Abstract
By analysing driver wages, vehicle costs, and administrative costs the article examines how expensive deliveries are in different European countries. By doing a comparison with LTL (less than truck load) business it is considered whether DSD is more expensive. In a search for process benchmarks (also in comparison with LTL) the authors finally approach an answer to the question whether DSD is potentially too expensive.
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Notes
- 1.
A similar classification can be found in Mielentz/Trump (2004): 38.
- 2.
The vehicle cost data is based on eight in-depth interviews conducted with German short-haul carriers in December 2006 and January 2007. As far as possible these costs were verified by data from official sources like authorities, associations, and unions.
- 3.
Toll is not considered in this calculation since toll roads are of minor importance in distribution business.
- 4.
Similar calculations are to be found in Kerler (2001): p. 30.
- 5.
Assuming linear depreciation is justified since the fleet of a logistics service provider or an other company doing deliveries normally consists of trucks of different ages. A declining depreciation would possibly be realistic for one particular truck but distort the calculation of an average yearly depreciation.
- 6.
For simplicity reasons interest on interest is not considered in this calculation.
- 7.
The approximation of the annual insurance premium results from a comparison of the premium quotations by four German insurers (VHV – Vereinigte Hannoversche Versicherungen, D.A.S. Versicherungen, Zürich Versicherung, and Aachenmünchener Versicherung). This comparison was done using an online tool by Ansahl Consulting (Ansahl online 2007).
- 8.
Both cost informations (maintenance/repair costs and auxiliary materials) are based on data supplied by the interviewed carriers. If the costing was done absolutely exact, these cost elements should be calculated per kilometre, similar to the calculation of diesel costs. However, since maintenance/repair and auxiliary material are costs of minor importance, we consider it justified to do a simplified calculation on a daily basis.
- 9.
These figures per hour are higher than the driver wages discussed in section 12.2.1. The Eurostat figures, however, comprise the sector “traffic and communication”. In communication and news transmission the wages tend to be higher than in transport industry. Moreover, in the Eurostat figures, white-collar employees are considered as well as blue-collar workers whereas the calculation of driver wages would only require the (lower) blue-collar workers’ wages.
- 10.
LTL = “less than truck load” (shipments between approx. 30 and 2,500 kg).
- 11.
A study regarding driving personnel which was recently executed by Fraunhofer ATL Nuremberg on behalf of the German forwarders’ association DSLV brought similar results: On average short-haul trucks are doing 14 stops per tour (Hassa 2007, p. 24).
- 12.
It needs to be pointed out that both factors are dependent from each other: In case of long distances the speed tends to be higher than with short distances. If, for example, two delivery points are only a few hundred meters distant from each other, the vehicle will hardly speed up to more than 30–40 km/h, especially if both delivery points are within the same borough with speed limits to be obeyed. If, however, there is a long distance of 10 or more kilometers, there will be less speed limits on the one hand and autobahn or motorway connections allowing higher speeds on the other hand.
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Müller, S., Klaus, P. (2009). More Expensive or Too Expensive? Calculating Delivery Costs in Europe. In: Shariatmadari, R., Schoppengerd, F., Otto, A. (eds) Direct Store Delivery. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-77213-2_12
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