What is a physical flow?

What is a physical flow?

The flows of materials, products, inventories, and other goods in logistics networks, are referred to as physical flows, the main direction of which is considered to be from the point of origin to the point of consumption.

What are the 3 main flow of supply chain management?

There are three types of main flows that happen in any supply chains: flow of materials/goods, flow of money/cash, and flow of information.

What is physical supply management?

A Physical Supply Chain (PSC) is the system of organisations, people, activities, information, and resources involved in moving a product or service from a Seller to a Buyer, either domestically or across borders.

Why is physical flow important?

The physical flow, the physical movement of goods and services, is the foundation of the circular flow model. The fundamental problem of scarcity is addressed by physically transforming scarce resources into goods and services that are then used to satisfy wants and needs.

What is a nominal flow?

Nominal flow is defined as the flow of factor payment from firms to the households for their factor services and the corresponding flow of money from households to the firms, in form of expenditure on consumption i.e purchase of goods and services produced by the firms. It is also called money flow.

What flows upstream and downstream in supply chain?

Often, different stages within the supply chain are referred to as upstream or downstream. Upstream operations are those in which the materials flow into the organization. Downstream operations are those in which materials (mostly in the form of finished products) flow away from the organization to the customers.

What flows downstream in a supply chain?

The downstream part of the supply chain includes processes used to create finished goods and the distribution and sale of the goods. Downstream operation sales may be wholesale, business-to-business sales or retail sales to end consumers.

What is physical supply?

Basically physical supply is the movement and storage of goods from suppliers to manufacturing. Based on the agreement of sale the cost may be borne either by supplier or the customer, but the cost is passed to each customer proportionately.

What is physical supply and physical distribution?

Physical distribution involves the handling and moving of raw materials and finished products from producer to consumer often via an intermediary. It is sometimes used synonymously with logistics (the branch of military science concerned with procuring, maintaining and transporting equipment and facilities etc.).

What is monetary flow?

The monetary flow is the flow of income in terms of money from firms to households – in other words, the amount that is paid in wages and salaries, interest, rent and profits. In the goods market, the real flow is the flow of goods and services from firms to households.

What is flow in supply chain management?

This is the flow of the physical product from supplier all the way down to the customer. This flow is usually uni-directional, that is, it only flows one direction from supplier to customer; however, in certain instances, when the customer returns the product, the flow occasionally goes in the other direction.

What are the different types of supply chain flows?

There are Five major flows in any supply chain : product flow, financial flow, information flow, value flow & risk flow. The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs.

What is supply chain management?

Supply management is a critical element in understanding business operations. Supply Chain Management (SCM) is the oversight of finances, materials, and information when the movement happens from supplier to manufacturer, wholesalers, and retailers and at last reach to customers via defined procedures.

What is material flow in logistics?

Material Flow Material flow includes a smooth flow of an item from the producer to the consumer. This is possible through various warehouses among distributors, dealers and retailers. The main challenge we face is in ensuring that the material flows as inventory quickly without any stoppage through different points in the chain.