Chapter XII: Introduction (2)

Before a claim is presented, all information pertaining to the case in possession of the claimant must be assembled, and all facts should be incorporated in the papers filed. A bill should be made against the railroad for the amount of the claim, and to this should be attached the freight receipt or other voucher. These papers should be accompanied by a letter giving a plain statement of the basis of the claim; if for an overcharge, the number of the tariff and the classification on which it is based should be cited. The claim papers should be as complete as it is possible to make them, presenting all facts having a possible bearing, otherwise they will be returned by the claim agent of the railroad for further information. Some of the questions asked by the claim agent may seem trivial to the claimant, but the answers are necessary to him in completing the files of his office. When claim papers are returned through the local freight office, the information asked should be given and the papers returned at once.

Claimants become very impatient over delays in the adjustment of their claims, forgetting that where they handle perhaps a dozen claims a year, the railroad claim agent must handle thousands, involving amounts ranging from a few cents to many hundreds of dollars. They also overlook the fact that a shipment has passed over several roads, and that before the claim can be adjusted, it must be ascertained on what road the damage was sustained. The different roads involved must adjust the claim between themselves, before they can tell where the money with which to pay it is coming from. The papers must pass through the hands of agents at all junction and transfer points, and the claim departments of all roads involved, before the claimant can expect a reply.

On the other hand, it is not good business to rely solely on the railroad. Claim papers sometimes repose indefinitely in the desk of some local freight agent, until brought to light by a persistent follow-up; occasionally the papers are lost. A follow-up of freight claims is, therefore, a necessity. The shipper who is most persistent in following up his claims, is usually the beneficiary of the most prompt service.

Railroads number all claims as received, and invariably refer to them by number. It is an excellent plan, therefore, for the shipper to adopt a numerical system for the purpose of identification. It is quite important that all correspondence relating to a claim be kept together, and this is best done by using a folder for each claim. The number of claims is so small that it is not necessary to use an entire drawer for claims; they can be accommodated in the front of a drawer used for regular correspondence.

The outside of the folder should provide for the name and address of the consignor or consignee, as the case may be, name of the railroad on which claim is made, the shipper's claim number, and the railroad's claim number, as shown in Fig. 11. In this folder, copies of the bill and of all letters to the railroad company should be filed. The folders are filed numerically, in the order of the shipper's claim numbers.

To follow up the claim, and to provide an index to the file of claim folders, a card, similar in form to the one shown in Fig. 12, should be used. This card provides for a complete history of the claim. At the head of the card is shown the name of the consignor or the consignee, shipping point, shipper's and railroad's claim numbers, dates of shipment, receipt, and filing of claim, the railroad on which claim is made, and the name of the claim agent. This is followed by a brief statement of the nature and amount of the claim. The two bottom lines provide for a record of the payment or rejection of the claim. All of the information most likely to be needed is found by turning to this card, without the necessity of consulting the correspondence in the claim files.

The manner of filing the card depends somewhat on circumstances. The usual plan is to file alphabetically, under the name of the consignor, first grouping by railroads. If goods are received and shipped over but one road, all of the cards would be filed in one index. But if more than one road is used, an index card would be used for each road, and the cards arranged alphabetically back of the index cards of the roads involved. This arrangement brings the cards of all claims against one road together, which is a logical plan, since it is the railroad with whom the claimant is dealing.

Across the top of the card is a series of numbers, from _1_ to _31_. These represent the days of the month, and are used in connection with the follow-up of the claim. Metal tabs are placed over the dates on which it is desired to have the claim brought to notice--that is, if the claim is to be followed up on the 20th, a tab is placed over the number _20_. On that day all cards with tabs over this number are removed from the file, and, after the claims have received proper attention, the tabs are moved forward to the next follow-up date, and the cards returned to the file.

A record of all correspondence in connection with the claim is made on the back of the card, which is ruled and printed for the purpose, as shown in Fig. 13. This constitutes a tracer which shows, without reference to the files, just what correspondence has been required in the adjustment of the claim.

