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Vertical Integration – More Than Just a Business Strategy

Vertical Integration is more than just a business strategy. It is often used as a way to reduce costs, improve production efficiency and decrease the amount of product waste due to lack of quality by gaining control of more than one stage of production and/or supply chain. Through the years it has proven to be an effective strategy for hundreds of mid-size and large companies. The net positive outcomes of vertical integration are not isolated to ultimately powering-up a businesses’ bottom-line. When a company has acquired the ability to be vertically integrated the consumer of the product being produced will feel the benefits in many ways and in the case of Ox Industries, the environment is positively impacted as well.

 

Our approach to becoming vertically integrated was unique. The initial instinct to acquire control of our supply chain came from the desire to assure sustainable products and processes. When we opened our doors in 1996, we worked to produce the most environmentally sustainable product possible, using recycled material purchased from paper mills. We knew that if we truly wanted to make an impact on the environment – while also maintaining the most efficient production lines and highest quality product – we needed to be in control of our own paper source. In 2007, with that goal in mind, we purchased Halltown Paper Mill – founded in 1869 – and became a 100% vertically integrated producer of recycled paperboard.

 

Vertical Integration Adds to Environmental Sustainability

The benefits of vertical integration have proven to be an equitable business decision, but more so, we have realized a decreased carbon footprint improving our viability as a sustainable business. We have added to our capacity to provide customers with the product knowledge they deserve, increased our production efficiency while controlling costs as the market allows. Our vertical integration process continues to add strength to operations giving our customers even more reasons why they can continue to Count on Ox.