LOROM’s vertical integration platform model, is not a new business model but as a matter of fact it has been an integral part of our DNA since the founding of the corporation in 1988. From our start in 1988, we have been continuously improving the synchronization of our vertical integration model in our manufacturing operations for decades.
Currently many companies such as Apple and LEGO, which began as manufacturers, have rediscovered the competitive advantage that vertical integration can bring.
Our company promise and commitment to our customers and the markets we serve is to better align ourselves between the customer experience and key deliverables and the expectations by virtue of this integrated business model.
Advantages
Structuring our value chain from our raw materials suppliers to the end customer, involving all parties in each individual step to produce high performance products through vertical integration, is unlike many of our colleagues and peers in the industry that typically occupy a space in the middle of this chain.
Vertical manufacturing has several distinct advantages over manufacturing without any form of vertical integration.
- Control of the component supply chains
- Steady and timely efficient access to components and raw materials.
- Ensures that distribution networks are ready to move products
- Obtain reasonable margins through vertical integration
- Lower cost to our customer
- Rapid ramp to meet periods of high demand
- Shortened time to market
- Ultimate control of quality
- Elimination of plant and equipment redundancies
- Increase factory capacity utilization
- Flat and single P&L
Examples of Value Chains
Our basic principle behind vertical integration strategy is the ability to control the beginning and the end of the supply chain from raw goods to finished product.
The most obvious benefit of our well-executed vertically integrated strategy is the ability to maintain reasonable profit margins, which allows us to invest in new technologies and resources and at the same time reduce prices for customers without affecting the quality of the product.
Our vertical integrated platforms allow us an advantage from a customer-service standpoint as well by offering unique logistic systems and transporting.
The LOROM vertically integrated platform has been proven by a 25-year track record and has truly been a positive differentiator in transforming the customer’s experience in a positive manner.
As our vertical integrated manufacturing platform has a significant benefit as we have implemented many of the engineering disciplines in our facilities with specialized know how in specific technologies.
Today LOROM has more than 500 highly skilled engineers spanning from Ph.D. in diverse technologies ranging from mechanical, electrical ,chemical ,tooling, process, sound and acoustic engineers.
We have chosen to name this unique capability as the “Holistic Engineering Approach”
Solutions to many critical challenges are developed in cross pollination across engineering disciplines activating a “holistic engineering approach” where all LOROM specialists each in their respective engineering skillset innovate to find solutions in the most cost effective, practical, performance optimized solution.
As our vertical integrated manufacturing platform has a significant benefit as we have implemented many of the engineering disciplines in our facilities with specialized know how in specific technologies.
