What is the relation between sales and purchase?
The sales executives share a crucial relationship with the executives of the purchasing department and they have been found to cooperate each other in three distinct ways. First, the sales department provides purchasing with sales estimates so that adequate stock of raw materials, fabricating parts and other items can be procured in advance for production purposes.
Second, the executives of the purchase department have been found to inform the sales executives regarding material surpluses and shortages. This way sales emphasis can be changed with respect to products made from these materials.
Third, data on sales department needs are furnished suitably so that purchases can be on advantageous terms by the purchase department. Often the executives of the two departments have been found to coordinate their efforts by buying as much as possible from customers and selling as much to suppliers.
