Two gourmet food companies merge, and the combined entity attains an increase in its market...

Understanding the Situation:

Two gourmet food companies have merged, leading to increased market share and the potential for product line expansion.

Challenges: Rising material costs, stock shortages, and unclear responsibilities for commodity categories.

Key Considerations in a Merger:

Competitive Trends: Monitoring the market to understand competitive positioning.

Scope of Business: Changes due to the merger, including product lines and market coverage.

Internal Customer Needs: Ensuring that internal stakeholders are satisfied with the new operations.

Supply Chain Configuration: Defining roles, responsibilities, and processes within the supply chain to ensure efficient operations.

What Was Missed:

Executive management failed to addressSupply Chain Configuration: Properly defining responsibilities, roles, and processes within the new combined supply chain structure.

Conclusion: Addressing supply chain configuration is crucial for resolving material costs and stock shortage issues, ensuring a smooth integration and efficient operation post-merger.

References:

“Supply Chain Management: Strategy, Planning, and Operation” by Sunil Chopra and Peter Meindl

Articles on post-merger integration from Harvard Business Review and McKinsey & Company