Inventory Control and Marketing

A recent article by Bartels presents a theoretic discussion of the need for avoiding the fragmentation of marketing and distribution. What follows is a rationalisation and description of a practical approach to an associating of inventory carrying costs with the field sales organisation within marketing thus closing the loop between marketing and physical distribution. The integration of inventory control and marketing, a phase of bringing marketing and physical distribution together, can be viewed as a problem of overall management. Top corporate executives have in recent years stressed the importance of cash flow management to all levels of management, not merely financial managers. A frequently mentioned, obvious variable in improving cash flow is improved inventory control interpreted to mean reduced inventory levels to meet given service levels, thus releasing cash for other uses. To achieve this objective of improved inventory control, one needs to involve decision makers affecting the levels of inventory, specifically the field sales organisation.