• ‘Inventory’ is all raw materials, work in process and finished goods within an organization.
The level of inventories influences product quality, the delivery lead time and the costs
associated with that delivery.
• ‘Transportation’ entails moving inventory from point to point in the supply chain.
Transportation can involve the use of many combinations of modes (e.g. truck, train,
plane, boat) and routes, each with its own performance characteristics.
• ‘Facilities’ are places in the FSCN where inventory is stored, conditioned, assembled or
fabricated. The two major types of facilities are production / processing sites and storage sites
(distribution centres). Whatever the function of the facility, decisions regarding location, capacity
and flexibility of facilities have a significant impact on the supply chains’s performance.
• ‘Information’ consists of data and analysis regarding inventory, transportation, facilities
and customers throughout the supply chain. Information is potentially the biggest driver
of performance as it directly affects each of the other drivers