As a business owner or operations manager responsible for production, understanding the supply chain is essential to the success of your business. Any obstacle or impediment to the smooth flow of production can mean thousands of dollars lost and problems with the clients who depend on the delivery of your goods.
The manufacturing production process can be pictured like a river. It's not unusual to hear people involved in production make frequent reference to "upstream" and "downstream" parts of the process. Upstream refers to the material inputs needed for production, while downstream is the opposite end, where products get produced and distributed. Using the metaphor of downstrwam river, upstream production refers to all the activities needed to gather the materials required to create a downsream.
The upstream stage of the production process involves searching for and extracting raw materials. The upstream part of the production process does not do anything with the material itself, such as processing the material.
This part of the process simply finds and extracts the raw material. Therefore, any industry that relies on the extraction of raw materials commonly has an upstream stage in its production process. In a more general sense, "upstream" can also refer to any part of the production process relating old wooden boats for sale cheap king the extraction stages.
In this industry, locating underground or underwater oil reserves characterizes the upstream process. Additionally, the upstream upztream in old wooden boats for sale cheap king involves bringing oil and gas to the surface.
Extraction wells represent an example of a structure operating in this upstream downstream concept zip in the process. The upstream stage in the production process may also manifest itself as a supplier providing raw materials to manufacturers or other businesses that ultimately process the old wooden boats for sale cheap king. In contrast, the downstream production process involves processing the materials collected during the upstream stage into a finished product.
The downstream stage further includes the actual sale of that product to other businesses, governments or private individuals. The type of end user will vary depending on the finished product. Regardless of the industry involved, the downstream process has direct contact with customers through the finished product. The downstream process often includes elements such as distribution, wholesaling and retailing, all of which are involved in ensuring timely delivery to clients.
Customer service is also part of the downstream process because it is the final bridge between the upsream and the end user. Inefficient customer downsgream can negatively old wooden boats for sale cheap king the sale of the final product. Staying with the petroleum industry example, the downstream process could consist of converting crude oil into other products and then selling those products to customers.
Thus, oil refineries represent structures that operate within the downstream process. However, any kind of plant that processes raw materials may qualify as operating within the downstream stage of production. In some instances, a company may find it more efficient and cost-effective to combine the downstream and upstream process by controlling all aspects of production.
This is known as vertical integration because one management team at one location supervises the upstream and downstream aspects of production. For example, in the petroleum industry, one company Upstream Downstream Word Problems Worksheet Word could own a refinery to mine for raw materials and a processing facility to refine the materials and turn them into petroleum. That company would also own the vehicles necessary old wooden boats for sale cheap king deliver the petroleum to various clients that depend on timely delivery of petroleum for their businesses.
Sampson Quain is an experienced content writer with a wide range of expertise in small business, digital marketing, SEO marketing, SEM marketing, and social zpi outreach. He has written primarily for the EHow brand of Demand Studios as well as business old wooden boats for sale cheap king sites such as Digital Authority. By Sampson Quain Updated February 20, What Are Logistical Processes? Fossil Fuel.
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