Supply chain managers claim mergers are disruptive

10 January 2007
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10 January 2007 | Antony Barton

Two thirds of supply chain executives think company mergers are disruptive to their organisations, according to an online survey.

More than 65 per cent of respondents said mergers caused increased product-launch disruption and 62 per cent claimed they resulted in the loss of vital talent from their organisations.

The Supply Chain Merger Integration Study, by consultancy Accenture, looked at the effects of companies' most recent mergers. More than 150 executives of US corporations (including 75 supply chain managers) who had experienced a merger or acquisition in the last five years completed the online questionnaire. Nearly half - 45 per cent - of supply chain managers said their companies focused on cost savings at the expense of quality, inventory turns, supply continuity and order fill rates during a merger.

Over 20 per cent of respondents said the limited involvement of the procurement and supply chain during the pre-closing period was most likely to impede supply chain integration.

SMjan2007

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