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The Basis of SUCCESS IN PARCEL IRAN SPORT

26th February 1937
Page 40
Page 41
Page 40, 26th February 1937 — The Basis of SUCCESS IN PARCEL IRAN SPORT
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Which of the following most accurately describes the problem?

The Second Article Dealing with a Reader's Problem About Parcels Carrying. The Fundamental Essentials of a Properly Organized Service are Considered

THIS is the second article of a short series on parcels carrying. In the first, the broad essentials for an efficient organization for a country-wide service were indicated. It would, at the present stage of the development of road transport, be unwise for any operator, such as the inquirer whose letter has originated this series, to attempt to organize, within his own establishment, the ideal scheme for country-wide parcels services, as set out in the previous article.

The first essential is that he should arrange for thu collection and delivery Of parcels within his own area and that area should, for reasons set out in the previous article, be limited to a radius of 15-20 miles. If he is to confine himself• to one sphere of activity, that must be the one. Going a. step farther, he may take some part in the trunk services. He may arrange to take quantities of parcels handed to him for delivery into areas outside his own, depositing them at clearing houses for distribution within other areas, It will• probably be preferable that, in _areas outside his own, he should come to some arrangement with operators in those areas by which they will distribute within their areas the parcels that he hands to their clearing houses and hand, to his drivers, parcels which they have collected within their areas for his district. I have, in the previous article, used the• word " theoretical " ! actually, the scheme there described is to a large extent, in being. Most of the bigger parcels collection and delivery concerns now operating work

along those lines. It is, therefore, correct to say that theory has proved itself in practice. I have outlined the fundamentals of a parcels collection and delivery organization. It remains now to apply these general principles to the particular problem which originated this series of articles.

The problem can be considered in separate parts. The first aspect is the one of widest appeal and most significance: that of the collection and delivery of parcels within the operator's own limited area. This is of most importance because it is of interest not only to the operator who is planning a country-wide service, such as that which is in the mind of my correspondent, but also to the smaller operator who does not propose to go beyond the bounds of his own township.

Provision for the work will naturally depend upon conditions. The present inquirer does, however, so far as his circumstances are concerned, exemplify the majority. He is in a moderately large provincial town

with semi-rural surroundings. The town also happens to be a seaport and some traffic of a special nature is likely to accrue on that account.

I suggest that four vehicles would be necessary, cornprising three 3-ton Luton vans and a 5-cwt. van. They

would be routed as follow ;—One 3-tonner to circulate in a central zone not more than five-miles across. The two others to divide between them the outer zone, working either north and south or east and west. In the case of this particular problem, the zone is geographically divided by a line running east and west and I suggest to the haulier concerned that he should operate two vehicles in two semi-zones north and south of that line. The fourth vehicle, the 5-cwt. van, is intended for use in carrying urgent parcels anywhere within the area.

It is likely that the van in the inner zone will cover 200-240 miles per week, the two in the outer zone 300-360 miles per week, and the little van about 300 miles per week. Those mileages provide for each vehicle to make two rounds of its area per day.

It is next necessar3r to consider what revenue must be obtained from the o.Pera.tion of these vehicles. Consideration of that subject brings us at once to a peculiar ' characteristic of this class of business, and one which is so apt to be overlooked. The establishment cokts of a parcels-carrying business are considerably in excess of the average; without exaggeration they are double.

There is, first of all, the necessity of a clearing house in each area where collected parcels can be sorted as a preliminary to delivery. The clearing house itself costs Money and involves the provision of staff to operate it. Many of the parcels are collected through agents and they have to be paid for their services. The insurance of goods in transit is an item of expense which can often be avoided in some classes of haulage, but is essential in connection with parcels carrying and, even

then, there is, as a rule, the condition that the operator must himself bear an " excess " of £2 10s. or thereabouts. There is always liability to loss of and damage to parcels, for -Which, in the majority of cases, the haulier is held responsible. Whenever the claim is less than £2 10s., the haulier has to foot the bill.

In view of the foregoing, it is necessary to modify the figures which appear irt The Commercial Motor Tables of Operating Costs in order to meet these special conditions. Parcels carrying is not a branch of haulage which gives rise to average figures and provision must be made accordingly. It can be met only by adding 33i per cent, to the charge per hour and not less than 20 per cent. to the charge per mile.

For the 3-tonner, therefore, the haulier must expect a revenue of 4s. per hour and 6d. per mile. For a week the tevenue in respect of the inner-zone vehicle must total £15 12s., and from the 3-tonners in the outer zone, £18 12s. each. The 5-cwt. van, which must bring a revenue of 2s. 3d. per hour, plus 2d. per mile, must, if it justifies its operation, collect £7 18s. per week. The minimum revenue from the four vehicles must thus be £60 14s. per week. On the basis of 3,000 parcels a week, the average return per parcel must be 4.8d.

Now comes the question of the rates to charge. Here I am going to depart from the schedule sent by the inquirer. I may come back to it again later, but at the moment the point I wish to make is that it is not advisable to attempt to graduate rates, as he asks, according to distances—at least, not in the local collection and delivery area. The only practical -difference in rates that

can be made, turning on this point of distance, is to have different rates for the inner and outer zones. There, again, there is no point in attempting that differentiation, except as regards the heavier parcels.

I will terminate this article with a suggested schedule, and, in the next instalment, will indicate the possibilities of earning adequate revenue at these rates. For parcels up to 3 lb., charge 3d. ; 5 lb., 4d. ; 7 lb., 5d. ; ' 10 lb., 6d.; 14 lb., 7d. 21 lb„ 8d.; 28 lb., 10d. ; 35 lb., is.; 42 lb., Is. 2d. ; 56 lb., is. .6d., and id. extra for each 14 lb. over 56 lb. up to and including a maximum of 1 cwt. S.T.R.

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