The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1917-07-19
ECONOMY IN
DELIVERY SERVICE
CONTINUED from First Page)


had to make a second trip to bring Il
back. Obviously the packing and de-
livery of these four tumblers cost
more than what the store received
for them. This is not an extreme case
but a typical example of what is TAX
ing place every day in thousands Of
stores, resulting in the employment
of men and equipment that are greatly
needed elsewhere.
To a great extent, however, the
stores themselves are at fault for the
large number of small packages de-
livered. They have not sought to
encourage customers to take pack
ages with them. nor have they prop
erly endeavored to facilitate the rapid
serving of customers.
In department stores and speciality
dry goods stores. delivery expenses
as well as other expenses are heavily
increased by a large percentage of
goods returned. In stores from which
we have gathered information these
returns vary from 4 to 80 per cent
of the total sales. In a store in which
the average cost per package deliy-
cred is Is cents, rs per cent of the
goods are returned. There are very
few large stores in which the returns
are less than IL per cent. while Is
per cent and 20 per cent is common.
In a typical store having total an
nual sales of about $4,000, 900, investi-
cation by the manager showed that
returned goods amounting TO 20 per
cent of the sales involved an expense
Of $4,000 in their office, plus 500, 900
in packing and $4,000 in delivery.
In addition to this expense there is
extra cost because of large invest
ment in stock and especially because
Of a heavier sales force expense. The
sales-force expense is the largest sim
gle item in retail stores, and obviously
it costs just as much to sell merchan-
disc that is subsequently returned AS
to sell merchandise that is retained.
Our investigation, therefore, clearly
indicates that large economies could
be effected in the delivery service of
retail stores. thereby releasing men
and equipment for the government
service, or for important work else
where, and also effecting a reduction
Of great ultimate value to the Gus
toner.
We recommend that in each retail
store not more han one delivery Il
day should be made on each route.
This is a simple concrete recommen-
dalton that is thoroughly practicable
IL should be put into effect immedi-
ately. The saving will be very large.
We further urge that the acceptance
of returned goods be reduced to an
absolute minimum, and that all nom
essential operations be eliminated.
The widespread introduction of CO.
operative or central delivery systems
in the small cities and towns should
prevent much waste. Such a system
results in saving at least 40 or so per
cent OF the delivery cost.
These changes in delivery methods
should be introduced as early as prac-
ticable-not later than August ! next.
Please let us know on or about that
date what results shall have been ac-
complished in your State.
The commercial economy board of
this council Is bringing this matter to
the attention of commercial organiza-
tions through chambers of commerce
in the United States. and it Is our
hope that you may find these bodies
In your State ready to second your
initiative in securing this very i'm
portant reform.
Yours very truly,
w. s. CLIFFORD, Director.
GEORGE f. PORTER,
a - ~-44~~ - ~ -. orotslz nth