Supply Chain Workflow Definition
The term “supply chain workflow” refers to the process by which goods and materials are moved from one location to another within a supply chain. The workflow includes all of the steps and activities required to complete the movement of goods, from the initial purchase order to the final delivery.
A typical supply chain workflow consists of the following steps:
1. Purchase order: The buyer creates a purchase order (PO) and sends it to the seller.
2. Order confirmation: The seller reviews the PO and sends an order confirmation back to the buyer.
3. Pick and pack: The seller picks and packs the ordered goods for shipment.
4. Shipping: The seller ships the goods to the buyer’s specified location.
5. Delivery: The buyer receives the goods and signs for them.
6. Payment: The buyer pays the seller for the goods, typically according to the terms of their purchase agreement.