Final answer:
In supply chain management, the three flows are material flow, information flow, and financial flow. Financial flow is essential as it encompasses all the monetary transactions, facilitating other supply chain operations.
Step-by-step explanation:
The three types of flows in supply chain management are material flow, information flow, and financial flow. The financial flow includes all the processes related to the movement of money in the form of payments, credit terms, payment schedules, and consignments both up and down the supply chain. This financial flow is just as crucial as the material and information flows because it enables the whole supply chain process, helping to purchase raw materials, pay salaries, manage inventories, and invest in development and growth.
Effective supply chain management strategically coordinates these three flows to reduce costs, improve efficiency, and compete in the market. These functions are interconnected, illustrating the complexity of managing a supply chain that competently handles goods, data, and finances.