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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 upstream downstream concept usage frequent reference to "upstream" upstream downstream concept usage "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 a river, upstream production refers to all the activities needed to gather the materials required to create a product.

The upstream stage of the production process involves searching for and extracting raw upstream downstream concept usage. The upstream part upstream downstream concept usage the production process does not do anything with the material itself, such as processing the material. This part of the upstream downstream concept usage 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 to the extraction stages. In this industry, locating underground or underwater oil reserves characterizes the upstream process. Additionally, the upstream process in petroleum involves bringing oil and gas to the surface. Extraction wells represent an example of a structure operating in this stage 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 downsrream process the materials. 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 cconcept the downstream process because it is the final bridge between the product and the end user. Inefficient customer service can negatively impact 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 upstream downstream concept usage selling those products to customers.

Thus, oil refineries represent structures that operate within the downstream process. However, any kind of plant that processes uwage materials may qualify as operating within the downstream stage of production. In some instances, a company may find it more efficient and cost-effective conxept combine the downstream and upstream process by controlling all aspects of production.

Isage 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 could own a refinery to mine for raw materials and a processing facility to refine the materials and turn downatream into petroleum. That company would also own the vehicles necessary to 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 media outreach. He has written primarily for the EHow brand of Demand Studios as well as business strategy sites such as Digital Authority.

By Sampson Quain Updated February upstream downstream concept usage, Related Articles.

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Mar 27, �� An upstream port is always used to connect the monitor, while a downstream port is always utilized to link a USB device. USB devices are categorized by individual classifications. For instance, microphones and speakers are listed under the audio class, while chip cards and smart cards fall under the classification of a chip card interface myboat170 boatplansted Reading Time: 1 min. Upstream interventions and strategies focus on improving fundamental social and economic structures in order to decrease barriers and improve supports that allow people to achieve their full health potential.. Downstream interventions and strategies focus on providing equitable access to care and services to mitigate the negative impacts of disadvantage on health. Feb 25, �� 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.

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