The Advantages of Air Cargo Distribution in Perspective

One of the most difficult dilemmas facing industry today is the increasing cost of distribution. This is true for both incoming and outgoing supplies. The major trends in the last decade have been: the increase in industrial and consumer purchasing power; rapidly developing technology which has given rise to economies of large‐scale production; and there has been an increasing significance placed upon manufacturing productivity improvements. These trends have resulted in lower production costs; the need for geographically wider markets; and the acquisition of those management skills that are necessary to support such developments. In the last few years certain management emphasis has been placed upon minimising the rapid upward trend in administration and distribution costs. These have often more than offset any cost reduction achieved in production, with the result of a marginal price increase to the final customer. Those fields in which most advances have been made are automatic data processing and machine accounting. But the highest cost increases have often occurred within the physical distribution system. Since international marketing has developed to satisfy the extensive industrial and consumer needs, it is imperative that management realise the impact of distribution costs upon both inputs to the manufacturing process and the final product or services which they offer. The need has, therefore, arisen for senior management to tackle these problems, and air cargo distribution has recently begun to be considered, and will be increasingly important in the future.