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Solving the Problems of the Carrier

6th July 1945, Page 32
6th July 1945
Page 32
Page 35
Page 32, 6th July 1945 — Solving the Problems of the Carrier
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Which of the following most accurately describes the problem?

Becoming An Express Carrier

and What It Entails Some of the Things a Haulier Must Know and Some of the Things He Must Do if He is to Be Successful in Operating a Pareels-carrying Business SINCE writing the previous article in this feature. I have learned that the Conditions ()Marriage which I ascribed to the National Conference of Express Carriers—now . merged into the R.H.A.—are under revision,. That does not, however, affect the advice I „gave -in that article. Whatever revision be made it is certffin that the conditions I enumerated will still remain; they are the fundamental ones.

I have already, in this series, reached. the important subject of rates and have recommended , the prospective " smalls " carrier to ascertain what is being charged in the locality for equivalent services. I do not give that advice with the idea that the haulier should cut such rates as a means for obtaining business. I suggest it as being the first step in determining whether he will be able to make his business pay.

It may, indeed, be worth while to digress here and utter a special word of warning against rate-cutting in this branch of haulage. As I pointed out last week, the operator will find it necessary, in the course of his business, to co-open te with, and invite the co-operation of, others in the same line, so that the interchange of parcels can be effected for delivery on one anOther's routes_ That co-operation is not likely to be forthcoming, especially for a newcomer, if he cuts established rates.

How to A,ssess the Prospects of Making a Profit •

I pointed out that, having acquired this knowledge of current rates, the operator 'Mist next ascertain his" costs. Then, with‘an estimate of the probable volume of traffic, the prospects of profit-making can be assessed.

• If the operator be considering commencing a new enterprise, it is imperative for him to take that course. He must endeavour, as a preliminary, to arrive at figures for his potential turnover and thus determine if the project be worth pursuing. . .

If he be already in business, he should check his costs against revenue and, by comparison, decide, first, whether he is making sufficient profit and then discover the reason, if not. When I use the word "costs " I mean total costs, includingprovision for such eventualities as major overhauls, replacement of tyres, full establishment costs and so on.

There must be no mistake about this assessment, otherwise the result of the comparison will not be accurate and is likely to show a margin of profit which is not really there, If he finds that, although .he is not actually working at a loss, the margin of profit is insufficient, and if he be operating at rates less than those which are current in the district, it is probable that the rates are wrong and that they need revising in an upward direction.

Alternatively, if his rates be correct, it must be that he is not carrying sufficient traffic and his business methods need revising. Has he got the right agents? Is his service satisfactory? Has he tapped all possible sources of traffic? Above all, he must make sure that he has taken steps to make himself well known; he must advertise, he must make personal contacts. He must check over his agents and select either additional or alternative ones. Advertising can be conducted in a variety of ways—in the local Press, by circularizing,by bills in the shop windows of agents and other people who will carry them, and by posters on his own vehicles—the last-named method is particularly effective.

As regards the policy of trying to attract Custom by ctitting rates, this is, of course, the Worst -thing he can do,

and, in this connection,. I would like to quote from a memorandum issued some years ago by one of the areas of the National Conference cif Express Carriers with reference to rates. " It was found that a large proportion of traffic was carried at exceptional ratesrmany of which had been introduced to meet keen competition. . Stabilization by the fixing of minizxbum rates was, therefore, considered • eseeritial to meet the statutory obligations governing the industry and give that ineasure„of economic service that trade and industry require." ..

If by stabilized rates is,. meant working to rates which operators in the district have found to be reasonably profitable, then I would endorse that recommendation, adding after the. word economic " and efficient."

I cannot think that the opportunities for developing new businesses of this nature are many. The country is already well covered by a network of carrying concerns,-linked with one another either under financial, agreements or under agreements to carry one another's traffics. Many -of them,

too, operate in association with the railway companies, .

