Evening star., 1948-09-12
Tries
ToLowerCost
Sc eeks More Efficient
and Cheaper Way to
Distribute Goods
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NEW YCHh.-Wltn Lllc high CoSt
of living squeezing every ones
budget, business and industry are
studying ways to trim distribution
costs. They see this as one means
of lowering the prices consumers
have to pay for goods or to hold
them at current levels in the face
of rising costs.
Retailers are going over their
stores to see where they can cut ex-
penses. They are trying to get more
out Of each dollar they spend.
Manufacturers are looking for
more efficient and economical ways
to move goods from the production
line to retail stores.
Businessmen from every sector OF
the economy will meet next month
to discuss the problem OF "distrinu-
ton In . changing world" at the
Goth annual Boston Conference on
Distribution.
Problem of Food Producers
The same theme Is o matter OF
concern to each business and indus
try faced with the problem of get
ting goods to the public.
Earl r. French, national Market
ing director of the Atlantic Com
mission Co., sums up the problem
this way:
"The overall job Of distribution Is
to see that goods are where con-
sumers want them, when they want
them, in the most convenient form
and at the least possible expense"
The problem varies with different
industries.
Mr.. French said food producers
have o special problem because they
have to move more than 500 sep
arate foods. Many OF them are
perishable, and distribution has to
be on q day-to-day basis on .
Nationwide, scale.
The petroleum industry has DIM
culties, too, said o. F. Minor, assist
ant to the vice president Of market-
ing for Shell Oil Co. Petroleum
products are inflammable, "misbe-
have" at high or low temperatures,
and are subject to spilMge, he said.
Experts Try to Work 1t Out
But In every field experts are
working on the most efiicient and
most economical means Of getting
their particular products to the
consumer.
"The absolute zenith Of perfec-
ton In food transportation economy
and quality control" Mr.. French
said, results from direct farmer
to-store delivery. This Is q goal
toward which we are continually
pressing on all fronts"
To that end, he said, the A. d p.
has field buying offices in more
than 100 key producing areas. They
are linked to headquarters BY .
9 ,300-mile teletype system. That
way the company has the last
word on both supplies and consumer
demand.
A. & p. has packing stations In
various producing areas. too. 1t
helps farmers tailor their crops to
meet specific demands, and helps
them broaden their markets through
grower r-distributor teamwork. The
firm is conducting marketing expert
ments In connection with 5tats
universities. :
zone of the most encouraging
straws In the wind Is the attitude
Of farm youths toward their future
as farmer businessmen" Mr.. French
said. Most significant is their
learning early in life that market
ing Is irseparable from production"
Cuts Distribution Costs
Mr.. French added that the war
taught the food industry how to
conserve space and save time In
loading and unloading as means Of
cutting transportation costs-"our
second highest cost Of doing bust
ness" 4
In oil, Mr.. Minor said, Shell has
cut its distribution costs By elm
mating some small bulk plants and
by increasing the capacity Of Ito
trucks. To accomplish the latter,
the company's statesmen had to con-
vince service stations 10 accept
larger deliveries.
That program, he said, greatly
decreased the number Of trucks
needed. II eliminated many costly
emergency deliveries.
distributed By the Assoeistsd pfsssJ