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T0 DUPLICATE ORDER

7
SPRING BINDER

AADEINUSA.

 

 

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A PROPtBAL:
DIVISIONAI. DECEM’RAIJZATION OF A
(Roam! mncmmlsmo DEPARTMENT

BY
INTEGRATION OF THE BUYING AND
mCHANDISING FUNCTIONS

A Thesis
Presented to
Dr. Edward M. Bax-net.

Michigan State University

In Partial Fulfillment
of the Requirements for the Degree
Manor of Business Administration

by
“lur J. Stahl, Jr.

1960

ACKNOWLEDGEMENTS

'I" I

”33 writer wishes to express his appreciation to 1?. Edward A.
Barnet. His constant helpful criticism 3&3 guidamne has been a source
of inspiration to me.

I wish to give Special thanks to my wife, ?eg, whose patience and

cooperation made this thesis a reality.

TABLE 5“ CCOI‘TEE .3

LIST OF EAH'IBIT‘S
Chapter
I. INTRODUCTI-‘JN

Purpose of the Study
Scepe of the Study
limitations of the Study

:3. T3“ PRESS?!“ CPU? ‘1." 233 B‘JTINGL ‘3 5:12.112“? ICE-I 3F C'JIF‘TH X

introduction

Duties of the Buyers

Duties of the Grocery "lemhanjieers

Procedure for Handling New Items

Procedure for Handling Emmet 10:13

Procedure for Preparation 01 b’ee}‘v Sales Plan

Emery
III. A PEiTP 33:15,: DWI‘SIMIA' BECE‘FEAL" ’31-”)?! 7:? A :5}.<'.‘~:TE;'E-':X
‘Mrth CMI' I} BE rrCJWIL‘IEL Bi ITJTLE EATS-N :33 T37: BIKING
AND MEG? GLEN" FWCTIJE
Introduc tion
Duties of the Buyers
Inties of the Gmcery Eiemnamlisers
Procedure for Hamiling New Item
Prwedure for Handling Promotions
Procedure for Prepared. I; of weekly Rates Pier":
Routine Purchasing Pr<>cedure
Sunmary
“171’. A CRZT‘IJLT‘AL Altai... 318 :11“ DT‘JCSIOYAE, £553“: 3:. 1:215:12 “I 5.3 “‘03

V
r‘
TC) A CEI‘K'FLALIZR‘ BUYING 3P Ye .32 4‘13: ZN C'unJAqu I

Utilization of Buyers” Specialized anwledge
Utilization of Time

Steps in the Channel of Communieations
Supplier Relations

Mars-Stores Relatio ships

Personnel morale '

Additional Considerations

Summary

Rage

’ :3 W1
‘1‘

v. summx, corm:3:orzs, mm REC-)ZGEEATIOI‘S

Simmer-y and Conclusions
Reecrmendation:

BIBLE JG- :1 P35!

iii

9 ' ea- ~.~' ~ ' ‘ ""
;-. ‘31.. ' i "
3 "1ibit3 Page
1‘. Partial Organization C'rxart ii
If. Salesman Information form 12

111'. Submitted Merchandise

ti

211’. Notice of Allowance Agreement 1‘5
'9'. Admce 'r‘ioti-ce Form 16
W... Proposed Ur-ganization Chart 22

1.... Buyers” Promotion Fom .iampL‘

flair
a“

V113. “bdel for Em'er“s Shaectives ‘ 2
1371:. Commflcationa Channels {5191M 3. and .~'igure I": :33;

y ‘c’ "\ P '0 \
1" Li".
'W ,.."=' "H” V
t ' -. ”I .-‘-5

Purpose 2£.£§2 studx

1. To present an analysis of the centralizedl sySfem of a buying
organization in a retail food chain.

?. To Present a suggested flan for decentralization? ani rearrani-

‘N

zation of iuYies and TBSpOnS;blL;LlCS of tne oemsers to provade Lor

D

‘

better utilization of time, oerrcased rlerical worn, iownoveo SUVF‘iiQ?
relations, and to generate greater 6 rioyee Interes'

The contentions for the prorosed reorganization‘ no HIM :

1. Time will be saved by releasing the Grocery'Lle‘chandiser-s3 from
making decisions on new items uni {row tions and delegating this an: or;:y
to buyers. The time saved c: n be utilized by allowing the Srooery Her-

Chand iser to develop a d in p, enent merchandising policies.

(1"

2. The number of steps in the channels of coununication neces :ry
for marketing or produc es frmv the ranufacturers thruUfW tne retail fooa

chain mercraydising department t3 tge consumer will be rediced from Five

1. .

*‘Vere an Operation :
dispersed, i.e., one bu my n3 o:fz
bu 3 mdrke t3 0

¥

rcfientratad to serve areas :eograh?i*all'
ce servin? both the Cincinratl 1nd iolur~

’3

PVperations located in tLe are; trzet t‘fi 0y serve, 1-5'0 3’“ "UV; 3

3iesp oasible ior all merr':ant sin: policies for grocery products 33:3
:14 dis; la", advertising, ano pro act: uandle . Poiiriee are doveioped in
{DPdGF to rnovide the retail stores wn‘n the ri- t products, at fge r;ght
>1rice. of the ri ght quality in one r; wt gm ant;-ty to ;roguca maxixnr wrofit

If)!“ tfz? C‘C‘Wg‘aa 31'.

f5)

steps to three. Two steps will be eliminated in tne process.

3. Buyers' experience and Knowleige will be utilized instead of
being neglected by the organizatiwn, because authority will be giVen
them to make decisions on new itens and oromotions.

h. Suprlier relations will be innroved because salesmen will wake
their presentations directly to the buyers who wii save the authority to
make rurcnase derisions instead of ire:entina then tr an intermediary
who cannot make such decisions.

5. Buyers morale will oe improved beoause they'will be given antitr-

lty and reaponsibility for purcnasing produéts instead of functioning

merely as order clerks.

Scoge‘gg the Stud!

The parer is concernei witn tno reorganization of t.e grocery ner-
c annising cepartnent of Company 1, a retail food chair. remnany 3

a - . ‘. 3-. t .. .- -' . an. - _‘. ...? '. 'Y‘L «
orerates er .tr-1-re sic.-U ,r t.; Lott. ceuirai :» -zr a; tne unitet

c 1*, ~ v er- ' I. ‘ . . 5’ .. 1 ,r‘ u ..A. ‘ ',-.. -. en - -\ ~-\
.tat is. .t is a part 0; a iaxge retail loot: can- units treat: :~ 12.4:
t , _ ‘ r , Q ‘1 r"! s .s - ~ " - \. ‘ .-~ '. ----- ‘ - -‘ ' ~ - .
r1~¢n(jr€(‘ 0 {U 59‘:qu \Jr-I .L‘e 3 IA: 1“. .9 e . "G VCLDIT‘P. . 4 J .‘..L' c. A Tl- t. a (J L; ef‘v'-
.

. I ‘u“‘ q I AA ’ ' ' 'v ' n‘t‘f .‘ ‘ ‘ I‘ .Q .t : I. ' l 4- I
fJVG Store? 15 tiCO,tCO,ooO per year. -uo sttrrs Hft civ1.e: ;an tze

Columbus d vision and the incinnati divisiw: Cinciniafii firision

(I
Q
(.1

includes fifty stores and the Colurhus rivision coroists oz thirtg-ijo

stores. "he distance between Cincinuati and Columbus is one nurired
miles. Tue company onerates one warehouse in Culxrius eai cne in

IlinCinraLi. :ac; warehouse services tLe retail stores within a fifty-

mile radius.

Both divisions are organized under tYMe same Regional Vice-President
{See Exhibit 1?. Lach divisior has souarate buyi% 0 offices 1 r neaf,

‘

produce, and dairy products. Grocery itemsh are purcrased centraily 'r

5 “J
the Cincinnati buyinr o1f1fi ce for bot.h the Cino1r t1 anc Colunbus o1v1-
Bions. Th1 spaper will include a oescr '1pti n of the present rganiza-
tion and its operation with the duties of the members outlined and
described. A suggeeted new reorganization to decentraliZed buying,
i.e., one buying office for grocery products wou1fl be esta b11shed in
each division, will be given with the reassignrent cf duties of the

members outlined. A comparison and analysis of the two 53/131915 m 1.1 be

presented.

fibations of the Stugg
Thism - Mper is limif.ed to 8 Ci scmvssior (1 the orga.nizati n and
operation of the centrafiized grocery more anoising department of
X. It exciuces tne or anizaticn and operation of decentralizeo neat,
profiuce, and dairy norcrandising departments of Comyany F. 30 co rari-
sons are made between this grocerv merc;a. dis cg devartment one ary other
grocery mercpanoisinq oepartments in tne rc11’l food industry.

No formal survey has been conducbefi. 7nfornation has been rat rC.rnc
informally from renresentatives 01' a variet: of €116 chain erranQQK'isvrs
axx manufactu: ere representatives. Much of the information presented

‘

hGrocery items as used here inolufies all items sold in retail food
stores except meat, produce, and dai- ry products.

5The buying office will be referred to as tne merchandising department.

 

 

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m , L wash F351.
... 99 \ x...» ,3 0968 “mo;
2 mm? m him: L $24... mednrfifior wawscwzm?‘ a: Lomflhmuu.$..
.Coost ....” am“ «... Fifi. 00:03.? ..W mow... Smacks
Sm Em... ...»m a :3
u: mm ”33.6.ch 4%.: p. :6. 0L up-

 

 

_ - _

 

c owwflbwu 3 «:5. 95.
umm «an: Hm.“ mcwn

_ -

 

 

 

 

 

AL... 2 o zordeHSBm.

H .SMZCB

1254. SE.

in this study is based on personal observation and exxericnce accujred

while working in this merchandising department.

if DF’SEXT CFNTEAIIZEC BUYING CELANCZATETR 3F (33$ANY X

lntrgongtion

 

The presenfi organization as shown in Ertibit l is unrer tne direc-
tion of one Regional Vice Eresident. We has the autfority over both t?e
Coium us anfi Cincfznati divisions. Tfie seven buyers are directly respor-
O o I 'T'I ' A ‘ " 6 . ‘ . ‘. ‘. -‘
Slnie to him. :39y are also inezrectiy restons;bie to (he hrccery
k1- r" v ' t‘ 'C' . C 0 V‘, a 7‘1 ._- .(1 t'? ‘+ L» p ‘ 4 I1 r('.~| 17'?!) TI. l ‘3 ' r‘
erc.anolse1o, one in inelnuar- an“ we as o: i“ - ilholS. as o 33.3
are not attachefi to eitrer fiivision but they purchase grocery items for
both divisicns.

Each buyer has long experience in the procurement c? grocery items.
Each buyer nas a ciass of items to hu;. for example, one buyer pur-
chases cendy, gum, cookies, crackers ané beverages; he does not buy

anything else. Another buys just healti anfi beauty aids enfi nonufecds.’

outies of tie Envers in the Eresent Ffstem
...- - “b ...-h.” n:- —-—- m 0-4

 

.

4. Buyers make routine purcnasing decisions, i.e., order merchanu
dise that sails at a regular rate. Tvis is done by ans yiing the quanqiz
of merchandise in the warehouse anfi the amcunt sold in a Civon period of

time. Information is given to the ouyers by the tabulatiru department.

(MR. 1 - . - ‘ t - .
“.ne buyers must purchase what the grocery vercxanCISer stirulates

but the urocery Merchandiser foes not contrCi tLeir working day nor can
he assign them any otner jobs.

1

7s‘ 1 1 . ‘ ,
‘JOSOIGOCS include houseware KCGESilS, giAsswere

M
(D
_,
h
0

The tabulating department suppL es the buver the follow’m mg infernation

..

on each. item weelzlv on a sin .gle s set of oaper:

Code of the item

Packs per case

Size

Amount in the warehousew-beginning of the week

Amount shipped from the warehouse to the stores

amount received during the week

Amount on hand at the end of tpe week .

The average weekly amount shipped to the stores in the last
eight weeks

With regard to routine purCnases the buyers are resrcnsible for
having enough.merchancise available in the warehouse to sazieiy 1,8
needs of the stores. The buyers are resfricted in their purcnases by

company policy which sets certain dollar Limitations on goers kept in

e " 8
warehouse stOCn.

2. Buyers place orders for items to be disulayed or advertised
when told to do so by the Grocery Harem a;d .ers.

3. They make recommendations on new items that have been presented
for the coanany*s sale. These recomrpr Meet U us are race at the ”buyers
meeting" at whicn all new items are reviewed in the presence of rue

buyers 0

_.—_
— ——-——

they must always have the inventory as low as possible. if too
mucn stock is in inventory) funds that could be utilizad more fro itatl y
elsewhere, are "tied up” in merchandise. for eiawrle, if t ere is an
inventory of l,OC0 cases of Stokely ?an Camp Bea .s at 3 cos st ‘1 35.40
a case, too warehouse inventory 3 culd or.ly be arzun: 25$: cases ., a two
and one-half week supnly. These be-ans sell at a rate of l{( ca.+es per
week and they can be reoroered and F~C6iV6d from the manufacturer in two
weeks. Iith 1,0C“ cases in t;e in‘ent crv, tncre would be an excess of
?50 cases or IL,,CO t 'at is ”tied ur. " This money could be used for
other operations or it could at least rm in the bank accumulating interest.

'-

J

CD

3

resent 3‘ tan

b .

Suties g; the grocery Merchandisers 2E the

 

1. Preoare weekly sales Diane. In preparing the weekly sales plar

Grocery MerchandiSers decide which items will be acvert sad in the
newspaper, which items will be disrla jed, and tae cuanti ties to be
purcnased for this advertising or disrlay.

