The Role of Supply Management in Mergers and Acquisitions

The Role of Supply Management in Mergers and Acquisitions

The whole point of mergers and acquisitions is to improve market standing and thus, earnings.  An acquisition not only knocks a competitor out of the running, that competitor’s resources and systems are added to your company arsenal.

But the single most important factor in a successful merger is how the supply chain is handled as part of the transition.  Because the bottom line is the focus and because it’s not realistic to expect a higher profit margin immediately following a merger or acquisition, then you’re looking to rein in spending.

While many companies look for savings in consolidating human resources functions as part of a merger, it’s well-advised to look at your supply chain and procurement practices, to see how these can support the project of reducing costs while waiting for revenue to increase.

Both parties to the merger or acquisition should be prepared to instigate change in the way they approach procurement and maintain or improve the management of their supply chains.

Supporting your transition

Whether you’re the absorber or the absorbed, your transition becomes smoother when you call on a trusted procurement advisor like CenterPoint Group.

We’re there to ensure that your transition to the new reality is supported by expertise which ensures the integrity of the supply chain on both sides of the merger or acquisition.  We identify vendors from both data sets which should be retained and those you may wish to offload.

We facilitate supply chain integration that makes sense, providing you with best in class terms and conditions and agreements which ensure you’re getting the best deal possible as you establish the new corporate reality.

Continuity and expertise

Continuity is key to a successful merger, especially when your customers want to know where their orders stand and your vendors want to know where they link up in the new shape of your organization.

With possible disruptions on the human resources level, CenterPoint Group is an outsourced solution that keeps the ball rolling, avoiding the possibility of damaged relationships all along the supply chain.

Beyond pricing

While CenterPoint’s procurement expertise brings you the best possible pricing on your everyday business needs, we don’t stop there.  We ensure you’re getting the most you can from your suppliers with advanced data analysis and over a decade of procurement expertise.

Every aspect your supply chain is analyzed, with a proprietary database which enables us to harvest every piece of fruit on offer and not just the low-hanging variety.

With hands-on account management, we mediate disputes with suppliers in the event of a deviation from agreed upon terms.  That sets you free to find the way forward with the new institutional landscape you’ve created, adding value.

We’re a consulting force that helps you navigate profound organizational change with expert procurement support.  You won’t skip a beat with CenterPoint’s data-driven procurement practices supporting you along the way.

CenterPoint Group looks after the nuts and bolts, while you look after the big picture.  We’re trusted procurement advisors who support the success of mergers and acquisitions. Contact us.

© Centerpoint Group LLC | All Rights Reserved | Privacy Policy