What activity is considered the most upstream in the supply chain?

In the context of the supply chain, operations management is viewed as the most upstream activity because it encompasses the processes involved in the transformation of raw materials into finished goods. This includes activities such as sourcing, production planning, and manufacturing. By managing these core functions effectively, operations management lays the groundwork for the entire supply chain, ensuring that the right materials are available for production and that processes are optimized for efficiency and quality.

This upstream placement is crucial because it directly influences downstream activities, such as distribution logistics, which deals with the movement of finished products to customers, and customer service, which focuses on satisfying customer needs and managing relationships post-purchase. Human resources, while vital for managing workforce-related issues, does not specifically relate to supply chain activities in the same direct manner as operations management does. Thus, operations management serves as the foundation that initiates and supports all subsequent supply chain efforts.