The initial steps in SCM focus on understanding the flow of materials and information through the network.

• A. True
• B. False
• C. It depends
• D. Not specified

Answer: (A)

Understanding how materials and information move through the supply chain is the starting point because it provides the map of how the network operates. By mapping the end-to-end flow—from suppliers and raw materials to manufacturing, distribution, and the customer—you see where things travel, how long they take, and how data signals (forecasts, orders, shipments, inventory levels) propagate. This baseline view highlights bottlenecks, handoffs, and data gaps, enabling you to align processes, data definitions, and metrics across all partners. With that clarity, you can target improvements in planning, replenishment, and lead-time reduction, making coordination across the network possible. Some contexts might emphasize different elements first, but the fundamental work of understanding flows underpins effective SCM.