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2 Ways Automation can Manage Supply Chain Operations After a Merger or Acquisition

Posted by Gareth Bennett on 11 January 2018
 
 

If your growth strategy includes acquiring or merging (M&A) with other organisations, then you’ll have experienced first-hand the time and effort it takes to fully integrate new operational processes, production facilities, operating locations, third-party providers and many other elements with existing ones. Issues with systems integrations, master data and different business processes give rise to a set of new challenges which need to be ironed out as quickly as possible for the sake of operational efficiencies and consistent customer experience. 

We often see companies acquiring new product groups, customers and supply chain networks but having to manage them with the same amount of resources or less. However, global manufacturing organisations who have aggressive M&A strategies use today’s advances in technology to circumvent post M&A operational issues. Utilising automation, particularly via a managed service provider, across your Sales & Customer Service, Supply Chain, and Finance functions allow you to scale effectively and quickly without additional resourcing. You and your acquired businesses can absorb increases in volume without decreases in accuracy and cycle times. It helps bring all departments and processes into alignment.

2 Ways you can Alleviate the Pressures of M&As

1. Business Document Automation

Business documents drive the operational supply chain, M&As increase the volume of these. Here are some examples of documents, from across your customer (order-to-cash) and supply side (procure-to-pay) processes, which are ideal for automation:

- Sales Orders / Purchase Orders
- Order Confirmations
- Order Status
- Advanced Shipment Notices
- Proof of Delivery
- Logistics Claims
- Invoices
- Debit Notes
- Remittance Advices

New business logic is probably needed to manage the new documents from the new customers. These can be ‘onboarded’ to intelligent automation platforms either by the managed service provider or by the end user directly. This saves time training staff and helps de-risk processes. It also reduces errors, as you won’t have to create manual workarounds while you get up to speed.

2. You can Achieve Real Visibility and Control.

As the acquiring organisation, you’ll need to determine the level of operational performance and KPIs of each of your newly acquired units. A third party automation provider should be able to feed supply chain performance information back to you that goes beyond detailing just automation performance. With this data, you’ll be able to gauge the performance of the new additions to your organisation and adjust accordingly.transform customer serv.jpg

If your company's approach to growth involves mergers and acquisitions, then considering a strategic automation partner could be of interest to you. Download Transform Your Customer Service Department to find out more about how Automation technology can assist M&A integrations.