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2017 | OriginalPaper | Chapter

Vertical Integration: Titanium Products for the Aircraft Industry

Author : Oleg Leder

Published in: Supply Chain Integration Challenges in Commercial Aerospace

Publisher: Springer International Publishing

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Abstract

This article concerns the importance of vertical integrated structures, employing the VSMPO-AVISMA Corporation as an example of a vertically integrated company that also forms part of a vertically integrated structure in the aircraft industry, to which it supplies semi-finished titanium products. In order to gain basic insight into the meaning of a vertically integrated company, value chain concept, which underpins the principles on which vertical integration is fundamentally based, must be appreciated. The value chain concept defines the links between the various parts of a manufacturer’s operations in a systematic way, which enables it to identify how to improve overall efficiency, and hence to create value for the customer. If the value it creates is greater than the cost of conducting its activities, the business is profitable.

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previous chapter Success Through Customer Co-Development, Global Footprint and the Processes In-Line with the Customer

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Title: Vertical Integration: Titanium Products for the Aircraft Industry
Author: Oleg Leder
Publisher: Springer International Publishing
Book: Supply Chain Integration Challenges in Commercial Aerospace
Print ISBN: 978-3-319-46154-0

Electronic ISBN: 978-3-319-46155-7

Copyright Year: 2017
DOI: https://doi.org/10.1007/978-3-319-46155-7_12

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