Editing Vertical integration (section)

===Internal losses===

*Higher monetary and organizational costs of switching to other suppliers/buyers
*Weaker motivation for good performance at the start of the supply chain since sales are guaranteed and poor quality may be blended into other inputs at later manufacturing stages
*Specific investment, capacity balancing issue 
*Developing new business competencies can compromise on existing competencies
*Conflicts in inventory management post-integration<ref name=":13"/>
*Demand uncertainty may increase due to inventory instability<ref name=":13" />
*Assigning limited purchasing resources among the suppliers as well as the production of goods or services<ref name=huang />