Strategic Procurement Approaches in Post-Merger Integration PPT

This PPT slide, part of the 106-slide Complete Guide to Post-merger Integration (PMI) PowerPoint presentation, outlines key considerations for procurement during post-merger integration (PMI), emphasizing the necessity of a structured approach to sourcing components. It presents a framework that categorizes procurement strategies based on the relationship between component similarity and supplier differentiation.

The left side of the slide lists 3 post-merger priorities for the procurement function: tactical integration aimed at enhancing net present value (NPV), quick cost-reduction initiatives, and longer-term design improvements. These priorities highlight the need for immediate action while also planning for sustainable enhancements.

The quadrant diagram illustrates 4 strategic options: Migration, Consolidation, Aggregation, and Competitive Tension. Each strategy corresponds to varying degrees of component similarity and supplier differentiation. Migration focuses on shifting to the lowest-cost supplier, which is a short-term tactic. Consolidation aims to match the lowest price among suppliers, suggesting a more stable approach. Aggregation involves transitioning from a common price structure to a design that prioritizes cost-efficiency over time. Competitive Tension reflects a longer-term strategy that necessitates adjustments in specifications and designs to optimize costs.

The slide conveys that the short-term goal of procurement during PMI should be the tactical integration of standardized components from a single supplier. This approach not only streamlines operations, but also ensures that the merged entity can leverage its purchasing power effectively. Understanding these dynamics is crucial for executives looking to navigate the complexities of procurement in a post-merger context.

This slide is part of the Complete Guide to Post-merger Integration (PMI) PowerPoint presentation.

This framework is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants and details a robust framework to managing the complete Post-merger Integration process.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

PMI Post-merger Integration Post-merger Integration

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I

... [read more]

– Nishi Singh, Strategist and MD at NSP Consultants

"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting

"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates

"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact

... [read more]

– Roberto Pelliccia, Senior Executive in International Hospitality

"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC

"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor

... [read more]

– Michael Duff, Managing Director at Change Strategy (UK)

"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

In today's environment where there are so

... [read more]

– Omar Hernán Montes Parra, CEO at Quantum SFE

"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.