Information Flows

Information Flows

 

There are four basic information flows involving supply:

 

  • Inward flows:  (1) Information from within the organization is sent to supply, including statements of need for materials and services; (2) Information from external sources is sent to supply from suppliers (prices and deliveries) or from other sources (general market conditions and import duties).
  • Outward flows:  (1) Information from within supply is sent to others in the organization.  This includes supplier pricing, market conditions, and supply forecasts for cash flow budgeting.  (2)  Information, such as requests for quotes or proposals, is sent form supply to external sources (suppliers).

 

Procurement must have the ability to effectively manage information flows involving both internal and external partners in the supply chain.  Information systems enable the efficient flow of information and support effective decision making.