What is Upstream and Downstream Supply Chain Management?

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What is Upstream and Downstream Supply Chain Management?





I will explain the difference between Upstream supply chain management and downstream supply chain management with examples so hear me out. There are five objective of supply chain management, here you can read about the 5 objectives of the supply chain management before starting this article.

What is Upstream Supply Chain Management?





Upstream supply chain management is the type of SCM in which the company has a relationship with the supplier of the raw material and the supplier’s supplier. The raw material and all the equipment needed to the company is termed as Upstream supply chain management.

What is Downstream supply chain Management?

Downstream supply chain management is the type of the supply chain where the company Transport or provide the end product to its customers. In some cases the company downstream is selling by-products to other companies in that case the company A that sells the by product to the company B is raw material. In this case Company A is a Down streaming while Company B is Up streaming.

Interesting Example:


Let say there is a river passes through your city, what coming from upper side is the upstream while what the river is taking from the city is the downstream.
This is one of the interesting example I think of.

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