The products are shipped to distribution centers, and from there on to retailers and customers. There is also a backward or upstream flow of materials, mainly associated with product returns.
An example of these conflicts is the interrelation between the sale department desiring to have higher inventory levels to fulfill demands and the warehouse for which lower inventories are desired to reduce holding costs.
Machine B produces engine part no. Electrical materials subjected to electrical testing so on and so forth.
More recently, the loosely coupled, self-organizing network of businesses that cooperate to provide product and service offerings has been called the Extended Enterprise.
Great opportunities and challenges therefore lie ahead in managing financial flows in supply chains. Together with your supply chain management team, you can create a flowchart to outline the entire supply chain process flow to identify areas for improvement.