In the Article, a Representative from Quantified Commerce Discussed Vertical Integration and How it Can Pave the Way to Business Success
LOS ANGELES, CA / ACCESSWIRE / September 27, 2018 / Agam Berry, the founder of Quantified Commerce, is pleased to announce that his company was recently featured in a new article on the Young Upstarts blog.
To read the recent article in its entirety, please visit http://www.youngupstarts.com/2018/09/21/quantified-commerce-shares-understanding-vertical-integration-and-why-it-is-the-path-to-success/.
As a fully-vertically integrated firm, Quantified Commerce has total control over their supply chain, which the spokesperson noted has helped to reduce cost and achieve better control of the market.
One reason that vertical integration is key to a company's success, the spokesperson noted in the article, is that it allows large businesses to achieve higher levels of efficiency at all stages of their operations.
"A business that boasts of a large market share is able to achieve efficient scale compared to businesses that operate in a single market," the spokesperson noted, adding that because of this, large market share firms have a higher chance of gaining greater benefits from continued vertical integration.
Vertical integration can also help to reduce costs while improving production, the spokesperson noted. This is because an in-house supplier is usually in a better position to schedule production processes more efficiently when compared to an external distribution service.
Transaction costs are also lower in firms that adopt vertical integration, the spokesperson told the blogger at Young Upstarts.
"The physical cost of handling distribution of final goods and raw materials to the production point accounts for over 30 percent. Therefore, if your company has the capabilities of reducing these costs, chances are you are going to record better profits," the spokesperson noted.
For example, a company that manufactures integrated circuits together with finished items will operate with fewer sales personnel, the spokesperson explained. Also, these companies should be able to incur less cost in product promotion and market research.
About Quantified Commerce:
Quantified Commerce, founded by Agam Berry, is a fully-vertically integrated e-commerce company. Learn more about Quantified Commerce by visiting their website, https://quantifiedcommerce.com/.
SOURCE: Quantified Commerce