What is upstream and downstream supply chain?
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What is upstream and downstream supply chain?
Often, different stages within the supply chain are referred to as upstream or downstream. Upstream operations are those in which the materials flow into the organization. Downstream operations are those in which materials (mostly in the form of finished products) flow away from the organization to the customers.
What is the meaning of upstream and downstream?
As a business owner or operations manager responsible for production, understanding the supply chain is essential to the success of your business. Upstream refers to the material inputs needed for production, while downstream is the opposite end, where products get produced and distributed.
What is meant by upstream in a supply chain?
Upstream Supply Chain: A part of a supply chain system, process or relationship between a company and its raw materials and packaging suppliers. “Upstream” looks at supply side of the supply chain toward the origin of a raw material in the supply chain process.
What is upstream and downstream example?
*Examples of Upstream Processes: In the petroleum industry, locating underground or underwater oil reserves characterizes the upstream process. In the oil and gas industry, the downstream process consists of converting crude oil into other products and then selling those products to customers.
What is the downstream supply chain?
Downstream operations are a part of the supply chain process that starts with basic materials and ends with finished goods sold to consumers. The downstream part of the supply chain includes processes used to create finished goods and the distribution and sale of the goods.
What is upstream and downstream in manufacturing?
Upstream processes are those in which biological materials are either obtained from an outside source or inoculated and grown in culture, under controlled conditions, to manufacture certain types of products. Downstream processes are those in which the products are harvested, tested, purified and packaged.