What is backward integration technology in Manufacturing?
“Backward Integration” is one of the options of “Vertical Integration”. Simple example: You start out as a company whose expertise is to carve pieces of wood. You buy the wood from a saw mill, and you pass the carved artwork to a paint shop to have them painted. Now you decide to vertically integrate your manufacturing. Backward Integration: You either buy the saw mill, or open up your own. Forward Integration: You either buy the paint shop, or open up your own. The expressions forward and backward hence refer to the production flow in the entire manufacturing process.
