What does 'downstream' refer to in the supply chain?

In the context of the supply chain, 'downstream' refers specifically to the processes and activities that occur closer to the end-user or consumer. This term encompasses distribution, sales, and delivery channels that directly interact with customers, ultimately aiming to provide products or services to them. Therefore, understanding 'downstream' as it relates to distribution highlights the importance of reaching the end-users efficiently and effectively.

The focus on downstream activities underscores the significance of customer satisfaction and market responsiveness, as these elements are critical to a successful supply chain strategy.

The other options, such as production and raw material sourcing, supplier management, and logistics planning, are primarily associated with 'upstream' functions or broader supply chain management activities not directly tied to the end-user. They involve processes related to inputs and initial phases in the supply chain rather than the final delivery and consumer experience.