When the number of claims on file is large, there should be another record which will show the amount of claims outstanding against each railroad. Of course, the card file gives this information, but some of the cards are very likely to be out of the file, so that the amount obtained by a recap of the cards at any time may not represent the correct total.

An account with each railroad can be kept on a card, as shown in Fig. 14. This card should be filed with the claim cards, immediately behind the guide card of the road. In effect, it is a ledger account, representing a contingent asset.

From an accounting standpoint, the proper method is to charge all claims to a claim account, crediting whatever account may be affected, at the same time charging the railroad on the card referred to above. If an overcharge has been paid on a shipment received, the entry would be:

Claim Account $_____
In Freight $_____

When a claim is disposed of--paid or rejected--claim account receives credit, while the debit is to cash, or the account originally affected. Using the above illustration, if the claim is paid in full the entry is:

Cash $_____
Claim Account $_____

If the claim is rejected:

In Freight $_____
Claim Account $_____

Thus the claim account is a controlling account, the balance representing the total claims outstanding, and agreeing with the totals of the claims against the different roads as shown by the cards. Claim account represents a questionable asset, and should be so treated in the balance sheet, a liberal discount being made in the value represented by the account.

EXPRESS SHIPMENTS

Many business houses are selling classes of goods which are most successfully shipped by express. This is especially true of those houses that transact the larger part of their business by mail. The question of shipping by express is, in itself, quite simple, but there are numerous details connected with the handling of such orders which require close attention. While these details vary in different businesses, as a typical illustration the business of selling books by mail has been selected.

When an order is received, the first step is to check the source--whether from circularizing, a re-order, or periodical advertising, and if the latter, the name of the publication. This information should be entered on the original order.

Cash and charge orders should then be separated, and on the charge orders the next step is to investigate the credit and check the address, especially when no advance payment is made. The address is checked against any list that may have been used, or against city directories, when such are available. If the list used has proved reliable, it usually is safe to pass the order from one whose name appears therein. Or the occupation given in the directory may warrant the acceptance of the risk. If he is a customer, his manner of paying in the past is the best guide.

Should all of these sources of information fail, and if the customer gives no references, it is well to secure a report from some commercial or collection agency. It may be necessary to follow up the agency, but if a reliable agency, like Martindale, is unable to obtain information, it is best to refuse the order except on a cash basis.

The order having been accepted, it should be entered in an order register, giving the name of the purchaser, the address in detail, description of the article ordered, source of the order, and the price. A sheet, as shown in Fig. 15, should be used for each day's sales. The sheets should be in duplicate, as a copy is needed by the statistical department, from which to tabulate the sales from different sources.

The next step is to open an account on a ledger card, as shown in Fig. 16. At the same time a collection card should be made. Both of these cards should be filled in from the original order--not from the register. If the number is large, the accounts should be numbered, the number being entered on both the ledger and collection cards. From the ledger cards, the numbers are entered on the register. Two indexes are made--one alphabetical and one geographical--on plain index cards, only the name and address, name of publication ordered, and the account number being shown. One of these cards is filed alphabetically and the other geographically, while the ledger cards are filed numerically.

Each day, before the cards are filed, the amount of the new accounts should be obtained on an adding machine, and checked against the total of the order register sheet. This will guard against errors in transcribing, for it is improbable that the same error will be made in entering the order on the register and on the card.

The statistical department will obtain a record of total sales from the duplicate register sheet, and, for this reason, the amount should be checked against the original sheet. Since these sheets are footed by different people, this comparison affords a reasonable proof of accuracy, and also insures the use of the same totals by the statistical and order departments.

The order is now properly recorded and is ready for shipping. But before a shipping order can be made, it must be routed. This is done by consulting a postal and express shipping guide, in which will be found the name of every postoffice in the country, the names of the express companies reaching that point, or, if not an express office, the name of the nearest office. The name of the express company is entered on the order, which is then turned over to the billing clerk.

