Stacking in the supply chain refers to the practice of vertically integrating different stages of the supply chain process within the same organization. This approach aims to streamline operations and improve efficiency by consolidating control and reducing dependence on external suppliers. By stacking the supply chain, companies can have better control over the entire process from procurement to distribution.
One of the main benefits of stacking the supply chain is increased visibility and coordination. When different stages of the supply chain are managed within the same organization, it becomes easier to track and manage inventory levels, production schedules, and delivery timelines. This leads to better decision-making and faster response times to changing market conditions.