Huddersfield-headquartered firm launches guide to help businesses navigate the complex world of the supply chain

Global supply chain and logistics consultancy, SCALA, has launched a complimentary good practice guide, which provides industry insights to help businesses navigate the complex supply chain implications of undertaking mergers and acquisitions (M&A).

Despite the M&A market experiencing instability in 2023, driving growth and transformation remains a top priority for business. However, undertaking such deals is not without risks and the supply chain and logistical implications are significant.

The many moving parts and intricate stakeholder, supplier, and contractor networks that comprise supply chains can make acquiring or merging businesses an extremely complex undertaking, while the risks of getting it ‘wrong’ can have significant ramifications for all parties.

Therefore, the new guide aims to provide an insight into how businesses can carefully analyse the opportunity, measure risks, develop an informed strategy, and transition to new ways of working beyond the completion of a deal.

Drawing on SCALA’s 22 years of supply chain and logistics expertise, Mergers & acquisitions: Securing strategies for supply chain success compiles insights from SCALA’s experts and trusted partners. It explores factors that companies should consider before they embark on a merger or acquisition journey; and after the deal is done to ensure a smooth and successful transition.

Taking a holistic look at supply chain and logistics operations in the context of M&A, the good practice guide examines key areas for assessment including manufacturing; warehousing and distribution networks; logistics operations; human resources; and macro business considerations.

Phil Reuben, executive director at SCALA, said: “When it comes to M&A, there is no “one size fits all” solution; every supply chain comes with its own challenges and opportunities unique to its sector and organisation, meaning that every deal and process can look different.

“Our good practice guide is designed to support businesses ahead of their journey and provide key considerations to take into account along the way, offering readers expert advice, helpful prompts, and questions to ask to help secure supply chain success.”

Alongside SCALA’s expert team, Tom Rice, former head of supply chain at Olsam, an e-commerce platform that acquires and scales brands to help them achieve hypergrowth on Amazon and digital marketplaces; and Mark Duffy, manufacturing director at KP Snacks, also contributed towards the guide.

Tom Rice also commented: “When it comes to acquiring businesses and their supply chains, there are many considerations to take into account, but the aim should always be to integrate as efficiently as possible.

“Any small detail can have an impact on your valuations or highlight risks and blockers that could arise further down the line, so it’s vital to take time to consider key factors and potential scenarios before acquiring. And the work doesn’t stop post-M&A; for example, one of the major challenges can be the human element and there is always potential for supply chain disruption.

“With this in mind, it was great to contribute some thoughts from my experience in this space to SCALA’s good practice guide, which provides pertinent insight and advice to businesses looking to embark on an M&A journey.”

By Mark Adair – Correspondent, Bdaily

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