Post-merger integration in a complex environment (CS177)
This major manufacturer of commodity chemicals recently combined the business of two companies into one multi-billion dollar global organization.
Company executives needed to rapidly capture value to deliver synergy targets communicated to investors.
They saw supply chain and procurement synergies as major contribution areas. SGS-Maine Pointe was engaged to help deliver these savings across a number of category groups including logistics, raw materials, parts & equipment and site labor services.
A key focus area was 3rd party labor, which provided a broad range of site services related to maintenance and reliability across all North American sites. The company was using over 100 different maintenance providers across multiple sites, each managing its own supply strategies and contracts. Some work had been done to improve contracting terms but procedures, rates and staffing levels were inconsistent, with some smaller sites having better contracts than the bigger sites.
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