#Immediacy on speech making

In some cases the nature of the business severely limits the choice ...

In some cases the nature of the business severely limits the choice of location a retailer stores his goods at least to some extent.

at his shop and the shop, or shops, must be placed where the customers can easily reach them. The owner of a chain of shops placed in a series of catchment areas spread over, say, a county, may in addition have need for a central warehouse to which wholesalers deliver and from which he supplies his shops. This approach is obviously more expensive than arranging for wholesalers to deliver direct to each shop but may be unavoidable if it is the only way in which he can ensure adequate supplies to meet demand varying from shop to shop and time to time. It all depends on the sales pattern and the reliability of suppliers.

The manufacturing business has a similar choice to make between centralized storage and dispersed storage.

It may be possible to store finished products at one warehouse on or near the factory site and to make all deliveries from this central point. Alternatively, the cost of transport to customers and the service level to be provided may make a number of local warehouses necessary.

Transport costs to a local warehouse are likely to be lower than those incurred in carrying goods separately to a number of customers in the same area, as more can be carried per kilometre covered: There will of course be the cost of local delivery from a local warehouse to the customers to take into account The pros and cons of centralized or dispersed storage are: • Centralized • Advantages: Easier supervision • Easier stock control; Lower warehousing costs; Less handling of goods • Disadvantages: Higher transport costs • Longer delivery times • Dispersed • Advantages: Faster delivery to customers • Probably lower transport costs • Disadvantages: More difficult to supervise and control • Higher warehousing costs; More handling and breakages There may be variations on this theme. For example, may be possible to find very cheap local warehouses perhaps service warehouses.

which counteract other costs.

The answer is to decide realistically again. the level of service needed ...

The answer is to decide realistically again. the level of service needed and to work through methodically the costs of the alternatives. The decisio... read more

What are my overhead costs? b. What percentage of my total expenditure ...

What are my overhead costs? b.

What percentage of my total expenditure goes on overheads? c. Are my overhead expenses growing disproportionately? d. Are all ... read more

On renewal of the lease they took only two of their previous ...

On renewal of the lease they took only two of their previous three small floors in the building and saved a substantial amount particularly because, as usual, the rent went up with th