The Spatial Organization of Physical Distribution by Alan Campbell McKinnon Thesis Submitted for ...

430 Pages·2009·24.9 MB·English

The Spatial Organization Physical Distribution
of
in
the Food Industry
by
Alan Campbell McKinnon
Thesis Submitted for the
Degree of Doctor of Philosophy
College London.
University
at
1984
February,
N
Abstract
Efforts to improve freight traffic
methods of
forecasting, to lorry in
regulate movements sensitive
to deliveries to have
environments and rationalise shops
been inhibited by limited knowledge the
of way products are
distributed. This thesis the
examines shortcomings of
freight flow
then
previous methods of analysis, proposes an
takes the
alternative approach which much more account of
frameworks distribution
of marketing and physical within
freight transport is This is then
which organised. approach
in investigation the factors that influence
adopted an of
the food from factories to This
routeing of products shops.
investigation is based data in
on collected surveys of
manufacturers, multiple retailers, wholesalers and
distribution drawn from
contractors, and various published
sources.
Consideration is first to the food
given allocation of
between different
manufacturers' output marketing channels.
This determines the handling
number and nature of agencies
this Of these the
output. agencies, manufacturer and
have logistical
multiple retailer generally a choice of
i. they transport directly
channel, e. can either goods or
intermediate
them through
channel an stockholding/
transhipment The the factors
point. research examines
influencing
the logistical the
choice of channel and nature
the link between by food
of channels controlled
The these
manufacturers and retailers. spatial structure of
logistical is in
terms
channels also explored, particularly
locations intervening between
the
of number and of nodes
factory Later the thesis investigate
and shop. sections of
the flows through this framework distributive
routeing of of
A distinction is between the "strategic"
nodes. made
bulk between factories depots,
routeing of movements and and
the localised "tactical" deliveries to
more routeing of
shops.
At to
each stage, attempts are made explain variations
in firms' d istr ibut ion
the
spatial organization of
between
to
operations and establish general relationships
distribution
Data the
variables. on present state and
development the food distribution
recent of system are used
to help to trends in freight
explain general statistics.
The thesis the
concludes with an assessment of advantages
limitations this the
and of approach and consideration of
implications of the research findings for the way in which
freight is forecast
traffic
and regulated.
2
Contents
page
Chapter 1: Introduction 13
Chapter 2: Previous Studies Freight Distribution 20
of
(i) Demand for Information the
about
Pattern Freight Flow:
of
Forecasting
a)
b) Environmental Assessment
Rationalizing Delivery Operations
c)
(ii) Limitations Conventional Methods
of of
Freight Flow Analysis
Chapter 3: An Alternative Approach to the Study 39
of
Freight Distribution
(i) Previous Geographical Work
on
Distribution
(ii) Study Distribution Systems
of
(iii) Choice Food Products
of
(iv) Survey
(v) Chapter Outline
Chapter 4: Marketing Channels in the Grocery Trade 59
(i) The Choice Marketing Channel
of
(ii) Historical Development Marketing
of
Channels in the Grocery Trade
(iii) Supply Groceries to Independent Stores
of
(iv) Summary
Chapter 5: Logistical Channels 83
1. Food Manufacturers:
(i) Historical Development Food
of
Manufacturers' Distribution Systems
(ii) Classification Manufacturers'
of
Logistical Channels
(iii)
Factors Affecting the Choice Logistical
of
Channel
(iv) Summary
3
Chapter 5: 2. Multiple Retailers:
(cont) (i) Choice Logistical Channels
of
(ii)
Reasons Centralized Storage
of and
Delivery
(iii) Variations in the Proportion
of
Centralized Deliveries:
Within Chains
a)
b)
Between Chains
3. Wholesalers
Chapter 6: Links between Manufacturers' Multiple 140
and
Retailers' Distribution Systems
(i) Types Linkage
of
(ii) Analysis the Pattern Linkage
of of
(iii)
Factors Affecting the Mode Delivery:
of
Pricing
a)
b)
Minimum Drop Size
Service Level
c)
(iv) Use Distribution Contractors
of
(v) Summary
.
