IBX Capgemini Executive Summit
Day 2 - October 8th, 2010
13:45 to 14:30 Merger and Acquisition: Procurement Integration at Thomas Cook AG
In a prcenter.de article titled "CPO Dialog Procurement Excellence: Chief Buyer Exchange Globalization Strategies," Thomas Cook CPO Nikolaus Kirner made the following statement regarding the introduction of an eSourcing strategy as a "CHANGE" process; "If the coworkers do not pull-along, it can happen easily that the hoped for efficiency gains are missing." Kirner, went on to report, "how he transferred" the company's coworkers to an eSourcing integrated platform, maintaining a high level of motivation."
How important is effective internal collaboration in terms of motivating coworkers during an M&A integration? Just ask a candy company in the U.S. mid-west. As the manufacturer of a number of leading brands, this organization grew dramatically in a very short period of time through a series of acquisitions.
Unfortunately, the degree of collaboration between the different purchasing organizations was not clearly established from the beginning. This only served to fuel rather than douse the internal division fires resulting in both a practical and operational lack of cohesiveness and coordination. The end result was a “territorial” struggle that manifested itself in a divided supply base. This is hardly the ideal environment for a successful consolidation.