All those processes associated with management of the flow of goods, information and money between suppliers in a category’s supply chain. The concept of ‘flow’ refers to the common objective of reducing waste in the supply chain. For example, inventory is an example of waste that often occurs when demand cannot be easily forecast and matched with supply. When a buyer shares their demand forecast with their upstream supplier, the supplier can synchronise production with demand, reduce inventory and accelerate the flow of goods. The dialogue between supply chain participants usually involves sharing information and may result in less opportunism and better relationships.
Take the Supply Chain Self Assessment at Skills Gap Analysis.« Back to Glossary Index