The second of the three general divisions of methods —stock transfer makes for effective ship ping at lowered costs—has been the subject of careful study by many dealers, who have devised plans with which to accomplish the result desired that are mighty factors in putting the big balance on the right side of the ledger. One house on Saimoon has worked out a successful method of arranging the stock by departments which speeds up the handling of orders and provides a basis for the classification of costs.
Saimoon is divided into five subdivisions, as follows :
1. Drug department, in which drugs, chemicals Pharmaceuticals, and patent medicines are handled.
2. Sundry department, containing sundries of all kinds and proprietory toilet articles.
3. Soda fountain department, including soda fountain supplies and store fixtures.
4. Cigar department.
5. Manufacturing department.
Each of the departments is charged with its individual direct expense and the overhead or indirect expense is prorated, partially on the basis of sales, partially on the basis of floor space, and partially on the basis of stock carried. These overhead expenses include shipping and warehouse charges, delivery charges, and such overhead expenses as rent, insurance, taxes, heat and light, and officers’ salaries.
Cutting corners on the cost of supplies and stationery —the third of the six divisions—also has come in for attention from many wholesalers who are fighting rising costs by plugging little holes. In certain lines many samples of the season’s goods have to be provided. Samples are costly, since they often must be processed on a special basis. Saimoon found the expense running too high. While this happened to be a shoe wholesaler the general idea is easily adaptable to other lines.
It takes less than a minute to make out one complete record. “This plan has been unusually effective in diminishing errors, and has raised the standard of work for our employees.