Supplies and Sales Depots

organizations operating on the basis of economic accountability and with accounting balances kept by themselves or at central offices or administrations. They belong to the system of material-technical supply agencies of the USSR national economy (Gossnab; that is, State Committee on Material Supplies) and maintain a warehouse supply for enterprises, construction projects, establishments, and organizations with materials designated for production. Roughly 20 percent of the total volume of this type of product is distributed through these depots. They provide enterprises with products of a required variety, according to plan. There are depots with all varieties of goods and specialized ones for chemicals, metals, and other materials. For the purpose of supply they stockpile various kinds of products which they purchase in large lots from industrial and agricultural enterprises, sort, and use to compile orders for delivery to users. This service allows the user enterprises to obtain an aggregate supply of materials coming from several different suppliers. The expenses of users on construction of their own warehouses are reduced, and the extent of reserve supplies needed and the requirements for working capital are minimized. Supplier enterprises cut down on the costs of drawing up orders and sorting and shipping small lots of their products to many different users.

In addition to the supplies and sales depots of the Gossnab system, there are depots attached to various ministries, such as the Ministry of Communications, which serve their own enterprises or all of the enterprises of the country for certain types of products only—for example, radio electronic items. Warehousing of supplies for enterprises on the local level is carried out by oblast-level supplies-sales centers, and for kolkhozes and sovkhozes this function is carried out by depots run by Sel’khozteknika bodies (agricultural equipment and materials agencies).

The present-day supplies and sales depots are enterprises having fully mechanized moving and lifting equipment and using computer, television, and modern organizational technology for administering the processes of receiving and drawing up orders and checking on the fulfillment of orders.