What is a downstream supply chain?
Downstream supply chain operations involve the movement of finished goods from a business to its customers. These operations include distribution, order fulfillment and delivery.
Downstream operations are the processes involved in converting oil and gas into the finished product. These include refining crude oil into gasoline, natural gas liquids, diesel, and a variety of other energy sources.
What is upstream and downstream in supply chain example?
The upstream portion of the supply chain includes the organization's suppliers and the processes for managing relationships with them. The downstream portion consists of the organizations and processes for distributing and delivering products to the final customers.
It refers to a trading partner or supplier at the latter end of a supply chain or a distribution channel, who is closer to end-customers.
What is a downstream product?
(2) The term “downstream product” means any manufactured article— (A) which is imported into the United States, and (B) into which is incorporated any component part.
Supply Chain Professional *Examples of Upstream Processes: In the petroleum industry, locating underground or underwater oil reserves characterizes the upstream process. Additionally, the upstream process in this industry involves bringing oil and gas to the surface.09-May-2015
What is the difference between downstream and upstream?
Simply put, upstream works include the exploration and production of crude oil and natural gas, whilst downstream refers to the processes applied after extraction through to it being delivered to the customer in whatever format required.
Upstream oil companies are involved primarily with oil discovery, extraction, and production. Downstream oil companies instead deal with refining and delivering petroleum products to consumers.
What is downstream and upstream process?
Upstream & Downstream Processing. The production of active pharmaceutical ingredients (API) of biopharmaceuticals typically starts with generation of the API via living cells known as the upstream process, followed by purification of the target API, or the downstream process.15-Dec-2021
What is downstream logistics? Overall, downstream logistics refers to any logistic activities aiming to provide customers or end consumers with finished products.
Is procurement upstream or downstream?
Procurement Process: Upstream and Downstream Simply put, the upstream procurement process is everything that happens from sourcing to awarding the contract. Downstream procurement is everything that happens after the contract is awarded.
Upstream refers to exploration and production of crude oil and natural gas, midstream is the transportation and storage of crude oil and natural gas, downstream refers to the conversion of crude oil and natural gas into thousands of finished products.
What is upstream and downstream value chain?
Upstream activities are those close to the exploitation of natural resources, whose output is a primary commodity or virgin material (Van Beukering et al., 2000). Downstream activities add value to the products, through manufacturing or customization, which outflow is a final commodity.
Downstream supply chain management refers to coordinating the flow of information and goods with clients and customers. It contrasts upstream SCM, which involves coordinating buying activities with suppliers.26-Sept-2017
What is downstream in value chain?
Your downstream value chain is generally classified as what happens once a product or service has left your door. While economic responsibility usually ends at this point, in the eyes of stakeholders, the social and environmental responsibility of your business may not.
Downstream oil companies are those that deal with the processing and delivery after the procurement of crude. It includes refining the oil and converting it into the final products that are sold to consumers. This could be the gas supplied to us through gas cylinders or pipelines too.21-Mar-2022
What do you mean by downstream?
Definition of downstream 1 : in the direction of or nearer to the mouth of a stream floating downstream located two miles downstream. 2 : in or toward the latter stages of a usually industrial process or the stages (such as marketing) after manufacture improving profits downstream downstream products.
Downstream processing (DSP) describes the series of operations required to take biological materials such as cells, tissue culture fluid, or plant tissues, and derive from them a pure and homogeneous protein product.
What are downstream and upstream sales?
Upstream and Downstream sales are normally associated with inter-company sales. Upstream is a subsidiary selling into the parent entity; while downstream sales are from parent to subsidiary. Financially, it usually refers to loans, since dividends and interest generally flow upstream.
Upstream activities include exploration, drilling, and extraction. Upstream is followed by midstream (transportation of crude oil) and downstream (refining and distribution) phases. Today many large oil companies are integrated, in that they maintain upstream, midstream, and downstream units.
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).26-May-2021
What is a downstream supply chain?