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.
Related questions
Vertical Contracts Between Manufacturers and Retailers Often Aim to ...
Vertical Contracts Between Manufacturers and Retailers Often Aim to ...
Vertical Contracts That Aim to Decrease Retailer Prices Typically ...
When a Company Is Involved in More Than One Activity ...
If George and a Single Jerk Store Act as a ...