Answered! Use all available resources and define the following concepts: Vertical integration…

Vertical Integration is an expansion strategy in which a company expands its business operations into different stages or areas in the same production line. Which means a company in a manufacturing business entering into  supplier and/or distributor.

Vertical Integration is of two types backward integration and forward integration.If a company expands backward into the production line such as manufacturing input material it is called backward integration. while a company that expands forward on production line into distribution line is conducting forward integration.

The advantages of vertical integration include increase in efficiency, decrease in manufacturing cost.reduction in transportation expenses.

2) Supply management

Supply management includes various activities conducted by an organisation in the process of acquiring the resources needed to run a business.It includes activities such as identifying, acquiring and managing the resourses and suppliers.

The main purpose of supply management is to efficiently acquire,allocate and utilise resources.control cost and assist in strategic decision making.