2. Accent or reflect new items. These decisions irvol"e tnsvtzxn'

tne follov:i1ng questions cc cerninp the new item}

I
Q
1‘

.. Is the item completely new and Ion-corxeti tive

B. s it an improvenent on some ev3.. ‘ing nroiuet‘
C. Eta will benefit iron using it‘

a" much will t e aveza ;e familv CORSLle in a montn"

D
0
e

- . ". ‘: O '1 -~ .' I I. e w “ fl- ‘v- ’1 ~- 'r. 3"
;. fhat lS tne iinancial Cuufilflfifi c1 t c Vaufliuktwirlv
h ‘ . v 1 0' v . e e ‘. ‘.' u .3 9
r. sas tne manufacturer mad any experience in LLB i ein oi

distribution and oroduct competition?
a. if the item replaces an “misting proanct, will the demand
for tge troduct be ’ncreased?

‘I

a. heat is the margin 01 profit?
1. Will it be advertised by tie manufactxrerT
J. Has it been tested?
I. Is tr e rackage self-6e 1i 3.
t. Can it be easily price marked?

M. Will it be a regular item or will it just be landied for

‘ + 49 (.9

a 330?.) the

9"60 Questions 3 Inair aner Asks Atcxt Thu cheucfs,‘ Enod Businesz.
I - I a '. ‘ 2" *‘P-M‘f
slebruany, 1950), r. 1;.

3. Pricing'of Broducts. The Grocery Merchaneisexs must establish
the retail price on all products. The price must cover all expenses
such as cost of the merchandise, labor, equipment, and overhead, and

still provide a profit.

(I)

senfi

L. figggggg'diSbJazg 22 the stores. The Grocery‘ 'ercaanc ser
letters or pictures to the store managers suggesting ncv. to best display
nwrehandise.

S. FoJlow 32m store stocks or Ero~oted ems.1t It is dif: icslt to
determine before a promotion exactiy new numb merchangise will sell.
Many times there is excessive inventory in the stores a:tar a promotion .

The Grocery Merchandisers must determine wnat action i necessary to

h)

dispose of the excess stock. not action may e. ts'l reducing tge price
or advertising the products. TLey must be aware of snore stock conditions
'which they do by getting an inventory of nercnandise or hand from the
store managers.

6. levelop long-range more: vols no prograss. 7:986 programs

A

 

entail a study of the customers served by the stores. 710 type of prod-
ucts to b-e sold can be est'rlisbed from t1-s study. For eramjle, a less
ezrensive line 01 products will be rancled an: promoted in a lower income
community; quality may be secondary in immortance. ‘n anotner coemunit}
of higher income, quality may be more imoortant tnan pricee Long-range

pro; ans provide for handling the products that people want see need.

7. Coordinate tests on new iter :5 Tue product is bougg. fer a

W

 

small number of stores if its potential sates cannot be determined.

'The sales in test stores will determine WLetHeP tLe rroduct 520 is he

i0

”3“

handled by all stores. 1ue Grocery Herehanitsers coordinate axe eve sate

- -r1:-~.11.1:.- W
O retaifllmi‘ St (I? Wain) dto 1“ 4114-. OW- hLerG,nr 11155138333 £3891 70 r I.

 

I‘

cent of the sales in a Siner m1~ket are Linputse” sales3' teerefoye,
the position of each product in tbe Mt) e may a13ee t has saias volane.
The Srocery? -..anrtsers must st ad) traffic oatternn of shoppers in

O

n ‘ ' Q Q
stores ans fisherm1n tne most inventareoas b-331tLin 1or trocccts to pet

V

maximum sales of tne :roduots for maximum COLlW? profits.

‘ ‘ ‘ 7 h V I l' ' ' . ‘ ~- - .q ‘Q ~.' ‘ 'p u
9. Azran e to sano'gm st or 3a v1tx 'n01nt 01 53;? Lntor1al. 11unr
M W“ m“ — m “a... ...—ma” '

manufacta1ers supply "point of sale" material to be used Ln the retail

store which includes such things as banners and Signs. 7113 nmbarial

1‘.)
(1’
"S
3.)

makes the store ctive and usua1ly has a 5313;.5 message on it. The
Grocery Verchanflisers 'ontact ma fa3-urers ani arrange for stores to

n17e the material to nelp them perform txs selling function.

t-u

O. xoo*i'"'te $33.63 meetinvs 1 sales meeti..g 8 held montnLv to

“MMM‘ \

inform store manfigers of com1ngt promot 13,Hea 3.nal reminders are
:resented and 9 coming plans are discussed. The meeting is als a
means of area in; ant usiasm in the managers 13? new rrcnntions. Tn

store managers ”feel“ they are a part of tne r: or tic na; grorran when

I ., - n i ‘ O I -‘ ‘ ‘ v. ‘0. ’1 fi.‘ ’ y‘ o v \. . ‘3 a P o‘- _ --
tney are sole to veiee their obin1ors are a_e Lett 1n1osmul o1 1utz.e nlens.

Y z '1. ~ '- ‘w ' ' w 1.
1n add1t1en to t1e afore flEuLLlfiAJ d t.es, L46 :1ocar3 peaonano1sera

.‘

also must perform the foll'w‘“" zunctions:

 

10"anulrse Bu3ing in the Supers Crows, furcn‘ .enoxt:," "vertis 25
A98, vars]. 1...! 199'“, F. 28.

1. Arrange for store demenstra

L ' -
v 102:5 O

{-4

11

?. Advise buyers what to buy in the way of seasonal nercnand1se,

for example, Christmas candy.

3. Build good will

5. Be aware of competif1on in the area by

to combat oxen.

0
t1
0
Ho
0
(1

atio m].3tm of Um

~+-\)‘
‘g 0‘“

f?
a

organize!

the members have been presented.

regarding how tfe system oneretes in the
1. The method of acceoting or reje

2. The decision on promotions.

The preparation of the Ieekly

30

$40

Procedure for Handling“ New Items

A new i em is usually presented by txe nauu’ro-'rer'

1?
tlve to one of two inte viewers. " Info
View is reco fined on no "Salesman

”‘71s form with samples of the new rz'oriuct

 

-c mm .rI

1“ t-ore jaw-#15 trati one (we coo Brative arnanne ants
Free samples are usually Frefienied
nrpo—.> e=-.

1 chain com:\v as.
as DFOMJtiUT

suophe "3 am ..‘
to cxwtomars for 531

by meeting socia1Ly

rmation gathered in

Inforwa‘10n Fonf‘

witn man Mac avers.

CoordLnate grocery plan with meat and produce plans.

‘ t. “r: ' h; .‘I'
P2511. .13..»" -1”) 1.1;,

fievejoping

ex} 3 1r: systen and tge antles
organi;at:on WLLl be exn1ainew

followinf situations:

“ . -\ O
u knit wens 0

new

representa-

the inter-

O I." -- v | I
;198 :anhlt 9 .

is nresented at tie weekly

befiwaen the

'1‘ b eel-fly _ales Plan '1: - .WLfoz‘maiion sent to t‘e s’ores aeout
wnin ‘019 will be promoted r n: a specifié week.
15. . . . .
.mo buyers act as 1ntervuewure re:erd-ng all ne« :tews anfi ero-
moeion=1 [pair job is to record information 'iven tnem 1n tne interview

by the sa1asnen about the prod1ct or

“renobion.

2?

2.

3.
h.

3.2

TY‘”D‘* 2

)uJeLLLv-‘ L a

, gyvraglg xv rum,"v.|(gfi~,~-f F. sf
2 ' 4 '. . —« . ‘ ‘ . ,.
s."HAJ_.‘s1‘A.‘J LAM 'JLL.5‘1' LL)" 0R4;

‘T-.
'J

r. _.
1“ .4

 

- A..— _ — _—"-':lt="~9

clearly and quizkly obtain the most, from your interview-1, pleas-a £121.

the infozmtion requested below, before your appointment, with the buyer.
A . NE}; .1 T335 - P] a: 2 13.1.“ in infimsimx C 122.33; be ‘.:.- .
‘2 . 2 2’1"; Cir. ITEMS - ”7.99.92; 2‘23. in infnnrmtiam on lines .2, "‘, 13 .L- 3 o

- 'T‘“‘.'

 

h—f.am “4. ~‘ «1-. ;_‘,‘t

 

..a —¢an-~ ‘na‘ ur-fi‘rmfl;

{2
f
N
R3
(J I
w-«i
(‘3
x .
. '

 

 

.' ‘—- u-” —_ __

 

 

 

r r T pm.- c° : ' 2 '7". ~. .
-,~{ 4,). iv. 5.. J“ ——¢ L--.u-'b..
myflmmO-‘wa‘ W..- ’M 4‘
mar“? "-:v"'.'.""‘“-. f)“. : ' ‘ ' Wk“
-QAL .5. j -LHI"\-r ~ . h y... g -.2 .~ _, » 2'3“. ' ‘ ‘
MJ; ranc‘rm “In“. “‘1. «$12 m n'r-r._.‘...
,_ «qr v~rr. I! ffltcn f‘ .. ‘4'! \h'!:--
.. ' t-
:u ' s .1 .- .u) 2 M; n 4. «1-12 My. .
W; W Ad mafia—J‘ o-m~c-u .3. w - ‘m
Ma—umwmr“ rmmqlm.‘ ”— v r- — —-- r—a
("I ’3 _ v I. — r.-
J 10".; . . 7‘: p‘rmr .' Eh 3’
‘4'; V52“ o‘. ’ -. 3"‘J‘3W. 1.: I n. V“ v
”'th -“--£ I Wzatnm~$xu32~¢1mmwxa

 

 

 

 

V ‘ V v ,9. . ‘y o \v v— .
f ”TLuL n... ~ M ~ 42. » 1
~“Q‘I-.¢J“O—“ 4“ 2-‘\ n; “V -.
“In,“ 5-m mmrmammarwtwntm
’3
L .
“N‘s -. x- 4' mmm‘tm m:——n 'M1WIL’:
,J V
”...-4”“me ncwm-Mflmmm
!
L; 3
mm. v-uJ.t-vm0m A. ——Q
l - w.
P“ Vi?) r1! .
‘5 9.... .4 I
..L: ”mu-a“. I tam-m“. yam—‘MJ—MJWI‘
a - V‘V '- ’
.2 "
high. —‘ J .4 '
—‘ ‘ .... _ -w a. mm“ mw.m-wm~fl.mr
.'§"I- v~FFW§‘. "‘”W 7‘".

- . '. .-. . 2
kw." (1 -4 l :l-ou..-':. o‘ 531‘ A. V -_ O

m‘r‘m—M ~‘U W.W“-7-‘m..m ‘ M-"‘m

‘IC‘O‘I" 5.
(-
”Al‘r» ‘v

 

1.1:: um” "haw _

35:13:34.; 37.“ 7213:1053 OR bPifiLA; A:".’F:'?'T..;-fIIV I 2134'? :

v ~=tm~axtg WP”

w W0 ‘m‘-"" m-

m - __ —— _ .- .— — awn-WA~I.‘.“&..WMI 3—1.3“4m

 

buyers’ meeting. All buyers as a group then send. t3 .91: recor "~22a21on
regard :11; the acceptance or rejection of the new item to the Grocer"

T

Harem mndiser of each division. The Grocery flarchan2is er ma<es the

docision and- if the item is acse {ted, me stifulates tne original orflor
regarding quanti y. 2115 (33815.10?) is sent to tire buyer witxin whose
classification the item belongs. The buyer makes out L32 order and the
"New Item Form" {Let Extibit 3‘. The form goes to He (.x'rocet'y Mariann-
diser for pricing and initial distribution to toe stores. Tbe form

than is returned to the buyer for recording on t 9 ir"ara orv cortrol cards.

Mom’s Q}; igniting 2323022221251!“
The init. 131 Contact by the manufac tnrer‘s mpmasentative is made
with one of the two into. .1ewers information from tfie interview is
recorded on the "Notice of Allowance" Form {596 7x31o1t 4 . ?nese formb
are sent to the 122008 :‘y New ‘13 “1132 «a? U1 LI": 3 copy for the 23:23.13? wxo r21:-
cb ases tie item t at is to be promoted. Tue Jrocsry Saschandiser tron

makes tfie decision to promote or not and notifies t.a hwyor stifulatirv

the: quantity to purchase for we promotion.

Procedure for Treraration of 299521 1329: :-an
The weekly sales plans are maria 212‘. by 1:21- Smear]? wave: .3 @1353,

Six.weexs in advance of a weekly plan, a notice s'ocifyin: wgat to buy

 

for the week‘s p23: is sent to the buyvrs 75ae hxuibit 2‘. hash buyer
u;’ C I F ‘0 - Q t
Apromot1on on an 1tem p esen,ed by no 511e::;n com d be “o txa
.fcrm ofa mying allowance, 3 mar}et dec11no, aovart.sinc to tax: place,

or'a sracial pack to ba manufact1reca

 

 

 

 

 

 

 

 

 

 

 

ISLE"? 3
SUBI-h T’I’JJ E12: EC :25 2.35 SE,
113

T‘aite__ ‘ .
‘-‘anui‘acturer 1___ 1 ._
Local Representative h Address: 44 LLLLL Phone -1

‘actory Size 8: Style Shipping Cost

Pack Contaimr Weight F‘QB/ITel'd Unit Fisc Er. Fell-wages

 

 

 

 

 

 

 

 

Retail

 

JINCINNATI

 

‘TC'LIR-i‘US

WW" '-
1 r ”It” and

r~13.2.8 of tore AA

‘ “- —- “fl

A

—v—_— w

 

—-—— *—
9—— wvw'

In.” ._"C

 

a. r u-
'- MW“

iEpecialty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUTHSRZZEJ
TNZ'IIAI. DIST: J
_. . _ _ ...L _ v 1 w ,1- .11-- ._
ode Floor ehippin' re . .
~ ,. . - 11o insert on Catalo " 2‘ . : ~ ‘ --
m. Kin. ti Umt :rda . g amtlt.’ LI‘CIIa...9c
_ .7 fi _ -_ _ __ __ __.__,..___ .-
C I 251' $22331 T1
‘ , -‘um-llz
- I‘m , Late Tmrcesed
..}"-:-‘. 2;}. 4 . .-. .
132?. r‘ :‘fl' .'.' 1 .
.-INo-..” x”... _ 11__ Re-erer F‘cmt
Average finder Qt}.
3:393:53 ; 1...... _ 1...... Wm ;' flier 113-0 _
__ uxmmn ..invty e.
... 1w..— . mm; ‘__m-.‘ v t_— c...
- -- ... -.- --.... _ __~ ___ ‘ _ Annual ‘rfovement
_ . 14m! .3 12'1"
___ -mmmmr‘ ---.—__ —v. .r-o came-s.

