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Upstream and downstream supply chain

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Upstream and downstream supply chain

  • This topic has 2 replies, 2 voices, and was last updated 15 years ago by aurianne04.
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  • November 18, 2010 at 11:36 am #46070
    aurianne04
    Member
    • Topics: 4
    • Replies: 28
    • ☆

    Many thanks for marking my script, in line with that, i’m still strugging to understand the examiner answer to 3b and 3c (Dec 2007), mainly because i’m unclear about upstream(=supplier) and downstream (=customer) supply chain. I know in your feedback you ask me to think of products flowing on a river. Are you able to explain please. Are you pls able to direct me to the OP notes for further reading? Thanks

    November 18, 2010 at 5:38 pm #70973
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10649
    • ☆☆☆☆☆

    OK. The river analogy was you sitting beside a river and watching stuff float down. Material comes from upstream (the source of the river) and moves downstream (the sea). So, upstream is shorthand for where your components/materials come from: all your suppliers and their suppliers. Downstream is shorthand for where your products go: all your customers and their customers.

    I wouldn’t worry about reading up on the phrases any more.

    HTH

    November 18, 2010 at 8:02 pm #70974
    aurianne04
    Member
    • Topics: 4
    • Replies: 28
    • ☆

    thank you

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