THREE MAIN FLOWS

OF SUPPLY CHAIN

Compiled by: Olivia B. Ysip

Three Main Flows
of Supply Chain

Ø Product Flow
Ø Information Flow
Ø Fina nces Flow

2
 PRODUCT FLOW or MATERIAL FLOW

INFORMATION FLOW

FINANCES or MONEY FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage

FINANCES or MONEY FLOW

INFORMATION FLOW

PRODUCT FLOW or MATERIAL FLOW

 PRODUCT FLOW or MATERIAL FLOW

INFORMATION FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage

FINANCES or MONEY FLOW

INFORMATION FLOW
Three Main Flows of Supply Chain
Start
Supplier

Consumer
Inbound
Warehouse

Operations /
Consumer
Production
Outbound Distribution
Storage
 PRODUCT FLOW
Start
Supplier

Consumer
Inbound
Warehouse

Operations /
Consumer
Production
Outbound Distribution
Storage
 PRODUCT FLOW
Start
Supplier

Consumer
Inbound
Warehouse

Operations /
Consumer
Production
Outbound Distribution
Storage
 PRODUCT FLOW
Start
Supplier

Consumer
Inbound
Warehouse

Operations /
Consumer
Production
Outbound Distribution
Storage
 PRODUCT FLOW
Start
Supplier

Consumer
Inbound
Warehouse

Operations /
Consumer
Production
Outbound Distribution
Storage
 PRODUCT FLOW
Start
Supplier

Consumer
Inbound
Warehouse

Operations /
Consumer
Production
Outbound Distribution
Storage
 PRODUCT FLOW
PRODUCT FLOW or MATERIAL FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage

PRODUCT FLOW or MATERIAL FLOW

 INFORMATION FLOW
INFORMATION FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage

INFORMATION FLOW

*** We will just provide one type of report or information needed

per process but there are several types of information needed
for an effective control of Supply Chain.
 INFORMATION FLOW
INFORMATION FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage
 INFORMATION FLOW
INFORMATION FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage
 INFORMATION FLOW
INFORMATION FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage
 INFORMATION FLOW
INFORMATION FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage
 INFORMATION FLOW
INFORMATION FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage
 INFORMATION FLOW
INFORMATION FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage

INFORMATION FLOW
 INFORMATION FLOW
INFORMATION FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage

INFORMATION FLOW
 INFORMATION FLOW
INFORMATION FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage

INFORMATION FLOW
 FINANCES or MONEY FLOW

FINANCES or MONEY FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage

FINANCES or MONEY FLOW

 INFORMATION FLOW

PRODUCT FLOW or MATERIAL FLOW

FINANCES or MONEY FLOW

Inbound
Operations / Outbound Consumer Consumer
Production Distribution
Supplier Warehouse Storage

FINANCES or MONEY FLOW

INFORMATION FLOW

PRODUCT FLOW or MATERIAL FLOW

What Is the Source of Most
Confusions at Work?

Distortion
of
Information
 Wrong Information
Too much information

Increases confusion
Ø !"#$%&%'($)'"#$*%+#',")+"-)+-.'"'(#%+#',"
Ø !"#$%&%'($)(/&&01)23+'"),&$%+#',"(
Ø !"#$%&%'($)&0+""'"*)+"-).,"'#,%'"*
Ø 4,../"'2+#',")#$23",0,*1
Ø 4,"(/.$%)2,""$2#'5'#1
 Enterprise Operations Modules support day-to-day supply chain operations.
Enterprise Operations
Customer Inventory
Relationship Logistics Manufacturing Purchasing Deployment
Management
Customer Relationship Finished Inventory Manufacturing Resource Purchase Order Integrated Inventory
Management (CRM) Management (FIM) Planning (MRP II) Administration (POA) Planning

Forecasting Order Processing Capacity Management Materials Requirements Advance Planning and
(OPS) Planning (CMP) Planning (MRP) Scheduling
Demand Management
Warehouse Master Production Supplier Relationship
Collaborative Planning, Management Schedule (MPS) Management (SRM)
Forecasting and (WMS)
Replenishment (CPFR) Production Execution Accounts Payable
Transportation and Control (Shop Interface
Order Management Management Floor)
(OMS) (TMS)
Quality Management
Yard Management (QM)
(YMS) *

Accounts
Receivable
© Donald J. Bowersox, Ph.D. 2005 Interface
 REFERENCES:
Khan, S.A.R., Yu, Z. (2019). Strategic Supply Chain Management. Springer Nature Switzerland.
doi:10.1007/978-3-030-15058-7

Krajewski, L.J., Malhotra, M.K., Ritzman, L.P. (2016). Operations Management Processes and
Supply Chains (11th Edition). Pearson Education, Inc.. ISBN 13:978-0-13-387213-2

Stadtler, H., Kilger, C., Meyr, H. (2015). Supply Chain Management and Advanced Planning
(5th Edition). Springer – Verlag Berlin Heidelberg. doi:10.1007/978-3-642-55309-7

Zijm, H., Klumpp, M., Regattieri, A., and Hegaru, S. (2019). Operations, Logistics and Supply Chain
Management. Springer International Publishing. doi:10.1007/978-3-319-92447-2

Rushton, A., Croucher, P., Baker, P. (2014). The Handbook of Logistics and Distribution Management :
Understanding the Supply Chain (5th Edition). Replika Press Pvt Ltd. ISBN 978-7494-6627-5

Internet: coursehero.com