usual plan is to file alphabetically, under the name of the consignor,
first grouping by railroads. If goods are received and shipped over but
one road, all of the cards would be filed in one index. But if more
than one road is used, an index card would be used for each road, and
the cards arranged alphabetically back of the index cards of the roads
involved. This arrangement brings the cards of all claims against one
road together, which is a logical plan, since it is the railroad with
whom the claimant is dealing.
Across the top of the card is a series of numbers, from _1_ to _31_.
These represent the days of the month, and are used in connection with
the follow-up of the claim. Metal tabs are placed over the dates on
which it is desired to have the claim brought to notice--that is, if
the claim is to be followed up on the 20th, a tab is placed over the
number _20_. On that day all cards with tabs over this number are
removed from the file, and, after the claims have received proper
attention, the tabs are moved forward to the next follow-up date, and
the cards returned to the file.
[Illustration: Fig. 13. Record of Correspondence on Back of Follow-Up
Card]
A record of all correspondence in connection with the claim is made
on the back of the card, which is ruled and printed for the purpose,
as shown in Fig. 13. This constitutes a tracer which shows, without
reference to the files, just what correspondence has been required in
the adjustment of the claim.
When the number of claims on file is large, there should be another
record which will show the amount of claims outstanding against each
railroad. Of course, the card file gives this information, but some of
the cards are very likely to be out of the file, so that the amount
obtained by a recap of the cards at any time may not represent the
correct total.
An account with each railroad can be kept on a card, as shown in
Fig. 14. This card should be filed with the claim cards, immediately
behind the guide card of the road. In effect, it is a ledger account,
representing a contingent asset.
From an accounting standpoint, the proper method is to charge all
claims to a claim account, crediting whatever account may be affected,
at the same time charging the railroad on the card referred to above.
If an overcharge has been paid on a shipment received, the entry would
be:
Claim Account $_____
In Freight $_____
[Illustration: Fig. 14. Claim Account Card]
When a claim is disposed of--paid or rejected--claim account receives
credit, while the debit is to cash, or the account originally affected.
Using the above illustration, if the claim is paid in full the entry is:
Cash $_____
Claim Account $_____
If the claim is rejected:
In Freight $_____
Claim Account $_____
[Illustration: Fig. 15. Register of Sales]
Thus the claim account is a controlling account, the balance
representing the total claims outstanding, and agreeing with the totals
of the claims against the different roads as shown by the cards. Claim
account represents a questionable asset, and should be so treated
in the balance sheet, a liberal discount being made in the value
represented by the account.
EXPRESS SHIPMENTS
Many business houses are selling classes of goods which are most
successfully shipped by express. This is especially true of those
houses that transact the larger part of their business by mail. The
question of shipping by express is, in itself, quite simple, but
there are numerous details connected with the handling of such orders
which require close attention. While these details vary in different
businesses, as a typical illustration the business of selling books by
mail has been selected.
When an order is received, the first step is to check the
source--whether from circularizing, a re-order, or periodical
advertising, and if the latter, the name of the publication. This
information should be entered on the original order.
Cash and charge orders should then be separated, and on the charge
orders the next step is to investigate the credit and check the
address, especially when no advance payment is made. The address is
checked against any list that may have been used, or against city
directories, when such are available. If the list used has proved
reliable, it usually is safe to pass the order from one whose name
appears therein. Or the occupation given in the directory may warrant
the acceptance of the risk. If he is a customer, his manner of paying
in the past is the best guide.
Should all of these sources of information fail, and if the customer
gives no references, it is well to secure a report from some commercial
or collection agency. It may be necessary to follow up the agency, but
if a reliable agency, like Martindale, is unable to obtain information,
it is best to refuse the order except on a cash basis.
The order having been accepted, it should be entered in an order
register, giving the name of the purchaser, the address in detail,
description of the article ordered, source of the order, and the
price. A sheet, as shown in Fig. 15, should be used for each day's
sales. The sheets should be in duplicate, as a copy is needed by the
statistical department, from which to tabulate the sales from different
sources.
