Supply Chain Management

Posted October 5, 2008 by Joe Tighe
Categories: IT Infrastructure, Mergers and Acquisitions, Supply Chain

Tags: , , , ,

It is essential to perform an assessment of the supply chain efficiency during the due diligence phase of the merger and acquisition process. The target company will probably not support the overall merger/acquisition goals.

   Tip: Set up an independent M&A supply chain.

In a recent acquistion, the buyer chose to use the target company staff and processes to acquire equipment and services. During the implementation of the project, every infrastructure project manager, the program manager and work stream leader noted the ineffective supply chain and sourcing of equipment and services. Delays of 60 days were the norm. The merger teams discussed the issue and agreed the delays were rooted in cultural inertia in the target company.

Establishing an efficient independent supply chain prior to the acquisition will ensure timely delivery of resources, equipment and services.

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