Seven Tenets For Successful MRO Integrations

Experts at PwC have developed seven key steps to ensure successful integration of MRO supply chains after a merger.

Accelerate the transition: Too often, organizations delay the start of the transition process. PwC’s advice is to outline the new organizational structure on day one and move forward as quickly as possible.

Strategy before execution: Define the strategy to realize supply chain synergies before consolidating facilities or rationalizing inventories. The supply chain will follow the strategy.

The 80/20 rule: First and foremost, identify the 20% of the work that drives 80% of the value by taking the time up front to understand high-value initiatives that are relatively easy to implement.

Prepare for Day 1: Make certain that basic business processes—like communications and payroll—are in place before tackling integration. There’s no bigger morale-killer than people not getting paid on time.

Communicate to all stakeholders: Remember that your supply chain is connected to suppliers, partners, unions, investors and the communities where you do business, and not just your internal stakeholders. Keep them all in the loop. 

Establish leadership at all levels: Uncertainty is a given following an acquisition. Minimize it by quickly appointing a leader with the responsibility to implement the integration.

Manage integration as a business process: Once a leader is in place, create an integration team from individuals who are well-connected to the organization and will own the process. Otherwise, you end up with people trying to fit their integration duties in with the rest of their schedule. Just as important: Identify the people you really want to keep on day one and then do what it takes to keep them on the team. 

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