6z

6z
6z
p LAc t NG A N o R D E R
Op e n ing
Payment
o
r.t
6z Discou nts o-
6z
6z
Delivery
Methodsof delivery o
63 Pa c k in g
63 C los i ng tn
-
fi Ac KNow lE D G TN c A N oR D E R
63 ADV Tc Eo F D E s P A Tc H
64
65
66
67
68
69
7o
71 DE LAY S tN DE LTV E RY

71 RE FU STNC A N O RD E R

71 Out of stock
j2 B adreput ati on
72 U nfavourable t erms
72 S izeof order
73
14
75 Pointsto remember
o PL A CI NGA N OR DE R D i sco r rr rt s
T'
o Ordersareusually written on a company's Confirmthe agreeddiscounts.
official order form >seepage65 for an example - Wewould like to thank youfor the 3o%
which has a date and a referencenumber that tradediscountand to% quantity discount
shouldbe quotedin any correspondence you allowedus.
referringto the order.If the orderis - Finally,wewould liketo confi.rmthat the
telephoned,it should be confirmed in writing, z5%trade discount is quite satisfactory.
and an order form should always be - .. . and we wiII certainly take advantageof
accompaniedbyeitheracoMpLlMENrs sLrp thecashdiscountsyouofreredforprompt
oracovxRlNcLErrER.Acoveringletteris settlement.
preferable as it allows you the opportunity to - Although we anticipated a higher trade
make any necessarypoints and confirm the discountthan ry%,we wiIIplacean initial
termsthat havebeenagreed. orderandhopethatthediscountcanbe
The guide below is for an outline of a reviewedin the nearfuture.
covering letter. You may not want to make all
the points listed,but look throughthe guideto
Deliver v
seewhat couldbe mentioned.
Confirm the delivery dates.
- Itis essentialthatthe goodsaredelivered
Operr i ng
beforethe beginningof November,in timefor
Make it clearthat there is an order the Christmassalesperiod.
accompanying the letter. - Delivery beforez8 Februaryis afirm
- Pleasefindenclosedour OrderNo.a45ztfor z5 conditionof thisorder,and we reservethe
'Clearsound'transistor receivers. right to refusegoodsdeliveredafter that time.
- Theenclosedorder (No.nt54) isJor 5o packets - Pleaseconf.rm that you can completethe
of e4 copierpaper. work beforethe end of March, as the opentng
- Thankyouforyour reply of 4 May regarding of the store isplannedfor earlyApril.
our email about the mobilephones.Enclosed
you willfind our oficial order(No.a 56t)for ...
Mpthorlr of d e I ivt,r v
- I would like to place a trial orderfor the
'Letherine'materialwedtscussed at the trade Many companiesuseronwARDrNG AcENTS
showlastmonth.Please find enclosed.. . Dseepager99who are specialistsin packing
and handling the documentation to sn r p
p.ry rrrr.. t goods.Nevertheless, to ensureprompt and safe
delivery it is a goodideato advisethe company
ConfirmtherxRMSoF pAyMENr. onhowyouwantthegoodspackedandsent.
- As agreedyouwill draw on us at 3o days,D/A, This meansthat if the consignmentarrives
with the documentsbeingsentto our bank, Iate,or in a damagedstate,your letter is
TheNational MercantileBank ... evidenceof the instructionsyou gave.
- Wewould liketo confirm that payment is to - ... and pleaserememberthat only airfreight
be made by irrevocableletteroJcredit,which wiII ensureprompt delivery.
wehavealreadyappliedtothe bankfor. - PleasesendthegoodsbyexpressJreightaswe
- Oncewe have receivedyour advice,we wiII needthem urgently.
senda bank draft to . . . - Weadvisedelivery by road to avoid constant
- ... and we agreedthatpaymentswould be handling of thisfragile consignment.
madeagainstquarterlystatements... - Couldyou pleaseship by scheduledfreighter
to avoid any unnecessarydelays?

