Upstream and downstream requirements

 

  • When the manufacturing production process is pictured like a river, Upstream refers to the material inputs needed for production, while downstream is the opposite end, where products get produced and distributed
  • Upstream Production Elements
    • 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 materials.
    • The upstream part of the production process does not do anything with the material itself, such as processing the material. This part of the process simply finds and extracts the raw material
  • Downstream Production Elements
    • These process involves processing the materials collected during the upstream stage into a 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 of the downstream process because it is the final bridge between the product and the end user
  • In relevance to Food Processing Industries
    • The basic requirements of Upstream in Food processing industry:
      • Accessibility to raw materials is the first upstream requirement for any industry.
      • The food processing industry also requires modern extraction techniques
      • To make the food processing industry sustainable, it is important to ensure good linkages with farmers.
      • The storage facilities for raw materials like Grains, Meat, Fish etc. are important part of food processing upstream requirements.
      • Food processing industry also requires good quality testing facilities.
      • Transport facilities are essential part of upstream requirements of food processing industry in India.
      • The food industry also requires a sizable amount of work force.
    • The basic requirements of Downstream in Food processing industry are:
      • The downstream stage in the production process involves processing of the materials collected during the upstream stage into a finished product.
      • This stage also includes the actual sale of product to customers like businesses, governments or individuals.
      • Since, this processing has direct contact with customers through the finished product, it requires a large work force