Vertical chaining refers to the coordination of prices between different levels of the same supply chain or product category. It involves the seamless flow of products, information, and resources across these interconnected levels.
Vertical chaining creates pricing consistency throughout the chain, avoiding price conflicts and maximizing the value perceived by customers. This integration allows for streamlined processes, reduced costs, improved inventory management, and better customer satisfaction. Vertical chaining often involves the implementation of advanced technologies and systems to automate and optimize operations, ensuring a smooth and synchronized flow of goods and services throughout the supply chain network.
