Wednesday, October 1, 2014

Should a company purchase a company in a supply chain?

Should a company purchase a company in a supply chain?
This is a part of what is called vertical integration. If your company has a large and continuing need for a supply requirement and there are few suppliers to provide it, you may wish to purchase a supplier to ensure continuance of the supply. Similarly, if your supply requirement is from an unstable, costly or fluctuating market you may wish to purchase a supplier to reduce the cost of the supply.

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