1. a situation where the supply chain of a company is owned by that company
vertical manufacturing/integration can potentially maximise profits and improve turnaround time
Vertical integration is the situation where a company controls a supply chain from manufacturing to sales. In this situation, a company owns or controls suppliers, distributors and retail locations. Vertical integration is usually put in place in order to reduce costs and improve efficiency. Vertical manufacturing means to integrate parts of a value chain or production process in order to gain a strategic advantage. These terms are used almost exclusively in business contexts and you are unlikely to hear them in casual conversation.