Costs survey flops
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THERE has been a disappointingly low response to the 1983 distribution costs survey published last week by the Centre for Physical Distribution Management, reports DAVID WILCOX.
Since some interim results were announced last May (CM May 29, 1982) only another nine companies have returned the questonnaire, bringing the final total to just 66. Consequently, the final results are little changed from those previously given. Distribution costs average out at 12.33 per ant of total sales revenue but this average must be open to doubt since the range of actual reported figures was vast — from less than one per cent to more than 36 per cent. The survey report believes that 12.33 per cent is rather low and reflects a too narrow definition of distribution.
Analysing the constituents of distribution, transport emerges as the most expensive item and accounts for 30 per cent of distribution costs. It is followed by storage (27 per cent), administration and packaging (24 per cent) and inventory (19 per cent).
These results have been compared with a 1981 USA survey and the greatest divergence is in warehousing costs — those in the USA were 50 per cent lower than the UK's. Contributory factors mentioned by the report include greater storage heights and lower rent and rates in America.
The most significant points revealed by the survey are the lack of accurate in-company distribution information and the inability to identify real distribution costs.
Copies of the 48-page survey report are available from the CPDM, Management House, Cottingham Road, Corby, Northamptonshire. The price is £5 to CPDM/BIM/IPDM members or £7.50 to non-members, including postage and packing.