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Supply Chain
Management: Mergers &
Acquisitions presented
by Dr. Darren Prokop,
Professor Emeritus of
Logistics, University
of Alaska Anchorage.
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What is supply chain management?
It is the linkage
of organizations
in order to meet
some strategic goal.
Linkages could be
achieved through
contractual relationships
or through mergers
& acquisitions.
Linkages could be more
informal and involve
a joint venture or
strategic alliance covering
a more limited
business activity.
In any case, the intent of
supply chain management
is to foster
trusting relationships
whereby the partners
are more valuable
together than apart.
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There is a trade
off that goes to
the heart of supply
chain management.
How should two separate
organizations build
their supply chain linkage
in order to establish trust
and an efficient
business relationship
should it be through a
legal contract between
them or should it be through
a formal merger and
acquisition M&A process?
There is no
one-size-fits-all answer.
Nevertheless, this talk will
examine the rationale for M&As.
A merger means that
the two organizations join
together to become one.
This may be achieved by pooling
resources or exchanging
shares of stock.
There need not be
a 50/50 split in
how the new organization
divides up power and
responsibilities between
the managers and
workers who came together
from their formerly
separate entities.
An acquisition, on
the other hand,
involves one organization taking
a controlling
interest in another.
Though this need not
mean absolute control.
