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Consolidation
The process of combining purchasing volumes or suppliers to achieve cost savings and efficiency gains.
Implications
The process of combining multiple businesses, assets, or operations into a single entity, often used to achieve economies of scale, reduce competition, or streamline operations.
Example
Example: A logistics company undergoes consolidation by merging with a competitor, allowing it to expand its network and reduce operational costs through shared resources.
Related Terms
Different from acquisition, which involves one company taking over another, consolidation typically involves merging multiple entities into a new, unified organization.
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