6z
P a c ki n g A Dv rc Eo F DE s P A T c H 3
q
5
Advise your supplier how you want the goods When the supplier has made up the order and
packed.Note,in the first example,that crates arrangedshipment,the customeris informed
are often marked with a sign - a diamond, a by means of an advicenote. This may be a form
target,asquare,alion, etc.-that canbe pageTo,letter,fax,oremail.
'see
recognizedbythesupplierand customer. Although an advicenote canbe sent byfax
- Eachpieceof crockeryis to be individually or email, the customer may need to present
wrapped in thickpaper,packedin straw,and original documents (e.g.rwvorc n, bill of
shippedinwoodencratesmarkedOand lading,rmsunANcEcERrrFrcarr)tocollect
numberedt to 6. the consignment.Of coursethesecannot be
- Thecarpetsshould be wrapped,and the faxed or sent by email.
packagingreinforced atbothendstoavoid - Yourorder,No.o/t54/r,is alreadyonboard
5
wear. the SSMitsu Maru, sailingfrom Kobeon t6
- Themachinesmust be weIIgreasedwithall May and arriving Tilbury,London, on n June.
movableparts securedbeforebeingloaded Theshippingdocumentshavebeen
into crates,whichshouldbeclearlymarked forwarded to your bank in Londonfor
with your castlelogofor easyidentification. colledion.
- Wearepleasedto adviseyou that the watches
youordered-No.88t5t/24-willbeonflight
Cfosing
s,a,t65leavingZurichat n.oo,9 August,
- Wehopethat this wiII be thefirst of many arrivingManchesterry.oo.Please find
ordersweplacewithyou. enclosedair waybill oc t5t6t/j and copiesof
- WewiIIplacefurtherordersif this one is invoice,an3fi,whichyouwillneedfor
completedtoour satisfadion. collection.
- If our salestargetsare met,we shall be - Yourorder,No.vt /t5t/c, is beingsentexpress
placingfurther ordersin the nearfuture. rail-freightand can be collectedafter o9.oo
- I lookJorwardtoreceivingyour advice/ tomorrow.Enclosedis consignmentnote No.
shipment/ acknowledgement / confirmation. n6V5j,which shouldbepresentedon
collection.Youshouldcontactus immediatelv
i f anyprob l em sari se' T hankyou fo r y o u r
A c KN owL EDG IN G A N oR D E R
order,and we hopewe can be offurther
As soonas a supplierreceivesan order,it serviceinthefuture.
shouldbe acknowledged.This canbe doneby
Ietter,or by email for speed' seepage66.The
following examplescan be usedin both emails
and letters.
- Thankyouforyour order No.g8e whichwe
receivedtoday.We are now dealingwithit
and you may expect deliverywithin the next
threeweeks.
- Yourorder No.67tz/t is now beingprocessed
and shouldbe readyfor despatchby the end
of this week.
- Wearepleasedto inform you that we have
already madeup your order,N o.99 ot / t / 5,for
5oo bed-Iinenpackets,and are now making
arrangementsfor shipment to Rotterdam,

6t
I

o
Placingan order:
Head Ofhcc
E cwering lcttcr
o , F. Lynch & Eo. Ltd NessonH ouse
F.Lynch& Co.have NewellS treet
decided to placean B;.minghan!
orderwith Satex5.p.A. 8J 3E L
>seeprevious
corespondence on Telephone,+44 @ )z t 216 657t
pages45and58andare Fax:+44 (o)21236 8592
sendinga coveringletter Lm,rr l p<rane@ lync hco,uk
with the orderform. r./'.vwlynch Conl

Your ref D/7439

Ourref: OrderDR4316

9 March 20-
o SatexS.p.A
g Via di Pietra Papa
o
q 00146Roma
E
!!
ITAIY
x
ul
Attn. Sig.D. Causio

DearSig.Causio

Pleasefind enclosedour official order,No.DR4316.

Forthis order,we acceptthe 15%trade discount you offered,and the terms
of payment (sight draft, CAD),but hope you are willing to reviewthese
terms if we decideto order again.

Would you pleasesendthe shipping documents and your sight draft to

Northminster Bank (City Branch),Deal Street,Birmingham 83 1SQ.

If you do not have any of the items we have ordered currently in stock,
pleasedo not send alternatives.

We would appreciatedeliverywithinthe next sixweeks, andlook forward

to your acknowledgement.

