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What does upstream and downstream mean in business?
Upstream and downstream refers to the supply chain of an industry. For example, if you're looking at a distribution plant then the manufacture would be downstream and the retailer would be upstream. Events or processes that happen before whatever is being looked at is downstream and whatever happens after is upstream.
What is global supply chain management?
This generally refers to the management of upstream and downstream activities of an organization in an international arena.
What is Meaning of upstream and downstream partners?
Supply chains are the suppliers, manufacturers, distributors and transportation modes that move products and services from the source of components and raw materials to the customer. Product flowing from the source toward the customer is flowing downstream. Activities that are performed previous to a specific point on the supply chain are upstream activities. (source: http://www.ehow.com/info_8745500_upstream-downstream-supply-chain-activity.html)
What does upstream and downstream?
"Upstream" and "downstream" refer to different stages in a production or supply chain process. Upstream involves the initial stages, including sourcing raw materials and production, while downstream focuses on the later stages, such as distribution, sales, and delivery to consumers. In a broader context, these terms can also apply to various industries, including oil and gas, where upstream refers to exploration and extraction, and downstream involves refining and marketing products.
Distribution or dispersal takes place in which segment of the supply chain?
Downstream.
What is backward integration in steel industry?
refers to vertical integration, that is, a company takes over certain stages upstream (Backward) or downstream(Forward) from its position in the supply chain. A steel manufacturing company that wants to integrate backwards would therefore buy the ore mine. refers to vertical integration, that is, a company takes over certain stages upstream (Backward) or downstream(Forward) from its position in the supply chain. A steel manufacturing company that wants to integrate backwards would therefore buy the ore mine.
What is meant by supply chain mapping?
Supply chain mapping is the method to capture existing business process and performance across various organization from upstream raw material producers to downstream retailing companies. Visualization of business process is the key to determine how to improve operations and how to increase coordination among different parties in the same supply chain. The result of good supply chain mapping can be reduction of lead-time or delivery time or cost reduction.
A company's organization and processes for distributing and delivering products to its final customers is called what?
the downstream portion of the supply chain
What are the causes of the bullwhip effect?
The bullwhip effect in supply chain management can be caused by fluctuations in demand, lead time variability, order batching, and lack of communication and coordination between different partners in the supply chain. These factors can amplify small changes in demand and create larger fluctuations upstream in the supply chain.
What is the crack the whip effect?
The crack the whip effect, also known as the bullwhip effect, is a phenomenon where small fluctuations in demand downstream in a supply chain are amplified as they move upstream, leading to larger and more erratic fluctuations in production and inventory levels. This effect can result in inefficiencies, increased costs, and poor customer service. Organizations strive to mitigate the crack the whip effect by improving communication and collaboration within their supply chains.
Advantages and disadvantages of vertical merger?
Note: "integration" and "merger" are the same Benefits of Vertical integrationVertical integration potentially offers the following advantages:Reduce transportation costs if common ownership results in closer geographic proximity.Improve supply chain coordination.Provide more opportunities to differentiate by means of increased control over inputs.Capture upstream or downstream profit margins.Increase entry barriers to potential competitors, for example, if the firm can gain sole access to a scarce resource.Gain access to downstream distribution channels that otherwise would be inaccessible.Facilitate investment in highly specialized assets in which upstream or downstream players may be reluctant to invest.Lead to expansion of core competencies.Drawbacks of Vertical integrationWhile some of the benefits of vertical integration can be quite attractive to the firm, the drawbacks may negate any potential gains. Vertical integration potentially has the following disadvantages:Capacity balancing issues. For example, the firm may need to build excess upstream capacity to ensure that its downstream operations have sufficient supply under all demand conditions.Potentially higher costs due to low efficiencies resulting from lack of supplier competition.Decreased flexibility due to previous upstream or downstream investments. (Note however, that flexibility to coordinate vertically-related activities may increase.)Decreased ability to increase product variety if significant in-house development is required.Developing new core competencies may compromise existing competencies.Increased bureaucratic costs.
What is downstream distribution?
Downstream distribution refers to the processes involved in delivering products from manufacturers to the final consumers. This includes activities such as warehousing, transportation, and retailing. The goal is to ensure that goods are efficiently and effectively distributed to meet consumer demand. Downstream distribution is a critical component of supply chain management, impacting customer satisfaction and overall business performance.
