What is taper vertical integration?

Taper vertical integration refers to a strategy where a company partially integrates its supply chain by owning some of its suppliers or distributors while still relying on external sources for the rest. This approach allows a business to maintain flexibility and reduce risk by not being wholly dependent on its own operations. Companies can benefit from improved coordination and reduced costs in certain areas while still leveraging the competitive advantages of external partners. Essentially, it strikes a balance between full integration and complete outsourcing.