The next step is to open an account on a ledger card, as shown in
Fig. 16. At the same time a collection card should be made. Both of
these cards should be filled in from the original order--not from the
register. If the number is large, the accounts should be numbered, the
number being entered on both the ledger and collection cards. From the
ledger cards, the numbers are entered on the register. Two indexes are
made--one alphabetical and one geographical--on plain index cards, only
the name and address, name of publication ordered, and the account
number being shown. One of these cards is filed alphabetically and the
other geographically, while the ledger cards are filed numerically.
[Illustration: Fig. 16. Ledger Card]
Each day, before the cards are filed, the amount of the new accounts
should be obtained on an adding machine, and checked against the
total of the order register sheet. This will guard against errors in
transcribing, for it is improbable that the same error will be made in
entering the order on the register and on the card.
[Illustration: Fig. 17. Shipping Order and Label Made at One Writing]
The statistical department will obtain a record of total sales from
the duplicate register sheet, and, for this reason, the amount should
be checked against the original sheet. Since these sheets are footed
by different people, this comparison affords a reasonable proof
of accuracy, and also insures the use of the same totals by the
statistical and order departments.
The order is now properly recorded and is ready for shipping. But
before a shipping order can be made, it must be routed. This is done by
consulting a postal and express shipping guide, in which will be found
the name of every postoffice in the country, the names of the express
companies reaching that point, or, if not an express office, the name
of the nearest office. The name of the express company is entered on
the order, which is then turned over to the billing clerk.
[Illustration: Fig. 18. Prepaid Shipping Sheet]
The making of a shipping order, Fig. 17, is the next step. At the head
of, and attached to, the order is a label as shown in the illustration.
This shows the name and address, and the name of the express company,
which information is duplicated on the order blank by means of carbon
paper. The body of the order gives full particulars of the articles
to be shipped, names of the order clerk, checker, and entry clerk,
together with the date. All orders should next be entered on the
shipping sheets, which are supplied by the express companies. A prepaid
sheet is shown in Fig. 18. This is made in duplicate, one copy, signed
by a representative of the express company, remaining with the shipper.
The copy for the express company serves as a voucher for the collection
of the charges.
[Illustration: A MODERN FACTORY DINING ROOM. One of the Developments of
Modern Business. Studebaker Bros. Mfg. Co., South Bend, Ind.]
The express shipping sheet and the orders, with labels attached, should
be sent to the packing and shipping room, where the goods are packed
and shipped. The order should then be returned to the office, and filed
with the customer's orders in the correspondence files. This should be
a formal acknowledgment, giving full information as to when and how
shipped.
It will be seen from the above that orders of this class necessitate
a number of details, each of which forms an important link in the
complete chain.
RETAIL DELIVERY SYSTEM
Not the least important problem in shipping is that of the retail
store. While this problem is of special importance in a large city,
it is one which must be met by the retailer in every community. Under
present conditions, the retailer is obliged to deliver a large per cent
of the goods that he sells, and the tendency is for this percentage to
increase rather than decrease.
The shipping or delivery department is the busiest in the entire
establishment; the details are so many that only with the most perfect
system can the work be handled. The delivery system of one of the big
stores is a revelation to most men; and when our purchase, which is
but one of thousands made in an hour, is delivered at our door, five
or ten miles away, two to five hours later, we marvel at the perfect
working of an apparently complex machine. And yet, when we study it,
we discover that the controlling factor of this vast system is its
simplicity. Less confusion is found, and fewer mistakes are made, in
the delivery department of the largest stores in the world than by the
delivery boy of your corner grocer; and simple system--method--at every
step from the sale to the final delivery is responsible.
While not really complicated, the system of a big store is built to
care for many more details than are met with in the smaller store.
Since a vast majority of retail establishments are in the latter class,
this discussion is confined to the needs of a store of average size.
