The company is facing 5 key issues that are negatively impacting cash flow: 1) significant operating inefficiencies, 2) an oversized loan used to purchase excess property, 3) logistical errors, 4) suppliers without proper certification, and 5) lack of formal policies, training, contracts, or social security benefits for employees. Vertical integration is proposed as a solution, which would create a hierarchy within commonly owned parts of the supply chain to reduce expenses and improve costs.