Backward integration strengthens a company's supply chain by acquiring suppliers. Learn its benefits, challenges, and examples for efficient business growth.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Backward integration is a form of vertical integration in which a business owns or buys a supplier in its supply chain. A company might buy its inventory or raw material supplier, for example.