The gains are possible because Esquel owns a vertically integrated supply chain and manufacturing process which extends from cotton farming, spinning, knitting, weaving, and apparel production, and then all the way to retailing.

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Could Ralph Lauren -- the brand atop the long, integrated supply chain that takes apparel ideas from conception all the way to the consumer -- have forgone use of the Chinese factories that do most of the brand's cutting and sewing operations and, instead, contracted with U.S. factories for the Olympic uniform project?

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For example, say you have an employee e-commerce site with several web pages for someone to browse a catalog and then order a new chair for their office (as is the case in more and more integrated procurement and supply chain partnerships these days).

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This means that as additional activities are outsourced, the supply chain turns from a single integrated process, performed within the boundaries of traditional corporations, to a fragmented and disintegrated process, a collection of separate and disjointed activities performed across several independent subcontractors.

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This means that as more and more activities are outsourced, the supply chain turns from a single integrated process performed within the boundaries of traditional corporations to a fragmented and disintegrated process, a collection of separate and disjointed activities, performed across several independent subcontractors.

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