M&A Logistics Integration

Purpose: Combine logistics operations to achieve strategic and investment goals and sustainability

M&A presents a challenge to integrate logistics operations across two or more merging companies and achieve expected synergies and cost savings. Those operations play a central role in customer service delivery and fulfilling the financial thesis of the deal. Therefore, it is critically important to define the integration path for merging logistics operations in terms of future processes, networks of facilities, equipment, inventory deployment, multiple IT systems, and organizational structure and resource staffing.

Why is it relevant? A Harvard Business Review study reports more than 60% of transactions destroy shareholder value and up to 90% fail to achieve their investment thesis for the following reasons:

Overestimated capabilities and bias
Inadequate diligence and planning
Lack of integration strategy and priorities
Leadership and resource challenges
Poor communication
No end-state clarity
Slow or weak implementation

Approach: Baseline operations and costs, solve for the best scenario, and plan for integration

M&A integration starts with definition of the future state of merged logistics operations, leveraging the findings from M&A operational due diligence of existing capabilities and assets, defining and validating solution options to challenges, engaging involved parties to assign resources and facilitating the work to deliver workstreams within integration milestones.

Define Logistics Integration Scope
Set Goals based on Operational Due Diligence
Identify the Integration Team & Roles
Conduct Analysis to Validate Solutions
Create & Implement the Integration Roadmap
Implement Measurement and Controls for Stabilization
Conduct Analysis for Benefits Realization (e.g. Expected Synergies & Goals)

Deliverable: Identify and implement the optimal logistics integration scenario

3PLR manages logistics integration workstreams to achieve expected synergies and implement industry best practices along the way to position the merged company for high performance, stability, and profitable growth.

Internal Process Integration
Facilities Network Optimization
Customer & Supplier Integration
Organizational Restructuring
IT Systems & Technology Integration
Logistics Outsourcing Partners Integration

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Case Studies

M&A Logistics Integration | Case Study 1

Set up Supply Chain Operations for Acquisition Carveout – A $283M telecommunications company, preparing to acquire a regional telco network with revenue of $1B, needed assistance to develop and implement a plan to transition the supply chain network supplying equipment and parts for maintaining telco infrastructure, as well as to support new construction for extending the multi-state broadband network.

M&A Logistics Integration | Case Study 2

Merge & Outsource Parts Distribution Operations – A $560M cargo lift manufacturing division of a $3.6B European industrial company was tasked to merge parts distribution operations of two subdivisions and to reduce operating costs and headcount by outsourcing the combined warehouse to a capable third-party logistics (3PL) service provider on a short timeline.