Their supply chains are not static but evolve continuously based on the changing market and customer needs. Companies in the semiconductor , natural resources, process , telecommunications , consumer goods, and services sectors are all discovering similar value from information-smart supply chains. No wonder top executives of innovative companies like Xilinx , Hewlett-Packard , and Quantum all have identified supply chain management as a top priority in their overall strategy. Today's Supply Chain Environment Supply chain management involves the flows of material, information, and finance in a network consisting of customers, suppliers, manufacturers, and distributors. Material flows include both physical product flows from suppliers to customers through the chain and reverse flows via product returns, servicing, recycling, and disposal.
Information flows involve order transmission and delivery status.
Financial flows include credit terms, payment schedules, and consignment and title ownership arrangements. Coordination and integration of these flows within and across companies are critical to effective supply chain management. Managing these flows effectively is a daunting task, particularly for global corporations. The supply chain of products or services for a multinational corporation can be very complex, and the recent vertical disintegration trend has only complicated things further. A global corporation's supply chain now usually consists of multiple enterprises located around the world.