Yourssincerely

Peter Cranp
PeterCrane
ChiefBuyer

Enc.OrderNo.DR4316

E1 Onwhosetermsare lf anyof the sweaters Howsoondo they

g F.Lynch& Co.paying? theyhaveorderedare wantthe sweaters?
I3 out of stock,would
c/ theyaccept
alternatives?

64
 OrdcrfiCIfilN o
CL
HeadOffice o
F, Lynch & Eo. Ltd NessonHouse Thisis F.Lynch& Co.l
orderform.
NewellStreet
B i r mi ng ham
83 3E r

Telephone:+44 @lzt 46 657l

Fax:+44 (o)zr2368592
Email:pcrane@lynch.co.uk
www lynch com

Orderno. DR4315
SatexS.p.A
Via di Pietra Papa
00146Roma m
ITATY Aut'horized x0,
3
T'
?eter (ta*tp o
ID

o.
o

Quantlty Itemdexrlption Cat.No. Prkc(ClFtondon) e

3
50 V-neck:30 red + 20 blue R432 f30.80 each

30 Roll neck 15black + 15blue Nr54 f20.40 each

30 Crewneck:15green+ 15beige N157 f23.00 each

40 Crew neck:pattern R541 f,25.60each

Note: Subjectto 5%quantity

discount

comm€nts L5%TradeDisc.allowed. Pytnt. C/D Del.6weeks

Dete 9 March 20-

I I n t h e e m a on
il Whichreference Bywhen shouldthe rO
g
page45,MrCrane the
identifies order be delivered? o
suggestedthat he sweaters? lf F.Lynch& Co.have o
might placeordersfor =
Whatsortof fu rthercorrespondence
over5oosweaters, havebeen
discounts with Satexon this
butthis orderisfor agreed? order,what reference
onlyr5o.Whydoyou would they use?
think it is relatively
sm a l l ? 6S
 Adnowlcdging
en ordcr
Satexwill now prepare
tlrCrane'sorder,but in
the meantimethey
enrailhimto let him
lnow that the orderhas
beenreceived.

DearMr Crane
=
a
E Thankyoufortheaboveordelwhichwe arenowmakingup.Wehavealltheitemsin stock
a andwilladviseyouaboutshipment
in thenextfewdays.
!
B
E
a DanieleCausio
E. SalesDirector
SatexS.p.A.
Viadi PietraPapa,00146Roma
Telefono:+3906 769910
Telefax:+3906 6815473
Email:causiod@satex.co.
it

6
 Adviceof despatch o
e
o
Thisemailmessage I

confirmsthat Satexhave
senttheorder.When Mr
Cranereceives theemail,
the Northminster Bank
w i l li s su eaor srr
au rH on rrvw, hi ch
allowsthemto debit
F.Lynch& Co.'s account.
Th es hi ppi ng docume nt s
YourOrderDR4316 willthenbesentto
F.Lynch& Co.,sothat the
goodscanbecollected, 5
Dear Mr Crane Remember,this wasa
crr transaction where tn
x
't{e are pleasedto tell you that the aboveorder has been shippedon the SS Marconissa and
paid
the supplier cost, l,

sfrouldreachyou in the next 10 days. insurance, andfreight,

3
Eo
andon a documents o
ilrleanwhile,
our bank has forwardedthe relevantdocumentsand sightdraftfor t3,092.80,
againstpaymentbasis. 3
uhich includesthe agreedtradeand quantitydiscounts,to the NorthminsterBank (City E.
Branch)Birmingham.

\4/eare sureyou will be very satisfiedwith the consignmentand lookfonrvardto your next
order.

Bestwishes I
DanieleCausio
SalesDirector
SatexS.p.A.
Via di PietraPapa,00'146
Roma
+39
Telefono: 06 769910
Telefax:+39 06 6815473
Email:causiod@satex.co.it

