The sorting system has a number of storage containers (11) that relate to different suppliers of goods. The containers are arranged such that automatic transfer can be made from pallets (12) that circulate from an input station (3). Returned goods have bar codes that are scanned and a keyboard used to enter data that identifies the item and source. The system computer outputs instructions to a sequence controller that directs the operation of the pallet transfer system. The components are transferred to the appropriate container s(11) for dispatch. ADVANTAGE - Allows components or goods to be automatically sorted into batches.