Know-How Exchange : Other

Dear Arand

Buying or purchasing has traditionally come under the direct control of finance simply because it’s actions have the single largest contribution to cost of production. They are usually responsible for price and delivery of raw product which are materials for your business.

Warehousing and dispatch is often under the fiefdom of an Operations Director because it is their job to ensure that orders get delivered as well as get manufactured.

The numbers buying and warehousing work to should be supplied by marketing as they are the only department capable of producing a sales forecast which will drive buying, raw stock, manufacturing and staffing, inventory, order to delivery lead time and dispatch.

I can assure you that in real life, the forecast is rarely marketing driven - unless they are one of our clients – that’s what we do.

It is usually a constructive and well intentioned work of fantasy which comes from sales people whom are keen to demonstrate their positive attitude and not to forecast that they will lose their jobs. For other types of forecast, the model is more Voodoo and creative writing along the Dan Brown’ style of story telling.

Best wishes

Steve Alker
Xspirt