Supply Chain Management Process Flow Supply Chain Management

What is Supply Chain Management Process Flow?

Supply chain management can be characterized as a precise flow of materials, goods, and related information among providers, organizations, retailers, and shoppers.


There are three unique types of flow in supply chain management −

  • Material flow
  • Information/Data flow
  • Money flow


Give us a chance to think about every one of these flows in detail and likewise perceive how adequately they are relevant to Indian organizations.

Material Flow

Material flow incorporates a smooth flow of a thing from the maker to the buyer. This is conceivable through different stockrooms among wholesalers, merchants and retailers.

The principle challenge we confront is in guaranteeing that the material flows as stock rapidly with no stoppage through various focuses in the chain. The speedier it moves, the better it is for the venture, as it limits the money cycle.

The thing can likewise flow from the customer to the maker for any sort of repairs, or trade for a finish of life material. At last, finished goods flow from clients to their customers through various organizations. A procedure known as 3PL is set up in this situation. There is likewise an inside flow inside the client organization.

Information Flow

Information/information flow includes the demand for citation, buy arrange, month to month plans, building change demands, quality protests and reports on provider execution from client side to the provider.

From the maker's side to the customer's side, the information flow comprises of the introduction of the organization, offer, affirmation of procurement arrange, gives an account of move made on deviation, dispatch points of interest, give an account of stock, solicitations, and so on.

For a fruitful supply chain, customary connection is vital between the maker and the purchaser. In numerous cases, we can see that different accomplices like merchants, merchants, retailers, calculated specialist organizations partake in the information arrange.

What's more, a few offices at the maker and purchaser side are additionally a piece of the information circle. Here we have to take note of that the inward information flow with the client for in-house produce is unique.

Money Flow

Based on the receipt raised by the maker, the customers analyze the request for rightness. In the event that the cases are right, money flows from the customers to the individual maker. Flow of money is additionally seen from the maker side to the customers as charge notes.

To put it plainly, to accomplish a proficient and viable supply chain, it is fundamental to deal with every one of the three flows appropriately with insignificant endeavors. It is a troublesome undertaking for a supply chain administrator to recognize which information is basic for basic leadership. Accordingly, he or she would want to have the visibility of all flows on the snap of a catch.

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