Upstream And Downstream Supply Chain Definition
The terms “upstream” and “downstream” refer to the direction of material, information, or funds flow within a supply chain. The upstream supply chain includes all activities associated with the procurement of raw materials, while the downstream supply chain encompasses all activities related to the distribution of finished products.
In general, companies strive to optimize their upstream and downstream supply chains in order to minimize costs and maximize efficiency. To that end, many organizations have adopted lean manufacturing principles in an effort to streamline their operations. However, designing and managing an effective upstream and downstream supply chain is a complex undertaking that requires careful planning and execution.
