daily working , it is closely related to
Purchase function that virtually feeds it with
its Purchase orders and the user departments,
on the other hand, which draw materials from
it on daily basis. In addition, it is the
Finance function which is fed by stores
many information on daily basis.
One of the major roles of Stores , in any
business, is Inventory Control. This vital
function of Stores, in itself , affects many
functions of business by decoupling many
activities and functions.
Stores serves all departments of an
organization, but the highest degree of
relations are between Purchase who feeds the
stores, and Production whom the Stores
supplies various materials.
Stores and Purchase:
The two functions of materials management,
Stores and Purchase, are complementary to each
Apart from the close relationship that exits
on a day-to-day basis in the purchase of
various items of stores there are other
important activities which can best be done by
close cooperation between stores and purchase.
These are :
Stores and Production:
The production or the user department happens
to be the main customer of stores. In
production meetings, if stores is represented,
coordination can be excellent. Any change in a
production schedule needs to be communicated
to stores to enable prompt corrective action.
After all it is Stores that has to cater to
the needs of the user departments
Stores and Sales:
The strong relationship between stores and
sales exists in the marketing scenario where
Sales is the chief customer of the finished
The sales department wants to ensure stocks at
all times and this might be a costly
philosophy in terms of inventory holdings.
Close cooperation and an integrated approach
can increase profitability.
Stores and Accounts:
Usually the accounts department does all the