 

 

ILQEiLT h

:1» .
#32

r-
h 1

NOT C: 3F ALLDZLCJICL "I"; {T

Cinti P589 C015. Adv. iate .‘Jo. ..
'9‘ 0°13 “C159 EE‘Fzgcxvr LAT-.3:

Accounting Tabulating .1 w _. ...-..

Cinti Adv. File Buyer 2 ‘7“ 4°

 

From: Vendor Lise our:

 

 

Item ,1. I ‘ .. Case rel ‘d t. cst new nit e!-
M. Pk, .2129 cam IT 35 :i’ld :38“. jeld . .. e "I .

 

 

 

 

 

 

W: .__.__. w ~ v fl... ~w-vu—r
’\ “8“ 0‘ v -nv~r‘ ~ * -, ‘1‘
\ I . . .- - .~ ,.
on” AQA! r...b [1T 3"»: Cybli .1 tto‘dr- { “’ . I51“!

 

Fbrket Market floor Stock E-roteotion Floor Etock. rot-ac tion E‘Joiicy:
Advance Decline Yes No
W

A $117.2} MA N i. :3

Count and Recount Steer 2 Quantity Ii:-C¢'3‘_;I;b

 

 

 

 

 

 

 

 

-————:—— ‘— ‘ “—— __________ fl:
Eilling Instructions to Accounting; L'er-~ayt,.p_;e;--gt
_ ’— .. “W" __ ‘ ‘— aim:

 

 

HI?‘ - V‘:"‘.- ,‘ 'TT' -' ‘_'-‘ '2‘! ..Ilu . v _ I “ “I_ “4‘
...FT LL. -‘IIJ "4‘.Q|11J L n...‘ :1 .J‘ I A ...,J-‘l‘. _'-_ "\._ ..J

 

 

 

 

 

 

 

 

 

-YD7 I w-‘l .
1-. I all" 0
...... I—fl
'T‘LI: ' ’\ ‘1 ’I: .—
> 0
I'l‘r‘Pe’n‘ifi 7‘1 WU‘NL .'
M —— — wt 7 m-
"~-ur¢'—u ,- —- n. r‘!‘ ' f-
l}- o r {#11: -‘o
—"" ____-._.. ‘—-—‘ — ‘»~ “gm-won—
J‘ ..—u-« nr.my Fw‘.‘ "'F’.‘ I-v- --\ 9 w, fifi’r‘ "' r
I h n - | .. .-
T. "hr: k ‘4."o-Lt" T -) .I.‘ ~ - J‘D_¢l a. - ’ A .18 5‘ I A I‘M}: ‘ ,1} £11. A A
“JD-'0‘:
A l’ fif. V(* '\V‘\ T‘T PL}- r r7»); 9".“ ‘10,": NH‘ -\ e — Lmv ‘ . I ‘1'? \I v- - v “ rat
. L- ., -, ‘ a
a...¥: 5' * «ht—r LOVI‘J L a A. :_ n‘a ‘A"."- T pl‘a‘) uT‘ 4“... A A : J .4. ii- .. 1“ , If a" b:- _"|-‘

 

 

——— -—"‘.:

 

 

0

31733531333? NOTICE - WEEK #3.? AFF'TL L: - ALKL 9

 

’7)" I} t“.
. : AIL-3L GI a???) Jo
_ m
a» any-0 vb bx»? sy“-=q» 4‘3 she‘su4-‘u3-‘s-Ane4'1-it-‘taw»--*-+ (up. 1: at 311- 4 «so. <.-. . -. L 3-1,. 1.3.: *r n H, 3'; 4.. A ; »,-

Eqmrs.are requested to review and rot uvn arnrcved co~y dw~tnr x coqundo cranH
matte attention of tne Grocery Eorchanjisa: by Xarrr 1?, 190C.

Istimated

guantity to be

in warehouse

jam/60 _ Ccm‘e item 4&3

 

~"\"¢‘T‘"" "f- r u, 1'.
fi‘ 9" I- 3
- ”:03! ... QM A 3: A .‘O‘J‘- t—VL'V ' {

 

 

.re.h ike wi 1 *.five a c010: ad in .ho newsvafcr. J u“.¢0 frorwticn monev *3

fixer-ML; a: '.3 Imek.

. . ’5.. .‘ ’ ~ . I 7" o I .‘ I
36% d;o§? Fresnilke 1833 -3m1t a of your c 3 re
‘ 1". r‘fi ‘r
w"; L“ . ;. 120E121. e
3"" '71 3r“! r “.... '..- rr *3 -v.3 .3
JLU --gg- Trefhllhh H. a. Horn 13;: gar can

'H
"31

2‘0 21109 Freshlike Cut Scans
250 217317} Freshlie Spinach 383132? Priso-
LOC 21325 Freshlike 3. ‘. Corn hagu;az ‘rica

odor on bakery Grder fur Pride Bread -imit 2 w4ty ;,.30 pure use
'1

\fi

250 5““) Cnermin Tissue, Ass rbed - h 333

(

\n
"f

Ix.)
C)
‘ (J

. . A . ,. 1:. ,-..- . . .,.
’lorox, ‘ts. :‘030 33.1.. .-1.r .- -.:.L.. -n

I “

I“. "’_" ".-' . "1, )3 _‘ ~73 - P“ " T.
lOCL 53.(c L-orox, 1/; uallo s :JOHar Tees 3

(D
C)
(3
J1
(’
m
(5

Clorox, Gallon :lo»er ~35:33.3 Sfrur

:”srlay ma Wericl mi_ab]e - Sale3nan will contact stores

3:5 tima ted
Qmuwity to be
in Warehouse

q A i“ " "Y I“ m w - ..
355/60 .: one A tam x 37mg r- t :3
H a.

CV‘IC:“T"J‘T ‘ A‘A-L-'I‘T '\1v'~l :~

‘.-A. ~»-.-

8? Franks Black Pepper, 11- C2. 21m} displd y - freaks will

pay .3340 per store

200

IN)
-\0

ru
O
O
b) m
(‘1')
m
\ a
P )

Franks Black r‘epr'xa—r, 3 'Jz.

ECO 37720 Pennant. ‘-.:1z*s?n-:—.llr:'r:, .w 42.
n‘ / _ v - V _ -- .‘ a r‘ ‘ 3 . ‘- ' 7

1400 0:30? Elbe rvc'l..t:l. : o E o - 13:. L, tiCKb’ well ‘3 3."

bm -g- p allowance

 

1V . a n ‘_ I '2 "~-‘
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r! 1?; 1 ‘E’LAI ' :: . ‘
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. hr. (161: a¢ rouhnn on afiy 5428

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fi ~ . . . ~- . .
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(- 03. 6313-. i'r-Lm. Curxbalz ~‘".'c.~1‘,-r( :5 :0". ...SI‘ .u," 0.: -CU‘-fe Fa; o.

shmmtaa

1am.i ty to be

Ulnarenousa

363/60 Code .2232 T3??Qfi‘3

'r.|

 

 

 

 

 

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warm. 9 TI wa a.“
H9 («.71 -P v - - «fr- " 1‘ ‘~ -
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1- _ mam—r vi—
9 ‘ A 4 .
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n .. .2 . j" . .I. - - '1 - -
rz‘aIba 2e CC‘MEVI‘A on. w} ,2- bar,»
"‘ A r’ .
an: .4an - mm w: mums-r.
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Air ‘a‘ick (’1‘: coupon and xiii-L1 off“:

n a ‘ T 1"" ‘.'_ “‘"' 7-. "'V‘" "' 3 .
{ct-.39.. .. .31.» .. < . ' fir

 

NA v p‘ o ‘ q 3 ‘ H. gr!
M 7,3..1; -.u? r Vie-very L- ‘. M; m 5 .‘
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1.8““ 0111" 51:0 590w ...*"-r ".7‘ L .m‘ (40:..- I: a m z I WCH
"" ' ~“ * ‘ B'J"
C6 3‘. " 1
'

"H I fi.‘|i. - " O. 1' Q ‘L 1' ‘-

j'JU £131.“) PlRRWJL) uOC'kf 41.1, A; .1. j, ‘ ~ 1‘w-3

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'A‘ '5 C ""va ..'. ,.. ‘ . 5. ..
4. P ".‘IIJ )d...‘ plafiufli‘b LOG 5‘;' .3 ' 3 ;J ”414 6 -" .1“va 1n“: a

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9",“ HJ,‘:‘ ' -‘."_‘ C " I ~ - 1 ‘1‘- 4 - t v
:0 r._. ..; B11719 F.“ -bbon Nam.» .213 .61) J~ t._.m,"«.‘. guns; 25 :1 F:

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A

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6
1, .\,.' 0
Lus2\~3: nn.l-in vfzar

notifies the Grocery Mercharuiiser that, he will buy the Lie; as stipulated
on the advance notice. The quantitie- required for the sales plan are

(fl

determined by the ..xrocery bleefiandisers.

ML

L")

17.15 chapter has described the authority relationships and t:.e dutues

I

'- w ‘e;- - ‘ ‘2‘ «“4. ‘ Lo A. . ‘ . - ~ on’ '5‘ -f N . A" "I Va" ‘ " '-
1‘ 1339 member.) 01 be greedy FRI‘anErflblfl; “eke-wt.- Len-t. e-I .-:m_..1 g! .‘a. :rr-a-
cedures far tue arefiazian n“ ta“s cen‘~33‘7en merfhanfifisLnr r buying
deperhnent. with regard to new rhesus. Orr/notions am the B-Jeekly Hales

Plan have been presenter}. me miozwrntlon has been presented in order

‘v . . i In n~ - I -> .‘ - r n . . c~ -‘ pow—,v . s _‘
v0 famllarlze cue reader Lt}: We rtresent hr..r;r:r.‘_?.3 more. an; new; ..

'- I

ll. ‘ ..9“ i " ‘2" '0‘. v‘ vs » :v-““: “7" “'-‘ ' '
C .anuer 1-4. vnll den; In x. the ,.rrt>.nsed organleotwon 4.1.1 bdoffih‘.

L. . . -: b: b- '+. -‘A A ‘. '... “ e",. w _-
he probosed organIzaeIon, ehe autcnr1~j reIut; Ls:Irb and inexeg 0‘ t u

I

members, and the y-mcedux‘es for tire _;wrc‘h-:>'=ed decentralized 'rzrxrc-anrpxsiru:

‘ i 1". n' in .I' ‘~- 1* wzh‘ N ~.' 5‘ - . ,‘= “91....
dapz'urtment- vat. regard to new Jens, enumewm ELL. :. v: 23:43! . diora-

'—

:"'n will. be ,Jrcsenteri.

V’r \. v ‘1? vhf._ y A_‘ g 1 , ‘ ‘T-o pzr, , I‘ 'T‘ j‘. ‘I‘T ‘Lv: A m ‘ r' " P v “ " ,’\' vl u ~‘- ~ 7 ‘T y “‘:'T\‘- er!-.tw
A .‘ JtlJ-l‘o‘$u: [31.‘J;-‘5‘AI~LJ-;_ 1)-;‘3H‘1 l 4’L41L15LLLfiali .4: ‘.-l.. .. 522-1 1|.J \1.g1.a.,.-- ...J I... '.. J '., I“
“1' w , «rafa m'v: t H Tv N Y 1-T: : ~ I ‘- r~rr (w-vz 'f'\“~.'_~‘-‘ *9 n T ...;f
I} '4. LIFT; LLifl- 1 3‘1 “Gr FL" BurlAAE h .33 '. iLJ- ‘atb‘ .u’L .,., + Tax} ’ LNI'WI. L ~ ‘1

Introdwwgg

Central buy“ Lng of grocery bro-C111 its '.as beast“; in effsct sing-.3 the early
days of the company'whan both the Colgmh~s a: d Cinc.nnati stores were
servzced out of the warehouse in Cinc.inqati. CanzraL hayinu o: :rccqu
products has workei in the past possibly flue tn the follcwing rgasons:

l. T e comparym CUpied t: e dorr.L.a1t position in hazh axe ;0.um:us
and Cincinnati markets.

2. Both markeus were similafi, in reghré to competing foou CLains with
similar mercn ”'8 n3 p011: ies.

DkM'the two warrebs are dissimilar. The comrany n3 lancer ccru=ics
txe dominant bosition in eibhcr market because 0L fine inIEJx of new fofid
chain cnmyetitors into bot1 geograghi: areas. -t abs become necessary LO
reorganize the “evenam ‘Lsing debutirzent ir‘. Grails? to 3:4.
xmarket concitions.

