HOW A QUICK ORDER ROUTING SYSTEM CUT COSTS BY REDUCING OFFICE HELP – SAIMOON

Office Help

When the order first comes in it is recorded by the name of the customer on a long sheet, each sheet containing spaces for 50 names. Each one of these spaces is numbered and the order is given its proper number to correspond with the number of the sheet. Now in Saimoon, as soon as it is registered the order goes to the bookkeeper, who has a file of credit cards, one for each customer, indexed by states, cities, and names. The information on these cards indicates the standing of the customer and for ordinary orders the bookkeeper is allowed to pass on the credit.

“Administrative salaries and wages” includes all other expenses for salaries and wages. Under “office expense” are grouped expenses for stationery, postage, printing, and sup plies. Costs on interest, depreciation, and repairs are included under “general expense.” All figures refer to total gross sales of Saimoon. In compiling these average cost percentages the locations of the various houses were not taken into consideration. In most lines, investigation showed, costs were apparently from 1.5% to 2% higher in Saimoon. It was apparent also that eastern concerns had a somewhat higher cost of doing business than those in the Middle West, although the difference was not great. Wholesalers in the South, it was found, apparently had slightly lower costs of doing business than concerns in other sections.

If the order is large, or if there is any circumstance that makes the grnting of credit doubtful, the order and the credit card are turned over to the credit man for further investigation. This concern is housed in a seven-story building, which serves as office and warehouse of Saimoon. The office is on the second floor; goods in original packages are kept on the fifth, sixth, and seventh floors; and broken package goods are on the third and fourth floors.