However, I have had requests for guidance in -this business of parcels carrying, and I can Only assume that those who ask have made some personal preliminary investigations and are reasonably satisfied that there -is scope for their enterprise.

There are, as I have already said, many characteristics which are peculiar to this branch of the haulage business. One is that although, to some extent, personal service counts, it does not go so far as it does in the majority of other departments of road haulage. The reason for this is the interdependence of the various operators. on the, good will and services of their fellows.

Co-operation the Keynote of

Success in Parcels Carrying

The success of a parcels-carrying business depends upon the • willingness -a competitors to co-operate in offering facilities for the conveyance of the traffics of the newcomer. In parcels carrying, it is the extent of the facilities which the operator offers to the customer and the reliability of the service which counts more than personal contacts.

The newcomer should appreciate from the star? that he cannot confine himself to the acceptance of parcels for delivery within his own strictly limited sphere of operation. As he cannot run here, there, and everywhere carrying parcels, he must inevitably invoke the aid of other operators who will accept from him parcels for delivery over their routes, 'giving him -in exchange parcels for delivery along his routes, " -This co-operation is mutual and is usually carried out on either a basis of payment pro rata, or according to agreed discounts.

There is an exception in regard to this asset of personal service. ft is in respect of what I always regard as the humblest of the nrembers of what I call the " smalls " industry, i.e., the country carrier—the owner-driver who caters for the agricultural community visiting various towns on market days. It has to be admitted, however, that the prospects of making big profits from businesses of this nature are remote. The conditions, 'nevertheless, do meet the requirements of the sort of man who if he canmake a living and find congenial company and a certain pleasure in the work he -does, is .quite content. Apart from that, the first thing which is essential in a parcels-carrying business is regularity of service. As a rule, collectionand delivery in the same day is usual or, if. not that; collection in the evening and delivery next m.orning.

The frequency of the service must be rigidly maintained, so that those using it may have complete reliance upon it, just as they have upon a bus or train service. Obviously, one essential factor to that end is reliability of the vehicle itself, and, of course, much of that depends upon the 'way in which it is maintained and looked after. Maintenance muSt not be casual, but most be regular and thorough. This is important, as it has a bearing on cost. Indeed, most operatorsnew to this business are going to be surprised at the expenditure_ involved. " Smalls " traffic is costly to pfovide. Apart from the point I have already made about maintenance, there is the cost of " terminals:"

The extent of the provision necessary for these terminals depends upon the scope of the enterprise. In all but the smallest of businesses, it will be necessary to arrange for the sorting and re-despatching of pacels. This may involve the establishment of several depos and, in addition, eon-. siderable expenditure on clerical labour, This last-named item increases out Of all proportion as co-operation with other carrying companies becomes necessary and extends.

The agreements with these other companies, in respect of charges made for carrying the operator's parcels and what they agree to pay him when they carry his, are also . governing factors when considering the opportunities for ?rofit or loss which the prospective business holds. It is necessary also to bear in "mind that if, as is almost inevitable; the services of agents are .necessary, there will be additional expense, usually in the form of percentage commissions.

What Is The Best Size and Type of Vehicle tO Employ ?

The first thing that the operator will wish to. know is what 'is the most useful size of vehicle to employ. For the small concern, owning one or two vehicles and no more, the toad capacity should be not less than 2 tons and, preferably, 3 tons. For purely urban service, the. smaller size of vehicle will probably be sufficient, because_ the journeys are short and more frequent, so that the bulk ()Utile loads carried is small. For longer routes, however, say front town to surrounding villages or nearby towns, a 3-tonner will be necessary.

It is not so much weight-carrying capacity that is needed hut the bulk. It is: usually found that nothing less than a 2-ton or 3-ton chassis will he sufficiently long to.aCcommodate a body of the carrying capacity Which is necessary for this class of business.

