The multiple-level structure in China’s IFAP supply chains plays a critical role, as shown in the exhibit 1. This structure gives China’s IFAP the ability to lower costs. It also exposes hidden risks in supply chain management, thereby establishing a winning technique. Multi-tier supply chain structures are being used as a strategic tool to reduce capital assets, bring goods to market faster than competitive strategies and increase efficiency. This multi-level structure helps to ensure quality and enhance output according to client needs and preferences. China’s IFAP needs to emphasize downstream demand. It will need the support of numerous foreign and internal suppliers. Multi-level visibility management is more cost effective, and this is especially important when suppliers modify their upstream chains. For multi-level structuring, leverage can be a key factor. This helps firms generate income as well as assisting customers in finding what they are looking for at any given moment. Technological advancements have led to firms exploring multilevel structures. This is because they want financial freedom. This will reduce market volatility and increase customer happiness. It is the main objective of all companies and suppliers.
Does Zhangzidao have the necessary skills to be central in China’s IFAP supply network for vertical integration? Is there a reason for this? Zhangzidao cannot serve as China’s central firm for vertical integration in the IFAP supply chain. Although the corporation managed to balance the huge upstream supply with the low-volume demand of downstream customers, external suppliers are still competitive. Modern technology and better management methods seem to have facilitated vertical integration. However, there are still problems with cooperation methods that can be used to link up large entities such as China’s merchants. Zhangzidao faces intense competition in terms of technological innovation from foreign and domestic companies that plan to sell aquatic products.