Flash back 10 or 15 years: You are a smart, business-savvy supply chain manager who has just been told that your organization has made a strategic acquisition. Great, wonderful! You are excited to be involved in this growth.
Then reality sets in: All the big warehouse and distribution, logistics, material handling, systems and operations decisions have already been made. You are asked to integrate the two company’s supply chains as quickly and cheaply as possible and focus only on cost reduction efforts. Now you are not so excited.
But that was yesterday’s reality, when M&A was at its peak and the significance of looking at supply chain integration upfront was sorely undervalued. Today, there is a different perspective on M&A evaluations as company leaders have learned to embrace the advantages of supply chain agility, global sourcing and supplier relations.
I really like this trend of CEOs, CFOs and CIOs finally understanding what it takes to succeed in today’s global marketplace – that it is no longer company vs. company, but instead it is supply chain vs. supply chain. The one with the best supply chain comes out on top!
So merger and acquisitions strategy activity is heating up in this recovering economy, and this time around, it is less about reducing costs and more about growth in revenue. Supply chain executives need to be prepared to help set the tone for business combinations early in the process – armed with proven best practices for supply chain integration. Learn to view integration of supply chains and the distribution network as an opportunity to know the entire company better and add value to the overall organization.
For the full picture on supply chain integration, read the latest from Gene Tyndall, EVP, Global Supply Chain Services at Tompkins Associates. "Integrating Supply Chains from Business Combinations: Principles and Best Practices of Mergers and Acquisitions" provides fresh opportunities to promote sustainable business value during integration.
I would be very interested in your thoughts on how supply chain integration during M&A has changed and how you think it will change in the future.
Warning: Mergers and Acquisitions May Be Hazardous to Your Company's Health
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