The making of a shipping order, Fig. 17, is the next step. At the head of, and attached to, the order is a label as shown in the illustration. This shows the name and address, and the name of the express company, which information is duplicated on the order blank by means of carbon paper. The body of the order gives full particulars of the articles to be shipped, names of the order clerk, checker, and entry clerk, together with the date. All orders should next be entered on the shipping sheets, which are supplied by the express companies. A prepaid sheet is shown in Fig. 18. This is made in duplicate, one copy, signed by a representative of the express company, remaining with the shipper. The copy for the express company serves as a voucher for the collection of the charges.

The express shipping sheet and the orders, with labels attached, should be sent to the packing and shipping room, where the goods are packed and shipped. The order should then be returned to the office, and filed with the customer's orders in the correspondence files. This should be a formal acknowledgment, giving full information as to when and how shipped.

It will be seen from the above that orders of this class necessitate a number of details, each of which forms an important link in the complete chain.

RETAIL DELIVERY SYSTEM

Not the least important problem in shipping is that of the retail store. While this problem is of special importance in a large city, it is one which must be met by the retailer in every community. Under present conditions, the retailer is obliged to deliver a large per cent of the goods that he sells, and the tendency is for this percentage to increase rather than decrease.

The shipping or delivery department is the busiest in the entire establishment; the details are so many that only with the most perfect system can the work be handled. The delivery system of one of the big stores is a revelation to most men; and when our purchase, which is but one of thousands made in an hour, is delivered at our door, five or ten miles away, two to five hours later, we marvel at the perfect working of an apparently complex machine. And yet, when we study it, we discover that the controlling factor of this vast system is its simplicity. Less confusion is found, and fewer mistakes are made, in the delivery department of the largest stores in the world than by the delivery boy of your corner grocer; and simple system--method--at every step from the sale to the final delivery is responsible.

While not really complicated, the system of a big store is built to care for many more details than are met with in the smaller store. Since a vast majority of retail establishments are in the latter class, this discussion is confined to the needs of a store of average size.

_Average size_ is a relative term. A store of average size in one community would be considered as a big store in another. In a large city, leading stores dealing in exclusive lines--such as clothing, shoes, or cloaks and suits--answer the description, and it is the needs of such a store that are discussed herein. A system adapted to the needs of a store of this class, can easily be expanded for a department store or modified for a smaller establishment.

=Delivery Tag.= A delivery system starts, not in the shipping room, but when the sale is made. The very first requisite is a correct address, and the securing of the address rests with the sales person. Unless every necessary precaution to insure accuracy at this point is taken, the further provisions of the system are without avail.

The first step, then, is for the sales person to write the label or tag that is to be attached to the package. It should not be left for another to write the final delivery ticket; this should invariably be done by the sales person, who then becomes responsible for the address. In some small stores, the duplicate sales ticket is made to do service as a delivery ticket, but it is much the safer plan to use a separate tag or label for this purpose. The address on the duplicate sales ticket is quite likely to be illegible, and to provide for all details needed for delivery necessitates a larger ticket than otherwise would be used.

One of the most practical schemes ever devised is to indicate the section of the city by the color, size, or shape of the delivery ticket. The city is first divided into sections, the commonly known sectional divisions being used--as _North_ side, _South_ side, etc. When the sale is made, the customer is asked in what section of the city he resides, and then an appropriate label is selected. All labels are the same in form, but printed a special color for each section. The label shown in Fig. 19 is distinguished by a solid border and bar of color, printed on white paper, all type being printed in black.

Every necessary detail should be provided for on the label. The one illustrated shows the date, the name and address, _near what street_, the flat number, the name of the salesman, initials of the inspector, and amount (if any) of the C. O. D. The caption, near what street, is of special importance in a large city for it assists greatly in routing deliveries. An address may be given as 437 E. 72nd St., but if it is known that this is near Baker Ave., it is much more quickly located by the driver.

This label is written by the sales person and sent with the goods to the packers. Here, it is pasted on the package--unless it is a C. O. D. package, in which case it is first initialed by an inspector. The same is true of charge sales.

=Routing Deliveries.= The delivery system proper begins with the routing of the deliveries, which is the first thing done after the goods reach the shipping room. Bins should be provided for the different sections of the city and if the business warrants, these sectional bins should be subdivided, the subdivisions representing routes. Separate bins should be provided for C. O. D. deliveries, and it is well to have a bin for special deliveries, such as those to suburban points, which usually are forwarded by express.

