A medium-size manufacturer of high-performance cutting tools, located in the Midwest, derived much of their business from the automotive industry. During the economic recession and subsequent decline in sales, costs rose and downward pressure on profits led to staff reductions. Our client's parent company was also in the process of being acquired. Layoffs in the procurement and accounting departments resulted in higher-level managers taking on the procurement of low-volume, low-cost MRO consumables from over 65 primary suppliers, and managing the resulting payables. The large number of weekly transactions placed added pressure on all back office functions, and purchase prices and related acquisition costs were inadequately managed. The volume of MRO transactions made it difficult for procurement professionals and managers to keep up with higher-level, production-related purchasing demands.
A New Brand of Autocratic Consolidation: A Case Study in Ethiopia
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Mondelēz Branding Consolidation Case Study
Remember Me. Lost Password? Bell Atlantic was one of the newly created companies with operations focused in the Mid-Atlantic states.
The term business consolidation refers to the combination of several business units or different companies into a single, larger organization. Business consolidation is used to improve operational efficiency by reducing redundant personnel and processes. Business consolidation can result in long-term cost savings and a concentration of market share, but in the short-term can be expensive and complex.