Unit 5 placing an order

Task 1 Read the text and answer the questions:

1. What is the usual way of writing an official order?

2. Why do you think orders should be acknowledged as soon they are received?

3. What should the supplier do if there is a delay in goods delivery?

4. What are the reasons for a company to refuse an order?

5. How can the supplier avoid being rude while rejecting an order?

Orders are usually written on a company’s official order form which has a date and a reference number that should be quoted in any correspondence referring to the order. Even in this case it is a good idea to send a covering letter confirming terms of payment, discounts delivery and packing.

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

If the goods are held up either before or after they are sent, you must keep your customer informed. State what has happened, how it happened, and what you are doing to put things right. In these cases the speed of email is very useful as the sooner your customer is informed, the sooner they can take action. It is good idea to keep copies of any messages you send about delays.

There are a number of reasons for a company to refuse an order. You may be out of stock of the product ordered, or you may no longer make it. The customer may have a bad reputation for setting their accounts. The supplier may not like the terms the customer asked for or the quantity required might be too large or small.

Whatever your reason, you must be polite: the words reject and refuse have a very negative tone, therefore it is better to use decline or turn down instead. If you turn an order down, be polite and generalize the terms you use that the customer does not think this refusal only applies to them.

Task 2 Study the sample phrases that might be helpful when a customer decides to place an order.

Opening and acknowledging an order

1. Thank you for your reply of 14 May regarding our email about the mobile phones. Enclosed you will find our official order (No.B561) for…

2. I would like to place a trial order for the material we discussed at the trade show last month. Please find enclosed…

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

4. Your order No. 6754/3 is now being processed and should be ready for dispatch by the end of this week.

Terms of payment, delivery and packing

1. We would like to confirm that payment is to be made by irrevocable letter of credit, which we have already applied to the bank for.

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

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

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

5. …and we will certainly take advantage of the cash discounts you offered for prompt settlement

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

7. Please send the goods by express freight as we need them urgently.

8. Each piece of crockery is to be individually wrapped in thick paper, packed in straw, and shipped in wooden crates numbered 1 to 6.

9. The carpets should be wrapped, and the packing reinforced at both ends to avoid wear.

10. The machines must be well greased with all movable parts secured before being loaded into crates.

Delays in delivery and refusing an order

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

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

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

4. We are sorry to say that we are completely out of stock of this item and it will be six weeks before we get our next delivery, but please contact us then.

5. We would only be prepared to supply on a cash basis.

6. As there is heavy demand at present, we have very few of these products in stock. It is extremely unlikely that we will be able to deliver within the next four months.

7. I am sorry to say that we must turn down your order as we have full order books at present and cannot give a definite date for delivery.

8. Delivery cannot possibly be guaranteed within the time given in your letter.

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

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

11. We only accept payment by Letter of Credit.

12. We are a small company and couldn’t possibly handle an order for 20,000 units.

13. Unfortunately, our factory does not have facilities to turn out 30,000 units a week.

14. Our factory only sells material in 30-metre rolls which cannot be cut up.

Closing

1. We hope that this will be the first of many orders we place with you.

2. If our sales targets are met, we shall be placing further orders in the near future.

3. I look forward to receiving your shipment/confirmation.

Task 3 Read the covering letter and the order form and answer the questions:

F. Lynch & Co. Ltd

Head Office Nesson House Newell Street Birmingham B3 3EL Tel/Fax: +44 (0)21 236 6571 Email: pcrane@lynch.co.uk www.lynch.com Your ref: D1439 Our ref: Order DR4316 9 March 20__

Satex S.p.A Via di Pietra Papa 00146 Roma ITALY Attn. Sig. Causio Dear Sig. Causio Please find enclosed our official order, No Order DR4316. For this order, we accept the 15% trade discount you offered, and the terms of payment (sight draft, CAD), but hope you are willing to review these terms if we decide to order again. Would you please send the shipping documents and your sight draft to Northminster Bank (City Branch), Deal Street, Birmingham B3 1SQ. If you do not have any of the items we have ordered currently in stock, please do not send alternatives. We would appreciate delivery within the next six weeks, and look forward to your acknowledgement. Yours sincerely Peter Crane Peter Crane Chief Buyer Enc. Order No DR4316

F. Lynch & Co. Ltd

Head Office Nesson House Newell Street Birmingham B3 3EL Tel/Fax: +44 (0)21 236 6571 Email: pcrane@lynch.co.uk www.lynch.com

Order no. DR4316 Satex S.p.A Via di Pietra Papa 00146 Roma ITALY Authorized Peter Crane Quantity 50 30 30 40 Item description V-neck: 30 red+20 blue Roll neck: 15 black+15 blue Crew neck: 15 green+15 beige Crew neck: pattern Note: Subject to5% quantity discount Cat.No. R 432 N154 N157 R541 Price (CIF London) £30.80 each £20.40 each £23.00 each £25.60 each Comments 15% Trade Disc. allowed. Pymt. C/D Del. 6 weeks Date 9 March 20__

1. On whose terms are F. Linch & Co. paying?

2. If any of the sweaters they have ordered are out of stock, would they accept alternatives?

3. How soon do they want the sweaters?

4. In the email enquiry Mr Crane suggested that he might place orders for over 500 sweaters, but this order is for only 150. Why do you think it is relatively small?

5. Which reference identifies the sweaters?

6. What sort of discounts has been agreed?

7. By when should the order be delivered?

8. If F. Lynch & Co. have further correspondence with Satex on this order, what reference would they use?