Question

Q. What are the differences and similarities of using information technology to support:

a) the upstream supply chain;

b) the downstream supply chain?

Answer 1

The similarities between the upstream and downstream supply chain is explained below:

1. The timely delivery happens on both the upstream and downstream supply chain are same, as where the material needed for the business project and delivering the product for the customers should be on time as there should not be any issues.
2. The upstream and the downstream focus more on the market, as where the needs and expectation of the customers get satisfied through production of the business and delivering the same.
3. The high end technology used by the upstream and downstream supply chain had impact on the growth and benefit of the business in the organization.

The differences between the upstream and downstream supply chain is explained below:

1. The upstream supply chain focus on the materials needs to the business process whereas the downstream focus on the services provided to the customers.
2. The upstream supply chain would be applicable for the larger organization and where the downstream supply chain will be used in the smaller organization as that focus more on the end users.
3. The business is diversified through upstream supply chain and the marketing towards the business and the products are done through the downstream supply chain.