Keeping merchandise moving through an acquisition
Mergers and acquisitions are common in the business world, but each move brings its own set of challenges. As a company buys key competitors or suppliers, it is often left with the task of consolidating very different warehouse management systems.
One of the main challenges in mergers can be aligning the distribution network to account for the new stores and warehouses. Suddenly the company has access to additional facilities and trucks, which can overload an already complex system. With effective warehouse management, organizations can quickly analyze the new system to identify areas that can be eliminated.
In addition to new facilities and transportation routes, companies also acquire inventory management software. These programs carefully track each product as it moves through the supply chain, making it difficult to integrate different systems without disrupting deliveries or losing merchandise. An effective warehouse management system will allow a firm to smoothly add new warehouses and merchandise to the distribution network.
Combining the supply chains of companies that operate in different regions may be a less challenging process in many cases. However, these mergers also pose their own obsticles, as the business must ensure that disruptions are minimized while freight moves through the system.
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File Under: Distribution & Warehousing