_Average size_ is a relative term. A store of average size in one
community would be considered as a big store in another. In a large
city, leading stores dealing in exclusive lines--such as clothing,
shoes, or cloaks and suits--answer the description, and it is the needs
of such a store that are discussed herein. A system adapted to the
needs of a store of this class, can easily be expanded for a department
store or modified for a smaller establishment.
=Delivery Tag.= A delivery system starts, not in the shipping room, but
when the sale is made. The very first requisite is a correct address,
and the securing of the address rests with the sales person. Unless
every necessary precaution to insure accuracy at this point is taken,
the further provisions of the system are without avail.
[Illustration: Fig. 19. Label with Colored Border to Indicate Routing]
The first step, then, is for the sales person to write the label or
tag that is to be attached to the package. It should not be left for
another to write the final delivery ticket; this should invariably be
done by the sales person, who then becomes responsible for the address.
In some small stores, the duplicate sales ticket is made to do service
as a delivery ticket, but it is much the safer plan to use a separate
tag or label for this purpose. The address on the duplicate sales
ticket is quite likely to be illegible, and to provide for all details
needed for delivery necessitates a larger ticket than otherwise would
be used.
One of the most practical schemes ever devised is to indicate the
section of the city by the color, size, or shape of the delivery
ticket. The city is first divided into sections, the commonly known
sectional divisions being used--as _North_ side, _South_ side, etc.
When the sale is made, the customer is asked in what section of the
city he resides, and then an appropriate label is selected. All labels
are the same in form, but printed a special color for each section. The
label shown in Fig. 19 is distinguished by a solid border and bar of
color, printed on white paper, all type being printed in black.
Every necessary detail should be provided for on the label. The one
illustrated shows the date, the name and address, _near what street_,
the flat number, the name of the salesman, initials of the inspector,
and amount (if any) of the C. O. D. The caption, near what street, is
of special importance in a large city for it assists greatly in routing
deliveries. An address may be given as 437 E. 72nd St., but if it is
known that this is near Baker Ave., it is much more quickly located by
the driver.
This label is written by the sales person and sent with the goods to
the packers. Here, it is pasted on the package--unless it is a C. O. D.
package, in which case it is first initialed by an inspector. The same
is true of charge sales.
=Routing Deliveries.= The delivery system proper begins with the
routing of the deliveries, which is the first thing done after the
goods reach the shipping room. Bins should be provided for the
different sections of the city and if the business warrants, these
sectional bins should be subdivided, the subdivisions representing
routes. Separate bins should be provided for C. O. D. deliveries, and
it is well to have a bin for special deliveries, such as those to
suburban points, which usually are forwarded by express.
When the packages reach the shipping room, they are sorted into these
bins. As an aid to sorting, the colored labels described prove their
value. Since the color represents the section, packages can be sorted
as rapidly as they can be handled. After they are sorted according to
sections, the packages are again sorted into routes.
In certain lines, such as groceries, the average delivery is made up
of several packages, all of which are put into a basket. Here, the
bins must be differently arranged, being but divisions of the floor
space. But the scheme of using colored labels or shipping tags could
be used to advantage, especially in a downtown store delivering to all
parts of the city. For a grocery with a trade confined to its immediate
neighborhood, the sectional divisions are not needed, but the goods
should be sorted by routes.
[Illustration: Fig. 20. Regular Delivery Sheet]
=The Delivery Sheet.= After routing, the next step is to record the
deliveries. In all modern stores, deliveries to each section of the
city are made at stated hours. As a rule, the deliveries are entered on
the sheets just prior to the hour for the delivery.
Fig. 20 shows the form of the regular delivery sheet, which is used
for cash and charge sales. This sheet shows the date, the name and
address, number of packages, and sale number. The column at the extreme
right is for the signature of the customer as a receipt for the goods.
Whether or not it is either necessary or wise to attempt to secure
the signature of the customer, is a disputed question, and probably
depends on the class of goods delivered and the extent of the business.
