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When it comes to operations management within an organisation, many organisations practice vertical integration ie the policy of trying to perform as many activities within its supply chain as possible. Many organisations see this as attractive as it gives a high degree of control over performance and cost, however the big drawback with vertical integration is that the majority of organisations cannot excel equally in all the activities involved in their operations. This is especially true within the SME market purely because there is usually even less resource to draw from.
