Supply Chain Synergies in Post-merger Environments: The Case of the UK Food Industry

Ioannis Manikas
University of Greenwich, UK

Farzeen Jaswal
University of Greenwich, UK

Mergers are a complex phenomenon with a high failure rate inspite of the increased and more frequent mergers in companies today. This paper investigates the various factors that affect supply chain efficiency in post-merger environments and provides with a framework of requirements for a successful post-merger supply chain. The main aim is to assess the motives or initial expectations regarding value creation from mergers and analyse the post-merger effects of mergers on supply chain, also shedding some light on the major difficulties for the merging firms in achieving synergies regarding supply chains and managing key supply chain players in a way that maximum value can be extracted from the merger. Study is focused on the food industry in the UK. A questionnaire with 10 questions was sent out to supply chain managers of 600 people merged firms, representing approximately 40% of the overall mergers occurred in the UK Food and Beverages Industry between 2008 and 2012. 188 responses were received, representing 31% of the sample and 12% of the overall mergers between 2008 and 2012. It is found that mergers do not necessarily have a negative impact on the firms and their operational performance. In fact, this process can help in extracting many benefits by merging the two supply chains into one. Proper management, right strategy, trained workforce and good integration along the merger process can result in an efficient post-merger supply chain performance.

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This paper has been downloaded 3166 times since published. The persistent DOI of this paper is DOI:10.31387/oscm0210149.