Cost savings are possible to achieve when the need of the different branches of industry is centralised.
Substantial costs savings can be achieved in administration and logistics as a result of co-ordination of orders and deliveries.
The extent of these savings corresponds to the overlapped area of the individual companies of the different branches.
The aim is to investigate each company's production programme and to determine which products are identical in each company.
If, then, the quantities are determined, a substantial price reduction can be achieved, which had not been possible if the products would have been ordered individually.