Refers to supply chains in which producers are bound by the decisions of retailers and lead firms. Production is generally done by tiered contractors located in developing countries. These types of supply chains are more common in labour-intensive industries (e.g. garments, toys, consumer electronics).
See also: Producer-driven.

Reference

• Gereffi, G. "The Organization of Buyer-Driven Global Commodity Chains: How U.S. Retailers Shape Overseas Production Networks". (Eds) G. Gereffi and M. Korzeniewicz, In Commodity Chains and Global Capitalism, Chapter: 5, Praeger Publishers, pp.95-122.