Funds flow

Based on the characterization of a supply chain, supply chain management (SCM) can be defined as a process oriented approach to procuring, producing, and delivering end products and services to customers. It includes sub-suppliers, suppliers, internal operations, trade customers, retail customers and end users. It covers the management of materials, information, and fund flows [2],... 

While the Shah Deniz PSA partners are clearly concerned about the implications to their funds flow from any failure by SOCAR to manage the swings in natural gas volumes for Azerbaijan, they are reluctant to add a significant investment in the underground storage facilities at Kalmas and Karadag. 

Output view This view contains all physical and nonphysical output that is created by business functions, including services, materials, and products as well as funds flows. Because each output is input for another function—even if this function is probably carried out by an external partner—input-output diagrams are also components of this view. 

Integrated, Coordinated, High Velocity, JIT Goods, Information and Funds Flows from Raw Material Sources to Point of Consumption... 

Goods Flows Information Flows Funds Flows... 

Here, we develop the information flow aspects of our model in Figure 1.4. We also show how there is another flow in supply chains - funds flow. Funds flow in the opposite direction to materials. Funds - in the form of cash - originate from the end-customer, and are used to pay the bills progressively from one supply chain partner to the next upstream. 

Logistics is increasingly concerned with funds flow as well as material flow and information flow (Chapter 1). It is a cross-functional discipline that addresses management processes of plan, source, make, deliver and return. These processes are repeated across the supply chain. 

A supply chain is dynamic and involves the constant flow of information, product, and funds among different stages. In our example, Walmart provides the product, as well as pricing and availability information, to the customer. The customer transfers funds to Walmart. Walmart conveys point-of-sales data and replenishment orders to the warehouse or distributor, which transfers the replenishment order via trucks back to the store. Walmart transfers funds to the distributor after the replenishment. The distributor also provides pricing information and sends delivery schedules to Walmart. Walmart may send back packaging material to be recycled. Similar information, material, and fund flows take place across the entire supply chain. 

Other financial expenses and incomes in period t Funds flow in period t... 

From an overall economic viewpoint, any investment proposal may be considered as an activity which initially absorbs funds and later generates money. The funds may be raised from loan capital or from shareholders capital, and the net (after tax and costs) money generated may be used to repay interest on loans and loan capital, with the balance being due to the shareholders. The shareholders profit can either be paid out as dividends, or reinvested in the company to fund the existing venture or new ventures. The following diagram indicates the overall flow of funds for a proposed project. The detailed cash movements are contained within the box labelled the project . 

DecoveTj of Capital. In Figure 1, the annual book depreciation is used to retire the fixed capital investment. Whereas this accounting model does not correspond to the typical money flow, it is one possible model for recovery of capital. This model assumes that the investment is reduced each year by the amount of the annual depreciation. Another model (22) assumes that a uniform yearly book depreciation payment is made to an interest-bear sinking fund that accumulates to the depreciable fixed capital amount at the end of the venture. Using this second model, the investment is outstanding throughout the lifetime of the project. This also does not correspond to the actual money flow in most cases. ProfitabiUty analysis utilizes a third model based on discounted cash flows. 

Figure 9-100. Atmospheric spray tower, air flow aspirated by pressure-spray water distribution system. Usually applied in small sizes. Used by permission of Hensley, John C. (ed), Cooling Tower Funds.-menteUs, 2nd Ed. (1985), The Mariey Cooling Tower Co., a United Dominion Company.

As indicated in Section 30.7, energy-conservation measures cost money, and in spite of the likely results indicated by any of the methods available (simple payback, discounted cash flow, etc.) it is possible that the organization s funds are not available for such schemes. Alternatives that should be considered are ... 

From the catalyst metal and catalyst support studies PNNL settled on a preferred catalyst composition. We joined UOP in a DOE funded program to commercialize the process. A simplified process flow diagram is shown in Figure 34.9. 

B-C The heavy flow of capital to build the plant, and provide funds for start-up. 

---