M&A in LSH and SCs: AYDWYSYW? What...?

Mergers and acquisitions (M&A) in Life Sciences & Healthcare (LSH) are at a peak compared to previous years in terms of deal value and number of deals (closed deals only!):

Source: pwc - Pharmaceutical and Life Sciences Deals Insights Quarterly
Q4 2015.

Implications on the supply chains (SCs)

Last year as part of our DHL Global LSH conference, we asked our customers, including most major life sciences manufacturers on what they saw as key supply chain opportunities from post-merger integration:

So the first focus is to realize cost savings with warehouse and supply chain consolidation as well as with leveraging the buying power with providers.

In addition, there are secondary levers of value; notably, an opportunity to strengthen capabilities by selecting and stabilizing team and processes from ‘best of both worlds’. This will be done by now or probably too late to get done.

Thirdly, there are levers which -we believe- are harder to address short term because they require more detailed analysis and understanding 

• Gain competitive advantage by evaluating options to further differentiate supply chain and service levels by specific needs of products and channels

• Drive growth by extending warehouse presence at the fringe of your current supply chain, strengthen owned and controlled presence

We believe now is the time for the big mergers closed in 2015 to come back to these questions and ask, review, challenge their supply chains with these two levers in mind.

Are you doing what you said you would: AYDWYSYW?

DYA: Do you agree? 

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Sources: https://www.zengardner.com/wp-content/uploads/astonished-baby.jpg; DHL Global Life Sciences & Healthcare conference 2015 - thanks to our customers!