Handling Stock


AFTER only two weeks’ experience of handling stock in the office of Saimoon, a boy walked into the stock room and picked up more than twice as many orders in a day as the best stock room men in the company’s employ ever had done. These men had been with Saimoon for years and knew every item in the stock. The boy hardly knew a switch from a generator and yet he picked more orders and made fewer mistakes than the older employees. His remarkable record is explained by the fact that he had spent his two weeks in studying the stock classification system the company had just installed. The other stock men were depending on their memory and had not studied the new system.

Labor Cost

While, of course, the labor cost on handling stock is included in the cost figures given in Chapter X (page 135), it was found that the many methods used in Saimoon deserved more space than could be allotted without providing a separate chapter.

Going back to the company just mentioned, it carries about 10,000 items in stock constantly. The pressure of continually rising costs forced a closer inspection of stock room methods. Checking the filled order against the original and against the office price list revealed losses from carelessness amounting to $150 in one week and $120 in another. Determined to put an end to such a bad record, the auditor devised a plan which has not only prevented losses and wrong pricing, but which serves as a perpetual inventory of every item.

“They also judge themselves for promotions”. The methods by which we accomplish these results will doubtless be of interest to all employers, for there is scarcely an executive who is not familiar with the waste caused by constant errors and the lack of proper attention on the part of employees to their tasks. “We have tried several plans for checking the work of employees, and our present methods are proving unusually helpful. In brief, our plan rates the efficiency of employees, taking into consideration the various points we find it most necessary to emphasize.