When the packages reach the shipping room, they are sorted into these bins. As an aid to sorting, the colored labels described prove their value. Since the color represents the section, packages can be sorted as rapidly as they can be handled. After they are sorted according to sections, the packages are again sorted into routes.

In certain lines, such as groceries, the average delivery is made up of several packages, all of which are put into a basket. Here, the bins must be differently arranged, being but divisions of the floor space. But the scheme of using colored labels or shipping tags could be used to advantage, especially in a downtown store delivering to all parts of the city. For a grocery with a trade confined to its immediate neighborhood, the sectional divisions are not needed, but the goods should be sorted by routes.

=The Delivery Sheet.= After routing, the next step is to record the deliveries. In all modern stores, deliveries to each section of the city are made at stated hours. As a rule, the deliveries are entered on the sheets just prior to the hour for the delivery.

Fig. 20 shows the form of the regular delivery sheet, which is used for cash and charge sales. This sheet shows the date, the name and address, number of packages, and sale number. The column at the extreme right is for the signature of the customer as a receipt for the goods. Whether or not it is either necessary or wise to attempt to secure the signature of the customer, is a disputed question, and probably depends on the class of goods delivered and the extent of the business. A jeweler who delivers a valuable piece of jewelry would be justified in demanding a receipt, but this would be unnecessary for a grocer. The shipping clerk in one department store gives it as his opinion that the signature is not necessary, and, for proof, points to a record of but two inexpensive packages lost in a year.

At the bottom of the delivery sheet, calls are listed. This refers to calls by the driver, where no deliveries are to be made. In a clothing or department store, it frequently is necessary to call for goods that have been delivered on approval, or on which alterations are to be made.

The delivery sheets are put up in book form in duplicate. The original is perforated so that it can be detached, while the duplicate remains in the book. A book is used for each wagon, and each driver signs for his deliveries in the space provided for that purpose at the head of the sheet. The driver then takes the delivery sheet, placing it in a spring-back binder, and turns it in on his return. It is well to keep these sheets on file in the shipping room for at least a month--when it is safe to destroy them.

When a call is to be made, a special tag is given to the driver to be attached to the package. This tag, which is shown in Fig. 21, gives the address, and any special instructions that may be necessary.

When the call is for a garment to be altered, the person taking he call usually ascertains what is to be done, and writes the instructions on the back of the tag. In case no instructions are given in advance, they are usually given when the call is made--in which case they are written on the tag by the driver. When the package reaches the shipping room, reference to the tag shows what is wanted, and the package can be forwarded, at once, to the proper department. Carrying out the color scheme, the call tag should be of a special color to distinguish it from the delivery tag.

=C. O. D. Deliveries.= Of special importance are C. O. D. deliveries. There must be a positive record which will make it possible to check every item at every stage, including all items collected.

The handling of a C. O. D. item begins with the sale, when the sales person, in addition to noting on the sales slip that the item is C. O. D., makes out a tag, as shown in Fig. 22. This tag, which should be of a special color, is made with a perforated stub, and on the stub the information on the tag itself is duplicated. The sales person fills in, on both the tag and the stub, the name and address of the customer, the amount to be collected, his own initials, the number of the department, and the date.

The goods and the duplicate sales ticket go to the packing room, while the original sales ticket and the tag go to the office, where they are taken charge of by the C. O. D. clerk. This clerk registers the sale on a C. O. D. register, stamps the number on the tag and stub, and returns them to the packing room. The tag is then attached, and the package sent to the shipping room, while the duplicate sales ticket goes to the auditor's office.

In a store where the packages are wrapped in the department making the sale, the routine is changed to the extent of sending the package direct to the shipping room, with a plain address label. The package is held in the shipping room until the tag, sent direct from the office, is received.

After they are sorted by routes in the shipping room, all C. O. D. items are entered in special delivery books, as in Fig. 23. This book is made in the same style, as the regular delivery book, with perforated sheets, but should be made of paper of a different color. The form differs but slightly from that of the regular book, the only difference being the addition of columns for the C. O. D. number and the amount to be collected.

