reverse integration
[/rɪˈvɜrs ˈɪntɪɡreɪʃən/]
noun
integração reversa
1. A business strategy where a company acquires or merges with a supplier or distributor earlier in the supply chain, moving backward from retail to wholesale or manufacturing
The coffee shop chain implemented reverse integration by purchasing their own coffee farms to control quality and reduce costs.
A rede de cafeterias implementou integração reversa ao adquirir suas próprias plantações de café para controlar a qualidade e reduzir custos.
2. In supply chain management, the process of consolidating operations with upstream providers to gain greater control over inputs and production
Through reverse integration, the automotive manufacturer now produces its own steel components instead of relying on external suppliers.
Por meio da integração reversa, o fabricante automotivo agora produz seus próprios componentes de aço em vez de depender de fornecedores externos.
This term is primarily used in business, economics, and corporate strategy discussions in both Brazilian and American contexts. It reflects modern supply chain management philosophy where companies seek greater operational control and efficiency. In Brazil, it has become increasingly common as multinational corporations expand local manufacturing and sourcing operations.
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