In my favorite local
restaurant, they can see their daily sales in real time on their
handheld devices. They can see current daily, weekly and monthly sales
immediately. One hundred years ago in Kalamazoo, totaling sales
was a much bigger and slower task.
Here’s a story told to me
by Tom Johnson, who spent his career working in Upjohn finance
groups.
During W.E.Upjohn’s
tenure as leader of The Upjohn Company, he wanted to know the
total monthly product sales on the last day of each month. To
achieve that, the books for sales had to be closed on the 26th,
so a group of clerks could add up all the sales from the large
number of paper invoices. It literally took days for them to add
up all the sales for one month.
From 1924 onwards, these clerks used a mechanical adding machine called
a Comptometer, made by the Felt and Tarrant Mfg. Co. of Chicago.
Upjohn had quite a number of these adding machines because they
had a large business of pharmaceutical sales by then. The
machines were not light as they were made of steel.
Even though W.E.Upjohn
died in the 1930s, closing of monthly sales on the 26th
lasted into the 1980s. By that time, nobody knew why the books
closed on the 26th. It had always been done that way
and it had become an unbreakable habit. However, it was causing
inventory problems, because all the Upjohn distribution centers
knew if they ordered after the 26th, they could delay
being billed by an entire month. This month-end rush of orders
often resulted in product outages.
Tom wanted to fix the
problems caused by closing the month on the 26th. He asked
around the finance department but nobody in the 1980s knew why
it was on the 26th. Finally he found one single person, an
old-timer, who knew the story of why
the 26th of the month was used. Tom proposed to
management they could solve inventory problems and smooth out
sales figures by moving the close to the
last day of the month. After all, computers could produce a
monthly sales report in minutes on the last day. Of course,
change can be very hard, but Tom kept pushing it and eventually a
leadership edict was issued that sales would close on the last
day of the month.
There was one Upjohn
Comptometer kept from the early days, passed down the
generations of finance officers. Tom gave it to me in February
2026 and I’ve included photos of it below. It could be
one-hundred years old. Note the 1930’s-era
photo of the Upjohn Company Kalamazoo Office showing four of these
machines on desks.
Thank you Tom for the story and the
Comptometer!