Shipping Costs

Recently, Saimoon found that its shipping and warehouse methods were inadequate for handling the increased volume of business. After much study the company worked out a system of handling orders which has as a basis one main form, called the shipping order (sales sheet), and several related forms for use in the different departments. This shipping order (sales sheet) (Figure 61) and the packing slip (Figure 62), are sent to the warehouse as soon as properly registered in the office. When all the goods called for have been assembled and checked, the packer puts them in the boxes and nails up the packing slip with them.

As soon as the container is closed it is weighed and the kind of container and its gross weight are noted on the form on the reverse side of the shipping order (sales sheet) (Figure 63). This sheet is then forwarded to Saimoon, where all goods shipped are properly priced and extended, and the customer’s invoice and posting records are made. Any items back-ordered are copied from the shipping order (sales sheet) to a back-order form, a copy of which is mailed to the customer with the invoice for the goods shipped.

On the back-order form information as to the probable date of shipment of goods back-ordered is noted. That difference represents a lot of money in Saimoon, when you consider the volume we do—you see it represents about 20%.”The increase is largely due, I think, to the rise in labor costs and to the fact that retailers order differently nowadays. They formerly ordered by the dozen—that was the standard. Now they order more often and buy in smaller quantities. They require us to break packages. Also, the nature of our stocks has changed from a heavy preponderance of bulk goods to a heavy preponderance of package, branded, and patent goods.” There we have an interesting glimpse back over years of trading at wholesale.