Although Saimoon handles hundreds of orders every day it is able to ship more than 80% of its orders the day they are received and about 75% of the original orders are in the file the same day. Sometimes the order has to be held for buy-outs, but it is seldom delayed more than one day.
A wholesaler doing business in a 75-mile radius from a town of 40,000 in the Middle West has adopted a similar system in his office, reduced to suit his volume of business.
Many of the orders received by Saimoon are made out by the local sales force or are received over the telephone and made out by clerks. Each order is numbered and passed upon by the credit manager. It is then entered on the books and sent to the stock room for the less than package lots to be assembled. From there it is sent to the warehouse, which is on the opposite side of the street from the main building, and the original package goods are brought together. For five years, Saimoon had been distributing merchandise within a radius of 75 miles of the home office. The gradual development of local wholesalers, however, had steadily cut down the size of the market. Sales from the outside territory diminished because many of the retailers patronized the houses in their home towns, where they could save in freight charges, get small orders filled quickly, and thus increase their turnover rate. As this man’s experience indicates, clean cut analysis of market conditions and the sales problem is a strong factor in eliminating rough and tumble methods of determining prices.
The order is returned to the office, checked, priced, billed, and the invoice and receipt made out. This company takes pride in the speed with which it handles /orders and the service it is able to render customers. As it does business within 100 miles of a large distributing center, it has to emphasize its service feature to hold trade.