Upstream logistics

Upstream logistics

What is upstream logistics?

is a term used in the world to designate any logistical activities occurring prior to the production process. By definition, stands out from - which encompasses any activities occurring after the production process (namely the and delivery of finished products).

In practice, refer to any activities consisting in providing a company with products (raw materials, semi-finished products, equipment, etc.) in compliance with agreed volume (quantity) and lead time conditions. therefore refers to the actions of a specialized stakeholder (logistics company) in charge of bringing products “to the foot of the production machines” at the exact time the customer company needs them.

A stakeholder offering services undertakes to carry out all operations required for transporting goods from their place to a warehouse or production factory. Providers specialized in may therefore be entrusted with several tasks, including:

  • Organizing raw material procurement;

  • Optimally managing the balance between procurement needs and production;

  • Managing suppliers (choice of supplier and activity follow-up);

  • Optimizing purchases.

aims to guarantee more flexibility and reliability in a company’s logistical activities, and is also characterized by the following operations:

  • Traditional rail transport;

  • ;

  • ;

  • Management of reusable packaging;

  • Staggered deliveries;

  • Optimization of operations;

  • etc.

Lastly, is an answer to the many challenges and issues pertaining to logistics. Generally speaking, it aims to optimize physical flows by using commercial data (order log), by defining a suitable procurement program and by scheduling the delivery of goods required for production. is an integral part of the “logistical discipline”, that aims to offer the best possible service quality in line with a customer’s needs and expectations.

Specificities of upstream logistics

The offer implemented by specialized providers can be summed up into the following:

  • Optimizing product transfer to production warehouses;

  • Conducting product inspections (quality and quantity);

  • Identifying and referencing products used during production;

  • Storing these products.

Examples and practical applications

is available for a wide array of companies, physical stores and e-commerce specialists. It provides a tailored solution to any company wishing to outsource part of its logistic activities. requires the company to define a supply policy, detailing:

  • Supply management methods;

  • Delivery deadlines;

  • Conditions for upstream transport;

  • The implementation of a network of suppliers;

  • The promotion of an information system.

In practice, a company that decides to call upon a logistics provider to entrust all their upstream logistic operations will no doubt gain in productivity. Indeed, the idea is to entrust all , transport and supply operations to a stakeholder specialized in this field. The company can therefore benefit from specific know-how and skills. It is not obliged to massively invest to integrate this activity within its organization. Overall, entrusting logistical tasks (whether upstream or downstream) to a specialized provider will enable the company to remain focused on their core activity.