Research Of Internal Supply Chain Integration Tactics Of Coatings Company G After Merger&Acquisition

With the world economic globalization, the rapid development of world politicalstructure reform of science and technology, many multinational companies to improve theircompetitive advantages and to adapt to rapid changes in the market, through mergers andacquisitions to achieve the strategic resource allocation and cooperation in globalization.Since the1990s, more and more Multi-National Corporations began large-scalecross-border mergers and acquisitions in order to realize its global strategy, hence settingoff a new round of global mergers and acquisitions.However, the relevant statistical data shows that the success rate of M&A is not high.M&A is a complex economic phenomenon. In general, the implementation processincluding preparation, negotiation, internal integration and external integration phases.Failure is often due to the acquirer and the acquired party conflict in the integration ofmanagement and resource allocation process. From the business point of view, supplychain integration and collaboration is the most important in M&A. Moreover, internalsupply chain integration is the necessary means to avoid fragmentation of the two originalsupply chain systems, and the precondition of external supply chain integration. Therefore,internal supply chain integration becomes the primary research after M&A, and also thekey factor in the success of M&A.Coatings Company G in this paper is a transnational large supplier of paints&coatings raw materials. It has an important position in the industry and market. Under thebackground of economic globalization, enterprises are faced pressure from theever-changing market demand in the multinational management, competition, and improvethe quality, improve the service, reduce the cost, and shorten delivery time. In order tosupport the implementation of production localization rapidly, and enhance the strategicobjectives for business lines, Coating Company G is experiencing a series of corporatemergers and acquisitions in recent years. In a recent large scale merger, the whole businesslines, product lines and the organizational structure have very big changes. Because of the multinational mergers and acquisitions process will involve the integration of many aspects,including corporate culture assimilation, business restructuring, organizational structureadjustment, supply chain and marketing network merging etc.. The integration period ofinstability is bound to affect the efficiency of company operations, especially because ofthe risk of loss of customers caused by the supply instability. Therefore, to develop asuitable supply chain strategy during merger and acquisition is very important for theenterprise.In this paper, by studying supply chain integration theory related to enterprise M&A,combined with the Coatings Company G’s business strategy, and analyze supply chainproblem occurs during enterprise M&A integration period, I have proposed restructuringof internal supply chain organization strategy, business process rebuild strategy, build up aproduct vs. customer analysis model and develop appropriate sales forecasting and productsupply strategy etc.. This could provide theoretical basis for establish long-term supplychain management strategy, and help the integration process smoothly.