Upstream supply chain
The upstream supply chain covers suppliers and the activities that provide inputs to the focal organisation. Its boundary depends on the organisation being analysed: a component producer is upstream of an assembler but has its own upstream suppliers. Supplier capability, continuity, quality and conduct affect more than purchase price.
Worked example
For a bakery, flour mills and grain suppliers lie upstream. A disruption at a mill can affect production even if the bakery’s own equipment is working.
Common mistake
Describing upstream and downstream without identifying the focal organisation, or assuming responsibility for supplier risk ends when a purchase order is issued.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Supporting | September 2026–June 2027 |