Explain Forward And Forward Integration

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Complete forward and backward integration
Thus, in this integration process, it is a merge of forward and backward process for optimum maximization of supply chain management to meet rapid marketplace changes. It is neither proven if the complete integration is the best as forward and backward supply chain process plays their different role in supply chain management. Although, managers should understand that forward integration helps to respond to changes in demand effectively whereas backward integration gives the organization a strong control over its quality of raw material supply and also the quality of the finished product. The initiative of both processes serves different purposes such as to reduce risk, transfer of vital information and interdependencies on external organization in supply chain. The decision on which integration model to implement depends on the cost, product type, organizational size, scope and organizational structure. Businesses that want to achieve great
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As companies debate on integration journey, it is obvious that organization of various types and material managers from different functional areas are seriously talking about supply chain integration explained Fawcett & Magnan (2002). They further explained that forward integration efforts are on pace or slightly ahead of backward integration derived from their research result scoring a mean of 4.33 (2002, p. 345). Therefore, firms cannot settle that whatever works for them will work for others as internal, backward, forward or complete integrated model serves at various divisions. As a matter of fact, it depends on the functional units that have to be integrated and what kind of product and services are offered by the company. Single-firm integration is very challenging tackling issues such as risk sharing and rewards across organizations, meshing information systems and coordinating measures is
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