Skip to main content
Latest

Sign in to your account

Don't have an account? Register here
Sign in

Glossary - Vertical Integration

|

Learning: Knowledge

Vertical Integration is a method by which a company can increase efficiency by owning elements of its supply chain. An example of this would be a manufacturing company that owns and operates its supplier or distributor. This can reduce certain expenses such as transportation, and save time by driving quicker turnaround. This strategy is not always the most efficient – sometimes it is preferable for companies to use external vendors and service providers.

Companies