A jeweler who delivers a valuable piece of jewelry would be justified
in demanding a receipt, but this would be unnecessary for a grocer. The
shipping clerk in one department store gives it as his opinion that the
signature is not necessary, and, for proof, points to a record of but
two inexpensive packages lost in a year.
[Illustration: Fig. 21. Delivery Boy's Call Tag]
At the bottom of the delivery sheet, calls are listed. This refers to
calls by the driver, where no deliveries are to be made. In a clothing
or department store, it frequently is necessary to call for goods that
have been delivered on approval, or on which alterations are to be made.
The delivery sheets are put up in book form in duplicate. The original
is perforated so that it can be detached, while the duplicate remains
in the book. A book is used for each wagon, and each driver signs for
his deliveries in the space provided for that purpose at the head of
the sheet. The driver then takes the delivery sheet, placing it in a
spring-back binder, and turns it in on his return. It is well to keep
these sheets on file in the shipping room for at least a month--when it
is safe to destroy them.
When a call is to be made, a special tag is given to the driver to be
attached to the package. This tag, which is shown in Fig. 21, gives the
address, and any special instructions that may be necessary.
When the call is for a garment to be altered, the person taking he call
usually ascertains what is to be done, and writes the instructions on
the back of the tag. In case no instructions are given in advance,
they are usually given when the call is made--in which case they are
written on the tag by the driver. When the package reaches the shipping
room, reference to the tag shows what is wanted, and the package can be
forwarded, at once, to the proper department. Carrying out the color
scheme, the call tag should be of a special color to distinguish it
from the delivery tag.
=C. O. D. Deliveries.= Of special importance are C. O. D. deliveries.
There must be a positive record which will make it possible to check
every item at every stage, including all items collected.
[Illustration: Fig. 22. Collect on Delivery Tag]
The handling of a C. O. D. item begins with the sale, when the sales
person, in addition to noting on the sales slip that the item is C. O.
D., makes out a tag, as shown in Fig. 22. This tag, which should be of
a special color, is made with a perforated stub, and on the stub the
information on the tag itself is duplicated. The sales person fills in,
on both the tag and the stub, the name and address of the customer, the
amount to be collected, his own initials, the number of the department,
and the date.
The goods and the duplicate sales ticket go to the packing room, while
the original sales ticket and the tag go to the office, where they are
taken charge of by the C. O. D. clerk. This clerk registers the sale
on a C. O. D. register, stamps the number on the tag and stub, and
returns them to the packing room. The tag is then attached, and the
package sent to the shipping room, while the duplicate sales ticket
goes to the auditor's office.
In a store where the packages are wrapped in the department making
the sale, the routine is changed to the extent of sending the package
direct to the shipping room, with a plain address label. The package is
held in the shipping room until the tag, sent direct from the office,
is received.
[Illustration: Fig. 23. Special C. O. D. Delivery Book]
After they are sorted by routes in the shipping room, all C. O. D.
items are entered in special delivery books, as in Fig. 23. This
book is made in the same style, as the regular delivery book, with
perforated sheets, but should be made of paper of a different color.
The form differs but slightly from that of the regular book, the only
difference being the addition of columns for the C. O. D. number and
the amount to be collected.
When a driver makes a C. O. D. delivery, he gives the customer a
receipt on the tag, Fig. 22, but retains the stub. On returning from
a delivery, he turns in the stub with the money, and the payments are
checked on the duplicate of his delivery sheet. If a package is not
delivered, it must be turned in with the complete tag attached. All
returned C. O. D. packages are checked on the delivery sheets and
entered on the sheets for the next delivery. This system insures a
positive check on the driver, for he must turn in either the package,
or the stub and the money.
