Industrial Traffic Management in U.S.A.

“The importance which the United States attaches to the business of traffic management is shewn by the fact that the subject has recently been submitted to a Government survey, following which a report has just been made public by the Department of Commerce” (states Modern Transport, London). The paper goes on to observe that the survey was undertaken in co-operation with national and local traffic organisations with the object of revealing sources of waste. It is pointed out that, even in the States, transportation expenses are amongst the least understood of the major cost elements in business. In medium-sized businesses they were found to average 25 per cent. of the total operating costs of the undertaking, and in many instances were much higher. Even in very large industries at least 10 per cent. of the total costs were found to represent traffic charges. Some of the more important sources of loss in business administration are shown to consist of failure to obtain proper rates on consignments and to combine less-than-car load shipments into car loads, or carelessness in checking freight accounts, or neglect in the prosecution of claims on the carriers, and lack of precaution to ensure efficient packing. Well-managed traffic departments, it is stated, invariably yield profits, besides ensuring the even flow inwards of raw materials and speedy distribution of the finished product. In the United States effective traffic management in commercial undertakings is now taking its place as a major phase of business activity.

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