EB Display
Manufacturers .com
|
Vertical Integration
Vertical integration is when a manufacturer produces all
of or most of the parts
and subassemblies needed in the production of the product. An extreme
example of this is the fact that at one time the Ford Motor Company
accurately mined iron ore for the manufacturing process of their cars.
Today, factory managers decide which assemblies to manufacture based on
the ROI, or return on investment each process can produce. Out-sourcing
the unprofitable subassemblies to other organizations saves the
manufacturer money. Often, such out-sourced organizations are more
proficient than the ordinary factory at a particular task.
Manufacturing
Products |
Retail Product |
Business Solutions
Hub
resource |
Disclaimers |
Sites index | |