How you can save on G a, delivery costs

Questions on delivery costs? Send them to this magazine at 4500 Campus Dr., Suite 480, Newport Beach, Ca. 92660. Wally Lynch will answer them in future issues. This is your chance to take advantage of his expertise in cutting your delivery costs.

Il{E LAST of the job responsibilities

I of a dispatcher, as outlined in this column over the past few months, concerns asset management.

In the case of delivery this means trucks. Although drivers should be responsible for the operation and maintenance of their specific vehicle, the dispatcher has the responsibility for overseeing and monitoring a preventive maintenance program for all vehicles. Each day he must check on the maintenance of the company's most expensive pieces of equipment-the trucks. This not only preserves and lengthens the usable life of the truck, minimizing costs, it keeps the dispatcher aware of what equipment will be available the next work day.

Management, of course, is responsible for the installation of such a program. No one should be asked to manage people and assets without the capability of having that effort measured by themselves and the management.

Our work for several years has allowed us to ex.rmine the delivery operation of literally hundreds of lumber and building

(Continued l'r'orn Paga 23)

This 100+ member male singing group has been acclaimed "America's Show Chorus."A testimony to theirexcellence was an invitation from the Mormon Tabernacle Choir to appear in the Mormon Tabernacle, Salt Lake City, Ut. This was one of the few such invitations ever extended to a non-Mormon singing group. "This best in the world group will provide music ranging from turn of the material dealers across the nation. An astounding nine out of ten, or 9090 of those observed were losing money on delivered sales. Most of those who are skeptical of these figures become conv€rts to at least their own susceptibility when asked "Does your company pcriodically identify the profitability of its delivered sales?"

Typically, the answer is "No." This is unfortunate because in the sales mix between delivered and nondelivered sales there is about a l59o cost/margin differential.

First, the cost of delivered sales currently costs between 6io and 790 of their sales value. Second, receivables are primarily generated by delivered sales. Third, anywhere from 509r to lfl)90 of any company's shrink is generated by delivered sales. Clheft has historically found a major nest within the broad range of the delivery activity.) Finally, most nondelivered sales have a higfier retail price and mark up than the volume pricing and lowered margins offered the contractor customer who wants, expects and gets delivery.

When profits on delivered sales are measured, most dealers are surprised at how little profit and/or how much loss is involved in a major portion of their sales activity.

How do you stack up?

"Monogement Sun'eys the Black Hole of Delivery," divided into threeseporale dollar volume manuols. under 52 million, 52-5 million ond over 55 million, is available for 95 Jrom Builders Express Inc., 11550 Plano Rd., Dollas, Tx. 75243, Attenlion: Wolly Lynch century Americana to contemporary sounds...all your old favorites," said Weltzheimer, "a musical experience superior to anything we've had in the past."

"All this, along with outstanding speakers for the dealercxhibitor luncheon and the Sunday morning breakfast, and a larger number of exhibits at the convention site, should make this our best convention ever," said Weltzheimer.

Convention materids have been s€nt to all exhibitors for reserving exhibit space. Other materials for registration by dealers will be forwarded in the near future.