"we are living in days t at caL_ for t.?e greqtest avarenes.

of revolutionary changes ir :wr infius tr3 tnat are aITBCth
e‘mn our most. itnnor uant, (3037198493. .o~iIL;, nfiralv ...?3 one

'O

procass or product been evolved oefore it is ob 5012.6 and ,L
being 'flaced by sometning new 1'u4 fiiffavanb-emore fies;rabla.""

m— mw:—' a“ J I-

.J
1'.
.-;'

’. J. Keliy and Viiliam Lazar. ”awavwrial Yarkeiiflat p'wflew 11:3,
3"V'nois: Eicnard T. Lrwin, an., 1936 , y. 109.

 

21

The proposed organization will provide for decisi ns on new items,

promotions, and grocery merchandising policies to be naie by persons
closer to the market. Xarkat informs ion will be secured from salesman
and store managers in Sign coorran .i3 area. Lecentralization will inprove
the company‘s adjustment to the market and help combat c:»*m; t-tors.

V

X. ..." ‘ J A -. ' . s. .a -‘ ‘ ,-.c' t‘ u-.- . :- -'. ~v 3’ m ’v' ‘ '
Tue Regional \Jua Presxcent will remain as chei eiscative cue. Jot:

the Columbus and Cincinnati din sions (;e *xhibit é'. Tna Grocery

hemhanriiser will LP. stationed in sang division. Three of tse seven

buYers p“esently employed w; ll be reqaircfi to relocate in C'lunba is
order to establish a Columbus buying office, Each bvver 1‘11 2?? an

assistant to do clerical work including tyting or~e:s a1} satin; inven-
tory from tabulating department to inventory cards. Tue firocery Her-
chanoisors will fulve di rect altrority over tie buyers in their reSpectiv
divisions. serenaniis ars will have the resyonslbility for control ing‘”
the buyn s

A short transitional period may be nee GSsary in order txat the
present dapartwent may be divides. faring the interim period tVe buyers

'Will teach sac? otter about d"ferent lines of‘products. For exswnla,
'tAB paper products buyer will teach the healtn anfi beauty aid b‘ver ano2t

“:V- L” - V' "‘ fi "~ I\ " I _ I" O ‘ ' 'p“srr‘ :‘l. '- '
paper prosac,;. LOHvHPDQL. has teait” ans bsaliy aLas Hu3cr will Leann

the F570? rroiucts b‘yar about health and beauty aids. Unfier tie nrgpogaj

—.— _.

léControlTin3 has reference to tie neveioring of poiicics wtich
dictate broad guifles to actin ant tnins.:ng of t e b2":rs, These po‘i:;gs
‘will state specifically now some akin3 wi 12 he cone, J.en it will be done,

.and by’wiom,

mmmflwHa $

. unenOth CKQ>32N38HCZO .>:fi

”‘33,oner
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w uecnm1< saw» w20i¢00 w :zooow4 nJoucoo
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23

system of organization each of the two incividuals will be reSponsible
for both categories of merchandise Leaith ano beauty aids and the paper

products for their respective Hivisions.

Duties of the aners

‘ «~ D -: r~
or L18 Cleve 3; items.

“a

Each buyer will have full resoonsibility
Each will be responsible for sales cf his product to yroduce a gross
. l? _ , . .. : +. , .
profit in accordance wits tne ObJBCthPS stipu.atod by tne Jrocergr
Kerouandisers. In connection witn this resnonsjoiliry, tne buyers will
perform the functions that follow:

1. Accept or reject new items.

a '— ' ' N ' . 5“). .«w I .q -.»* ~ ‘ ‘P. ".
a. :rICIng o: rroducts in h~i1 TBSHECtJVR n.01r2t classl-1cat;on3.

w- ' ‘ ' ‘ ., ‘ .‘ .- r v.-‘ ... . ~ A ’ ‘- ' v—O'."
3. -nterView salesmen tor TIOflCthuo au* no“ items in tre-r .-sna

‘

a. un3:est mistlays and subtly stores witt nellinv information to
aii in Lfle selling functions at store level.

§. "Follow to" store stocks on Promoted itevs afic cont cl maze ease
inventory.

toe sales Plan meeting

Lu
p.

6. Bulgett weekly promotions or disrlay=
on "Buyer Promotion” form {€99 TXHibit 7='

7. Coordinata tests on new items.

Mun-c cn=mn¢ "gs.

Q

l’EVGFQ Pra"it is the difference between the retltl UYiCC anfi tme

m. Eor example, i? an item 13 purchated from a manufac-
r

K

' ‘ - ' I; a «K ‘ — . rd ~ ‘ V "Q ‘~ ‘,-~‘ 5“: c ‘2 -- ‘
{Urg Fania anfi bOlfi 10? 2? Cents, tJE argon . Dist “3%-: 5°
.1 9‘ 's v u w' :‘
v d- " 1 - UL m- U.

o. —- ,- ~~ ~ . - I o - v ..
r9 ,1} Lut -r'. .‘ .‘PV. ‘2 , " '7'

mm ...—‘- '~-.-‘..fi -a-h C" ‘ ”nx't- O" 0"...“ --yr —. ‘.‘m.n ”I'M-n ...—‘4‘ - .

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Tetails cf ErCmcticn

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:nfcrnati : to be Given to Ltcnes

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H‘ "‘_-bef-

 

storm 6emnrsW

lugrest

of rows to b allocated to each

“1

number
.:;tinue rrcducts.

11. Arrange for point fur

stores.

rr
.V-

1?. Keep current on ma rveL can

comretitive stores.

:3 3‘ r. . r .
.erL{~ t-e xxthlne

:3

\vn-wr'
U133. ”I,”

Detmmim quantitl es of

IL.

19. Co."c;nahe nromotlora on :e13ural "
u- 'L' .‘ o. ,nw‘ 5' ’\
QUnfltlules tue stores v1 1 5-,: ci t.-s

fulfi,;ment c?

f . ~ 3
10 g 5h)?! ‘5 1’31.

to advertisir contracts,

bgties of v.e

-fl“

race rv Larchancisevs

 

l. Develof merchandising pclicias

'Tnis duty will involve

if.

Trierchancisi f polic ies of ccmret; tors.

$61 ‘ling t e In c6ucts the cons

5

arxi irices that should

'?

cxnnpaxy's stores over competit

2. Iefermine store layout..

‘ (‘13:-

merCLaxfi

.3 1

. L

ive storas.

.‘5-
-L'Jms

0
q

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"tudying the consumer

uner wants and

59

Grace allocation of hroducts

ions by

fth t: ‘03:;

aka 6 di 3:7.1y

t

it

to tEC

,
"in

fir.

I
\

‘

-r Hfhfi‘“$r«
.yE‘._,u_"‘. 1.‘

afions of pro§ucts

-
1'
‘L;

CC»?

C¢_.
' V

‘. '3‘:'
VL51V-31

in the

(Y
C}

V
t’f!’

:t-I‘C]

he purcmsed

ans of surpliars

P" 9“,"
n‘ I‘)‘ '{
' L‘
12'; t.

neefis

.u:

buyers Of
My}; ,3? “I!

“A 4
a.\-

it

for

SI‘ c-ciuc

stare Invent

STRIP

' \
1"
w‘th;|'-

T36 rulicies will be direc‘

aid in develo:ing corsumer brefs.cxce for

P8-

L, 116

V

CS, 1.6!, the

com:::v stores

cry.

promo-

?‘J... 30

3'“C

also tEe rrczi cts

3. Coordinate
2. Coordinate Grocery Sales .

5. Train ann sunzrnis 3 buyers
with salesrarw

6. Coordina te the wor {1.35 of

p.
rt
(1‘)
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U)

r \
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0
(D
Q

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i4

0

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p
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L'-
J

Monthly SaLes Meeti

the new system. ;Le ob ec’ives must

‘ ‘I
« v-“ ;_A
cativn.cxz.ldu3

55§6Ctives must be set high embark
buyers é‘amhase fie best NC otiom

be attai 13-15 to foster the buyars

(D
O
r9
r1.
3
'D
.

hbjectivns

ated as narket cons"; tions chute.

+
U

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('1'
0

U 8
the lter; or rem

| .

O

vill na e the rig t to arvsal to tL

,

.ne salesman will present a re.

9 a
.

V

(‘8

Corblnation of 31039 Cb?

3;
-20.":

‘5'
Fit.

1nsu

ENQQTS rim;

mercEantiSIng dehartmwnt‘s

‘ "
J 11.2
'vv ~
1:6:

‘0‘ n O . " ~ A r »
CLH:QL‘LC&t10L to 3n31

5:337:

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;} .53;

Job

(I:

re am?c

T'RE

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3 of
a 4'
Jul

iv:

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reward to 1

TC Lfl QCCC'.’

Gross :h

A v’ t' I ‘1”? I
LC‘A.) _~~..'. :1?

g

f
¥.

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v

93

Va

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p
4

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U

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B“"I" T‘D :Tf‘"'CWT fit. "."m.“"'fl
O..'» a".\. 4 ‘1 ‘ < '

Canned Fruits; Va etarles, and Juices

Gross Profit ijectiva, 196C

a .

Price Luaxges
Eiscounts

Iris? r9?ft Tbjectiva

"

'7 '3‘

I
\ A D‘- '\).-

C _A¢
<1I\_.21.

.3

.
v-‘._r ' I' ¥—'~
wwco-“f v-‘P-r a:

of other items in the line and tt

the sales of other products in his

'il.l be quah ified to answer the q

of a new item.

‘ . ... r I! ' o :- P“ )t 5
Procedure lor‘zeidliny c ions

Tie 331,:nen will present

Tle buyer world decide whether to

‘0‘.
it‘d

v is to

For examo-e, if a<:vert

decision must be made regarding w

tail 8 adven"ee of t: e r.anufaetn

rm 5 w ether the disrlay of t 5 “

 

e

f. H
bi)

promctional activity Connectefi Nita

I
C

lifieo LtT thzti REUV~J e'NWs, Lie anger
ueations” rertinent to the accg {Jay

9 orcmction rectly to +25 b vet.
accert the rromntion or rejeit it.
appear in the rgwsvarer on “ item, a
et 91' or not to dirtlav tne "tam to

r's adV5: .13‘:$. 775 tvyer 'nst F pr-

r:'U. 3%t ad‘ 833 (S y‘.l

 

p: '4 ‘ , I. — h ‘. ". q . ‘ ‘ "~ ." O : '. ’v-:‘ Q. Pu .

prc-1t rath:r Lita anutuez 1xem n-o.. 56 in tie sa 5 5.559.

1" ‘ I ‘- . - I” ‘- \‘I * . o‘ - .>- “h "' f > J ' n - - n s:

1.5 ouyer »_ll be eua1,1154 to ’35; 1.5 5-51ul e5 ternzrj zone-

. q. . q C . p : 1 ‘ I V I ‘. - y .. ~ n‘ ‘ t ‘ -: .1 .‘
tions in his line because L9 5.11 .nr' fill from 55 Ci !:«5 :L5 in 15
1.Hh.
" Q I 1 v-

Frocedzzre for 52510131113 nee- -’. 3" 21:53. ’lsn

“n J“ I, O '_‘ :v'r‘ 1 ‘7‘ _ : .‘A v‘ N‘ . ’,‘

-lX'WbenS prior to tne tine a 5153 ~13: is to \ iito 5 ‘5ct 1a :15

' “ ‘0 fil ."‘ ‘- ,- ‘A ~ ‘ v. “
stor e,;’ a meeting of the buvers an; t-5 ITCifig, ach.u, 1 5r 5 A: {5
. r .. ' ",..-"' L" 1 "l ,h. 5 .. ... “q '.: ‘ .3 ,_ -, ..
held to develop tne weekly 3ales :1an. -41 L535: wonln 3:13, n 5 rte-
. 2n
- \v l o " 1“ . 1‘. \ q! .

motion form duplicate to t35 meeoi, . $55 353 touio neve-0h the

it . l ’

, '3 _.‘-1‘-I__.' f — o
1:
"' ‘- v j u- ‘ . ‘0 "7 '- ~ ‘ -~- +- h ,; ‘ - '5 . P v ‘ ’; " ' ’ ‘d ‘ k ‘5 “. in l 1 ‘ f f.
.1? "‘11-.“ "3 - Lari “do u 'C ‘4\: “.$M" (T '- ‘ t.) _ ‘. ,‘_ .‘K, ." 1- .. ;,' J- , C ‘5. -.. .)’ .. l
- 0' - q I ..., ‘n‘fi- a... - 9““ 0" v-tls : ‘q. .o-V :-

",7? ‘l ‘1 Tm:.-L"T|‘E;S;fl ‘ ‘ (r -'7 (EC.- “" 1" i V '4' ‘- L—a "l-f “’1 ”\44. if: .‘v‘A C ‘ VS ‘uLwl‘ "t: C “* .' C

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C" u 7‘“ u . 0 * w :

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355 bnfilmhuf, p. 25.

" 5", I: ‘ §“ VF, v- . a: \ -‘ -~ ‘./" -: ~¢ ‘fi .- 5-. - w
“eagly walk: 113“. n well-room ed pl¢n 50.15 inolute wrCfloSJOnw frot

I

each line of proflucts, Sac:

' | n o a
on Lug form L15 cec151on

L).
1'3
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buy5r woul

on each promotion in his line. ani will cnl; accegt or e: ::.o 55 txe

best in his line. The , gars ' decision 5 ll be as:-um.ed to be sounfi since
they will be res WY .ib.Le for pro Fits in their reshective -ines. ans
romotion Form" ill serve as a record of the items 375 goantitiss
Purchasrd for the soecific weeks 35153 p131. .°is Lurm woulo 5450 be
orofition to t_c stores Encaune the
buyers w111 record information lrom the salesmanrs Ln‘erview on tun lorn.
Tte.firocary wrrr.dnd1:er will b5 given one coyy of tre ”Luyvrs “rcmo?;mn
few from 5301 tuytr to be used as a basis :55 prebaring Actual tales
Flans that will he sent to the stores.

khan a tuyer is presented wit? an excartiondl TTGM’CliCH that reun- .res

' ' ‘ - n — 4‘ .5 5'“ A. r. - ,‘. r. .,. .5 ‘.
qu1ck action. tne uyer w ulo 5:5:55C‘ tie Arot5r} ”5.533nn

two wold c 5555155 on action to be tak5n. 5 b ver neec no: wazt for tue

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wee“1y meeting. T_is situation aris.
a promotion reafiy to "break” in tge “38? ”wture. it is th5n necessarv
to imzorrorate the bromction in “lass f;n. tava frevfonsly bpen mnoo,
1.0., tie 55355 Plan is compilefi six waaks *rior to tz5 t;we txe rinr
woes into effect and the salesman may 1575 a trumotion t;at will ”br553"
in three or four weexst To reaf tie terefits c? 9m} manufarfwrers or:-

Inction an? to rrasent the promotion hsfore competitors,~l Quick decision

 

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Qal swan nrasent promotlons to 511 comgat1tors aisc
tiie admra age can he realized by bein? 'first’ .,h a nrowction.