6t
 6

o
Placingan order
T'
o Th isemailandthenex t
onefollowon from
previouscorrespondence
>seepates44 and56.
Therearethreeoarties
involved:
the
manufacturers,Glaston John Merton
Potteries;the
buying
agents,Sanders & Lowe;
andtheirprincipalsin
Canada,MacKenzie Bros.
Here,Ms Loweiswriting
5 on behalfofher
principals
and
forwardingtheir order.
G
E Noticethe instructions
o 1432
o shegivesandnoticethat
E shehasalready phoned
E
G GlastonPotteriesto DearMr Merton
x
lll agreetermsof payment,
whichwerenot Pleasefind attachedan order (R1432)from our principals,MacKenzieBros Ltd,
mentionedin theirletter 1-5 WhaleDrive,Dawson,Ontario,Canada.
on page56.
They haveaskedus to instructyou that the 60 sets of crockeryorderedshouldbe packed
in 6 crates,10 sets per crate,with each pieceindividuallywrapped,and the cratesmarked
clearlywith their name,the words 'fragile'and 'crock ', and numbered1-6.

They haveagreedto pay by letterof credit,which we discussedon the phonelastweek,and

they would likedeliverybeforethe end of this month,which shouldbe no problemas thereare
regularsailingsfrom Liverpool.

lf the coloursthey havechosenare not in stock,they will acceptan alternativeprovidedthe

designsare those stipulatedon the order.

Pleasesend any furthercorrespondencerelatingto shipmentor paymentdirectto MacKenzie

Bros,and let us havea copyof the commercialinvoicewhen it is made up.

Manythanks
LindaLowe

Whatinstructions 3 Whyshouldthere 5 Sanders&Lowehave 6 Whic hwor ds inthe easilydamaged

o havebeengiven beno problemfor completed theirjob, e ma il hav ea s imila r or broken
Cl aboutpacking? GlastonPotteriesto whichwastofinda mea ningto the d stated
=
orz Whatmethodof deliverwithinfour supplier.
Sowho must following? e completed
paymenthasbeen weeks? GlastonPotteries a cupS,saucers,
arranged? 4 Willsubstitutes be writetonow? plates,etc.
b large,wooden
acceptable if Glaston
boxes
Potteriesareout of
68 stockof anyitems?
 Adviceof despatch o
e
o
GlastonPotteries have 5

madeupth eM a cK e n zi e
orderandnowadvise
themofdespatch.
MacKenzie Broswill
already haveopeneda
letterof credit>see
pager55at theirbank,
T heC anadi aUnn i o n
TrustBank,in favourof
GlastonPotteries.The
C anadi an ban k wi lnl o w
wait untiltheyhave
Dear Mr MacKenzie confirmation of
shipment fromtheir tn
-he aboveorder has now been completedand sent to LiverpoolDocks,where it is awaiting x
q,
agentsin England,
@ding on to the SS Manitoba,whichsailsfor Dawson,Canadaon 16 Julyarriving30 July. Burnley CityBank, and
3
It
,$lhenwe havethe necessarydocumentswe will transferthem to BurnleyCity Bank,your willthentransfer the o
o
mnk's agentshere,and they will forwardthem to the CanadianUnionTrustBank. moneysothat Glaston 3
t
Potteries canbepaid.
'rrfehavetaken particularcareto see that the goods havebeen packedas per your
the six crateshavebeen markedwith your name,and numbered1-6. Each crate
nnstructions:
measures6ft x 4ft x 3ft and weighs5 cwt.
lrllbmanagedto get all itemsfrom stockwith the exceptionof Cat. No. G'l 6, which is only
arrailablein red, but we includedit in the consignmentas it was of the designyou askedfor.

llfyou need any further information,pleasecontactus. Thankyou very much for your order.

We lookforwardto hearingfrom you again soon.

John Merton
SalesManager
Gl otteriesLtd
Cl B ur n l eyB B 1 0 1 R Q
rer +44 (0)128246125
Fax'.+44 (0)128263182
Email: j. merton@glaston.co.uk

H o w w i l l t he 3 Whatwill happento 4 WhatdidGlaston 5 Whichwords in the rO

tr
consignment besent? thedocuments once Potteriesdo about emai l havea sim il ar o
6

GlastonPotteries the itemtheycould meaningto the f.

