to bear the risk involved in having large quantities of canned tuna 

 available for quick delivery to retail stores and other outlets. I^e 

 wholesaler may buy large lots of a thousand or more cases and dispose 

 of them in small lots so that the retailer, for example, can handle 

 such a small lot of canned tuna as a few cases, a case, or half case, 

 along with the mainy other items he must have available for the needs 

 of his customers. The services of retailing take the largest segment 

 of the distribution payment from the consumer's dollar. Wholesaling 

 takes the next largest segment. In this study consideration was given 

 to reviewing these marketing practices to see if anything could be 

 done to improve the physical handling of canned tuna and thus reduce 

 wholesaling and retailing costs and margins. 



■Wholesale marketing procedures are being improved with many new 

 methods being initiated by leading wholesale grocers and chain store 

 system operators. These new methods have focused on adjustments in 

 merchandising policies and physical operation. Most improvements in 

 this field, however, have but a small effect on reducing total dis- 

 tribution costs and are not as revolutionary as self-service super 

 market retailing was i n the retail field. 



Wholesalers and chain stores have improved efficiency and cut 

 the costs of operation fay reducing the cost of taking sales orders. 

 This cost can be minimized by reducing effort expended by salesmen 

 or order men, increasing the average order size, ajid eliminating un- 

 profitable orders. Methods of assembling orders within the warehouse 

 have been revised. Merchandise is arranged in systematic sections so 

 that order men know where each item is situated. Reserve stocks are 

 separated fi"om assembly selection lines. The latter sire arranged in 

 order of turnover vdth items sold most frequently nearest the order 

 assembly area. Separate arrangements are provided to handle special 

 orders, such as split case lots. All operations are integrated so 

 that job timing will be most efficient with respect to use of plant 

 and workers » 



Wholesalers have tried to reduce their delivery costs by foster- 

 ing closer working relations with the retailers and thus reduce the 

 number of deliveries. Constant effort has been exerted toward re- 

 duction of time spent in loading and unloading trucks, both at the 

 retailer's platform and the warehouse. Those retailers who place 

 late orders are often penalized by being placed on a cash-and-carry 

 basis. Truck routing has been improved and common carriers are be- 

 ing utilized where the charge is less than the cost of operating a 



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