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| Post Merger Integration and Management: Spend Rationalization |
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Integration planning after a merger can be a major challenge. After the initial excitement from the merger announcement has faded into the background, the hard work of post–merger integration begins. The management team is now challenged to find and deliver the savings promised to its shareholders.
Reducing indirect spending presents a key opportunity to find the post–merger savings. The redundancies among the supply base can be eliminated. Rationalization of suppliers, coupled with the increased indirect spending of the two merged organizations together, present a vast opportunity to negotiate better pricing. However, post–merger management is challenged to get clear visibility into spending by product categories, suppliers, business units, departments etc. Without such visibility during the post–merger integration, one can only scratch the surface in securing cost reductions from initiatives such as rationalization and pricing negotiation.
Ketera spend analysis can be rapidly implemented in the organization and gives the new company clear visibility into immediate cost saving opportunities. Using Ketera to help with post–merger management, the new company can quickly create a post–merger rationalization plan, knowing it can be implemented in the expected timeframe. |
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| To learn how Ketera Spend Management Solutions can help your business, call 1–877–486–4340 |
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