Organizing a Parcels Service
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IN the various descriptions of road goods haulage, parcels carrying has certain features which should make it attractive to the far-seeing operator. A regular service in this connection, if efficiently operated, establishes goodwill -to an extent rarely possible in ordinary classes of
haulage. .
The operator is in touch with a clientele who may be relied upon to provide a steady flow of traffic throughout the year. Even if some of it be seasonal the fall in tonnage from one quarter will most likely be offset by a corresponding rise front another. Moreover, this class of business has the advantage that it comes from a comparatively large number of individuals and the defection of one or more of them is mit such a disaster as it is when the haulier obtains the bulk of his business from one big custother. „ Inquiries relating to parcels carrying nearly always embody a request for suggestions as to rates which the intending operator should charge. In dealing with a • request of this kind, I am never on such safe ground , load or series of loads. The parcels operator cannot approach the question of rates directly from the angle of cost of operation, plus cost of overheads and profit, because he never knows from one day to the next what tonnage he is going to carry.
The attitude I have always adopted—and it is, I am convinced, the only one—is that the intending parcels carrier must first satisfy himself that there is reasonable
prospect of his services being utilized. He must plan his route accordingly and fix his rates by a standard. In other words, the parcels carrier is in a position resembling that of a manufacturer who decides to produce an article in predetermined quantities at a fixed price.
The parcels carrier must establish a service at regular rates ; he will snake a profit if he be sufficiently capable as a salesman and if the service which he offers be good enough to hold custom.
A problem which I have before me, at the moment,
, has certain peculiar characteristics. It will, however, serve as an introduction to a discussion of the whole :Object of parcels carrying _The route is indicated by the accompanying sketch map, The operator resides at H.--The northern terminus is an important industrial centre. Contact has been4nade with a...dozen potential customers in the twin toWifis, -A and B; All have sfiotyrt their interest and it seems likely that, given a satisfactory service, business will result. The main route is shown in double line on the plan. It extends from A to M and covers 73 miles. Occasional extensions are likely to be necessary in the directions indicated by the single lines and the operator expects to return home to H each evening.
It appears likely that most of the traffic will he carried only one way from A. Little is offered in the contrary direction, although there may sometimes be part loads of empties. It seems that the outward journey from A may vary from 110 to 130miles, occasionally longer, but sometimes not so long, whilst there will be areturn journey. of 78 Miles from 1-1 to It is the operator's intention to 'offer .a daily -service Onfive' days' per week. In considering such' a-serViCe
it is of importance first of all to discover whether the distance can be covered and deliveries made without exceeding 11 hours' work per day. In what follows, the actual times are inserted only to simplify the study of the problem. The convenience of collection and delivery may be found to modify the actual times, although they cannot interfere to any extent with the total period involved. Another assumption made is that the vehicle may legally travel at 30 m.p.h.
Assume that the operator begins his day at 6 a.m., leaving the home garage at that time. He should find no difficulty in reaching his first place of call in A by 9 a.m. If he has to visit 10 or a dozen customers and pick up consignments from each, it is most unlikely that he will be away before 10.30 a.m., allowing an average of only 7A-9 minutes per customer. If he actually collects from each, he will be unlikely to be awa.y.in that time. Nevertheless, 1.4 hour should be sufficient.
Allowing for traffic congestion in making his way out from the starting point, it is likely that f hour will elapse before he begins to make his deliveries in C, which he will reach at 11.15 a.m. Making deliveries in C may take hour to 11.30 a.m., when his first 52-hour period will have elapsed and he must take -hour rest.
He will, therefore, leave C at noon and arrive at D at, say, 12.25 p.m. Deliveries in D may occupy 20 minutes, so that he will be leaving that town at 12.45 p.m. and may be assumed to arrive at E by 1.20 p.m.. E is rather an important township, with the possibility that the carrier will have a large number of deliveries, and he may not depart before 1.45 p.m. He should arrive at F by 2.15 p.m. and, after delivering, leave at 2.40 p.m. He will probably arrive at M at 3.10 p.m., leave, 3.30 p.m., arrive at N 4 p.m., leave 4.10 p.m., and return to H by 5 p.m., with i-hour to spare of the total of 11 hours driving time.
Alternatively, leaving M, he may proceed, say, to L, which he should reach by 4.20 p.m. and only by leaving at 4.30 p.m. can he be mire of getting home by 5.30 p.m., when the 11-hour period elapses.
There may be innumerable modifications to the foregoing programme. Times between towns may be more or less, according to weather conditions and traffic, and the time spent in each town may be much luager, due either to a greater number of deliveries, or inevitable delays in making some of them. On the other hand, it is possible that on some days he will have no deliveries in certain of the towns and will be able to finish his work more quickly.
The rates which he should charge for this work are those set out in the accompanying table. The mileage included in that table is considerably beyond that with which I am concerned in this particular case, because I propose later to deal with more extensive operations. .
The rates quoted are those which are used by several big parcels-carrying companies. They are also similar to a good many railway rates and, so far as the smaller categories are concerned, are similar to parcelspost charges. A full schedule would be more finely subdivided, increasing by 14-1b. steps up to 1 cwt. or even 2 cwt. In case of need, if any reader desires the intermediate figures, I can let him have them for any schedule of mileages. There is sufficient information in this table to enable me to make the points which I have in mind and to which I shall refer subsequently.
In my next instalment I shall show what the weekly operating cost of a suitable vehicle for this service would be, and explain how the prices given in the accompanying table have been calculated to ensure a fair profit, assuming an average supply of loads and taking into consideration their varying nature and its influence upon
the time available. S.T.R.