Harnessing the synergies of an acquisition can feel like you’re chasing shadows. Especially if the integration hasn’t been meticulously managed. And the larger the organization, the bigger the issues. Because merging two sizable companies into a single operating model requires the tricky transition of processes, systems, operations and affiliates. Get it wrong and costs and losses can quickly pile up.
A major global pharmaceutical company approached us after acquiring another multi-national pharma. They needed help integrating the new acquisition into their operating model. But this was more than a merger of legal entities. Multiple systems and processes had to be transformed into a unified, efficient structure. This had to be done rapidly. And without interrupting patient supply chains or disrupting business.
A phased approach was necessary. However, this introduced additional complexities. Integrated manufacturing plants had to maintain supply to market affiliates, that were not yet operating under the new model. Similarly, integrated affiliates needed to procure supplies from plants still functioning in the legacy model.
The integration team’s planning detailed the sequence for transitioning plants and affiliates. Legacy distribution companies played a crucial role in maintaining the integrity of the supply chain. That’s because they straddled both the new and legacy operating models. Consequently, they could preserve the supply chain by conducting buy-sell transactions for entities at different stages of migration.
These were tailored for supply chain processes and gave teams guiding frameworks that were based on the state of the supplying plant and that of the receiving affiliate. This ensured roles and responsibilities were clear, logistics were articulated, and all involved were properly trained beforehand.
Daily stand-ups addressed daily challenges and maintained progress. This aided problem-solving and encouraged cross departmental collaboration. The result? A unified and efficient workflow throughout the integration process.
We seamlessly integrated all affiliates and plants on schedule. And when coupled with the adoption of unified systems and processes, our client now had a strong platform for future growth and expansion.
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