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Forward Integration

   Also found in: Hutchinson 0.04 sec.
Forward Integration
A business strategy that involves a form of vertical integration whereby activities are expanded to include control of the direct distribution of its products.

Notes:
A good example of forward integration is when a farmer sells his/her crops at the local market rather than to a distribution center.


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Ashland saw the success of forward integration with coldbox, driving the casting design, as opposed to back ward integration, driving casting production.
In explaining Dow's forward integration into molding, Rogowski says it puts the company in close contact with Ford and such associated suppliers as Visteon and Faurecia.
This classic case of forward integration will force consolidation in that level of the chain.
 
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