Supply Chain Flows Definition

A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers (McGraw-Hill/Irwin, 2009). A supply chain flow refers to the direction and movement of goods within a supply chain from suppliers to manufacturers to retailers to consumers.

There are four main types of supply chain flows: product flow, information flow, finances flow, and reverse logistics. Product flow is the physical movement of goods from supplier to customer. Information flow includes all data and information related to the product flowing through the supply chain. This data can include purchase orders, invoices, shipping manifests, etc. Finances flow refers to the money used to purchase goods and services flowing through the supply chain. Finally, reverse logistics is the return or recycle of products and materials back through the supply chain.