HANDLING ORDERS

A. INTRODUCTION
The progress of a company is heavily influenced by its ability to sell their
products. Therefore, sales activity is a very important activity in company, so the
sales department is often referred as the spearhead for a company to achieve the
sales targets that they have set. Sales activities begin with the order from the
customer that is received by sales department. Purchase order submitted by the
customer to the seller is usually called sales order. Company sales activity might
be done in cash or credit. Cash sale transaction will result in the transfer of the
goods sold to the customer and make an impact to the cash receipt from the
customer. Credit sales transaction will result in the goods sold transfer to the
customer and will make a receivable to the customer. Sales Order Department is
the first department which handles the order from the customer either in cash or
credit, because it needs a very good handling so it could give a satisfaction to the
customers and they will be a loyal customer.
In sales order handling the company needs a procedure used as a guideline.
Procedure is a sequence of administrative activities that involve some people in
one or more department, which is made to ensure the same handling to the
company transactions that occur repeatedly.
Handling order is very important because this could make a first
impression for the customer and give them an image about how our service is,
how do we strive to give the best service for customer, and in handling orders we
ensure the customer that orders is a form of confirmation for the products
availability along with payment and delivery procedures.

B. WHAT DOES IT MEAN BY HANDLING ORDERS

Handling Orders processes are responsible for accepting and issuing orders.
They deal with pre-order feasibility determination, credit authorization, order
issuance, order status and tracking, and customer notification on order completion.
In addition to providing helpful organization for a manufacturing company's order

1
fulfillment process, order management can also describe the electronic systems
that help securities and commodity brokers accept and fill orders placed in those
markets by customers.
(https://www.tmforum.org/Browsable_HTML_Frameworx_R14.5/main/etomproce
ss120.htm. accessed on Sunday, April 11th 2016 at 14.20 PM)

C. HANDLING ORDERS
1. Acknowledging an Order
As soon as an order is received, it should be acknowledged.
Acknowledgement letters are important as they allow others to know that you
apreciate their time and opinion. They effectively communicate your input to
necessitate further action. They confirm and clarify and build goodwill and trust.
Writing Acknowledgement Letter is important as mentioned above. And to know
what to write and how to write makes the importance of these letters two fold.
This letter can be quite short. (https://targetstudy.com/letters/acknowledgement-
letter/how-to-write-acknowledgement-letter.htm. downloaded on Sunday, April
11th 2016 at 12.30 PM)
Acknowledging an Order is sent to inform the customers that their order has
been received and whether their order is accepted or refused.

a) Accepting Orders
The letter of accepting order is a formal way of communicating your
acceptance. This could be for an accepting an order, interview, a job, an invitation
or any other situation which calls for your answer. It is a polite and graceful way
of acknowledging something which has come your way. Writing acceptance
letters to give your confirmation may be mandatory in some cases.

2
 Example of The Letter :

Satex S.p.A
Via di Pietra. 006146 Roma
Telephone : Roma 769910 Telex : 324455

Mr. L Crane Your Ref : Order

DR4316 Our Ref : D/ 1140
Sales Manger
F. Lynch & Co. Ltd.
Newell Street
Birmingham B3 3EL 15 March 1984
UNITED KINGDOM

Dear Mr. Crane,

Thank you for your order No. DR 4316 which we received today.

We have all the items in stock and shall send them tomorrow by AMRIC road
service.

You should therefore receive them in seven days.

Yours sincerely

D. Causio
D. Causio
Sales Manager

Here are some more examples of the (body of) letter :

a) Thank you for your order No. 338B which we received today. We are now
dealing with it and you may expect delivery within the next three weeks.
b) Your order, No. 6712 is now being processed and should be ready for
dispatch by next week.

3
 c) We are pleased to say that we have already made up your order
No.99011/5 of 50 canteens of silver line cutlery, and are now making
arrangements for shipment to Lagos. (Hariyanto, Sugeng. 2006. English
Business Correspondence. Yogyakarta. Kanisius ).

