The Information Flow

The entire supply chain functions on information. Information sharing in the supply chain is the
sharing of knowledge among key players in the supply chain to serve downstream customers
effectively and efficiently. This knowledge includes information on the production status and the
planning process, but also on changes in the business environment and the goals of the
companies. In a supply chain, what needs to be done, how it needs to be done, and when it
needs to be done are all information needed by the various parts of the supply chain in order to
function. Since various sectors of the supply chain are the sources of information needed, it is
important that SCM ensures the effective integration of departments to enable a seamless flow
of information.

The Finance Flow

There is a growing corporate demand for financially efficient supply chains, with companies and
their suppliers under conflicting pressures to improve payment terms reduce prices and
improve cash flow efficiencies. As such, financial flow in the supply chain must be well
managed, ensuring that funds are used wisely on sufficient human resources, raw materials,
utilities, etc.