Whenisit dueto o
receive
them? notsupply? following? =
arrivein Canada?
a essential
b forwarded
c in accordance with
d apart from
69
 o
D E L AYSIN DE T I VERY CL
o
If goodsareheld up either beforeor after Youmay be out of stockofthe productordered,
they are sent,you must keepyour customer or you may no longer make it. Note that, in
informed.Statewhat has happened,how it either case,youhavean opportunityto sell an
happened,and what you are doing to put alternative product seepage48,but
things right In thesecasesthe speedof email remembernot to criticizethe productyou can
is very useful.If email is not available,then fax no longer supply.
or cableshouldbe usedasthe sooneryour - Wearesorryto saythat we arecompletelyout
customeris informed,the soonerthey cantake of stockof thisitem and itwillbe sixweeks
action.It is a goodideato keepcopiesof any beforeweget our next delivery,but please
messagesyou sendabout delays. contactusthen.
- I wassurprised and sorryto hearthat your - Weno longermanufacturethisproduct as
consignment (OrderNo.n45) had not demandoverthepastfewyearshasdeclined.
5
reached you.On enquiryIfound that it had - Thankyoufor your orderfor heavy-duty
beendelayedby a localdisputeon the cargo industrialoveralls.Unfortunatelywe have
vesselSSHamburg on which it had been run out ofthe strengtheneddenim styleyou
Ioaded.Iam now trying to get thegoods askedfor.Asyou particularlyspecifedthis
transferredto the SSSamoa,which is material,wewill not offera substitute,but
scheduledto sailfor Yokohamabeforethe end will inform you immediatelywe receive
of next week.I shall keepyou informed. deliveryoJa newconsignment.This willbe
- I amwriting totellyouthat unfortunately within the next two months.
therewill be a three-weekdelayin delivery. - Wereceivedyour orderfor ACNdynamos
Thisis due to afire at our Greenfordworks today,but regretthat due to a strikeat the
which destroyedmostoJthe machinery.Your ACNfactory we are unabletofulfl it at
orderhasbeentransferredto our Slough present.Weareawarethat other modelswill
factory and wiII beprocessed thereassoonas not suityour requirements, but hopethat the
possible.I apologize for this delay,which is disputewiII besettledsoonand that wewill
due to circumstances beyondour control. beableto supplyyou. Wewill keepyou
- Weregretto inform you that there will be a informedof developments.
delayin gettingyour consignmentto you
Thisis due to the cut in suppliesfrom Gara,
where,asyou may be aware,civil war broke
out last week.Wehavecontacteda possible
supplierin Lagosand he wiII let us know if he
can help us.If you wish to cancelyour order,
pleaselet us know as soonaspossible.
However,I think y ou willf nd most
manufacturersareexperiencingthe same
dtficulties at present.

R E F U S IN GAN O RDE R

Thereare a number of reasonsfor a company

to refusean order,and someof the most
common are given below.Whateveryour
reason,you must be polite:the words reject
andrefusehave a very negative tone, therefore
it is better to usedeclineor turn down instead.

71
5

o 8a d r ep ut at i o n or payment:
!t - Weonly acceptpayment by letter of credit.
o The customer may have a bad reputation - Weneverofferquarterlytermson initial
for settling their accountsor,in the caseof a orders,evento customerswho canprovide
retailerof, say,electricalor mechanical references. However,wemight considerthis
products,may have offered a poor after-sales sort oJcreditoncewe haveestablisheda
servicewhich could in turn affect a trading relationship.
manufacturer's or supplier'sreputation. In - Our companyrelieson quicksales,lowprofi.ts,
thesecases,it is betterto indicateterms on and afast turnover,and thereforewecannot
which you would be prepared to acceptthe offer Iong-term creditfacilities.
order,or, as in the last two examplesbelow,
find a diplomatic way of saying'no'.
S i r e o f o r de r
- Wewould only beprepared to supply on a
5 cashbasis. The quantity requiredmight be too large:
- Weonly supplyon payment againstpro - Wearea small companyand couldnot
forma invoice. possiblyhandlean orderfor zo,ooo units.
- As thereis heavydemandat present,wehave - Unfortunately,ourfactory doesnot have
veryfew of theseproducts in stockand are facilities to turn out 3o,ooo units a week.
servingon a rota basis.Itis extremelyunlikely The quantity requiredmight be too small:
that we wiII be ableto deliverwithin the next - Weonly supplyordersforballpointpensby
fourmonths. the gross,and thereforesuggestyou try a
- As our plant is closingfor the summer
wholesalerrather than a manufadurer.
vacationwe would not beableto processyour - The shirtswe manufacture are sold by the
orderfor the dateyou havegiven.Therefore, dozenin one colour.I regretthat we neverseII
regretfully,wehaveto declineit. individualgarments.
- I am sorryto saythat we must turn down
- Ourfactoryonly sellsmaterial in 3o-metre
your orderas we haveJullorderbooksat rollswhich cannotbecut uo.
presentand cannotgive a definitedateJor
delivery.

