An approach to cost effective distribution Available to Purchase

In the next few years, the cost of the distribution function is likely to rise from its 1979 figure of 16% of sales value to something like 17.5% in 1984. This sounds like a relatively small increase but in fact it represents a gigantic sum; to give some indication, the writer of this article suggests that the achievement of a 10% saving in our national handling bill (about £2,500m) would equal the discovery and development of another Brent oil field. In this special feature, Tony Lee looks at how the technique of distribution planning can be applied, and especially at the important part played by PDM in controlling stock and relating it to purchasing policy, manufacturing, and to sales and service.