180k views
1 vote
If an​ organization's present suppliers are especially​ expensive, unreliable, or incapable of meeting the​ firm's needs for​ parts, components,​ assemblies, or raw​ materials, what strategy is​ best?

User Starr
by
4.6k points

1 Answer

3 votes

Answer:

Backward integration.

Step-by-step explanation:

Backward intergration is the process by which a company either buys or generates internally segments of its supply chain. It involves creation of input that can be used in production process. For example if a company buys up their supplier for a pay input.

So if an​ organization's present suppliers are especially​ expensive, unreliable, or incapable of meeting the​ firm's needs for​ parts, components,​ assemblies, or raw​ materials. The best strategy will be to buy a supplier of the input

User Algrebe
by
3.9k points