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CHAPTER XVI

GENERAL SUGGESTIONS

Advertising Department-Sales Department-Accounting

Department-Purchasing Department-Production Depart
ment-House Organ-Civic Development-Trade Associa-
tions-National Organization-Traffic Clubs-Conclusion.

The more important functions of the industrial traffic department have now been discussed in detail, but it remains to suggest the possibilities of this department's rendering service to other departments in the same industry.

ADVERTISING DEPARTMENT

The traffic manager is in a position to assist the advertising manager, or to pass upon advertisements in which the question of price to the consumer is raised. Not infrequently, advertisements offer "freight free east of the Rocky Mountains,' or a specified price will be mentioned as applying to that territory, and a different price to points west. "East of the Rockies," however, is a rather general designation; as a matter of fact, there are points west of the Rocky Mountains to which the rate from eastern producing points is less than the rate to points east. While undoubtedly purchasers in these western districts would, in the majority of cases, call the matter to the attention of the sales department, the effect of the state

ment in the advertisement is to prevent inquiries from bona fide customers who feel that they can purchase from a western jobber to better advantage than from the eastern manufacturer.

In the survey of sources of production and centers of consumption, the traffic man is in a position to develop questions of shortage and to recommend extensive advertising in areas where there is a shortage of his firm's product. Without such assistance, advertising men with little or no knowledge of local conditions or of supply or demand have sometimes tried to sell "coals to Newcastle."

SALES DEPARTMENT

In an earlier chapter we have seen what valuable assistance the traffic department can render the sales department in the preparation of sales charts and in furnishing field representatives with rate books. The effort is well directed and repays many times the expense it entails. The positive statement of a field representative that his prospective customer can obtain the goods for a specified price is much more convincing and satisfactory than to quote him "F.O.B. factory" or "F.O.B. shipping point" and to require him to guess at the probable amount of the transportation, charge.

ACCOUNTING DEPARTMENT

A carrier may undercharge as well as overcharge an industry. These errors are usually detected later and a duebill is rendered against the industry for the amount involved. The payment of the duebill of course requires an added item, or items, in the general books

of the organization. Virtually, this amounts to "making two bites of a cherry."

The careful auditing of freight bills before the bill is paid makes it possible for the accounting department to dispense with such additional entries.

If goods are sold on consignment, the proceeds of the sale, less freight and commission, are remitted to the consignor. It has been established in many cases, however, that if an undercharge is made and the railroad cannot locate the consignor, it may proceed against the consignee and recover the amount. Thus the industry suffers a clear loss which would have been avoided had competent traffic men been employed.

PURCHASING DEPARTMENT

By developing sources from which supplies may be obtained at the lowest cost to the industry, the traffic manager can render a valuable service to the purchasing department. By analyzing the bids secured from competitive interests from the standpoint of transportation, road-haul cost, and local transport charges, the traffic department is able to determine which of the bids, if quality be equal, it is most advantageous for the industry to accept.

In the case of imports, a study of the consular reports frequently opens up new available sources of supply if other fields have become depleted or are closed by the fortunes of war.

PRODUCTION DEPARTMENT

In the manufacturing end of the business a continued survey of the output of the plant should be undertaken

at the hands of the traffic department, having in view the standardization and condensation, thus reducing weight and bulk; two very essential factors in the aggregate transportation expense paid by an industry, to say nothing of the added expense incurred in packing articles of unnecessarily large size.

PASSENGER DEPARTMENT

Particularly in those lines of endeavor where there is a considerable out-of-town clientele who call on the firm or where a large number of salesmen are employed, the traffic department can be utilized to draw up itineraries, quote the time of arrival and departure of trains, procure tickets, and make berth reservations. This is a service that is appreciated by the firm's patrons and as concerns its salesmen, leaves high-grade men free from the petty annoyances of looking up these details which might better be handled by some junior clerk.

Many of the salesmen carry samples of more or less volume. In this connection it is a function of the traffic department to see that baggage is properly tagged and the requirements complied with. Very few people understand baggage regulations and rules and are, therefore, continually subjecting themselves to penalties. of various kinds. Many articles checked and carried in baggage cars should not be, and in consequence tariffs and laws are violated. There are many instances of loss on record where recovery could not be made for the reason that the contents have not been properly declared.

HOUSE ORGAN

Many of the leading commercial and industrial organizations have magazines or house organs which treat

the activities of the concern from both an external and an internal standpoint. The traffic manager can contribute to this publication interesting articles on happenings in the traffic world, suggestions for the improvement of service, information of value to the dealers, court decisions bearing on loss and damage issues, and the like.

CIVIC DEVELOPMENT

Many of the problems of development confronting the municipality resolve themselves into questions of transportation. The traffic manager should, therefore, be a member of the local chamber of commerce or similar development enterprises, or should appear before such organizations in order that they may benefit by his suggestions for the solution of local and national problems.

TRADE ASSOCIATIONS

Recognizing that "in union there is strength," the traffic managers of competitive industries engaged in handling the same lines of commerce have found periodical meetings of mutual benefit. Annual, semiannual, or quarterly meetings can be arranged at which classification problems, rate adjustments, and general transportation conditions can be discussed with the purpose of securing readjustments advantageous to all.

NATIONAL ORGANIZATION

Numerous national organizations are charged with certain phases of our industrial and commercial life.

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