Logistics Sub-Sector Land Transportation

Inbound Supply Chain
 
- Materials/parts, flowing from various 
suppliers/vendors to the factory/producer. 
•
In-plant Supply Chain
 
- Movement of materials within the factory 
premises. (say) factory stores/warehouse to the assembly line 
etc. 
•
Outbound 
Supply 
Chain
- 
Finished 
goods 
from 
the 
producer/factory to the wholesaler/retailer & customer. 
Inbound Supply Chain
In plant Supply Chain
Outbound Supply Chain

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Participant Handbook 
4 
The supply chain covers the end to end movement - starting from the supply of raw materials from 
vendors until the finished products reach the customers. This is the flow across the entire supply chain. 
The reverse flow from the customer to the factory in case of any "defects/returns" is also a part of the 
supply chain covered under "reverse logistics". 
Fig. 1.1.2. Overview of SCM
 
A supply chain has, therefore, three distinct flows: 
•
Product physical flow 
•
Cash flow 
•
Information flow 
•
 
Product physical flow
–
Raw material from suppliers to a manufacturing factory and the finished 
goods from the factory to the final customer through Distribution Centres (DC) 
Wholesalers/Retailers. It can also include returns/rejections if any from the end customer. 
(material/goods flow in both directions) 
•
 
Cash flow
- From the end customers to the producers/suppliers against the sale of goods 
•
 
Information flow
- Both ways from the customers to the producer/suppliers and vice versa. 
(Indicated by red arrows) 

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5 
Land Transportation 
Associate