Often, different stages within the supply chain are referred to as upstream or downstream. This paper aims to find out the various types of effort levels in upstream and downstream supply chain. By continuing you agree to the use of cookies. Demand is difficult to forecast due to a number of reasons, including the influence of causal factors, events or lumpy demand. We have streamlined exposition throughout the paper and have reduced the length. Stephen Byron Cooper began writing professionally in 2010. The table below sums up the three cases, outlining data, analytics methods and value gained. Effects of upstream and downstream mergers on supply chain profitability. A career as a programmer gives him experience in technology. The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs.
This article deals with reducing uncertainty downstream – i.e., in relations with customers (and their customers). The Definitions of "Upstream" and "Downstream" in the Production Process. Warranty costs, brand reputation.
Both claims and social data are unstructured data and require text analytics, whereas streaming data provides other possibilities – e.g., for analytics at the edge. I have no contacts in industries.
From a supply chain perspective, both inside supply chains benefit from the upstream post-merger synergy and gain more profit, while the outside supply chain profit is lower than the pre-merger case.
Let’s look at two different examples of a supply chain. The manufacturer of a product may not be its “producer.” For example, Apple does not manufacture any of its products. Forecasting, predictive analytics for tender demand.
Sun, H. and Ni, W. (2012), "The impact of upstream supply and downstream demand integration on quality management and quality performance", International Journal of Quality & Reliability Management, Vol.
Supply chain integration; Upstream integration with suppliers; Down stream integration with customers; Quality performance; Citation. High forecast accuracy is key to bringing down inventory, transportation and supply chain cost without hurting customer service.
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If your customer cannot sell to its customer, you cannot sell. Hi Rajkumar - thank you for your comment and your interest in managing Supply Chain uncertainty - something I believe will be grow in importance in the coming years.
Planning ahead, differentiated returns policies. The raw materials are then taken by a logistics provider to a supplier, which acts as the wholesaler. The bottom line is that the cost associated with uncertainty downstream in the supply chain can be reduced by applying analytics to the already available data.
We have extended our analysis to three different scenarios in Section 7. Copyright © 2020 Elsevier B.V. or its licensors or contributors. The manufacturer of a product may not be its “producer.” For example, Apple does not manufacture any of its products. Applying analytics to this search will improve the probability of identifying and preventing quality issues. I think you should investigate a few relevant companies and identify some of their uncertainties. The above results are robust enough to hold even when taking into account intra-brand competition among retailers. Upstream operations are those in which the materials flow into the organization. For this reason, anticipating the number of products returned can be of great interest – especially in the CPG/retail area, where up to 60 percent of the order lines are returned. Use this investigation to narrow scope and link up with relevant companies. While I have a preference for S&OP, I believe Analytics can help manufacturing companies in all areas of their business, and I want to spread that idea. Furthermore, even though the effects of upstream and downstream mergers are different, the vertical supply chain partners will always try to reduce their losses if the market power effect dominates, but will take actions that improve their profits if the synergy effect is stronger.
The idea of expressing the relation of companies in the supply chain introduces a second metaphor. Owners of brands need to monitor downstream activities to control the price and presentation of their products and the types of outlets that sell them in order to maintain brand value. I like two angles, which are not that different: As you will see in the following three examples, the data for analytics is available. The manufacturer of a product may not be its “producer.” In a case such as Apple, the company has to control all the points in the process, even dictating the format of the display of the goods in shops.
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