Reference no: EM132360454

One of my favorite companies is a landscape supply business that I use regularly. The value chain is relatively simple. The company orders products from rock mines, stocks product, sells directly from storage and delivers if needed. One recent decision from the business stood out after this week's reading. The firm has recently lowered the cost of road base and concrete mix. The business now orders the raw materials and mixes right on the lot. The mixing process only takes an hour. The business was able to lower cost and deliver a higher quality product. The vertical integration resulted in a higher quality product which resulted in a larger client base. The larger client base resulted in the company being able to order more product at a lower cost, or achieve economies of scale.