ORDERSORDERS

Placing OrdersPlacing OrdersDateDate

Reference NumberReference Number

Covering letterCovering letter

OpeningOpeningMake it clear that there is an order Make it clear that there is an order

accompanying the letteraccompanying the letter

Please find enclosed our Order No. Please find enclosed our Order No. B4521 for 25 ‘Clearsound’ Transistor B4521 for 25 ‘Clearsound’ Transistor receivers.receivers.

The enclosed order (No. R154) is for 50 The enclosed order (No. R154) is for 50 packets of A4 copier paper.packets of A4 copier paper.

PaymentPaymentConfirm the term of PaymentConfirm the term of Payment

Once we have received your Once we have received your advice, we will send a bank draft advice, we will send a bank draft to…to…

… … and we agreed that payments and we agreed that payments would be made against quarterly would be made against quarterly statements…statements…

DiscountDiscountConfirm the agreed discountsConfirm the agreed discounts

Finally we would like to confirm Finally we would like to confirm that the 25% trade discount is that the 25% trade discount is quite satisfactory.quite satisfactory.

We would like to thank you for We would like to thank you for the 30% trade discount and 10% the 30% trade discount and 10% quantity discount you allowed quantity discount you allowed us. us.

DeliveryDeliveryConfirm the delivery dateConfirm the delivery date

Delivery before 28 February is a Delivery before 28 February is a firm condition of this order, and firm condition of this order, and we reserve the right to refuse we reserve the right to refuse goods delivered after that time.goods delivered after that time.

Method of DeliveryMethod of Delivery

… … and please remember that and please remember that only air freight will ensure only air freight will ensure prompt delivery.prompt delivery.

We advise delivery by road to We advise delivery by road to avoid constant handling of this avoid constant handling of this fragile consignment.fragile consignment.

Packing Packing Advise your supplier how you Advise your supplier how you

want the goods packedwant the goods packed

The carpets should be wrapped The carpets should be wrapped and the packaging reinforced at and the packaging reinforced at both ends to avoid wear.both ends to avoid wear.

ClosingClosing We hope that this will be the first We hope that this will be the first

of many orders we place with you.of many orders we place with you.

We will place further orders if this We will place further orders if this one is completed to our one is completed to our satisfaction.satisfaction.

Points to rememberPoints to remember

1.1. Even if you use an official order Even if you use an official order form when placing an order, it is a form when placing an order, it is a good idea to send a covering letter good idea to send a covering letter confirming terms of payment, confirming terms of payment, discounts, delivery and packing.discounts, delivery and packing.

2.2. Orders should be acknowledged Orders should be acknowledged as soon as they are received. as soon as they are received. Email is a convenient way of Email is a convenient way of acknowledging them quickly.acknowledging them quickly.

In class exerciseIn class exercise1.1. You are going to compose a cover letter You are going to compose a cover letter

for order No. 5771for order No. 57712.2. Both you and supplier agreed with 10% Both you and supplier agreed with 10%

trade discount.trade discount.3.3. The term of payment would be SIGHT The term of payment would be SIGHT

DRAFTDRAFT4.4. Please advise the supplier to send the Please advise the supplier to send the

shipping document and sight draft to shipping document and sight draft to the nearest Wood Forest Bank for the nearest Wood Forest Bank for further transaction.further transaction.

Receiver’s name: Julio Receiver’s name: Julio FergusFergus

Receiver’s address: Milan, 60 Receiver’s address: Milan, 60 Via Roma, Irina Office Via Roma, Irina Office Equipment, ItalyEquipment, Italy

Sender’s address: Italy, Sender’s address: Italy, Grassi Tiles, Rome, 6 Via Grassi Tiles, Rome, 6 Via Veneto.Veneto.

Reply to ordersReply to orders

Acknowledging an Acknowledging an OrderOrder

Thank you for your order No. 338B Thank you for your order No. 338B which we received today. We are which we received today. We are now dealing with it and you may now dealing with it and you may expect delivery within the next three expect delivery within the next three weeks.weeks.

Your order No. 6712/1 is now being Your order No. 6712/1 is now being processed and should be ready for processed and should be ready for dispatch by the end of his week.dispatch by the end of his week.

Advice of DispatchAdvice of Dispatch

Customers need to present Customers need to present original documents, such as original documents, such as invoice, in order to collect the invoice, in order to collect the merchandise.merchandise.

Those documents cannot be Those documents cannot be sent by email or faxes.sent by email or faxes.

DispatchDispatchThe act of sending off, as The act of sending off, as

to a specific destination. to a specific destination.

InvoiceInvoice It is a commercial document It is a commercial document

issued by a seller to a buyer, issued by a seller to a buyer, indicating the products, indicating the products, quantities and agreed prices quantities and agreed prices for products or services with for products or services with which the Seller has already which the Seller has already provided the Buyer. provided the Buyer.

Bill of ladingBill of lading

It is a document It is a document issued by a carrier.issued by a carrier.

LadingLadingThe act of loading. The act of loading.

