Backward Integration

Backward integration is a strategic move by companies to extend their role in the supply chain through the acquisition or merger with a business providing essential raw materials for their goods. This proactive approach serves as a safeguard against potential shortages of raw materials that could impede production processes.

The implementation of backward integration not only prevents supply chain disruptions but also significantly enhances production efficiency. By securing control over the supply of crucial raw materials, businesses gain a competitive edge, ensuring a robust and reliable foundation for their manufacturing operations.

Learn more about Ivalua's ERP Integration & Technology Ecosystem.