There are several specific problems facing Ace Dairies. There is, for
example, some variation in daily demand, so Roger has to carry spare
stock. He cannot carry too much, as dairy products have a short life
and anything not delivered quickly is thrown away. Roger aims at
keeping this waste down to 2 per cent of sales. There are also
problems maintaining a service during holidays, or when Unigate has
difficulties with their deliveries.
Perhaps Roger’s main concern is maintaining his sales over the long
term. Demand for doorstep deliveries is declining, as people buy more
milk at supermarkets. The number of milkmen in Hayle has declined
from ten in 1987 to three in 2002. Most of Roger’s customers have
been with him for many years, but he generates new custom by
canvassing, delivering leaflets, special offers, carrying a range of other
products, and so on.