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Vertical Supply Chain

oboloo Glossary

Vertical Supply Chain

A vertical supply chain is an efficient and complex network of business relationships. It enables companies to move their products or services through the production process and on to customers more quickly and effectively. The key components of a vertical supply chain include the supplier, who provides the raw materials; the manufacturer, who produces the finished product; the distributor, who moves it down the line; and finally, the customer, who receives the finished product. By carefully managing these components, businesses can create a closed-loop system that facilitates collaboration between business partners—ultimately leading to increased profitability and cost savings. In today’s global market, understanding vertical supply chains and how to manage them intelligently is critical for the success of any organization.

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