How Wholesalers Can Cut Delivery Costs

Abstract

By use of time study and cost analysis, the delivery operations of a Baltimore wholesale grocer were analyzed to determine whether, and to what extent, the costs of these operations might be reduced. It had been previously determined that the efficiency of the firm's wholesaling operations was reasonably representative of other independent wholesalers doing about the same volume of business and serving the same general type of market area.

Numerous instances were found of errors in trip routing, inadequate use of delivery equipment, excessive overtime hours by drivers and helpers, and faulty methods of loading and unloading. Specific recommendations were made for reducing or entirely eliminating these causes of high delivery costs. These same kinds of recommendations are equally applicable to other wholesalers as a means of reducing their delivery costs.