Un fa v o u rab l e te rn rs

The suppliermay not like the terms the

customerhas askedfor, either for delivery:
- Deliverycannotpossiblybeguaranteed
wtthinthe time given in your letter.
- Two months must be allowedfor deliveryas
we are dependenton our suppliersforraw
materials.
or discount:
- Itwould be uneconomicalforusto ofrerour
produds at the discountsyou suggestas we
workon afast turnoverand lowprofit margins.
- Theusualtradediscountist5o/o in this
country which is5%Iowerthan thefigure
mentionedin your letter.
- Thediscountyou askedJorisfar more than
we ofer any of our customers.

72
 Delayin delivery o
CL
o
Pan ton M an u fa ctu r in g L td
Pan tonW or ks I Ho u n sl o w M i dci e se x ] r w 6 z ao *
FE NTtr N
rE LEP Ho N r + 4 4 @ ) zo 8 3 53c r z5
F Acs I M I r E + 44 @) zo 83 5 36 7 8 3
et" rar r d pa nto n@ pa n m an c o.u k

8 October20-
MrH.Majid
Majid Enterprises 5
Grant Road
Bombay m
x!,
INDIA
3
g
o
o
DearMrMajid o
I am writing to you concerning your order,No. CU1154/d,which you placed
four weeks ago.At that time we had expectedto be ableto complete the
order well within the delivery date which we gaveyou of 18June,but since
then we have heard that our main supplier of chrome has gone bankrupt.

trtwill be necessaryto flnd an alternative supplier who can fulf.I all the
outstanding contractswe have to complete.As you will appreciatethis will
take some time. but we are confi.dentthat we should be able to deliver
consignments to our customersby the middle of next month.

The units themselveshavebeen assembledand only needcompleting.

We regret this unfortunate situation over which we had no control, and
apologizefor the inconvenience caused.We will understand if you wish to
cancelthe order,but stressthat we are confident that we will be able to
complete delivery by the middle of next month.

Pleaselet us know your decisionas soonas possible.Thankyou for your

consideration.

Yourssincerely

D. Pantow
D.Panton
Managing Director

R eg,s 'i rei : ' 'l o E r g a nd

26 6.c

Why havePanton Whendotheynow Whatisthe'decision' with reference

to
Manufacturingnot expectthe orderto be referred
to in the last unableto payone's
completedthe order? completed? paragraph? debts
5
How do they intend CanMajidEnterprises Whichwordsin the certain
to overcomethe the orderif
cancel letterhavea similar put together
problem? e trouble
theywantto? m ea ni ntgo th e t
following? understanding

73
 5
R ef uri ngan orde r
!
!,
:]ETJ-XJ
o o g lX h G
! -l se nlg t ur0 F I
ttu
l fl oo t i o n s . fl
A ri a t -i 10 - o B r u E = =- ==

ro...
_I I Ericvan Gellen

OrderHU14449

Attn: Eric Van Gellen

'-
E
o
Thank you for your order,No. HU 14449,which we receivedtoday.Unfortunately, we cannot
g offerthe 35% tradediscountyou askedfor.25o/ois our maximumdiscount,evenon large
r
E orders,as our pricesare extremelycompetitive.Therefore,in this instance,I regretthat we
G
t!
x haveto turn down your order.

DenisYork
SP Wholesalersplc
King'sLynn,Norfolk
PE3O4SW
Tel; +44 (0)1553 60841
Fax:+44 (0)I 553 60923
Email:d.york@spw.co.uk

c WhydoesMrYork I Howdoes he I What isthe

refusethe order? generalizehis implicationof in this
refusal? instancein the last
sentence?

74