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and acti n is necessary,
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3‘ *“'°‘“~ ‘roce‘ure
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do prev - 53‘. 5bec.- 0( 5n
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items.
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13-5 Cdeth L45 DIESchd: t n T‘XL ‘M5 1e?ertral55gu
. _- ‘ avg . ~ .| . o h . ‘w '\
39 artmer Ls orgari5at10n and avatar. .50 c: are -2 t 9 WHY/w‘b 5.5 ’45
. .
‘ ‘r‘. x f ' " p (u h ’ ,Q‘ ‘ re \ W. 1 “It ’ L f I. ‘1 '. 8“ r.’ ”‘
p08 tIOD 01 take. CK)'r Pdn‘ n ta s1 {‘8 5. SE a \ en: 1 .5 ... L :05; £1 -, 4 ’ G. (j...
4.. L r\ - - ‘ . \ T o n . " "3 . v, r. . 0, m.. I. r I : I
mbiu .ns arsfttefl trc nrovosal. .55 reasalvr-d 25*-55 1;: 55:”.35ty
' .
' ' w. .. . ‘5 ‘ ~I . 0-4 . q . - ‘ '7 '71" w ‘ v- . . y
relat10n5.5ns cf twe rwnzmn‘ :dgve hee' “YthnIUu. .55; h23ur< 5n ? e
- - ' 5: I I. ‘ - Cr -: m; ~. : 2— . ~ g -2
probocea *Stem are g-Ven ant *r.ty an; rrsr(n5-h-}5 y an ”v 5 but
: ..‘1‘: ‘ 2y. : V‘ “ P a ‘5" ‘ 0" V‘Qr . 4‘ fiw. fiv‘ 0-»
5n55556 some -a5ct5055 per.or595 53 5 a we“ nrc a ..525 u ..e
. , .: . L' . . - H. z ‘ _~:-. : ,
braseph sysnem. -fe cu -95 of .~2 r5235: £I313fi0529rs .5 £50 *1
’ ... C ‘NV v ,-.-, ‘ .T‘V’ ‘- ~ oh | '- ~ I I ’ u.- ‘
Sistfifi .QVP he.“ Ytbzfifefio -Je_r ar :83;»flr‘v-J u -5 ‘5 o
‘ Q \i‘ 1 u ‘ ._ ‘ ‘\‘ " . 1 ‘ 3‘ — -—-v
fr. -cnt ions 91 t o hUVnrs. .2: ”ICCGd “6‘ Nita It~a1J ‘5 X“u
‘ 'r‘ . r‘n \ ‘ -‘ -. w ‘~.-' ‘ ‘ -_ ‘ ' t‘ ’ ‘ ' ¢ ~ i‘ :
r: 0. 5C ‘r-LC' 2 OC "‘BQ (‘ FL}? '.)u.1;3 :' 5 ...CAY‘J l 4"- J’ [“6“ 5" ‘ k “E": 29!. .
.‘x 5 :v' :" 2. ' - - ... - a N: a . , -
ser .. w551 com hara Law rr5ben centra..ze or‘J' “at.
2 + c ’. ' n‘. .t .4. ’
~51513;3:3u or'an52821Ch.

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Utilizatio of Puvers' Eggcialjzed “unwlpc
... --. --_JL-..-—-. ....—

"2rccary f-ierc‘amisers have a1..5ti~.o:~*3t}z over Lie mgmrs “5255*
existin-* system. They in form buzzer s re3"fijnr w~at in iuy, nun
authority €095 nut incluce contxoi fiver Lyn txe 3235?. 53629 t”
in? day. Many of the functisns L t cc 5 be heifer erfcrmefl

buyers

must

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3 Grocery :arvnand;swr Laca556 tLe bzpars
[- . I. u“; « Y" I ~ v! T . 0“ :01 “ ’ l‘ ‘ 2 . r‘v ". ’o - ' ‘1 ‘fi! ' § ‘. 22;) '
C- ahtuCl. . L“): . . C'I exam} ‘59., 15- a 5.1596.) v‘-.3 o. (lkb chl'1-- 5.1.0.. .‘ .511."
. - a N o . 3 I '7 . .-. h 9 " ~ ’-‘.\ ‘Hfl-v ‘,' ‘ "v
J'WS and ie1-5es lb L0 be 25 L0 tge 3L0?e-, 5.: ; I HrV HUYC d F
15 rescan51ble Icr 101mg tge ana ":53 can; ctea w;tr mnkxn: ur tu;s
m;- If‘ ’- .‘ '3‘, ‘71,. f- —1 r T. j . V‘ T“ (\ r t: rs P‘ b,“ 0' 7 r‘ .- Yfl ‘ : A .5“ r +
s be wrote. ‘8 C ‘ 1881‘s 6*; -e .L‘JC ng'JrTU gun. c“- - ‘ C ...x. .0..- ac g
5 ' . '. —3 5 . ' ' . . . ., 3
on a5] 1tens, but 8863 promot5on CUMLS no t}.m :u 5,5te-3. T brefcre,
A. . 5-. . 9" " Q A“ vv's '- t "...A; f. -‘ '5" 0‘. a s
t 15 H1f.;c;lt .or uuem to be aware o. ...; -s 35:52-c4 -n d c
‘ " _ ‘}-- ‘ ‘ y 0 ‘ '- fif‘: -‘ w '! 3 - " 3“ 3" p' ' A '- I .‘
11238 Ul firm... - a L L 13 5 -.L ‘ .11.t9 H.512 .Ouf. ‘3... 64:51 h: «Mr-15‘ .5 1 CD
- II ~.‘. ,“‘ ,~~." ‘ ' we '3‘ v- ,‘ ‘ 1 . - r" I . ,' ,- . a
a CCITIPLC t". 33-: C... '. e u; a 4.1516 5 L }. 01151.,"3. . .8 ‘1. ‘ 11153.58: _ f ¥' 1,1"5’3‘ .1 ;
A
special knew.sdge ' sacause he 39315 3.-y Ult5 time 1-nc 31 prc 405
s'. "o -: . v : y . ‘ ‘ ”3‘. rs. rd- . . Li'-
gnu 5. 15m5l* w.t- tne movanan5s 5.: 5 o. otianal t thv 13 5.5
-m- \mf"
qr
“¢ ‘ u 5 .
fl SF3CG alloca510n D L3H WOWLV 333¥hfit t0 the F.7P8 11nw*9? .
' - . v 2. 5 -- ‘ .. “' 1 ‘- . Iv ‘I f \ ,‘1 Q 1-. \ 0:. : 3 A
nu:gf rows 01 eacz;vm\3d5ct to n.5§.55 :15<; 'w5152.‘: sach5on 5n t5:

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Tna anal3sis of a class of itens by Lue irocery “ vr.a"w .9? is {Law 00:4

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..~ . y f‘ y‘r. f-v I. ‘, ’ ~ '. I I‘ "V": "‘ -“ ~
suming. ncnua1.3 tug urocery udr_man:i .cr stuixes ate ciassii-54;1udu

'- \ . ‘ u ‘ | ‘ ’ ~l ~
to obtain glaciodne shag fame bzijrer airea't} bos;:;s;es..
.: o ‘n'w~ - —‘ 4.. I‘ V‘ n C urovxr ‘:4“ 9-\ ‘ y -

J.de, L36 promos 9-33 m; 36m “Le buyer wiii me Itsgfinn-b47 is: Jur-

" ~:.-¢ ~~ \‘ °--f'.' A -'- n. ‘ 4‘ '3‘», ‘--~« ‘3 " . "~ .'-
Inland, tad-4 F: (14-. ..LdS 3'.) bra. ‘r3 31.103411 . .-.II is; . . 31r- ‘-.’l..._i. -I‘U'~' -i‘z‘J - UT
;1: L: .‘ - .‘I‘ p 4- '. 7“ 'p, -.,‘-,A,3,,I , .- .,.. .. .3 ‘ - . -
L 93 u “1-.-: “on 0f the buyer’s 2 4 ,L-Z‘.~5‘2 u..-‘11).'.'J.t*a‘y€ ‘.d 32:52:46.: 1:,- LP.
' ' "3“ ‘ ‘ . A v ~ - r: "v uv- n I‘ .w ‘4 I - s 4 : -4.‘ v» ~~ --‘ 'I“ ..

Off-1343111] . ...e use .3: has £012. 3 a -.-i.-_ 3'33 {3.4 1.»: Eu...» . n “in 7 .-.-.:,
‘ A. .' ‘ x ‘ 4 V i ‘ . ‘ 7‘ r”.- ' o“ ' 3".» ' '~ .4 " "- I u '3 '1 1 am ‘ \ H .-‘. ,
arfliysls 01 wr‘trdttl‘ 4 14‘69. . ..e ..I‘Oi‘usr')" .. :‘J‘T.;'i.x? “HZ: »...1-.. if Ibitusdf

a - . , ... ‘d '3 r : ‘ -. 7‘ ..v . I- ~ . .- ' . . I‘ ~ ~ , —. ~ ’ ..
irom dunng Jewiled arm is work. is 1-1-. V s».- ssui firmlus'ndib

- .‘ ‘3. ‘ .....'...:' ',.‘-":,‘. —..,.-.--
mrcrtant .L‘Lscmbno, sucr: as dam L33 m; c armc ;C.;..L.C-t:.‘~, Juan“)..-

 

‘. rxv“ ‘ ‘- 0. ‘ . -'- C. ':A 'b‘ “ ‘,‘l "‘g':~. '.-.-\ -:I S .‘ ‘
cable ..s przimdixw‘: , and daminmrfig in ms add (’3 lrualt 003,4: tin :0:
.fi” ‘ “p it c
I’L-LJL- 4.83865 (J- . 871. 9
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Utll LZR‘LlO“ 0‘ Tiff
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v ‘~ .... . ‘~ . ,- . ' '.\ .‘ ”v.3" ‘ c - ~ at k ' A v- _- O" .. ~. - 4"
-31 ”8 5X15 413:? 51/3 marl, 1.4". Ci ”07.:(4; '.’.r;i*a‘.., :‘oC.; . - t, :3: :14'0 “nth:-
q .Q...”(u ..41" r, i A .g a). It ‘ . "fifl d \- ac.r“ :79: fi,¢ "‘.I~‘w"\v ‘ ’3 y~.\\ "r‘ 9'!"
r.L—'~b:‘ s) W'¢._~._.L Sf-Gnt. b‘rl~- ' *.§;" L’-' ‘l‘ru' '3; IV». 8.... v «A... bdwU-‘ ”I". U -— Y)’. n ‘- () n pALa’;
-. ;, n.- I- - 7‘4”; “... . .3 .' ,. '. '. ‘3 ,,
1s bresanuifi awry iifLuen mixniban. is 3-: 3.1:" prwu‘cm'fia ‘-f£C--JC.n>
I ' ("I V " _ . ‘ - . ~:- . , -- : '
new items, .1t‘er”1~sst:nted 3W I‘; Mew.- he ~=T’-~"3t‘-"Z/ not": «mt-332‘ «Tint fake».
a ‘_ L 4. ‘ ‘r z‘ . D . ' t '-
al: zircmobions from a lflfCIr'I-ad .;.on Lows .m. «21.2: 3 x .i‘ scum“. to time.

3 q I ‘ ,\ $1 _ 4' :' _ L , ' ' Z I - o . ...

in {‘83-}.‘33' who .zroccrv £18?\".ar.ib""~ 'an , b: re‘rieuim . ts -T.,i'.‘.uf r
' -I I

a .: v\7 ‘. § 4 L -. 1 -a- .- «'yi" ‘ ‘ .- : .- 0 v: ml . I ‘: Iv "~ ‘

Lomsg busiest,” the “.1: n. :.su...~»:; LI. L..+: - .r~r*u_e'...'. we m7r»11.1-'1= f...:a

' .- -. o -. b- v. ‘: fi-u ., vy- - . ‘ ‘h . ~ :- 'A: ‘s‘.
Du'J'EIS, 9.180, -12 e-LfCCt, dipl¢33vc LJU :_.lj 146;: a“ |3...“: -.q*a9rv-e'vl 3'."

1‘

read '31:: bzzeix‘ tor}; of the Lmorrration for";
:01‘ each :‘rroznot‘ioz‘. t'I‘asant.65j to the co”? ‘5»; a salcasm'm LC- bxa

niberxri-e 'er, $3.31 why man H? of time is required in 7. fires :2: tf::»'S:锑..

