Impact of Vertical Integration

Analyzing the impact of different integration strategies is highly important in the business world. The article written by the Parmenides and other research follows particularly discuss the impact generated by the vertical integration on the operating performance and inventory turnover. According to the article organizations face challenges in managing distribution channel or network for the inventory to keep the best ratio of inventory turnover. Vertical integration is the best solution for supply chain-related issues and conflicts. Supply chain management of the company’s focus on the effective and appropriate coordination and integration of the flow between materials and output. Supply chain management use vertical integration strategy to ensure coordination of information flow, financial flow, and purchase flow. Integration between departments can provide realist information to the other department as a result of which overall ambiguity goes towards decrease and performance get improvement (Parmenides, Andre, & Lou ca, 2015).