Merger & Acquisition Rationalization
Mergers and acquisitions (M&A) introduce an incomparable number of options for the design of the new organization’s future supply chain. Redundant facilities, assets, suppliers, customers and products make the analysis “pre” or “post” merger difficult.
LLamasoft® Supply Chain Guru® includes powerful network modeling, optimization and analysis functionality. Users can model their supply chains, evaluate alternatives, optimize the structure, and simulate multiple scenarios in order to predict the resulting operational performance of the merged organizations.
Key Supply Chain Challenges with Mergers and Acquisitions
In order to determine the best strategy for combining multiple organizations, analysts must build models that include all of the inter-related operations, additionally incorporating time and variability.
Site and product consolidation needs to be evaluated, considering the differences in demand patterns and their cumulative effect on capacity requirements. Determining the feasibility of consolidating transportation lanes can provide a major opportunity for cost savings.
Supply Chain Guru provides detailed supply chain modeling and analysis capabilities to support these merger & acquisition rationalization activities:
- Site selection and open/close decisions
- Transportation strategy decisions
- Inventory policies decisions
- Manufacturing decisions
- Strategic sourcing decisions
Supply Chain Guru also includes detailed discrete event simulation to visualize and test the operational performance of any scenario, to compare multiple scenarios, and to verify the service rates, inventories, and site capacities over the defined time horizon.
- A food distributor reduced total supply chain costs by 20 percent by merging dairy and grocery supply chains
- A large pallet manufacturer identified over $60M in annual cost efficiencies
- The US arm of a large global electrical distributor identified over $30M in annual cost-saving efficiencies
