why do companies use vertical integration 
companies use vertical integration to gain control over the supply chain of a manufacturing or distribution process by taking certain steps in house the manufacturer can control the timing process and aspects of additional stages of development owning more of the process may also result in long term cost savings the bottom linevertical integration is the business arrangement in which a company controls different stages along the supply chain instead of relying on external suppliers the company strives to bring production processes in house though vertical integration may result in increased upfront capital outlays the goal is to streamline processes for more efficient and controlled operations in the long term 