4.1.3 Global consolidation
Global consolidation occurs as managers seek to make the best use of their assets and to secure the lowest-cost resources. This approach leads to assets such as facilities and capital equipment being used to the fullness of their capacity and economies of scale being maximised. Resources are sourced on a global scale to minimise cost by maximising purchasing leverage and again to pursue economies of scale. The types of resource acquired in this way include all inputs to the end product, such as raw materials and components, and also labour and knowledge. Familiar features of global consolidation include: