Operating efficiency of Esso Malaysia Berhad's tank trucks / Zulkiffli Ahmad

Eaao Malaysia Berhad has 28 tank trucks in operation. There are over 281 tank trucks belonging to 89 different contractors that support the distribution functions of Esso Malaysia Berhad. The largest single item in the Marketing Expense involves tank truck delivery of products. In 1985, the delivery cost for Esso Malaysia Berhad tank trucks operations was $5.4 million. In addition to their own trucks, Esso Malaysia Berhad paid $18 million to outside haulers for a grand total of $21.4 million in delivery costs. Therefore, there arises the need to investigate into the distribution functions of the Company and the contractors since the Company feels that a few percent savings per year on transportation cost would benefit the Company financially.