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Vertical consolidation is the process by which a company absorbs a distribution center or supplier into its own value stream. This can occur when a company purchases a new supplier or when a company begins to offer the same services as a third-party supplier themselves. This process is also referred to as vertical integration. An example of vertical consolidation is when an oil company purchases gas stations to sell their oil products or when the same oil company conducts exploration for new oil sources.

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Q: What is vertical consolidation?
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