There are three key flows in SCM, namely:

• The product flow, which consist the movement of goods from a provider to a customer, as well as any customer returns or service desires;
• The information flow, which consist the transmission of orders and the update of the status of delivery; and

• The finances flow, which consists of payment schedules, credit terms, and consignment and title ownership arrangements.

Some SCM applications are based on open data models that maintain the sharing of data both outside and inside the enterprise, called the extended enterprise, and contain key manufacturers, suppliers, and end customers of an exact company. Shared data resides in various database systems, or data warehouses, at several different sites and companies. Sharing this data "downstream" (with a company's clients) and "upstream" (with a company's suppliers) allows SCM applications to get better the time-to-market of goods and decrease costs. It also allows all parties in the supply chain to better administer current resources and plan for future needs.30

                   Figure: Old Economy Relationships vs. New Economy Relationships