercial messages tied into its corporate advertising theme of "Planting Seeds for the Future," the company will sponsor I I kilometers of the crosscountry Torch Relay in which amateur runners carry the Olympic flame from New York City to Los Angeles in an 82-day, 12,000-mile procession through 1,500 cities and towns.

Home Center Cram Session

Handy City, Handy Dan, House Works and Home Depot are among the home centers participating in seminars staged by fieldmen from the Southern Forest Products Association. New Orleans, La., Atlanta, Ga., Orlando, Fl., Charlotte, N.C., and Birmingham, Al., are on the seminar circuit.

100 YEAR anniversary celebration lor Bruce Floors, Dallas, Tx., kicked off with a reception in H0uston. (Left) Floyd Sherman, president, and Joseph Nussbaum, senior executive vice president, cut a birthday cake at the firsl of a year-long schedule of events.

(214) 843-s538

KEEP 1T IN silOCK

Stcklng Orrcor FFI rood ndct s-: Bca@ ol ht br iFatrr plc*. uP, tlortga problana and yard lotr arc laaa lhtn wllh convan. tld.l typ.. of FnT r@d. By .tocklng qurllty .p.cl.ltt p.oduct, you can ballar aarva arlallne cualomara and atl.acl woG, Prcnollonal lllraluo la lvallabla to atlnulata 116. rllh ordlmit un|.aAad wood. |l'a b-n 9rantad a U.3. pAad.

GROWINGDEMA|ID

Th. uo.d l. gdthg ..ound. ArchL lacla, conlractora anal bulldlng ownan ar l[hlng ||M and |r|m on Oilcon tl.a ..lardart traatad

ADD TO YOUR PNOFIT3 lt'r b.|ne pffi.d to ysr cu& tm by tsll-pr9. ..L ln ndlon.l rrchlldunl, bllldlng lnd 6m!e nanl publlollona. l{o.ly aO rL. d.vdopftd nF .uol|tlu 6 matl|tg paatu tlona to daalena?a, agacllla,r, ofnaaa and olha. pu.charln! lnllu.M.

Drrcd tlo Ftrrdrnt tnatad rood haa frtny tppllcrllonr: Iruaaaa, dud!, ban., pu.llo, lol.L, dcl(. Ing, ahaalhlng and dhaa rdliar. prolcl.d pl.6 rh.o llr oLt .@ b itnlrahL.

Fq lLt of &pdLn llcftDd to p.!d{€ thla prodscl, rrlla lo KoF p.D Comp.ny, Inc., leoo Xopp.n Bulldlng, Ptl.tsrlh, PA lade.

0UALITY is an important concern for Larry Gr:othues (top pholo), president ol MG Euilding Materials, San Antonio, Tx. Richard Boorman has implemented a marketing program designed to create a new image lor the wholesaler.

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