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.
This generally refers to the management of upstream and downstream activities of an organization in an international arena.
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)
Downstream.
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.
Supply chain mapping involves identifying and visualizing the different entities, processes, and flows that make up a supply chain network. This includes mapping out the relationships between suppliers, manufacturers, distributors, retailers, and customers to better understand how products move through the supply chain. It is a critical tool for improving supply chain efficiency, transparency, and sustainability.
the downstream portion of the supply chain
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.
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.
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.
logistics is a part of supply Chain Management
Green Supply Chain Supply chain management with an emphasis on energy efficiency and environmental friendliness.