Author
Abstract
Continuous supply, reliable quality, reliability of partners, and predictable, continuous production are increasingly important in the food industry. A specific tool suitable for satisfying these needs is vertical integration, which achieves the production safety and quality level of the given supply chain in such a way that the integrator can intervene directly in the system with a high control intensity in order to achieve the expected results. The group of companies brought together by Gyermelyi Holding Zrt., the largest pasta manufacturer in Hungary and Central and Eastern Europe, has built a supply chain that has implemented a completely closed vertical integration. In the food industry, a kind of power relationship has developed between the participants along the supply chains, which results in the strong vulnerability of the supplier producers and puts tension on the supply chains. A vertical integration that is beneficial and accepted by all parties can provide an adequate answer to this problem. Due to its cooperative past, the spirit of integration has never been far from the company group, and accordingly, in order to later utilize technological and capacity developments, they have always tried to create the supply and quality security of the raw materials necessary for production through integration. The company group has now implemented a completely closed vertical integration that is unique in our country, which has incorporated several elements into the integration system that also form the basis for the successes of the justly famous large Italian pasta manufacturers. With vertical integration, Gyermelyi provides and has provided answers to the issues burdening the market – for example: shortage of raw materials, logistical disruptions, unpredictable price fluctuations – as a result of which both the suppliers and itself can be successful and productive, and thus maintain a sustainable supply chain structure in the long term. The primary objective of this study is to comprehensively present the unique vertical integration of the Gyermelyi company group in our region as a good practice.
Suggested Citation
Bazsik, István, .
"Vertikális integráció, mint a folyamatos technológiai innováció záloga,"
GAZDÁLKODÁS: Scientific Journal on Agricultural Economics, Karoly Robert University College, vol. 67(01).
Handle:
RePEc:ags:gazdal:369017
DOI: 10.22004/ag.econ.369017
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