Which flow is described when knowledge, instructions, messages, and communication move up and down a distribution channel?

• A. Physical flow
• B. Financial flow
• C. Information flow
• D. Product flow

Answer: (C)

Information flow is about the exchange of data, instructions, and messages across the channel to coordinate actions. When knowledge, instructions, messages, and communication move up and down a distribution channel—such as a manufacturer sending product specifications or a retailer sharing sales data and forecasts with other members—the flow is information flow. This keeps everyone aligned, enables quicker decisions, and drives coordinated activities without moving physical goods. In contrast, the physical flow involves the actual movement of products, the financial flow covers payments and credit terms, and the other concept relates more to the handling and transfer of goods themselves.