What does upstream and downstream mean in supply chain?
The terms upstream and downstream oil and gas production refer to an oil or gas company’s location in the supply chain. Upstream oil and gas production is conducted by companies who identify, extract, or produce raw materials. Downstream oil and gas production companies are closer to the end user or consumer.
What is upstream in supply chain management?
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 are the flows of supply chain that move both upstream and downstream?
There are three types of main flows that happen in any supply chains: flow of materials/goods, flow of money/cash, and flow of information. There is a forward flow of materials/goods for the regular flow that happens all the way from higher tier suppliers (upstream) to the end-consumer (downstream).
What is upstream and downstream procurement?
Simply put, the upstream procurement process is everything that happens from sourcing to awarding the contract. Everything that happens after the contract is awarded is downstream. However, it’s the activities that occur in the upstream process that have the most significant impact on the downstream outcomes.
What flows downstream in a 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 are the 4 flows in supply chain?
Supply Chain is the management of flows. There are Five major flows in any supply chain : product flow, financial flow, information flow, value flow & risk flow. The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs.
What are the three flows in a supply chain and which direction is the flow?
There are three main flows of supply chain management: the product flow, the information flow, and the finances flow. The Product Flow – The product flow involves the movement of goods from a supplier to a customer. This supply chain management flow also concerns customer returns and service needs.
What is downstream payment?
Situated “downstream” is accounts payable (AP), responsible for ensuring timely payments on vendor invoices, avoiding late fees, and, when possible, capturing early payment discounts. Together, these two departments have the potential to create significant value as well as cost savings for the businesses they support.
What is upstream and downstream process?
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. Common tasks.
What is downstream provider?
In a telecommunications network or computer network, downstream refers to data sent from a network service provider to a customer.
What is downstream flow?
The downstream flow is of interest because turbulence or vortices in that region carry away flow energy in a disordered state that cannot contribute to pressure recovery behind the object and thus create drag which we usually want to reduce.