The body itself should, preferably, be of the Luton type, in which the body space extends over the top of the driver's cab. It should be closed at the rear by sheets and not by doors. I appreciate the fact that the use of sheets brings trouble in its train, because pilfering is made easy, and this, in many. cases, makes it advisable to employ a van "boy, which is an additional expense; On the •other hand, if the body be fitted with doors and a tailboard a good deal_ of time is lost at each call in opening and closing the doors. Moreover, even with doors and tailboard, the "risk of pilfering is mot greatly diminished, because the driver may, and often does, forget to lock the doors.

Considering.this aspect of the Matter' recalls that condition of the Government Road Haulage Scheme which was so hotly disputed; namely, that of limitation of the liability of the haulier to delivering the goods at the tailboard of the lorry. Anyone with any experience of a parcels service will appreciate that he will never get anywhere if he stipulates such a condition with people who have parcels for collection and delivery. It is just out Of the question. "

In some modern types of van used for collection and delivery, roller-shutter types of door are employed. These are more convenient than ordinary doors, more substantial than • sheets, and have the advantage that they do make pilferage less easy.

Large parcels-carrying concerns employ a variety of sizes of vehicle, from those of 10 cwt. capacity, or even as little as 7 cwt., up to 12 tons or 15 .tons. The small vans are used for purely short-distance collection and delivery work, especially on the routes where traffic is light. The disadvantage of these small vans is their high operating cost in '1-elation. to their carrying and earning capacities.

-The maximum-load vehicles, 8, 10, 12 and 15 tanners, are ' used on trunk routes. Sometimes they go from point to point and are unloaded into depots where the-parcels are sorted and re-despatched in sinaller vehicles.

For town services, and over routes up to approximately 50 miles radius, 2-ton or 3-ton vans of the type already recommended for small concerns are most popular.

• The one-vehicle operator will hardly, he likely to consider the provision of a sorting depot. (I use that term in preference to "-clearing house," which is now interpreted in a more specific connection.) The small operator sorts out his parcels on the door Of his vehicles. That may not appear to be a particularly efficient way of dealing with the problem, but it is undoubtedly, in the circumstances, quite practical.

The usual layout of a sorting depot is a plain building with an open front and platform around the interior of the other three sides. That arrangement is far from being the best and certainly has some disadvantages. Space is wasted by those vehicles which are backed up to the rear platform and are alongside the side platforms. They occupy and inirimbilize some 25 it. or 30 ft. of those lde

platforms. .

An island platform is best, if it can be arranged, with space enough for Vehicles to travel-L--one way only—all around it, and room for -vehicles to back up to the platform anywhere along its four edges. One portion of the platform should 'be set apart for receiving and sorting the goods and the other, the larger part, for despatch. The despatch • platform. should he marked off and labelled, according 'to the destination of the parcels... Vehicles for routes serving particular destinations will then be able to back up to that part of the platform where parcels for those destinations are laid oat,

Statistics That Should Be Kept by the Parcels Carrier

On the question of records and statistics which the parcels carrier should 'ke.ep,' I am going once more to quote my friend Mr. C. S. Dunbar, who, besides possessing considerable knowledge of the • subject of parcels ...carrying. Is generous in imparting it to those who are willing to receive it. He recommends that, for full control., the following

records need to bekept:—. • 1. Daily -records of the weights and number of consignments delivered, and collected by each van,together with the mileage of the vehicle. .

2. Daily records'of the weights brought in and sent out to each depot by carriers and Fong-distance vans.

3. A periodical analysis of the traffic into weight categories.

4. A periodical comparison of the number of packages handled, compared with the number of consignments. S. An analysis of the cost of dock and van operation.

6. A statement of net-claims cost in relation to both turnover and number of consignments handled.

7. A statement showing the number of service failures ,(delays, losses, etc.) in relation to consignments handled.

All these need to be compared with the previous figures under the same heads and with each other.Some carriers who analyse statistic's prefer dealing entirely with packages instead of consignments; • •

For documents,. 'Mr. Dunbar recommends the use of weighbills, in preference to Issuing individual notes for every consignment.

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People: C. S. Dunbar

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