Tme interviewer svends fi'teen minutes, the buyhr five minutes, .%d the
_kocary Karchandiser ten Minutes. Ten nfinotcs for the urczery Were an-
isers' review of the form is venuervafive hecaase 4: order
iacision on a promotion, they must analyze the classi

within wrich the bromotion £333.:‘

28 29w system would save ten minutes par promc‘ion, éuw ninutes

teag“viev.-:.ing of s;~.’xsn.er’; a»; mite ‘. e-

.

rar‘weex. “he buyers will do the i

‘1

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r. . - ‘ u ‘- . ‘, M: - .7 - ~- I ‘ I 7- ,- - -: . : ‘- - '1 ‘. r.‘ “
366131033 on pr‘mc.loss. lfle blyBTS lo? 6403 gromoc;cn n;gl finch; -Li-
‘ ' z " 'I t - . i V! . u- ' ’.; o l- r ' a, r .-- - . : a . o q. --\
bean mwnhtbs inter -«Jlng ana i¢JJ mwthes .o fidnc Jia oecub~od. Ian

._ n” u, - m” .‘,. -.‘. v. - . ,; v: :_ ‘,, ”g ._
3831”? C81 ...*3 *"~."-" 3‘th tut 1.395-5444". .Lr. -.--'7; ;_A. .3473};

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quest;cr ls ra

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.. ,. .-;. ._ ., _- '~ ‘ u. 'x.‘ H ,. . -_ "w ‘7‘}: - _. ..._,.-~ - .
a.Un “L taxes _hu ”racer? aero:3¢c.:; 5 Lb? :Mos can ya uzy_dln¢: uv

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‘3

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v.- ~ 7‘

the foot tnac {Le buyers have S”€

' "hfl.’ 1M. , ‘ s I . . . 5', 0~--. 2, i (. -\‘ a ‘ _ ‘10 1'.»
fluhln walrj the yTUmOthR fats Ufifdfiuw :uej ar« CLL?arned onAp 5--“

. ' ‘ z ‘I 1' ‘0 ..A. ‘ 6 .. '5 _ I. I ‘ A'r- .
‘neAr own rhecfi‘lc C-a331;lCa lar. ; ~y, 3P9"fi"fe, oaL ' .o \=“ d‘ld
' ‘ H .'- ‘- ‘r‘ "'s v L V v- (N P- ‘- ;‘* v r v‘ .7 0-1 1 p ‘ h,»- o -‘.
33C] 7; 3.033 EfflduSE) .EWCIY £03585?) ..~ . 1" :21qu nQUr:--c.‘:T€ .' ‘2‘ 501:1?" w l'

-;e raw sszam would inVJT e ASA? Lgenty minuLes gar yronztEQH an
'comoareu to Lni'ty in the present system, a savings of ten minutes. In
a normal geek where sixty-four promotions are presented, tue savings

..' p. , ,.,..,- w- ‘.:.. ‘
would anounz to 023 minutes or vVfir ten nan-,nor. fer WGEn fin rdg

,1 4 ‘ -" .. , " .' ..° n .
Stogg 41 “he n.annelfi of uommunocatobns
— -— my... --~ — ..i __..._ n— --

T "p ' O~‘ . 1 ‘ ‘V ‘ i..‘r " ‘ v. V‘ A . ":' . I, . .-‘ - “
Lnlornawlon, 34cm as pxomuthua uttlt t; tr aavart;;.ng {JiflL-wfl

on items under the hresent system, Flows {Tee ax ibit 9?, a? int

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Buyer Grocery iéPC$andisar

 

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Figure 1, from the salesmen to tee r‘n ervie"er

on information to the buyers and the irocerzri'

The interviear

rfi'aifirberq.

«3r pafisefi
{711 ~“ . ‘
we €..vx‘0(_‘ 61'}

MerchanLiser in turn passes the information on to st.ores to a -d t.' en ;n
selling tfie pro«flucts. Information communi area to L:e stores might be,
for exanfilc, letter s 5ing that a product is heir; advaN ised on
televi5102. The stores would then construct a artcial :Lep.ay of +ne
product in order to get t.e benefit out of television advertisizg.

Che present system involves the ze‘fnwin, written commuz*:atione
to get information from the sale Mon throu h the fie M?! nd sin; depart-
ment to the stor93°

1. Tue recommendation from U19. b1"?! cars to f" ;- '_T:‘.:~Ca;'j,v' ficz‘? 3. this-33;»:
on new items.

29 XWtice to the bu y'er S on decisions on new items from the 3:099r3
.‘vis rcha 2d .1 3 (1 rs .

3. Inforwa 310D on "1:“;ce of Allowance Agreement“ form Iron LPe
interviewer to tne buyers and the Grocery e"cb¢nnr ers.
L. notice so the buyers from fife :rocery Rare 3: 15ers anCgrning
dec' .3: ors on prawn tinns fresen ed on " otice of fllowfince greement" fa"?
S. Jc*ice to buyers from dronery zen? .nuirere skipulatizv tzg
quantities to buy for weekly sa;cs {13:2,

6. Zh?nrmation from interviewer to buvar on new 1:515.

?. fleekly sales plan from :he 3rocery ‘Jrc':4o 5:2310 the 3: re
rzuzagers.

Tue nunber of the above w*iiten communications for a Lyfihal week
rumjld be as follows:

Buyers recommendation on new items 1
Grocery 340rcr.andjsem " decisi n 0n new items 1
Notice of Allowance agreenont to Eroc.rd Herc 3*"ser 1
Grocery merchandisers decision on "Promotions preSented
on“ Notice of f-llowance Agreement Forms 1
Votice to buyers concerr.11; weekly Sales Plan 1
ekly sales plan to tfie stores 1
notice to buyers from interviewers on new items St

A total of sixty-nine written :31 unications are involved in the
system. The new syster will reduce the number of Comm*‘icat or s to five,

The new system, in wFLcn the buyer has the authority to decide on
new items and promotions: would clinLnate all of LLQ stove Lonmun'CEa. is us
except the Ieekly Salas Plan to tne stores anfl would aid one CL?” of

Q

"The Buyers Promotional Vern" 1r-“ '. ixhibit 7

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illustrates tne form that would be used by each buyer for the W26 e tation
of tne best promotions in his I: ne of §;rod'mc* Tue forms woald be pre-
sented at a weekly meeting *elfi to develop tre Lecklv Sales 133.

The new system w.uld reduce the o‘ennels trrongh u~icn in7urmation

flows from five to three steps {?ee

.. ‘\ - 3 - v “ - : - Q .. v Q 1 ‘ I w- “ ' . ‘ .N
of lnrorm on bein. liconb-efie -5 redjced rm red clnt .“q cfiaghe,s

-' ~ v .- .. ‘: ' v 1 ‘rn :r- ..- “ I. V ..; u-"v ”VI” . :-. ‘
nrou h 'hi CR lniormaLsys German; atluhs 1 On. ror eaah let At -3 a;moSt

inpossiole for tea interviewer in the present S'stem to record exsr;fr;r.
that was said in fim%jxmervlew an t3e ferns Le ex:cates to the tn"s s and
tne érozery Xcrchandisur. Jone lnfcrmaiicn given the 12:9 viewer by {Be
saleswen is omitted and never enters into tie connunlcation flow 329
therefore never reaches tLe stores. In rue new system tFe b yer receLves
ixxfiormation fiirectly frcw the sale3men 333 is resvonsibl: “Lr trausmLttin:

.3

this info. 'tion to the stores.

‘amnlier Palaticns
*' WT

Manufacturers' representatives to tne retail food industry are
usually salesmen or brcuers. hwy contact the 3093 cha:“ hath quarters

to sell merchardise ans are sLaiLar to Lease-tc-Lcusa' salgswen whcrnay

”I
u

. . 'u-" :I 1" ‘ | x ‘0 V " It .- - A‘ -.§' '..~ ._ ‘I K‘
1] 1n your remjnh>rhc;c. .Je 5:;e-an are 9-25.;nnt S¢ulCCZ 0 macr-

afion abwut tie proiucts beCane t??? are Intnrerted in re}?inw" +n

b
.—

L "r t ‘l 5 ‘ ~ ‘ " . : ’ ' ' b H‘ ' \ I‘ l‘ . *

'4 U C l. I ‘ I o U033 re;a b10315 t .9 Id. Cum.“ r] b‘ .J-- > r | . r

‘ A v ‘7' 'N x # y‘ r ‘1“ fi+ ' r m - ‘ 0* a 9‘ V" p.‘-—r r —-x ‘- D .
\ I .~ ’3 .‘g an ‘J ‘6 it’ll 1‘48 I [‘1]. k \ l ' O‘ «14‘. r " l‘ ‘ ‘ ~— . «IL d‘

1. A reLiao*e source of surp y Ln case of short: as ;s aVfiglable.

_ ... 51‘ f ’ i . v._ ” ‘-. -\ “_ . ‘: ‘ ,' v .. r ' .j . - ”I: ‘ ~I . -‘
._' o -.-.31'::3f‘ler: my r855 02“. .1‘ Lu": 3C 3"} ‘(l-' ”air... put... .LC..-’ 3 an. ”an. Linwlt

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34

within the liwitaticns of t.e E: neon- at":n éc‘
“, Kore relLable PFOflfb delivery of yoods can he cursingd.

T‘ ‘ V '1‘, - f o‘. 0 ':-~--‘- :. ‘ , -« ‘p~.v '-.\“ a‘
F. -I‘1C:.al hr..V‘. it 583 C31 I " LA“ ":73 0'1 .r.'_. 217' L43 ,T’l'r‘.s Livgr. . Q’J S',l__,1; f‘fci.4 '

- - \ ' o ‘ .. .
., __ l‘ A 7 -~, ‘ V. y ,- ‘0‘ .‘U m A . u ‘ '\ -‘ ‘ (- ~ . ‘ . . ‘ , - A . 1 . in, .
6. ’956:d‘»11 CUUB hf L. .t’ “3.; ... r . Tull ex 5 . b ' 3.1315‘C Cf ..‘" f. .h * 5. OF... C' a...

which aids he.“ ‘if- #811131?”

«'1». . l ’o
. Iu*geat«u maaxs of d;s:J¢

1.:

Q '1 a
\‘NO -‘ . up..-Ls- .,. ‘fl. . -, , ,7 , 4... _
""1.) 9Jth $8 .18“ f‘): "4‘5‘ _ ’7 ‘ r‘f‘. ( w ’1'. .‘.' n (.95 L3 77‘ d5! -". H“

.—-
9..
‘1'...ij .4 L‘ (“...9: ; ‘3. ': * “..é' ‘ '1“ '
. ' '. >- vl . ". I; . VI.‘ “ 7 .-.‘ ~ - '-
h-e' ’4 611K~ 3 . “i-!‘J-el!-‘, ‘ 'Lg:..,in (3...!54. L‘r‘.“ ,Al\'|n-'A"{Jl A} 0.5-1.4.:(1 .q:
.— '- W‘ . ‘-—"”

:.ichard -. rw;n, ,:C., 195b}, w. ;;L.

r- ‘
ét—u ¢ - I - I s‘ w .
:he Jaw of 1939 pronnbLthy selling tc ::;.erurt crafcrrrs at
'3 r-

diffcrent prices uniass cost saving c

' . A r- ' ' : --., ”x- ‘ --
av, gzv : i-e -uni c.a.n rb‘r’fbutcl-\fix.

1: .‘.~. 1“: “‘1". : ‘ -.. i.
-n 1:16 fireseht system sur1-1s1 re;.:1nn: a.e somst1mcs Poor. .nuer
the tresent SVCLem the salesmen arc required to mgke Irresent $1 1033 tc tfle
interviewer on1y. iney do not Lav: a d-rect contact :itw tie buyer fii

m -

‘ 5,. . - . . y.’A '. r~‘ ' w ' 0 :~,‘ cut: uv;~ h 6...
th 3r producog. awey are cereudaut on tuv a“-l‘i} 01 1.; ;Ctei..-nwl yo

\

cormznicatg fail; sales presentation to He (feels :T'm ram-r I've; Zz‘ocery
Rerchandiser . Lien a promcti n or New item is rejected, tne sa;e 9r v
are never sum if tLe information PFETQLLLd in +1e interview wps com-
municated ch‘rectly. The salesman are crux: 1,:"214' tr'j..'."-r:=.' tr, CiI‘CLK‘V'éIIV;
tie inte riswera in order to mcke tuezr rresuhtafions to rxu Crocerv
flare anfi‘rers because of thzs uncertainty. lue to tgc great numfe: of

salesan rgat Late tromoticns to gresent, t"e Tracer? 21rcyerfilser° Five
bean finirrg same irzmr dead; 1*. liar: 2.5-. more sa eswer. want. to Ins-11:9 tneir

presentetlons dirwctly to 158 ‘rocery' arrurncgs¢rs. One ca; 0t nlzré

V . . ‘ V. ‘ v‘ »- ' ' *. " ‘ "' ' " ~‘:\"\ ‘ ‘ .'
tie smegma C'Ecause ruler“. the» L‘wrfiavo‘. u .r: grocery we :7" u», r ,"9*~-;d

- - __. ‘ 1‘ ~‘ .“ _‘ .. L ‘- " +7”
w‘ 3* :wtnrv-=werg the? 1378 ? r ~n- FIJSanatLJn Lu - a an ..-?

.'- " .3‘ , 1
"is-tr .1r-Ct1f'.

?alesmnn w: present tieir fromotaou to the .rocety' are a ? oars

(J!