Below is a simple guideline on how to acknowledge an order (Accepting):

a. Opening
The first paragraph of an acknowledgement letter mentions what is being
acknowledged. It can be the acknowledgement of a bill payment, donation
payment, job application, course application and so on. The sender of the
letter informs the recipient that he has received the concerned
document/letter/payment and expresses his gratitude.
b. Content
The second paragraph of the acknowledgement letter is the body of the letter
where one describes the object of acknowledgement in more details.
c. Closing
This is the closing paragraph of the acknowledgement letter and it
summarizes the whole letter. The sender thanks the recipient and once again
acknowledges the application or payment. He also gives any contact number
or address where the receiver can contact him in the future if required.

b) Refusing Order
Some orders must be refused. It may be the policy of your organization to
sell only through dealers. Or the customer's account may be in unsatisfactory
condition for you to ship the merchandise on credit. Whatever your reason, you
must be polite, the words reject and refuse have a negative tone to them, and it is
better to use decline or turn down instead. The language of such letter must be
courteous enough to refuse the customer. There should be positive approach so
that goodwill is not hampered. There are many reasons for refusing an orders such
as :

4
1. Out Of Stock
You may be out of the product ordered, or indeed you may no longer
make it. Note that, in either case, you have an opportunity to sell an
alternative product, but remember not to criticize the product you can no
longer supply.
Examples of language expressions:
a) We are sorry to say that we are completely out of stock of this item
and it will be at least six weeks before we get out next delivery. But
please contact us then.
b) We no longer manufacture this product as demand over the past
few years has declined.
c) Thank you for your order for heavy duty industrial overalls but
unfortunately we have run out of the strengthened denim style you
ask for. as you have particularly requested only this materials. We
will not offer a substitute but hope we will get delivery of a new
consignment within the next two months. We hope you will
contact us then.
d) We received your order for ACN adaptors today. But regret that
you due to a strike at the ACN factory we are unable to fulfill the
order, we realize that other models will not suit your requirements.
Hopefully the dispute will be settled soon so that we will be able to
supply you. You can rely on us to keep you informed of the
developments.

5
Example of the letter :

Beverage Hill Co. Ltd.

Gajipur Main Road, Gajipur

Mr. P. Gwent
Sales Manager
Proctor Food Ltd.
20 Dhanmondi, Dhaka-1417.
15 March 2014
Sub: Refusal of Order No. KV31/04

Dear Mr. Gwent,

Thank you for your order No: KV/31/04 dated 10 March 2014 for 2.000
packets of Apple Juice @ Tk. 100 per packet on or before 20 March 2014.

We are sorry to say that we are completely out of stock of this goods and it
will be at least one month time. But please contact us then.

Yours sincerely
L. Crane
L. Crane
Sales Manager

2) Bad Reputation
The customer may have a bad reputation for setting their accounts. Sales
service which could in turn affect you reputation.

Example of Language Expressions:

a) We would only be prepared to supply on a cash basis.
b) We only supply on payment against pro-forma invoice.

6
Example of the letter :

Axlepro Company
Nesson House, Newell Street, Brimingham B3 3EL
Telephone : 0212366571

Mr. W. Taylor
Sales Manager
Zoom Motors
17, Jackson Street
LOS ANGELES 20 March 2014

Dear Mr. Taylor,

Thank you for your order No: 68/ GT dated 9 March 2014 for requesting an
extension of your credit for the payment of $100,000 against 20.000 spare parts
supplied in November 2014 for a duration of three months.

We regret to inform you that under the current situation of the economy, we
would only be prepared to supply on a cash basis.

As soon as the economy shows an upward trend, we will resume our credit
policies as earlier.

Yours sincerely

M. Jacob
M. Jacob
Sales Manager

3) Unfavorable Terms
The supplier may not like the terms the customer has asked for, either
for:
Delivery :
a) Delivery could not possibly be promised within the time given
in your letter.

7
 b) Two months must be allowed for delivery, as we ourselves
have to get materials and rely on our own suppliers.

Example of the letter :

Wrist Ltd.
59 Riverside, Cardiff CFI 5JW
Telephone : 02221 49721 Telex : 881821

Mr. L. Franksen
L. Franksen PLC
Prince Wales Road
Sheffield S9 4EX
UNITED KINGDOM
24 May 2015

Dear Mr. Franksen,

Thank you for your order No. C876-DD for 125 Wrist Watches.

Unfortunately, delivery could not possibly be promised within the time given
in your letter because our supplier can not supply the material this month.

