Management
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matters continued in cost per ton mile.
2. Assuming an average empty running figure of 25 per cent in agricultural haulage an improvement of 10 per cent in this figure—reducing it to 22+ per cent—would yield a 2+ per cent 'ncrease in loaded mileage. Allowing for _tie slightly higher cost of loaded mileage there would be a net productivity gain of just over 2 per cent.
3. A 10 per cent increase in the average loads carried by a vehicle would entail virtually no additional costs but would give a net productivity gain of 10 per cent..
4. In a typical fleet, drivers are actually driving for around 40 per cent of their working time on average, the balance of time being spent loading, off-loading or just waiting. If waiting time could be reduced by 10 per cent, allowing running time to total 46 per cent, productivity increase becomes 15 per cent.
Mr. Dailey discussed a number of the implications arising from these points. With greater efficiency of operation the margin available for rewarding labour was much higher. A reduction in working hours to carry out the same mileage could amount to between 13 and 17 per cent and this was equivalent in broad terms to a reduction of about 6 per cent in overall costs, with additional vehicle availability. Clearly, if there is greater vehicle availability there is the chance of more profitable operations or, alternatively, a contraction of the fleet could lower standing charges.
Specirests Administrative overheads, in Mr. Dailey's view, will tend to rise as companies realize that the employment of specialists is a condition of survival. He was not very optimistic that the percentage of empty running could be reduced unless additional depots away from base could be afforded.
But there were spectacular opportunities for improved productivity if customers would co-operate. Many customers would consider a 16-ton load for a 20-thriller to be quite satisfactory, but what production engineer would be satisfied with an expensive machine restricted to 75 per cent output? As Mr. Dailey stressed, no farmer would ignore 25 per cent of his land.
Customer education, therefore, was necessary. "We must prove to them by making realistic charges for part loads that it is more economical to deal in full loads even if it means storing for a short petiod. Alternatively, liaison must take place between consignors and consignees to make up full loads for a district."
To improve the proportion of running time to the total hours of drivers also involved customers. Mr. Dailey thought that co-operation and good communications between hauliers, merchants, and customers would provide scope for dramatic improvements in the next few years.
In -fostering co-operation between road hauliers and their customers good working
relationships between the respective trade associations are an important factor. There will be many hauliers who are not members of the RHA and many traders who belong to no trade association, but the general custom in particular trades does tend to be set by active members of trade associations.
The report of the transport conference addressed by Mr. Dailey, issued' by the Home-Grown Cereals Authority, does suggest that the "get-together" was well worth while. Apart from eight members of the Authority and five RHA members, the Brewers Society, the Compound Animal Feedingstuffs ManufacturersAssociation, the Maltsters Association, the National Association of British and Irish Millers, the National Association of Corn and Agricultural Merchants, the National Farmers Union, and the Scotch Whisky Association were represented. For good measure, the Ministries of Agriculture, Fisheries and Food, and Transport, sent observers.
The formal report issued by the Cereals Authority makes some very pertinent points, underlining the importance of regular specialist conferences between road hauliers and their customers. For example, it stressed that the competitive position of domestic cereals vis-6-vis imported cereals was vitally affected by transport costs; the difference between the buying and selling price for grain—where the selling price is fixed by the price of imported grain at ports—can be vitally affected by unnecessary transport costs, often depressing the price paid to farmers.
Merchants, as well ag hauliers, were urged to make a habit of phoning farmers to advise when vehicles were likely to arrive. Despite many exhortations in the past it _seems this practice is the exception rather than the rule. (1 was surprised to learn that in some areas where farms are geared to off-peak electricity, it can cost as much as £35 to load a 15-tormer during peak electricity hours.) Better premises In all sectors of transport the better layout of customers' premises to facilitate vehicle turn-round is being recognized; it was welcome, therefore, to see the stress given to the vehicle "as an extension of the farm or of the end users' installation (e.g. mill), when planning changes and new developments in these enterprises".
I was surprised to learn that possibly 50 per cent of grain is moved in the owners' own vehicles—in some areas 4-tonners are used, somewhat uneconomically.
Other constructive points were made in the discussion. It was suggested that a standard pattern of information could be provided on all farms which a merchant could pass on to the haulier. The Ministry of Agriculture representative promised to investigate whether the farm improvements grant scheme took into account the effect on transport facilities. There was a call for similar conferences between road hauliers and dock authorities, and a plea that liaison at local level was much to be preferred to national level conferences.
The Ministry officials present heard much about the dearth of suitable weighbridges and there was general support from lay members present for a general 10 per cent tolerance on the restrictions under the plating and testing regulations. The inadequacy of drivers' hostels in the light of the reduced drivers' hours was also touched on—though the conference report offers no guidance on whose pigeon it is to provide hostels.
Perhaps enough has been said to illustrate the point that an active proponent of change, not only in his own company but in the industry that he serves, can accomplish a great deal in a relatively short span of years. Many of the changes that Mr. Dailey, and others, advocate on an industry-wide basis will only come about by sustained pressure and education. Road hauliers who serve agriculture—still our greatest industry—are certainly nearer the day of intelligent customer co-operation as a result of Mr. Dailey's efforts. What could a dozen Daileys accomplish?