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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1003 |
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Integrating forward into distribution was the sale of a product upon completion; this spared of many storage and warehousing costs. The product would be sold to retailers and distributor facilities, or directly to a buyer as a wholesaler would do. With the use of the backward integration into purchasing, companies were able to buy directly from a supplier instead of going though a middleman...
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Contracts were worked out with suppliers and a steady flow of supplies entered the plant in a scheduled manner. This replaced commercial mediaries and set the companies closer to economies of scale.
The scope in production was the change in capital-labor ratios that lead to the efficient use of machine, technology, and general size of a plant...
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