Answer to Question #221917 in Management for romell paclibare

Question

Supply chains encompass four flows. Describe the four flows and why are they important? How are they related to each other? 

Answer 1

The Product Flow: Product flow encompasses the transfer of items from supplier to consumer (both internal and external), as well as dealing with customer service requirements such as input materials, consumables, and housekeeping services. Returns and rejections are also part of the product flow (Reverse Flow).

The Financial Structure: From two viewpoints, the financial and economic aspects of supply chain management (SCM) will be examined. First, from a cost and investment standpoint, and then from a flow of money standpoint. As the supply chain progresses, costs and investments rise.

The Information Flow: Bills of materials, product data, descriptions and pricing, inventory levels, customer and order information, delivery schedules, supplier and distributor information, delivery status, commercial documents, the title of goods, current cash flow, and financial information are all part of supply chain management.

The Value Flow: To give additional value to the end customer, a supply chain has a set of value-creating operations that span the whole chain. Physical flows linked to production and distribution are present at each level, and each stage adds value to the goods or services.