Hmst afso “resent the hromct1 ms to tga 1ntsrv1cugr, 1.2.. ?0 t.rou;n

-, a . u -' I r, - T 'T: Q. ‘. N. + " > ‘. ‘ 3 1 RV w " PI : ‘ : ’v ‘Q‘ 1 : . "I .
but RUTH!" .. nyaf‘.’ .8 LS .9 -I .18 ...I‘I‘...»c1L+3'7: tn c 38.1-8 affirm --1.:.- ... 1.9 G _.r 1 : 1—38-1417,.
‘ ‘9 V. . ~ ' A ~ .-. | ‘- ' ' v ' r - ’- u- r. ‘ . ... o
1‘95 r 61 ort. TJQ CUUStJuD nay're aSnCC, Jh‘ 311 L t : 53 .on L416 -.¢.:
qp‘pc 120 ‘~’ ‘;rr,. a.“ 't." t t p. 1"“ mr’v’fl'l‘ 3’ 'i""‘...“ "mflr‘p'Pif 9’ “ \ 1
\ §.'.-vl’ prsv .IOV-‘a '.t J l 'v “; O A‘:’ If" n. 9‘ t'b. a vx'xlil> llfl &-.J JV ‘1.
_.“ V .‘I “ " 5" " " 3': P T A (- Y' '. "‘ " I ) "‘ a ' v" t‘ . C " N 4 ;‘ o‘ ) v\ 1‘ . " I ~ \ (y.
-..-L Coat ~36 IL. Z-C‘1L" *Oer. :06 r‘L‘a o(-A:~-lt. O‘u-Aa..m'-\\ ’a-lh.‘ ,LO . u: - t.... ‘ . ‘)-'O'-) .1 .‘1.‘ -C‘

. ' I-o . .r v'v 9.5—7“ '- ‘ ,s fih~.“v‘ - I ‘- ‘,
:4are not alvsn to tne lute '1gver, 1 .culi hub“ “11 salvo.bn to 065 the

—I—-’
n "~ ‘3‘ ..." - A I Q ." ’l p. ‘ ~ I" f '. .f"v .‘V ’I":"«~"-.
.rocery Mercvcnd1oer. z t lutEFVTEWEI, 1- .0 -1LC1 1, 5 Le1rg SJ-3«11~.,

~ ‘ . ‘ n. x “ P , 0- .‘ . z . . t n , «Ia q- - - ~ 4 _ -
1.66433 he 13 n('t [Jerfcnnlriéf an .LT'W'UA tn}; frr.T‘.(.t.LC/n 31'1“! ‘f.-b "1016111; 1") L" .51}.

lowerefi. Th in Jerviewwr cowl' also avoid nis Utiu by tellinv Eileen
men to see the -rocery Merchand;sevs.

In the present system, buyers are not in direct connzct wits all
salesmer. They receive inforr. Lon about 3:9.K flrriuvt" frnm f "m: "ro-
"dec: by the interviswsrs. ;€ 31:; if Lne iifchrlty in recor‘Lnr a‘Z
the “sr*‘ruu inforration or tQQ fcrns, tti- infcrmatlcn ‘7 n 19? incur-
plete and may Se “8"01d of suc ftjnfo be competitor’s '”rmrt .’)“S 3r;
ideas £0 heir 1n *“e 581 1n. functiqh.

Tater LruCKQr, in ex1131nin* tEs symptoms of naLcrgstitaticn. c.nuss
that:

";:in; thronsg‘ assume.” rat rr aha: 9:386 Ly to the rm:

who has information or ideas naaée or v.0 s 0213 ha

informed on wxat is is

zation: 1 13 Q91 ju:t a sym;
is t 9 CaJ-v.m“/
Lnixy n s;3te.,'hg rvrs.fivervi

make t“e deci Sion

U)

'nroducts and

“ cea-ln;

.e 2: *2y with use 49

cate an“ interview,

.“B'1 - u. ‘ —.h 'l . 1Jm. ix: ‘-
s¢.es 3:rsenpat1un as 6.1.1rstw- be.
-rterv19we“ tfi trarsmnt says. .36 7:-

Q
Silidfimr‘. t 1‘01“. 9 b 1"“ "S to f‘ 0 5”
-.w... «s? H: ' -.. ‘ -. 405-;
*Lmflwbx4cn.3' ‘ {as beuy)om- .2 .

‘1 y.$\ H‘f'ty‘t- L',‘ qr? p». '1 , P-“.~-
aad v.08 HA~ '34 .011 U 6 ..d.-.e.),-€u. i .F3

‘anu-H- -m

2'?
'V\ 'x I‘. fr“. _ -D \
reucr -‘r‘.‘.~:~.s;‘, _.'____:9 F:a::*.:cs m
“0-. - ~
f ,'r a... 51.1)) -' 19:1“?
‘v'gkdltbgs A; 4.5) .85.), Q , r. —..‘,o

o . ‘
. f
K

-\/.' )" h‘ ’ VI
11.... f Lug-I];

cw sa ssmrn

I

tom of rtlor an12

for

,—

(I

n organi-
it

a
(LUn n,

A t
‘ n
x A A

1.91? limp

\ ”a C‘ ‘vll‘ ' I‘ r‘y ( ~' ‘3 c: 7‘3qv par Cw: T 1
. :12‘). «A! L1 .‘o - L 9’1”...“1',“ r. .4”
‘_ ‘ ‘I . . . ‘ . .‘ I
'T‘iris'o“ 5‘ fzf‘ ‘r'- 1 ; 111'; u KQ‘H? f'-‘ '39.“; J."
". ‘_ ... . . -’ '9‘ L . -J
o ‘- ctr-Z. CC. ‘7 -:‘ ‘Cgl‘t L‘Jhn Col. “ r: ‘r‘
' r. — a . -. - ' \ '
ausv ’9f 1r» an: a:p:f:unt at 1'9
3“ I": -\ . ‘ r- 5‘. P . . a P' 0": 7' $
~- \’ a L hc’w ‘JL .I.4. \ I :J'.‘ ‘11-, j ' ; . 5“
war" \q—ny" m L p ‘4 ,-~"‘ \ , r 9
J, t‘ .‘. , Yr, ..A‘. 6;) lg .- . - t: J- J C'\’ ’ ' 4.
m3 ‘ k. 17 p‘ v {‘1 p03" - ’7‘, d- \‘ ‘vv‘
I E. {A e . b .I-. 9“. A ._ \ ...: d i! ' t- ‘. ...]
v . - ~- ' r - 3 -- ‘I ~ ‘
\r; r reg-CH.“ . , 5; an).-- a . .3 t. E
‘5” I" C,- ’v‘ :|?’ '\v ._ . r‘-- " ' H A '~".
Csf" ‘ " 5F 1‘. éLI T ' KL' E-‘l J~ld

...-“mg

F . ‘ ' f‘O‘U‘F‘i V V . , - .Y'fl‘f ‘ ~‘ '2 ' " \
urccer; h rc?a a. er to intervieM sa ‘esmen #11; as 8.1m‘nn263 heedago

‘ ’ ° ’ ' ' . V . ,- . -‘. ..-. -. ~ -‘ - 3 ‘ . ‘ ,
more men MLl, be 1n erv1evlug lnfit343 o. 2.0 lu§€f¥.9kh.b ;n tL; yz«w=nt

sys tar-2.

Bug§r9-;toros iflatioxsEins

 

 

inc:

,0).
Ba

TLe h yErs in the presen 335tem, are ngt rezuxrwé to r
stores. A buyer 3:0u1d visit the stores and be aw we 01 store problems

L

and or.rations fine to changlng marfiet conciti 3:. 3b; btyrrs located Ln

912:1nnat1 prohably W111 v13;t scre stvres ;: t‘a 1 31h if; ar?a cut
v.. v “y I" ‘ ‘ ‘ V .- 1 .n a : n ‘5 . I‘ . - P N. ' ..‘\
very narely VLSJt nae xolumous stCIOF. :t C997- ...;c.: 2.“. L3 or.».
a. ... - ,,. ’ . . ." 4 ‘~.~- -. . ““2- . 'I v"-~'.- ..."
.0 ,eriorm tug auyln; function :ricLenL43, p-mx- ta ar...:. e u: t.6

- . ' - . - ..- ‘.,, A .- : ,»,,_,
SGllln" fJnCtLC :s .tC .ssarj. .ucz ozczatxous as r'rezv;u« stcw.-ug.

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If, anu actlors 0- campet;tars. b.UI;a ?

‘ -- o _ .: . an . - “ . “ ~ 7 ‘ \ 1 n . v - I
xncvfi ann c»nsm:er=c when contenx.a.1né ydrchaJES u; m ’chfifli‘fl.

"T7n‘rrvn m «o "'I‘E‘ -' rvx . :1 ”r4 'r-nt.‘ 1 ‘ 1".»"L3v'u .-~.~.-~,-7§-¢—
“diddue 3 - ;u,.u\ \e: an; y;«uL2 Ou-.:.;ab .bo¢*vo
u...‘ .-1 . . A 'y, .J'v"-‘ ...-x. .. .; ..‘ .- - 3.
atpa2nun VP Conc-n;nv a3..ezuu. has 5 w. a 3m; AA'BI
c * *( v" .- " r‘ : f=+ rj.’ (\Y‘v‘ ~ ¢ - 3a3-a nu ', - . an 7"" " Y "'“._'- Y‘L“
..‘:\ J- :14. :F'. - -..-.C C C » “1-3.. ‘ Q- AIL-1‘! 'k!:--’« (3.1-” b" ‘ .
“ U". . l "“ Q: “ ‘Y‘ r‘ *‘ '-' a ' nr 10 w 7'" 'vnv " r“. w‘ .~. :~-'~ ,.~" ‘:-,r r: 'v. ~
. ..L'k.-.a-Q - -8. .-'.bn 1L. x'J .1: 7-1‘.’ . ’-£~'A-\’J.o' xxx: ‘ ,d.,.-f‘._1 -‘ “at.
2 I f - , ~g - ‘3 " :l' o s 3 T ' . ‘ - - O - 0- O‘
a c db.e Ir 0.; rations a: .0- out. 'nt-3 M » .dd‘ .9:
‘
unpv‘. ar- vva ‘xv’rtifl' ’”,fi‘ 0“ a Airfifl“: ‘T '3‘ ‘5’ P". ‘7‘. r\ r“ L- rm'1y'
5‘ \: C~I CI 1 NO .'| 4. A C1‘:'(..A ; .._ 5'. u .n .1 (..A, ‘. Cl“) -‘. \- . U. A ‘-n A. .
”J’r ‘. C" "‘1" r”~i 'n 1"; f1 ar‘f; Gan“ '1" 'VI' “f: s~-—- , " “A “f‘-
. * C: C) Ath -l-8 f .t: 4-. - L— 11““ ‘~ YEIT‘ - A . ' ~i ' ' ~a - . Jrj . 2 A V ' t " ’0 ‘ _ Gk 3 ~. ‘
. w? . . : L' . P“: ‘. .
gels‘ng. h0mgf-fies uhvre J83 ..4Ct on 'H*autf t. 56
"‘ s‘ ..'.-.g. .. ..'. ‘- ;'.."..,is. 3“ .‘ .
V” I ha I ’ ~ ~§ . \ ~ . a~
.bn- -l , 4 ‘7. .-.. .3“ 'x- I). v , "E- {13 *"x .-c") L t - Mr. '.“.I ..u L L Q L. 1%
1 ' ‘ 1.” ¢ ' '
'2 ~. . u: r. - -,ol ~ 0 u. , mg. -- ri‘ - . .
5'; 1.x“. \ VFC) “(| .210“ Ind-3‘? ‘. Ju- .‘ru- - a}lab 19 Y9. a 3-13.”. 5.19} ‘..' -"
.1 ' I. a: 0'; r U- Q . 3 'I -- v-fl u o~~v -. ‘ ’1 :fi‘.. :(-P‘ " I" L r‘
35.3 4-2, w cr.* fin Una 0-1»: .-.- -u--fm—3 a . 0
V. : w v a" E. ‘ ‘ -. .5 ‘ A ' -
. ‘ (x ‘f‘ ’7 V‘ . W a V. ." ‘
Erin. -, ‘ : ‘,'r‘. '. J.)I‘Q md“ 9* -~ 'r-svu- 4‘ .2 5- LI; ~.,« . L-g', f\lcul4-(\.a 1....n:n
q r ...,C '- A “n. -,n .\ AA, R ‘51 Irrzyn-v ‘4‘ .. (I. ‘- .‘ w r:- '- , ,1 ,‘ ' O-- ‘01- : AH
\- IA‘H“. J” 6(1.‘ "bu‘i- '3. \r L .... 4‘ ‘ 'a bu 'U‘ n a a -.‘- ‘..-..A' o ‘_ .
- u. p- -' v- . ; k ‘ A h rv‘.’ t -\ 1». g. r- ~o J ‘-
Wei.) .3 D 1dr! u“ I“ t a...- ..‘- -..m~ CI‘ -. ’ 'kvv - -1144; 3. “...; :3
I a ‘ S u. c
~‘o, o - .1. A»- ~ ‘\ -’ : ‘v‘ Q 1 n -- v o 4 ‘.‘. f f‘
t}: ‘4"..1: ..u .i-M' \J ; ’ in \ -"~ r :‘\I m ‘ I I. \I“* ...H1 ..t /\. ,. 1
‘ . r(\- W v (‘r‘ \ d r -\ -‘ L4- \ tr 7". ‘ F- .) rs?— ‘ pa - 0 .Q‘
H I‘ J I d 3 'L'~H \1 «LG ' -o .4 L~J |O c "3* k; -1 "-- '1 p"r .
‘¥. 5
P t 4" I-
o. .-v 90% a 1 1
my .' ’ .M 7 "q
1 "
r - .
...- . _ .r.-a._s ‘ ‘ 1 I M I ‘ ’7‘ 1 ,“ -. ‘J‘7"'~ .-I‘.-‘ - ‘ :‘T" ‘1‘ F . :xfi " fi-v'.,‘ "fi‘f‘f )1 " ‘.~ -. .V f- 5 f
..L'Q‘L‘l: ...’. I. 9 - ...—1...; .‘ (~--'- A F‘U': L-.‘ ,' ... . .3" .‘.-.'.- .. _ ' '« '..‘- ~‘~ .on
I - ...-‘._. .--__;.-4-§ -—- <-.o 1n\_-.-n‘ ~ vL—‘H~v-q-.-|I. - III-... ;J--a—“.-D 1r 1lis -..-a.;--a4; : ‘H—‘fid'd.r‘. ...:
‘ ‘l P ' .2 f. h I ' ~ .. '- n- ‘- .1 7‘ ~ -- ‘ . : '- ' . I‘D. .1 ' - . n - '1
. tf'ij‘: '..". I"? \ .*3J'53-r. tr: . Or“)! 1'. -" O —4- o .0551. . J..- ‘..'3' ' .‘..-1.‘. 5‘,-'1 ' I" "J.
C-IIIII71I——-ll'--'JiF'Hl - ‘ '

3
-=3&;;a‘man, LP“; , *. jS.

