What is Vertical Integration

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Define Vertical Integration

The degree to which a firm has decided to directly produce multiple value-adding stages, from raw material to the sale of the product to the ultimate consumer. The more steps in the sequence, the greater the vertical integration. A manufacturer that decides to begin producing parts, components, and materials that it normally purchases is said to be backward integrated. Likewise, a manufacturer that decides to take over distribution and perhaps sale to the ultimate consumer is said to be forward integrated.

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National Network of DSD Distributors & Retail Owners

Mr. Checkout is a network of over 1,100 independent distributors and 130,000 independent retail owners across the USA, parts of Canada and the Caribbean. Distributors and independent retail owners use Mr. Checkout to find new products that are ready for retail and can handle rapid growth through independent channels.