Chapter 7: The Number Intervening Nodes in the 180
of
Logistical Channels
(i) Manufacturers' Distribution Depots:
Factors Affecting Depot Numbers
(ii) Multiple Retailers' Central Warehouses:
Factors Affecting Warehouse Numbers
a)
b) Variations in Warehouse Capacity
Warehouse Size
c)
(iii)
Grocery Wholesale Warehouses:
Voluntary Group Warehouses
a)
b) Cash Carry Warehouses
and
(iv) Summary
Chapter 8: The Location Stockholding Points 232
of
(i) Manufacturers' Distribution Depots:
a) Analysis of Aggregate Pattern
b)
Distribution of Production Facilities
c) Pattern of Recent Depot Closure
(ii) Multiple Retailers' Central Warehouses
(iii) Voluntary Group Wholesale
Warehouses
(iv) Implications for the Rationalization
of Grocery Movement
LI-
Chapter 8: (v) Methods Depot Location
of
(cont) Limitations Depot Location Methods
a) of
b)
Problem Simulating the Distribution
of
of Stockholding Depots
(vi)
Factors Affecting the Siting Depots
of
(vii) Optimising the Location Retailers'
of
Central Warehouses
(viii) Summary
Chapter 9: Bulk Distribution from Factories 280
(i) Logistical Options
(ii) Cross-shipment
(iii) Product Mixing Central Locations
at
(iv) Summary
Chapter 10: Local Delivery to Shops 292
(i) Areas Served by Stockholding Depots:
Manufacturers' Distribution Depots
a)
b) Retailers' Central Warehouses
Wholesale Warehouses
c)
d) Summary
(ii) Routeing Deliveries from Depots to Shops
of
Types Local Delivery
a) of
b) Changing Pattern Store Delivery
of
Planning Multiple Drop Journeys
c)
d) Implicat ions for the Compilation
and
Analysis Freight Statistics
of
Chapter 11: Recent Trends in the Movement 335
Food Products
of
(i) Weight Lifted
(ii)
Amount Freight Movement
of
(iii) Summary
Chapter 12: Conclusion 368
Glossary 379
Bibliography 382
Appendices: 1. List of Firms Co-operating 400
with
the Survey
2. Questionnaires and Introductory Letters 403
in
Used the Survey
3. The Co-operative System
Grocery 415
of
Distribution
4. The Calculation
of Handling Factors 428
5
List Tables
of
3.1 Market Shares Food Manufacturers in the Sample
of
3.2 Proportion "Own-Label" Sales in Various Grocery
of
Products
3.3 "Own Label" Sales Proportion Total
as a of
Turnover: Sample 8 Large Grocery Multiples
of
4.1
Gross Margins Variety Product Groups
of a of
4.2 Customer Reactions to Desired Product Being Out
of
Stock
4.3 Numbers of Retail Outlets Selling Different Types
Product
of
in
4.4 Variations the Proportions Selected Grocery
of
Products Channelled through Wholesalers (1938)
4.5 Distribution Groceries to Independent Stores
of
5.1 Reductions in the Numbers Outlets Served by
of a
Sample 8 Large Food Manufacturers
of
5.2 Logistical Channel Allocation Sample
of a of
Grocery Products
5.3 Proportion Grocery Stores Stocking Three
of
Best-Selling Brands Grocery Related
of and
Products
5.4 Numbers Grocery Warehouses Shops the
of and and
Proportions Trade Handled
of
5.5 Approximate Ratios Shops to Warehouses for
of
Different Types Retail/Wholesale organization
of
5.6 Concentration Selected Food Manufacturers'
of
Sales
5.7 Proportions Supplies from Central Warehouse:
of
Two Grocery Multiples Discount Stores
operating
6.1 Relative Importance Various Delivery
of
Arrangements
6.2 Extent to which Food Manufacturers Differ in the
Method of Delivery to Multiple Retailers
6.3
Bulk Delivery Rates: Canned Fruit Company
6.4 Size of Order, Nature of Delivery Distribution
and
Cost
6.5 Approximate Level of Discount Granted by Suppliers
to Retail
and Wholesale Customers
6
6.6 Minimum Drop Sizes by Product Type
6.7 Uses Distribution Contractors
of
7.1 Effect Depot Numbers Volume Freight
of on of
Movement
7.2 Reductions in Depot Numbers, 1945-78: Sample 20
of
Food Manufacturers
7.3 Ages Distribution Depots Operated by Sample
of a
14 Food Manufacturers 2 Distribution
of and
Contractors
7.4 Grocery Multiples: Depot Numbers, Shop Numbers
and
Turnover
7.5 Size Distribution Delivery Vehicles Operated by
of
Sample Food Manufacturers Retailers
a of and
7.6 Major Voluntary Groups: Numbers Wholesalers,
of
Depots Affiliated Retailers, 1964-79
and
7.7 Average Floorspace Turnover Wholesalers'
and of
in
Retailers' Warehouses the Grocery Trade
and
8.1 List of 25 Settlements with Three or More Food
Manufacturers' Stockholding Points
8.2 Generalized Sequence Depot Locations
of
8.3 Idealised Successions Depot Locations
of
8.4 Reduction in Numbers Stockholding Points
of
Employed by Sample 23 Food Manufacturers
a of
8.5 Variations in Depot Throughput per Head between
Depot Service Areas
10.1 Populations Residing in Depot Service Areas in (i)
North East England (ii) North West England, and
(iii) South West England
10.2 Depot Numbers Distances to Branch Stores:
and
Comparison of Multiple Retailer and Sample of Food
Manufacturers
10.3 Effects Varying Vehicle Weight Supermarket
of on a
Chain's Delivery Operation
10.4 Average Length Haul Number Drops
of and of per
Delivery
11.1 Total Weight Food Drink Consumed in
of and
Britain, 1968-80
11.2 Concentration Indices for the Manufacture
Food,
of
Drink Tobacco Products
and
7
11.3 Relative Size Terminal Costs for Six Classes
of of
Food Product
11.4 Effect Transport Costs 25% Increase in
on of a
Average Length Haul
of
11.5 Estimated Changes in Critical Variables, 1968-80
A3.1 Development Co-operative Wholesale Society
of
Regional Grocery Distribution Centres, 1976-79
8
List Figures.
