Complete the chain
Physical factor
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Answer:
i don't know this topic i studying in 10th class
Answer:
Supply Chain is the management of 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. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements. The information flow involves product fact sheet, transmitting orders, schedules, and updating the status of delivery.
THE PRODUCT FLOW :
Product Flow includes movement of goods from supplier to consumer (internal as well as external), as well as dealing with customer service needs such as input materials or consumables or services like housekeeping. Product flow also involves returns / rejections (Reverse Flow).
In a typical industry situation, there will a supplier, manufacturer, distributor, wholesaler, retailer and consumer. The consumer may even be an internal customer in the same organisation. For example in a fabrication shop many kinds of raw steel are fabricated into different building components in cutting, general machining, welding centres and then are assembled to order on a flatbed for shipment to a customer. Flow in such plant is from one process / assembly section to the other having relationship as a supplier and consumer (internal). Acquisition is taking place at each stage from the previous stage along the entire flow in the supply chain.
In the supply chain the goods and services generally flow downstream (forward) from the source or point of origin to consumer or point of consumption. There is also a backward (or upstream) flow of materials, mainly associated with product returns.
THE FINANCIAL FLOWS:
The financial and economic aspect of supply chain management (SCM) shall be considered from two perspectives. First, from the cost and investment perspective and second aspect based on from flow of funds. Costs and investments add on as moving forward in the supply chain. The optimization of total supply chain cost, therefore, contributes directly (and often very significantly) to overall profitability. Similarly, optimization of supply chain investment contributes to the optimisation of return on the capital employed in a company. In a supply chain, from the ultimate consumer of the product back down through the chain there will be flow of funds. Financial funds (Revenues) flow from the final consumer, who is usually the only source of “real” money in a supply chain, back through the other links in the chain (typically retailers, distributors, processors and suppliers).
Explanation:
THE FLOW OF RISK :
Risks in supply chain are due to various uncertain elements broadly covered under demand, supply, price, lead time, etc. Supply chain risk is a potential occurrence of an incident or failure to seize opportunities of supplying the customer in which its outcomes result in financial loss for the whole supply chain. Risks therefore can appear as any kind of disruptions, price volatility, and poor perceived quality of the product or service, process / internal quality failures, deficiency of physical infrastructure, natural disaster or any event damaging the reputation of the firm. Risk factors also include cash flow constraints, inventory financing and delayed cash payment. Risks can be external or internal and move either way with product or financial or information or value flow.
External risks can be driven by events either upstream or downstream in the supply chain:
Demand risks – related to unpredictable or misunderstood customer or end-customer demand.
Supply risks – related to any disturbances to the flow of product within your supply chain.
Environment risks – that originate from shocks outside the supply chain.
Business risks – related to factors such as suppliers’ financial or management stability.
Physical risks – related to the condition of a supplier’s physical facilities.
Internal risks are driven by events within company control:
Manufacturing risks – caused by disruptions of internal operations or processes.
Business risks – caused by changes in key personnel, management, reporting structures, or business processes.
Planning and control risks – caused by inadequate assessment and planning, and ineffective management.
Mitigation and contingency risks – caused by not putting in place contingencies.
INTEGRATION OF FLOWS IN SUPPLY CHAIN :
Supply chain management integrates key business processes from end user through original suppliers, manufacturer, trading, and third-party logistics partners in a supply chain. Integration is a critical success factor in a dynamic market environment and is prerequisite for enhancing value in the system and for effective performance of the supply chain by sharing and utilization of resources,