If there is any other way in which we can help, do not hesitate to contact us
again.

Yours sincerely

N. Bishkin
N. Bishkin
Sales Manager

Discount :
a) Would be uneconomical for us to offer our products at the
discount you suggest as we work on a fast turnover and low
profit margins.
b) The unusual trade discount is 15% in this, which is 5% lower
than the mentioned in your letter.

8
 c) The discount you asked for is far more than we offer any of
our customers.

Example of the letter :

SP Wholesalers PLC
Old Meadow Road, Kings, Lynn, Norfolk P30 45W
Telephone : Kings Lynn 60841 Cable : SPOLE Telex : 351214

Mr. E. Cower Ref : DY/MK

Marketing Manager
Rhuddlan Ltd.
St. Asaph
Clyd LL17 ORN 7 May 1984

Dear Mr. Cower,

Thank you for your order No. HU 14449 which we received today.

Unfortunately, we do not feel that we can offer the trade discount which you
have asked for, viz. 35% as we only allow a 25% trade discounts to all our
customers regardless of the quantity they buy. Our prices are extremely
competitive and it would not be worthwhile supplying on the allowance you
have asked for.

Therefore, in this instance I regret that we have to turn down your order.

Yours sincerely

D. York
D. York
Sales Manager

9
 Payment :
a) The only accept payment by letter of credit.
b) We never offer quarterly terms on initial orders, even to
customers who can provide references. However, we might
consider this short of credit once we have established a trading
relationship.
c) Our company relies one quick sales, low profit, and a fast turn
over, and therefore we cannot offer long term credit facilities.

Example of the letter :

K. Winford & Co. Ltd.

Preston New Road, BlackPool, Lancashire, FY4 4CL
Telephone : 025361290102

Mr. J. Orvill
Orvill & Son Ltd.
Arch Trading State 8 August 2015
Wetherby
West Yorkshire LS24 8EG

Dear Mr. Orvill,

Thank you for your order No. CG2885 dated 3 August 2015 which we
received today.

We regret to inform you that we are unable to extend any more time for payment of
the orders. Our company relies on quick sales, low profit, a fast turnover, and
therefore we cannot offer long-term credit facilities.

If there is any other way in which we can help, do not hesitate to contact us again.

Yours sincerely
K. Winford
K. Winford
Marketing Manager

10
4) Size Of Order
The quantity required might be too large or too small.

Example of Language Expressions :

The quantity required might be too large :
a) We are only a small firm and could not possibly handle an
order for 20.000 units.
b) Our factory does not have facilities to turn out 3.000 units a
week.

The quantity required might be too small :

a) We only supply orders for ball pens by the gross, but suggest
you try a stationary whole seller rather than manufacturer.
b) The shirts we manufacture are sold in one color and buy the
dozen. We never sell individual garments.
c) Our factory only sales material by 30 metre rolls which cannot
be cut up. (Hariyanto, Sugeng. 2006. English Business
Correspondence. Yogyakarta. Kanisius )

11
 Example of the letter :

Panton Manufacturing Ltd.

Panton Works, Hounslow, Middless, TW6 2BQ
Telephone : 3530215 Telex : 21511

Mr. B. Hass
Hass Corporation
Heldringstraat 180-2 22 May 1012
Amsterdam 1007
NETHERLANDS

Dear Mr. Hass,

Thank you for your order No. SA880 dated 18 May 2012.

We are sorry to say that we are unable to process your order for the couple
shirts. The shirts we manufacture are sold in one color by the dozen. We
never sell individual garments.

Therefore, in this instance I regret that we have to turn down your order.

Yours sincerely

D. Panton
D. Panton
Marketing Manager

Below is a simple guideline on how to acknowledge an order (Refusing):

Refusing orders call for the indirect plan with the bad news in the
middle. Use the following outline for these letter :
a. Opening
In the opening you must start with a Buffer. Thank the customer
for the order, and repeat the details.

12
 b. Content
In the content, give an explanation. In a positive way, tell why you
cannot complete the order and stress what you can do, along with
the advantages to the reader. Offer to help the reader in any way
you can give the name of the nearest dealer, explain credit terms, or
offer an alternate solution.
c. Closing
End with a Buffer. Resell your organization and your products.

