View Single Post
  #7  
Old 3rd January 2009, 22:35
Energumen Energumen is offline  
Guest
 
Join Date: Oct 2008
Posts: 267
Hi Ya, interesting report that. I do think however there is some ambiguity in the type of logistics being reported on.

It starts out to describe 'own account' operators as those who carry goods which they themselves have manufactured, (or processed for added value, by implication). But then goes on to quote Tesco as an example.

The demise or decline of own account to which I referred, was the secondary distribution, from their national distribution depot networks, by manufacturers and processors, which was lost to, companies like Tesco, who took bulk deliveries From Manufacturers/ Processors, into, their own or third party distribution depots, controlled by them. Then carried out the 'secondary 'composite' deliveries to the retail outlets themselves, (or by their contractors, like Exel).

On costing, "Walls for one" used to moan that 'Distribution was an 18% on cost to their business, an 18% drain in fact. So they and Birds Eye should be rolling in money, instead, the big boy retailers just keep slashing their margins, by squeezing the wholesale prices they will pay.

The 'independent hauliers', increasingly have to compete with the retail giants, for the 'primary distrbution' (factory to distribution centre), which the big boy retailers have progressively eaten into, by using their 'shop delivery' fleet, to collect from manufacturers/processors on a back load basis, reducing empty running and thereby costs. This had been one of the independents advantages, though it is now reduced by the retailers involvement.
Reply With Quote