'Collaboration at risk of collapse in mergers' warning

14 March 2002
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14 March 2002

Collaborative relationships are in danger of collapse during mergers and takeovers unless supply chain managers keep suppliers well informed.

Suppliers will be worried that the merger puts their relationship in doubt to the point of ending it, said John Wiltshire, a consultant and former supply chain strategy development manager at Guinness UDV.

"There has to be an honest dialogue by supply chain managers rather than making excuses as to why things are not happening," Wiltshire told delegates to the Competitive Supply Chains conference in London this month.

This is especially true if the merging businesses have similar products and suppliers, said Dr Karl-Josef Sedlmeyer, vice-president of global supply chain management at Adidas-Salomon.

He told SM that most suppliers expected one or more of them to be dropped immediately, so managers had to provide them with quick answers.

"It is difficult because trust will break down," he said, adding that the client may miss agreed performance targets.


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