2. Advice of Dispatch and Advise Note

a. Advise of Dispatch
Advice of Dispatch is information by a supplier to the customer that the
ordered goods are ready to be shipped, or have already been shipped. The supplier
also can use an Advice Note to inform the shipment to customer.
Example of Language Expressions :
a. Your order, No. D/154/T, has now been placed on board the SS Moitsu
Maru sailing from Kobe on 16 May and arriving Tilbury, London, on
11 June. The shipping documents have already been sent to your bank
in London for collection.
b. We are pleased to advice you that the watches you ordered
No.8151/24-11.09 August arriving Manchester 13.00 P.M. please find
enclosed air waybill DC 1516/3 and copies of invoice A13/3.
c. Please be advice that your order, No. YI/151/C, has now been put on
the Glasgow-London express and can be collected at Euston station .
enclosed is consignment note No. 167153 which should be presented on
collection. You should contact us immediately if any problem arise.
Thank you for your order and we hope we can be of service in the
future. (Hariyanto, Sugeng. 2006. English Business Correspondence.
Yogyakarta. Kanisius ).

13
 Example Advice of Dispath :

Satex S.p.A
Via di Pietra. 00146 Roma
Telephone : Roma 769910

Mr. L Crane. Chief Customer Your Ref : Order DR4316

F. Lynch & Co. Ltd. Our Ref : D/ 1140
Nesson House
Newell Street
Birmingham B3 3EL
UNITED KINGDOM 29 March 1984

Dear Mr. Crane,

We would like to advise you that your order has been shipped on the SS
Marconissa and should reach you within the next ten days.

Meanwhile our bank has forwarded the relevant documents and sight
draft for 2.345 to Northminster Bank (City Branch) Birmingham.

We are sure you will be pleased with the consignment and look forward
to your next order.

Your sincerely

D. Causio
D. Causio
Sales Manager

b. Advice Note
Advice note is an official business document that is used by companies
(sellers) to inform their customers that their goods have been dispatch, they
should expect them within certain specified dates. The note contains the dispatch
and delivery dates and an acknowledgement of the importance of the transactions

14
between the two organizations in trade. It lists the description, grade, and quantity
of the goods delivered.
Example of Language Expressions :
a. We are pleased to inform you that your goods were sent today.
b. We hereby inform you that your goods will be delivered tomorrow.
c. The following consignment has been sent to you by sea today.

Example of Advice Note :

ADVICE NOTE
Imperial Watches Co. Ltd.
159 Okubo 3 Chome, Shinjukuku, Tokyo 160

To : Mr. Garvey The following consignment

Time Master Ltd. has been sent by sea today.
Garden Plaza, 4 Th floor, Suite 453 Please confirm receipt and
Jubilee Road, Chitagong quote consignment note
Banglades No. 81756 915

Your Order No. IW-543

Quantity Goods (Description) Price

1000 Imperal Watch, IW 145/K @ $100.00
500 Lady Imp. Watches, LIW05/L @ $125.00
Total $ 162,500.00

Comments : Paid on Pro Forma Inv. B317. 29 June 2004

15
D. CONCLUSION
Handling Orders processes are responsible for accepting and issuing orders.
As soon as an order is received, it should be acknowledged. Letter of
acknowledging order can be quite short. Acknowledging an order consist of
accepting order and refusing order. The letter of accepting order is a formal way
of communicating your acceptance. And the letter of refusing order when some
orders must be refused. There are a number of reasons for a firm refusing and
orders such as out of stock, bad reputation, unfavorable term, and size of order.
Advice of dispatch is information by a consignor or supplier to the
consignee or customer that the ordered goods are ready to be shipped. The
supplier also can use an Advice Note to inform the shipment to customer.

E. BIBLIOGRAPHY
Hariyanto, Sugeng. 2006. English Business Correspondence. Yogyakarta.
Kanisius.
https://www.tmforum.org/Browsable_HTML_Frameworx_R14.5/main/etomproce
ss120.htm. accessed on Sunday, April 11th 2016 at 14.20 AM.
https://targetstudy.com/letters/acknowledgement-letter/how-to-write-
acknowledgement-letter.htm. accessed on Sunday, April 11th 2016 at 12.30
PM.

16