In any manufacturing company, material flow can be basically classified into three
Flow of raw material from suppliers into the manufacturing facility.
Flow of material within the manufacturing facility as they are processed.
Flow of finished goods from the manufacturing facility to the end customers.
To be responsive to the global competition, Organizations must be able to manage the
complete flow of material from the suppliers, through manufacturing, till the end product
reaches the customers.
Hence organizations must be involved in the management of management of suppliers
who provide direct and indirect material inputs, must increase the manufacturing
competitiveness and must effectively manage the network of distribution systems
responsible for delivery of the product to end customers.
From this realization emerged the concept of supply Chain