Asked by Amanda Herrera on Jul 12, 2024
Verified
A small manufacturer was once quoted as saying, "The best day and the worst day of my business life was the day we got a contract from Walmart." What type of vertical supply chain is the manufacturer entering? Why would the manufacturer say this?
Vertical Supply Chain
A vertical supply chain integrates multiple stages of production and distribution, managed by a single company, to control supply and costs.
Manufacturer
A company or individual that produces finished goods from raw materials in large quantities through various manufacturing processes.
- Analyze the implications of contracts with large retailers like Walmart and understand vertical supply chains.
Verified Answer
KW
Keria WrightJul 19, 2024
Final Answer :
A supply chain agreement with Walmart would be an administered vertical marketing system, which occurs when a dominant and powerful marketing channel member has control over the other members. Walmart holds the balance of power in relationships with its vendors.
Learning Objectives
- Analyze the implications of contracts with large retailers like Walmart and understand vertical supply chains.
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