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Supply Chain Management: Upper and Lower Streams

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Some people believe that for management purpose companies can divide their Supply Chain Management (SCM) into upper stream SCM and lower stream SCM groups. What do you think about this division?

Please include references.

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Solution Summary

This solution explains how and why companies divide their supply chain management into upper and lower streams. Additionally, this solution includes three reference source for further research of the topic.

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Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. SCM is about coordinating and managing these flows in the organization. It is the ultimate goal of any organization to minimize inventory by using effective supply chain management techniques.

There are three main flows in SCM:

Product flow-involves flow of products from supplier to customer. It also includes any customer returns or service needs.
Information flow- The information associated with this flow is ...

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