Key Features of Vertically Integrated Manufacturing
Manufacturing processes have changed a lot over the past few years. As demand for increased quality control, efficiency and lower costs have grown, so has the need for vertically integrated manufacturing.
Controlling the Value Chain
Manufacturers are able to achieve vertical integration when they control or own the elements within a value chain.
A company’s value chain consists of all of the businesses and individuals that play a part in the manufacturing process. The value chain begins with the people that supply the raw materials and ends with the customer that buys the finished product. Vertical manufacturing refers to the vertical integration of a value chain.
The basic idea behind vertical integration is that companies are able to control the beginning as well as the end of the supply chain.
Benefits of Vertical Integration
Vertically integrated manufacturing provides significant benefits when it comes to product manufacturing, assembly and supply. Vertical integration can reduce lead times, control quality requirements and help to keep costs low.
The most obvious benefit of a well-executed vertically integrated strategy is the ability to increase profit margins and reduce prices for customers, without negatively affecting the quality of a product. There are also numerous customer service benefits to vertical integration. When a company handles the manufacturing, transporting, marketing and retail of its products, they have the unique opportunity to improve their customer’s experience.
Increasing Efficiency in the Manufacturing Process
Vertical integration allows manufacturers to extend their reach as well as their process. When done properly, vertical integration improves process flow and expands the manufacturer’s offerings and capabilities.
Vertical integration increases efficiency and allows for beginning to end quality and engineering support that is compliant with international regulatory requirements. This can significantly decrease the time and money spent on bringing products to market.
Vertically Integrated Manufacturer in Carlsbad, California
From the design and engineering of complex devices through high-volume manufacturing, service and repair, Mean Engineering Inc. offers unparalleled vertical integration capabilities. Even when buying from our customer’s Approved Vendor List, we exercise our vast integration knowledge base to ensure that suppliers are performing to expectations. This helps our customers reach their vision in the most effective and economical way possible.
Means Engineering Inc. offers high quality, comprehensive product development and manufacturing services. We work directly with our clients from concept to completion. For information about our vertically integrated manufacturing services, please contact us today.