Strategic Focus on Supply Chain Post-Merger Integration PPT
This PPT slide, part of the 32-slide Post-merger Integration (PMI): Integration Checklist (Part 4) PowerPoint presentation, focuses on the critical aspects of Supply Chain Management (SCM) during the post-merger integration process. It highlights 2 main areas of attention: reviewing due diligence findings and leveraging the purchasing power of the joint company.
The first section emphasizes the importance of thoroughly reviewing relevant findings from the due diligence phase. This involves understanding the target company's purchasing expenditures categorized by supplier and product type. The integration team is tasked with assessing key supplier relationships, including annual volumes, pricing, and other contractual terms. Additionally, it is crucial to evaluate these relationships from a risk management perspective to identify any critical dependencies that may impact the merged entity's operations.
The second section discusses the necessity of building mutual commitment among key suppliers. This can be achieved by keeping them informed about the merger and acquisition (M&A) strategy and plans. The slide suggests several required actions, such as ensuring the availability of key components and seizing opportunities to cross-utilize supplier bases from both the buyer and the target. Negotiating discounts based on consolidated volumes from prior shared suppliers is also recommended, as it can lead to significant cost savings. Furthermore, it highlights the need to address non-product-related spending, which includes areas like travel and IT.
Overall, the slide serves as a practical guide for executives involved in post-merger integration, stressing the need for a strategic approach to supplier management to maximize value from M&A deals. Understanding these elements can lead to more effective integration and ultimately better returns.
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PMI Supply Chain Management Risk Management Post-merger Integration Supply Chain Due Diligence Post-merger Integration Supplier Management M&A
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