of
1.1 Analytical Framework
2.1 Relationship between Volume Freight Movement
of
GDP
and
2.2 Route Followed by Food Product in its
a
Distribution from Factory to Shop
2.3 Supply Links from Retail Central Warehouses to
Supermarkets in Five Towns in South Hertfordshire
4.1 Structure Marketing System
of a
4.2 Changing Shares Grocery Sales Held by
of
Independents, Multiples the Co-operative
and
Societies, 1900-1979
in
4.3 Reduction the Number Grocery Stores,
of
1951-1979
4.4 Changes in the Relative Importance Marketing
of
in
Channels the Grocery Trade, 1938-1978
5.1 Stages in the Historical Development Food
of
Manufacturers' Distribution Systems
5.2 Variations in Distribution Costs Sales during
and
the Development Depot System: the Case
of a of
Cadbury Bros.
5.3 Relationship between Drop Size Delivery Cost
and
5.4 Relationship between Order Size Profitability
and
5.5 Variations in the Proportion Food
of
Manufacturers' Output Distributed Direct from the
Factory
5.6 Generalized Relationship between Product Density
Distribution Costs
and
5.7 Generalized Relationship between Value Density
and
Distribution Costs
5.8 Variation in the Numbers of Outlets Served by Food
Manufacturers' Distribution Systems
5.9 Variations in the Proportion Turnover
of
Channelled through Central Warehouse by Grocery
Multiples
5.10 Proportion Turnover Channelled
of through Central
Warehouse Number Branch Stores (1978-9)
and of
5.11 Proportion
of Turnover Channelled through Central
Warehouse
Total Turnover (1978-9)
and
9
5.12 Distances from Central Warehouses to Branch
Stores: Selected Grocery Multiples
5.13 Relationship between Own Label Sales
and
Dependence Central Warehouse
on
6.1
Manufacturer-Multiple Retailer Logistical Channels
6.2
Manufacturer-Retailer Linkages in the Grocery
Trade
6.3 Relationship between Transport Cost Mile
per and
"Other
Journey Length: Food, Drink Tobacco"
and
products
6.4 Relationship between Drop Density Unit
and
Delivery Cost
6.5 Relationship between Drop Density Unit
and
Delivery Cost Wide Size Range
over
6.6 Minimum Drop Sizes Sample 24 Food
of a of
Manufacturers
6.7 Physical Distribution Channels
7.1 Numbers of Stockholding Points in the Distribution
Systems of a Sample of 29 Food Manufacturers
7.2 Relationship between Distribution Costs Depot
and
Numbers
7.3 Potential Reduction in Inventory Resulting from
ization
Central
7.4 Relationship between Throughput Level Unit
and
Warehouse Cost
7.5 Components Multiple-Drop Delivery Route
of a
7.6 Relationship between Local Delivery Costs
and
Depot Numbers
7.7 Distribution to 24 Randomly-Located Customers
via
One or Two Depots
7.8 Relationship between Trunking Costs Depot
and
Numbers
7.9 Relationship between Average Service Level
and
Number Stockholding Points
of
7.10 Generalized Relationship between Distribution
Costs, Service Level Number Stockholding
and of
Points
7.11
Relationship between Numbers Stockholding
of
and
Transhipment Points
7.12
Relationship between
the Proportion output
of