Product flow is the distribution channel that is viewed as a unified system of interdependent organizations in which intermediaries work together to build value as products proceed through the channel to the consumer.
It is one of the simplest concepts for understanding because apart from the above definition it can also explain the organized flow of the products in the shopping stores. It can act as a guide for shoppers in shopping for the various categories in the stores.
“Product Flow includes movement of goods from supplier to consumer (internal as well as external), as well as dealing with customer service needs such as input materials or consumables or services like housekeeping. Product flow also involves returns/rejections (Reverse Flow).”
In a general industrial condition, there will be a manufacturer, supplier, distributor, retailer, wholesaler, and consumer. This consumer can also be an internal consumer in the same organization. For instance, a fabrication store fabricates many types of raw steel into various building elements in general machining, cutting, welding centers, and then assembles to order for shipment to the customer. Flow in this plant is from an assembly/process section to another with a relationship as a supplier and customer (internal). The acquisition takes place at every phase from the previous phase along with the whole flow in this supply chain.