Iv

Ll

This same kind of situation arises wwen merchardLSs dyes not sell. The
buyer blames the store manager and the store man,gwb1ames the buyer.

"1 department store organizations the buyer is responsible for

, ' . 1. , 4 \ . ”39 m1

botn the personal and impersonal seLLlng 0L hls mercnendlse. 44a
bvyer is responsible for the planning of departmental promotions. He
is responsible for the arrangement of his department and he supervises
30

the interior display of the merchahdise.-

Traditiouaily the buying and seLang fu-lction ras been di viced in

)JO

ndustry for th

(3

the £006 chain folldwing reasons:

1. Buyers ha ave abilim t

0

purchase but awe do {1.16 ha in Selling
bility and experience.

"i Tt

...—J I
”3

;e bays: cannot be . the relevaifi japartmén: of all storna
simsltanenqsly and is absent from the department :00 muc¥ to do an ads:

gusts job in supervising fhe sale of mercaandiss.

3. Tue volume of business is too grs.t to permit has buys

’1
(‘f
0
("’1
5...!
(J
D

adsQuate attestion to supervision 0? selling activities a? his Repartfis fie
L. W}: atgr euphas can be 313391 on selling if b”?
are separaLet.

in the new system, the buyers would be responsible for vis ”ti

1:?

sacres at Least once a week. They would be responsiolc for Vls-t1n~ both

 

morrne titers“ stores and the coznnany's own steress This will keep them in
4")(‘. ‘ . _
* "Fred 1. Joses stail H~rch81dislnp, {:fo omeIOOd, I‘ annis: 9lchard
L). IMF}, £30?) 195? j);— p". is?‘

30v<b 9d

,D‘d 9
“-

Contact with the markets and develop an awareness of the selLing functions
performed in the stores. This m 1: also provide them with a cba ance to
talk to the store managers, thas prov din,; for an eirhange of ideas

about the products sold. A knowled~e of he seLling function and more
'ntelligent purchasing 3? ould resu b from szcb aetiont The buyers will

be responsible for action to balance store storks on promoted items,

i.e., if there is an excess of s oc':s on a buyer’s item in the sto es,

tie bqyer wi11 be responsible i‘or takin gaction to eliminate this excess
inventory condition. Since the buyer wiLI be resnonsible fer rrelping“
the stores in tb selling function, a better re11tionsnip between the

merchandising department and the stores should develop.

Personnel Morazg

In tne present syStem the buyers function as order CLerks. 'Diqy

make decisions only with regard to routine purchases. TLeir experience
and knowiedge about their Specificp duet line .is not utilivrrj Eschires
are now available that can perforzn tie reorcer ing function? These machines

are designed to make out purchase orders when the stock on certe in items

f4

)
,2

reaches a predetermined mininum. The reduction to nothing but order

clerks and constantly bein: by-oessed on decisions on new items and

'3

rm1r tic ans on prodWICt in their line, leaves much to se desired wit;

regard to tLe buyers" morale. They have specia1ieed knehledge in tfeir

I").

l-ne "b on qualifies them for making these dec isions. They are aware

"‘Jtonatic Ordering and Billing" Chain Store Age, {Novenber, 19b7‘,

p. 115?.

of this and realize their status is inferior. They realize hey are
not recognizei as assets of the company even though they have experience
and knowledge. Ln View of the above reasons the possibility of the
buyers doing just enough he ”get by" is very proximate. The possibility
_of them being enthusiastic and innovative is remote.

In the new system, the buyers will be delegated responsibility
and alt!ority to make decisions concerninE their }mm{10£t line, By
receiving this authority their status will be improvei and their knowl-
edge and experience ut “Ii ed, The buyers “ill be nor likelv to be
interested'in_their jobs because top marage.ient will have shown cor.Ii-
d ence in them and have recognized their atilities.

In the present system the' roeery na2thanniscr~ are making all
flecisions‘with regard to new items, promotixns, anfi the sales plans.
Thev are in reality perinrming the functions that wouLd be more easily

if) '3 ‘ .
and eriiciently performed-by the buyers." fnese functions must as

performed under tt.e present 53 stem by Grocery Merchandisers because the
aIJtm mity to have them done by the buyers is not invested in them. For.9
firming these Fuietions involves extensive ama1.3-is of prod He lines.
This defeats the purpose of having “Specialited product line" buyers,

5.0., the purpose of eye Mtia i ized buyi.r;:1 to divide the were lead

A
-

3‘2-‘1'1ctiOns that could bet er be p0 forme‘i by the buyers include

space 31 loca ion, pricing, coordination of ooonerative asvertioing con.
tracts, balancing of inventOry, decidi 1g wh;(: items snouifi be handled

and pro~nte , and coumunieatin: selling infonvation to the stores, Ea-
u3“se each buyer only deals with [:15 product line, his SpecialiZed knewl-
edge oi that line gives him the background for performing these functions.

because the number of decisions necessary for ail products is too great
for one person to handle. Specialized product line buyers can make more
effective decisions because they are only concerned with certain items
and are constantly gaining knowledge and experience in their specir;c
product line.

The perfbrmance of "buying functions" Consumes much of the Grocery
‘Merchandisers' time. Each Grocery Merchandiser spends the relieving
amount of time in performing "buying functions" each week:

Making decisions on new items and promotions 30

Analysis for space ailccation 1

2
b

9ricing anaiysis
Making up Weekly Sales Plan

Putting cooperative advertising in plans %
Checking store inventory or promoted itecs . e
Total tine spent performing buying function $3

This amounts to a total of eighteen heurs p~r~wsek in which the

Grocem E'Iemhandiser is performing; Functions mat could be perfor. d bv

the buyers. The buyers could Perform these forwtjons. because tieir
present duties do not require theiy full fortyahnir week. They have the
tine available to perform esditional functions.

In the prOposad new syszem these fun tions would be delegated to the

"D

buyers, thus freeing the Grocery Merchandisers time new C3nsuxei in para

.tonning these functions, The Grover? Merchandisers” ”work load" will be
:reduced giving them additional time to perform other functions more
efficiently'-uch as: deveIOping sales plans and training personnel,

Ihscisions concerning the Buying functions should improve because the

Imen.with specialized knowledge, the buyers will be making the decisions@

This chapter has dealt up to now with the disadvantages of the present
system and the advantages of the suggested new system. The present system
is not without benefits to the company. The centralized grocery buying
' operation has definite advantages in performing functions necessary to

supply the stores with the proper merchandise. The benefits from this

centralized buying operation will £150 aDElY ifl.§i;.flev svstemo

Epgioml Cons id erations

The benefits of the central grocery operation.whieh will be retained
in the new system are as follows:

1. Utilization of IBM equipment. IBM tabulating equipment located
in Cincinnati does the record keeping foe both divisions. This equipment
is rented at a fixed rate per month. The 'reht on these-machines is the
sane regardless of how much they ar: used. The machines have excess
capacity, i.e., they can do the record keeoin; for mo"c than eight‘ufive
stores; the more they are used, the greater the benefits that can he
derived from their use. As it is in the present system and as wouid be

in the proposed new system this equipment could continue to perform the

3)

dual function of record keeping for both divisions, The use of thrse

(

)fi“

machines viii continue to perform the recordukeeping function at the

lowest cost possible.

2, Comparisons between the two divisions. Each buyer has the recorls

3"”

of product sales for both divisions in the sane ‘;;e in the central buy-
(P1

ing organization of the present system. lhis provides a stanaard whiz:

can be used for possible control. For example, if an item is selling

21 6

well in (incinnati and not well in Columbus, an in"estigation would take
place to discover the reason for this situation, The investigation would
most probably result in some kind of corrective actiona

Recoros for both ivisions will continue to be supplied from the
tabulati ng lepartment in Cim‘innati, and comparisona batwaan the two

diva sioqs can continue to'be 003:: 7.55 very easily.

'3. Ur-iformity of records and reports. Tn the present central buying
operation the sane for m3 are used :or all records and reports. «his pres
vides for si. wple comparison and analysis bgtween tne two Civ1sions. In
the new sysoem, the present forms and raports will be retained in each

division and 60"oarison3 V1 11 stili be able to be made easily.

h. specialization.- Under the present system, the grocery merchan-

T,

dising flepartmnnt 5pm ial i: at .. ;eac; bu jPr being only cowcarned with one

,.

1-;

class of items? is be mfg *

because the buyers gran in knavlaage ané

experience about their speCiIic proiuc

(‘9
{A
0

In tho new system sperializao
tion and the benefits of spoolalization will be retainedo In the new
system the onyers will have the reapcnsibiiity for one exbanded olass of
items, such as one buyer being concerned with the pirchaae of health an}
beauty aids and paper products.

5. Quantity buying. In The~cr€S$ni central buying operation, large

quantity purchases are possible.33 It is posaibie for Lne Columbus and

A A; A
fi—v '

aity boying larger quantities of merchanflzse from a manufacturer 8
lower price per unit can be secured. For example. if'a claim bu cloZUQ
cases of merchandise, the price could be 32 a case. I:‘ 530-1,6038 cases
are brought the price per case could be 51.90 a cage.

Cincinnati divisions to share a large purchase resulting in lmzered cost
of the merchandise. Now both divisions have grown in size enabling them
to gain the benefits of quantity purchase separately. Therefore, in the
new sys tem, lower prices from quantity our-chases will be attainable in
both Colmabus and Cincinnati.

6. Possible Problems. In the present central buyirg operation, the
employment of "top grade" personnel in buyer-e“ jobs is not very important,
because buyers only perform routine buying functions. In the proposer!
decentralizezi operation, it is very important to have reSp-nsible and
clever men in buyers” positions because they will be grim-n me authority
to mke strategic decisions.

- In the present organization the training reriod’ for buyers is relao
fively short. in the proposed organization, training, for proper perform-
ance of responsibilities requires mc‘n HOI‘Q time because ct“ the experience
neoessazy. ‘Z‘nemf‘ore, in connection with the proposed organization some
arramement would he we to be mde to pmva» for the. training of buyers
to regime the mn in these position-n

In the present organ nation the buyers have been located in Cin-
cinnati for many years. The prOposevi sys Lem would necessitate con-vine in;
times: towers to relocate to Coltmue. The i-nprwemnt in status and
resporwibility should "go a long tray” in confirming, the. buyers to upon-sat
their families and move to Colmnbus.

In the present system the “érocery I'Ie‘rcnanfiisers, by making all oeci-
sions, control the promotions and prices to conform with the overall

merchandising panties and dollar objectives of tne mercnam‘ising

department. The objectives should be established in order to provide

goals fbr the buyers but also overall departmental goals.

M

The comparison of the two systems shows that the advantages of the
present system will be retained in the new system and the fo;1cwing
additional benefits will be gained:

1. Buyers knowledge and experience will be usgd.

2. xen max-hours wil; be saved in a norwal werkTS buying Operatinn,
allowing the time to be utilized in planning on tha part of tag CrQCFry
Eercnandisarg'

3. Clerical werk in typing and filing communications will be réducaé
by the elimination of two steps in the channfii of communications aad Lna
reduction.in the number of forms requirefi presently.

b. Information will flow witn more speefi and accuracy.

5. Supplier relations will be improved.

6, A better relationship between the fiejartment and the stores will
develop;

4. Euyers morale will be improved.
83 The Cwocery Merchandisws" work load will he lighteneri.

9. Better decisions.will result and these 6%uisions will raouir

Jess time per decis‘*n.

C- H3. PTFR ‘J
SIEEWE-il’ CONC LUS E» N A N: R t7 CILMPENILA I’TOEE
, 9

m am. mauswm

1116 present buying ant? merchamiising departme:'.t- ci‘ mummy K as
centralizefl,li.e., buying of arccsry items is nerformcc in Cincinnati for
both the Cincinnati and Columbus markwts, Eecsvse the five mark%ts hava
became dissimi}ar, it has become necessary to flecentralizg. The prOposed
decentralizsd buying orgarfisation, 1.g., the aetabl1shment cf two huyfimg
and merchandising departments, one in Columbus and cnw in Viqcinnati,
previde for the {allowing:

1, The saving 0:" time b; releasirg the (Er-x62“)! Hawk mjisers fr-m
making decisions cn new itemw and promutisns 395 zaisgatjhg tais authority
to the buyers. The time saved can be ntil:?ed by ailcwing the Crocery
Harcnazéisers to develop and implement merchancising policies.

2, The number of steps in the channeis cf CUTMLLicabiCLS necassary
tram the manufacturers through the refaii feed chain marchandLsing
fleparnment to tne consumer will be reduced from Siva stays to three.

Two steps will be eliminated in (in FTOCGPFa

3. Buyers’ exparience and knowleégw will be utilizsd instiad of

being negfiected by the organization, because auth rity ill ta iven them

to-make decisicna on naw items and promctionss
L. ?upplier relations will be improved because saieamen wi}l make
their presentations flirectly to the buyers who vii; have the autncrjty

-.lt

to make purchasing decisions instead c: presqnting them to an intarxafiizxj'

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