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1/28/2010 1:07:23 PM Subscription options
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Vertical Integration vs. Outsourcing

Bill Leber Vertical Integration from Dustin Mattison on Vimeo.


Having read the Wall Street Journal article titled, "Companies More Prone to Go Vertical," as well as Logipi's follow-up blog, Bill Leber, a business development manager with Swisslog, shared his thoughts on the topic. According to Bill, companies haven't done a lot of aggressive expansion, which has left many with cash on their balance sheets. If you marry that with the Wall Street Journal's supposition that companies hope to gain more control over materials, manufacturing and distribution through vertical integration, you're talking Bill Leber's language.

In Bill's opinion, companies who choose to outsource distribution and logistics are giving up more than they think, including control. Relying on third party performance, he warns, can put companies at a strategic disadvantage to their competitors. Click Here to Read Full Article...

By dmattison
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topic tags

3Pl trends, logistics, outsourcing, supply chain, vertical integration,

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