Flows in Supply Chain Management

[abhishreshthaa]

Flows in Supply Chain Management:-


1. Value Flow:-

Flow of the goods and services from vendor (suppliers) to customers (occasionally there would be reserve logistics). Flow to vendor side is referred to as upstream and customers side as downstream.



2. Information Flow:-

Both upstream and downstream – Upstream (against the direction of major value flow)
Includes inputs for forecasts, marketing plans, dispatch plans, production plans, procurement qualities and timing, orders from customers/ dealers, quality feedback, warranties invoked etc. Downstream refers to stocks available, dispatch advices, stock transfer notes, quality assurance reports, warranties, etc.



3. Cash Flow:-

Cash Flow determines how a given value flow is financed by various players in the supply chain. The optimal cash flow structure will be determined by the “power balances” between the vendor, converter and customer and the relative cost of finance and other fiscal benefits between these players.

 

[Business-education]

What is Supply chain management

Supply Chain Management (SCM) is the management of the flow of goods and services. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Here are some swashbuckling advantages of Supply chain management

1) Ease and availability of product

2) Convenience

3) Cost effective