Chapter 23

Integrator

Involvement all the way down the line

Three gear wheels strategically placed on a strip of an arrow running across a circular platform.

The pattern

In the Integrator business model, a company controls most or all parts of the supply chain (HOW?), being involved, for example, in various parts of the production process from sourcing raw materials to manufacture and distribution. Such control permits the company to improve economies of range and efficiency. This approach obviates delays through dependence on third-party suppliers, with a consequent decrease in costs (HOW?). Additionally, the firm should be able to reduce transaction costs by tailoring the value chain to the industry’s needs and processes (VALUE?). ...

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