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Vertically Integrated Supply Chain

oboloo Glossary

Vertically Integrated Supply Chain

A vertically integrated supply chain is an approach to the management of a business’s entire production and distribution process. It involves creating and managing an interdependent network of suppliers, buyers, distributors and other stakeholders with an aim to maximize efficiency, quality, profits and customer satisfaction. It takes into account every single step in the life cycle of the product or service, from raw materials to delivery to end customers. In effect, it creates a streamlined system for the business operations that reduces time wasted on ad hoc decisions or inefficient systems. By optimizing the flow of goods and services within the supply chain, businesses can create measurable benefits such as cost savings, improved customer service and increased sustainability.

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