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There are examples of{{U}} WHAT {{/U}}can be
done by the retailer within his store, but perhaps the biggest opportunity for
cost-reduction stems{{U}} {{U}} 1 {{/U}} {{/U}}cooperation
between manufacturer and distributor in analyzing the total costs involved in
moving the product from the factory to the shopper's basket. A helpful technique
in this connection is the concept of "direct product profit"{{U}} {{U}}
2 {{/U}} {{/U}}is widely used in the United States.
This is a technique for analyzing very precisely the costs and profits
associated{{U}} {{U}} 3 {{/U}} {{/U}}each product line, with a
view to isolating opportunities for cost reduction. For example, the in-store
handling costs for particular item may be reduced{{U}} {{U}} 4
{{/U}} {{/U}}the manufacturer puts it in a large case or reduces the number of
layers in the case. With the growing importance of prepackaging{{U}}
{{U}} 5 {{/U}} {{/U}}for perishable items like meat and for non-food
products, it is essential that the container should facilitate quick unloading
and easy display. More obvious is the case for cooperation in
reducing the costs of delivery and unloading; the night delivery experiment in
Central London is an example of this. Many shops lack proper unloading
facilities, often because the local authorities or private developers{{U}}
{{U}} 6 {{/U}} {{/U}}built them were not aware of{{U}} {{U}}
7 {{/U}} {{/U}}was needed. Many retailers do not employ modern handling
techniques. Some consumer goods manufacturers,{{U}}
{{U}} 8 {{/U}} {{/U}}as Unilever, are playing a big part
in streamlining the distribution system, simply because they are
"market-oriented" companies which recognize the importance of low distribution
costs. Even in Unilever, Lord Cole recalled the bad old days{{U}} {{U}}
9 {{/U}} {{/U}}distribution was looked upon as the least important of
costs. The process of distribution will gradually be made less
labor-intensive; the difficulty of finding additional labor, apart{{U}}
{{U}} 10 {{/U}} {{/U}}its cost, is the major factor behind.