What is a vertical supply chain?

A vertical supply chain is a type of supply chain in which a company controls multiple stages of the supply chain process, including production, distribution, and retailing. This means that a company is involved in every aspect of the supply chain, from raw materials to the final product.

For example, a vertically integrated fashion company may own the textile mills, clothing factories, distribution centers, and retail stores. By controlling the entire supply chain, the company can have greater control over the quality, cost, and delivery of its products, as well as more opportunities for innovation and differentiation.

Vertical integration can offer several benefits, such as cost savings, increased control, and better coordination across the supply chain. However, it can also be more complex and require significant investment in infrastructure and resources.

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