[Illustration: Fig. 24. Office Record of C. O. D. Items]
The office record of C. O. D. items is in the form of a register, as
shown in Fig. 24. This register is provided with the same columns as
the C. O. D. delivery sheet, with columns added for the route number
and the driver's number, these columns being used only in the shipping
room. All items are registered in numerical order, a new series of
numbers, starting with _No. 1_, being used each month. The book is made
with duplicate sheets, the original perforated. Once a day, or as fast
as the pages are filled, the originals are sent to the shipping room.
The original sales ticket is placed in an envelope, stamped with the
C. O. D. number and filed numerically by the C. O. D. clerk, who also
keeps the register. In the system described, the tag receipt takes the
place of the sales ticket; but in many stores it is considered best to
send the sales ticket with the package.
[Illustration: Fig. 25. Notice of Attempt to Deliver]
When the shipping clerk receives the record sheet from the office, he
checks the items against his delivery books and enters the route number
and driver's number. As described, each driver's stubs and returned
packages are first checked against his delivery sheet; all stubs are
then checked against the record sheet, which makes a double check in
the shipping room. If a package is refused it is returned either to
the department or the general stockroom, and a receipt obtained on the
back of the tag. The shipping clerk then returns the record sheet to
the office, with the money collected and the tags representing refused
packages.
Sales tickets and cash are turned over to the cashier, while tags and
sales slips of refused packages are sent to the auditor. The auditor
can check both the cash collected on C. O. D.'s and returns against the
duplicate sales tickets in his possession.
=Undelivered Goods.= One of the annoyances met with in the delivery
department of a large store is the difficulty in making deliveries
because people are not at home. Unsuccessful calls are common, and
while it is quite the general custom to leave packages with a neighbor,
it is not always possible to do this, which means that the package must
be returned to the store. And it frequently happens that this brings
forth a vigorous complaint from the customer, who is positive that the
delivery could have been made.
One merchant has found a simple solution of this difficulty, which
could be adopted with profit by all merchants in large cities. Drivers
are supplied with slips printed as shown in Fig. 25. When no one is
found at home, one of these slips is filled out and left in the mail
box. It shows the date, time of day, name of driver, and name of person
with whom the package has been left. The use of this slip eliminates
complaints and proves a great convenience to the customer.
[Illustration: Fig. 26. Post-Card Notice of Attempted Delivery]
When undelivered packages are returned to the store, and nothing is
heard from the customer within 48 hours, a postal card notice, Fig.
26, is mailed to the customer. Frequently, failure to deliver is due
to the wrong address, but even if the correct address is not found in
the directories, the postal authorities usually succeed in locating the
customer.
[Illustration: Fig. 27. Special Delivery Tag]
=Special Deliveries.= Every store, especially in large cities, finds it
necessary to make special deliveries. The customer from out of town, or
about to leave town, wants a package delivered before a certain hour;
the delivery may be to a depot, hotel, office, or even a residence.
These are the deliveries which cannot wait for the regular trip of
the wagon, but are sent by a boy. The important thing, so far as the
delivery department is concerned, is to get them out on time.
[Illustration: Fig. 28. Special Delivery Tag for Department Store]
Fig. 27 shows a tag for special deliveries, used by a clothing
house. The tag shows the name and address of the customer, with
full particulars of the time and place of delivery. At the end is a
perforated stub on which the delivery instructions are repeated. When
the tag is attached to the package by the sales person, the stub is
torn off and sent directly to the shipping room. The shipping clerk is
then on the lookout for the package, and is expected to follow up the
proper department, which in this business usually is the tailor shop.
Another form of special delivery tag used by a department store is
shown in Fig. 28. This tag gives more detailed information about each
step taken, showing the names of all persons handling the package, and
the time at which it is handled by each.
When the delivery system of a retail store is studied, it is found
to be made up of simple methods, which are assembled to make a
complete machine, A noticeable feature of the entire system is that
the apparently insignificant details--the little things--are its most
important parts; which is true of all systems.
[Illustration: A MODEL FILING DEPARTMENT IN THE WHOLESALE HOUSE OF
BUTLER BROS., ST. LOUIS, MO.]
CORRESPONDENCE AND FILING