Adam Seeton
With the merge of Heinz and Kraft, supply chain is what really made this process all
possible for 3G Capital Partners. 3G’s attempt is to produce a $28 billion
company, while spending a whopping $48 billion. This company would have about
$5 billion in free spending. They will tackle their issues with “low hanging
fruit” savings approach. This can save them up to $500,000,000 in the first
year after the merge. The supply chain management will also have to work with
suppliers and start redoing the supply agreements. Because Heinz and Kraft have
similar markets, the supply chain will have to work out new deals so that they
can merge the two companies at the lowest price possible. Suppliers with deals
with either Heinz or Kraft will have to ultimately abolish those deals in
attempt to redesign a new agreement. The competition is revamped because now
all suppliers are trying to make a deal with the new combined company. When
designing a new deal, the Heinz-Kraft Company will look for cheaper inventory,
faster delivery and long payment terms. It is time for the management of the
supply chain to start working out the best deals for the company to succeed.
Marion, Gary. "How Supply Chain Will Make
Kraft-Heinz Succeed." The Balance. N.p., 27 Mar. 2015. Web. 05
Feb. 2017.
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