Most mergers and acquisitions fail to live up to expectations. All too often companies focus on quick-fix cost-cutting opportunities and ignore the long-term, strategic supply chain implications. Following these steps will help you avoid that trap.
Took a look at a recent article by Harpal Singh, Ph.D.
All about establishing an effective and efficient consolidated supply chain. Post-merger activities—such as closing plants, laying off workers, and reducing wages—end up disrupting the supply chain, poor operational performance and reduced revenue. Trade short-term cost-cutting measures for long-term issues like redundancies and synergies. Big hitters are streamlining the sales organization, merging product offerings, and consolidating the production of intermediate components. There are even lower hanging fruits (inventory) between a manufacturer and a distributor. So look at improving the planning processes.
Before anybody changes ANYTHING, somebody needs to fully analyze the structure. Identify and set to the side any clearly redundunt businesses. Then make a list of improvement opportunities, duplications and synergies.
Been there and done it:
This whole process sounds like building a Supply Chain Control Tower!
Scrambled my tail off a lot of years ago (1986) with the GE/RCA merger.
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