Main types of billMain types of bill

Straight bill of lading Straight bill of lading Order bill of lading Order bill of lading Bearer bill of ladingBearer bill of lading

Insurance CertificateInsurance Certificate

ExampleExample

We are pleased to advise you that We are pleased to advise you that the watches you ordered- No. the watches you ordered- No. 8815/24- will be on flight BA165 8815/24- will be on flight BA165 leaving Zurich at 11:00, 9 August, leaving Zurich at 11:00, 9 August, arriving Manchester 13:00. Please arriving Manchester 13:00. Please find enclosed air waybill DC 15161/3 find enclosed air waybill DC 15161/3 and copies of invoice A113/3, which and copies of invoice A113/3, which you will need for collection.you will need for collection.

Delays in Delays in DeliveryDelivery I was surprised and sorry to hear that I was surprised and sorry to hear that

your consignment (Order No. B145) had your consignment (Order No. B145) had not reached you. On enquiry I found that not reached you. On enquiry I found that it had been delayed by a local dispute on it had been delayed by a local dispute on the cargo vessel SS Hamburg on which it the cargo vessel SS Hamburg on which it had been loaded. I am now trying to get had been loaded. I am now trying to get the goods transferred to the SS Samoa, the goods transferred to the SS Samoa, which is scheduled to sail for Yokohama which is scheduled to sail for Yokohama before the end of next week. I shall keep before the end of next week. I shall keep you informed.you informed.

I am writing to tell you that I am writing to tell you that unfortunately there will be a three-unfortunately there will be a three-week delay in delivery. This is due to week delay in delivery. This is due to a fire at our factory in China which a fire at our factory in China which destroyed most of the machinery. destroyed most of the machinery. Your order has been transferred to our Your order has been transferred to our Vietnam factory and will be processed Vietnam factory and will be processed there as soon as possible. I apologize there as soon as possible. I apologize for this delay which is due to for this delay which is due to circumstances beyond our control.circumstances beyond our control.

Refusing an OrderRefusing an Order Out of stockOut of stock

Bad reputationBad reputation

Unfavorable termsUnfavorable terms

Size of orderSize of order

Out of stockOut of stock We are sorry to say that we are We are sorry to say that we are

completely out of stock of this item completely out of stock of this item and it will be six weeks before we and it will be six weeks before we get our next delivery, but please get our next delivery, but please contact us then.contact us then.

We no longer manufacture this We no longer manufacture this product as demand over the past product as demand over the past few years had declined.few years had declined.

Bad reputationBad reputation We would only be prepared to We would only be prepared to

supply on a cash basis.supply on a cash basis. I am sorry to say that we must I am sorry to say that we must

turn down your order as we have turn down your order as we have full order books at present and full order books at present and cannot give a definite date for cannot give a definite date for delivery.delivery.

Unfavorable termsUnfavorable terms Delivery cannot possibly be Delivery cannot possibly be

guaranteed within the time given guaranteed within the time given in your letter.in your letter.

It would be uneconomical for us It would be uneconomical for us to offer our products at the to offer our products at the discounts you suggest as we discounts you suggest as we work on a fast turnover and low work on a fast turnover and low profit margins.profit margins.

Size of orderSize of order Unfortunately, our factory does Unfortunately, our factory does

not have facilities to turn out not have facilities to turn out 30,000 units a week.30,000 units a week.

We only supply orders for We only supply orders for ballpoint pens by the gross and ballpoint pens by the gross and therefore suggest you try a therefore suggest you try a wholesaler rather than a wholesaler rather than a manufacturer.manufacturer.

Points to rememberPoints to remember1.1. When sending an advice of dispatch, When sending an advice of dispatch,

remember that , if collection requires remember that , if collection requires original documents, you cannot fax original documents, you cannot fax these or attach them to an email these or attach them to an email message.message.

2.2. If there are problems with delivery, tell If there are problems with delivery, tell your customer immediately what you your customer immediately what you intend to do to correct them. intend to do to correct them. Apologize for the inconvenience.Apologize for the inconvenience.

3.If you turn an order down, 3.If you turn an order down, be polite and generalize be polite and generalize the terms you use so that the terms you use so that the customer does not the customer does not think this refusal only think this refusal only applies to them.applies to them.

In class ExerciseIn class Exercise Your Title: Managing DirectorYour Title: Managing Director Company’s address: Germany, 45 Company’s address: Germany, 45

Grossestrasse, Frankfurt, Panton Grossestrasse, Frankfurt, Panton Manufacturing Ltd.Manufacturing Ltd.

Recipient's name: H. MajidRecipient's name: H. Majid Recipient's address: Grand Road, Recipient's address: Grand Road,

Majid Enterprises, India, BombayMajid Enterprises, India, Bombay

You are writing this letter concerning the You are writing this letter concerning the order No. 775/2 has been delayed.order No. 775/2 has been delayed.

Due to bankruptcy of your main supplier.Due to bankruptcy of your main supplier. Need more time to find another supplier.Need more time to find another supplier. Guaranteed the products will be shipped Guaranteed the products will be shipped

by the middle of next week.by the middle of next week. Also apologize to the customer for the Also apologize to the customer for the

delay of shipment.delay of shipment. Asking the customer for immediate Asking the customer for immediate

response if there is any change of plan.response if there is any change of plan.