VERTICAL INTEGRATION AND MULTI-SOURCING: A CAUSAL ANALYSIS OF BYD’S STRATEGY ON PROCUREMENT COSTS AND SUPPLY CHAIN RESILIENCE

Abstract

In the context of global competition and the rapid development of technology companies operating in the field of high-tech production, problems arise with the need to optimize procurement costs and ensure the sustainability of supply chains. One example of a successful strategy in this area is BYD, which is actively developing a vertically integrated model and combining it using multiple external sources. This approach allows not only to improve control over key components, but also to reduce the system's dependence on individual sources, and create a more flexible and sustainable supply chain. BYD's strategic decision analysis is relevant because the company has a high growth rate of the global electric vehicle and battery technology market, and its supply chain management model is becoming a benchmark for other manufacturers.

The relevance of the study has led to the need for a deeper understanding of how vertical integration in the United Kingdom with many source purchases can optimize costs, increase the stability of supply chains and reduce the risks associated with market instability. In the context of geopolitical uncertainty, rising prices for raw materials and the study of logistical factors thus become a prerequisite for the development of industrial policy, procurement managers and supervision in the field of management management.