When a driver makes a C. O. D. delivery, he gives the customer a receipt on the tag, Fig. 22, but retains the stub. On returning from a delivery, he turns in the stub with the money, and the payments are checked on the duplicate of his delivery sheet. If a package is not delivered, it must be turned in with the complete tag attached. All returned C. O. D. packages are checked on the delivery sheets and entered on the sheets for the next delivery. This system insures a positive check on the driver, for he must turn in either the package, or the stub and the money.

The office record of C. O. D. items is in the form of a register, as shown in Fig. 24. This register is provided with the same columns as the C. O. D. delivery sheet, with columns added for the route number and the driver's number, these columns being used only in the shipping room. All items are registered in numerical order, a new series of numbers, starting with _No. 1_, being used each month. The book is made with duplicate sheets, the original perforated. Once a day, or as fast as the pages are filled, the originals are sent to the shipping room.

The original sales ticket is placed in an envelope, stamped with the C. O. D. number and filed numerically by the C. O. D. clerk, who also keeps the register. In the system described, the tag receipt takes the place of the sales ticket; but in many stores it is considered best to send the sales ticket with the package.

When the shipping clerk receives the record sheet from the office, he checks the items against his delivery books and enters the route number and driver's number. As described, each driver's stubs and returned packages are first checked against his delivery sheet; all stubs are then checked against the record sheet, which makes a double check in the shipping room. If a package is refused it is returned either to the department or the general stockroom, and a receipt obtained on the back of the tag. The shipping clerk then returns the record sheet to the office, with the money collected and the tags representing refused packages.

Sales tickets and cash are turned over to the cashier, while tags and sales slips of refused packages are sent to the auditor. The auditor can check both the cash collected on C. O. D.'s and returns against the duplicate sales tickets in his possession.

=Undelivered Goods.= One of the annoyances met with in the delivery department of a large store is the difficulty in making deliveries because people are not at home. Unsuccessful calls are common, and while it is quite the general custom to leave packages with a neighbor, it is not always possible to do this, which means that the package must be returned to the store. And it frequently happens that this brings forth a vigorous complaint from the customer, who is positive that the delivery could have been made.

One merchant has found a simple solution of this difficulty, which could be adopted with profit by all merchants in large cities. Drivers are supplied with slips printed as shown in Fig. 25. When no one is found at home, one of these slips is filled out and left in the mail box. It shows the date, time of day, name of driver, and name of person with whom the package has been left. The use of this slip eliminates complaints and proves a great convenience to the customer.

When undelivered packages are returned to the store, and nothing is heard from the customer within 48 hours, a postal card notice, Fig. 26, is mailed to the customer. Frequently, failure to deliver is due to the wrong address, but even if the correct address is not found in the directories, the postal authorities usually succeed in locating the customer.

=Special Deliveries.= Every store, especially in large cities, finds it necessary to make special deliveries. The customer from out of town, or about to leave town, wants a package delivered before a certain hour; the delivery may be to a depot, hotel, office, or even a residence. These are the deliveries which cannot wait for the regular trip of the wagon, but are sent by a boy. The important thing, so far as the delivery department is concerned, is to get them out on time.

Fig. 27 shows a tag for special deliveries, used by a clothing house. The tag shows the name and address of the customer, with full particulars of the time and place of delivery. At the end is a perforated stub on which the delivery instructions are repeated. When the tag is attached to the package by the sales person, the stub is torn off and sent directly to the shipping room. The shipping clerk is then on the lookout for the package, and is expected to follow up the proper department, which in this business usually is the tailor shop.

Another form of special delivery tag used by a department store is shown in Fig. 28. This tag gives more detailed information about each step taken, showing the names of all persons handling the package, and the time at which it is handled by each.

When the delivery system of a retail store is studied, it is found to be made up of simple methods, which are assembled to make a complete machine, A noticeable feature of the entire system is that the apparently insignificant details--the little things--are its most important parts; which is true of all systems.

CORRESPONDENCE AND FILING