What is the difference between upstream and downstream supply chain
What is the difference between upstream and downstream?
Upstream refers to the material inputs needed for production, while downstream is the opposite end, where products get produced and distributed.
What is the upstream 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?
As noted, upstream and downstream operations exist wherever there is a supply chain that begins with basic materials and ends with finished goods for sale. Therefore, another example of upstream to downstream can be the personal computer industry.
What is the difference between an upstream and a downstream in procurement?
Simply put, the upstream procurement process is everything that happens from sourcing to awarding the contract. Downstream procurement is everything that happens after the contract is awarded.
What is downstream process in supply chain?
Downstream supply chain operations involve the movement of finished goods from a business to its customers. These operations include distribution, order fulfillment and delivery.
Who are the upstream and downstream supply chain members?
The upstream portion of the supply chain includes the organization’s suppliers and the processes for managing relationships with them. The downstream portion consists of the organizations and processes for distributing and delivering products to the final customers.
What does the upstream phase in the value chain include?
The upstream part of your value chain includes all of the materials, people and environmental factors that contribute to your product and service.
How do you increase upstream supply chain?
5 Ways to Increase Supply Chain Performance
- Choose reliable suppliers.
- Devise a supply chain strategy.
- Use demand planning.
- Eliminate data silos.
- Monitor your system.
Is value chain and supply chain the same?
To recap: the supply chain is the process between producing and distributing the product, dealing with the suppliers and logistics of getting the product to market. The value chain is a set of activities carried out by the company which maximises the competitive advantage.
What is upstream and downstream logistics?
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. Similarly, the term logistics is used when talking about a business’s supply chain.
What is upstream and downstream systems?
An upstream system is any system that sends data to the Collaboration Server system. A downstream system is a system that receives data from the Collaboration Server system. You can load data into the Collaboration Server system at regular intervals (weekly, daily, or hourly) from an upstream system.
What are upstream and downstream industries?
Upstream oil companies are involved primarily with oil discovery, extraction, and production. Downstream oil companies instead deal with refining and delivering petroleum products to consumers.
What are the main two types of supply chain?
The 2 Types of Supply Chains
| Reactive Supply Chain Strategy | Data-Driven Supply Chain Strategy |
|---|---|
| Operational improvements based on guesswork or imitating competitors | A data-driven approach helps even best-in-class manufacturing operations find new ways to improve efficiency[iii] |
What is typical supply chain?
A supply chain involves a series of steps involved to get a product or service to the customer. The steps include moving and transforming raw materials into finished products, transporting those products, and distributing them to the end-user.
What do you mean by upstream?
Definition of upstream
1 : in the direction opposite to the flow of a stream. 2 : in or to a position within the production stream closer to manufacturing processes make most of its money upstream, selling cheap crude …
What is flexible supply chain?
Flexible supply chains means that a company can easily adjust production levels, raw-material purchases, and transport capacity in order to maximize profits. When demand is high the company boost production, when it is low it can scale back.
What are the 3 types of supply chain?
The best way to understand the various stages of supply chain management and their influence on one another is to take a look at the three levels of supply chain management: the strategic level, the tactical level, and the operational level.
What are the 5 types of supply chain?
The Top-level of this model has five different processes which are also known as components of Supply Chain Management – Plan, Source, Make, Deliver and Return.
What are the types of supply chain?
The Six Models of Supply Chain Management
- Continuous flow.
- Fast chain.
- Efficient chain.
- Agile.
- Custom-configured.
- Flexible.
What is agile supply chain?
What Is the Agile Supply Chain? The agile supply chain basically refers to the use of responsiveness, competency, flexibility, and quickness to manage how well a supply chain entity operates on a daily basis.
What is a segmented supply chain?
Gartner defines Supply Chain Segmentation as “Designing and operating distinctly different end-to-end value chains (from customers to suppliers) optimized by a combination of unique customer value, product attribute, manufacturing and supply capabilities, and business value considerations.”
What are the four types of supply chains?
4 Supply Chain Entities
- Products — things in demand at various facilities.
- Facilities — places where products are made, stored, sold or consumed.
- Vehicles — mechanisms to move products between facilities to meet demand.
- Routes — paths taken by vehicles to move products between facilities.