Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-25
TRUCK EFFICIENCY
! is KEY TO PROFITS
Transportation as Aid in
Business Expansion Is
Revealed in Survey.

2 PONTIAC. Mich, January 24.-Efh-
cheney in truck management, operation
and control often holds the key to
ADEQUATE business profits in many lines.
Not only is it one of the major factors
that help determine profits, but 1t also
has an important bearing upon business
expansion; trucks can be, and frequently
are, intelligently used to help add new
volume that can be handled probably.
These facts have been sharply en-
phasized in the Nationwide, fact-fno-
ing and impartial surveys by the General
Motors Truck Co. of truck operation IN
the major industries, according to Paul
:. w. Seller, president.
Bakery Costs Cited.
For example, in the wholesale
bakery industry. almost is cents out OF
every ST that the baker receives from
the consumer Mr.. Seller states, goes
toward the combined activities of sales
and deliveries to his retail outlets. De-
livery expense, in the case of distr1bu-
ton of oils and gasoline, is usually 10
per cent to 80 per cent of the distribu-
tors total cost of doing business. In
coal retailing, delivery expense accounts
for 40 per cent to so per cent OF the
dealers gross expenditure, overshadoW-
ing Office expense. taxes, rent and de-
probation on property, selling expenses,
and every other item of cost with the
possible exception Of labor.
Even in the retail Of groceries, where
delivery expense averages only about
per cent of the retailers gross margin.
this per cent is larger than his
average net profit of 2 per cent OF his
gross margin. Similarly the delivery ex-
pense of department and dry goods
stores frequently is larger than their
net profit In general wholesaling, de-
livery expense constitutes about 8 to 10
cents out of every dollar the wholesaler
expends in operation of his business.
Cost of Deliveries Important.
"Such examples plainly indicate that
modern business has a great deal at
stake in the efficiency of It's distribution
and delivery systems.
Equally plain is the truck makers
responsibility Our own recognition OF
that responsibility led us to the national
truck studies which we have been and
are conducting.
Our aim throughout has been to
make these surveys practical, to assemble
practical information and to make 1t
available to truck operators in the form
of practical ways and means of reducing
their distributive and delivery costs and
increasing profits, regardless OF the
the findings of the surveys in each in
dustry have been made available to all
truck users in the particular industry
The reports are impartial records OF the
facts and hold no brief for any make
Of trucks.
Two major benefits are manifest
from these national surveys. They have
added immeasurably to our own fund
of information; they help guide the de-
sign and construction of our trucks and
the performance that is built into them
so that they earn minimum profits for
their owners.
Truck Suitability.
1--WE have always stressed the i'm
portance of suitability of truck to
its work With a complete line such
as ours offering a wide selection Of mod
els. and with a thorough knowledge OF
the basic problems and practices of each
industry, our field organization is well
equipped to study each truck owners
specific problems and prescribe exactly
the right truck for the work..
"A second ma joF' benefit is that these
field studies provide standards by which
the individual truck user in each voca-
ton can measure the efficiency of his
entire delivery or distributive system
The measuring stick provided for the
individual user consists of represent
alive cross-section Of the records oil
scores of others In the same line of bust
ness who are operating trucks profit
ably.
This measuring stick is applied moi
only to operating expenses but to the
performance of each truck -and-drivel
unit, the maintenance methods, and the
effectiveness with which truck operation
Is geared in with other divisions Of the
business, notably sales effort.
Equipment Value Measured.
'The reports also give each truck
operator an accurate yardstick fol-
measuring the value of new equipment
which he may be considering-in add.
ton to giving sound workable bash
for increasing productivensss and profitt
from his present trucks, regardless Of
their make.
We consider it one Of the principles
Of this business to contribute in the
fullest measure TO more profitable use o!
trucks by lowering the cost Of all de-
livery 1t is the only sound insurance
Of the growth and development Of oul
own business"