Question

Compare and contrast upstream and downstream partners in a company's supply chain.
Explain why a value delivery network might be a better term to use than the supply chain.

Answer 1

Upstream and downstream partners in a company's supply chain:

• The upstream in supply chain works to supply the raw material required for the product whereas the downstream works to get the product to the customer.
• For example, upstream in supply chain is assembly plant and downstream is distributors and shipping partners.
• The activities required for the upstream includes fulfilling of the orders through mining whereas in downstream includes get the quantities of products without overstocking to fulfill the orders.
• The upstream involves getting and transporting the raw materials efficiently and downstream involves distributing and running the orders in time.

Supply chain may also termed as value delivery network:

• The teams involved in supply chain management includes account suppliers, manufacturing plants, distributors, wholesale warehouses and retail stores.
• The supply chain mainly depends on the consumer demand for a product.
• It mainly works to get a finished product to a customer on time in a cost-effective way. Thus, it can be better termed as value delivery network.