Procurement Mergers
When two companies join forces, it’s called a merger. In the world of procurement, this happens when two organizations decide to pool their resources in order to buy goods and services more efficiently.
The term ‘procurement’ refers to the process of acquiring goods and services. It’s a broad term that can encompass everything from finding suppliers to negotiating contracts. Merging procurement departments can help streamline this process by eliminating duplicate efforts and increasing buying power.
There are different types of procurement mergers, but the most common is a vertical merger. This is when two companies that are in the same supply chain join forces. For example, a manufacturer might merge with a supplier in order to have more control over the production process. A horizontal merger, on the other hand, occurs between companies that offer similar products or services.
There are many benefits of merging procurement departments, including increased efficiency, cost savings, and greater buying power. But it’s important to carefully consider all aspects of the merger before moving forward. Make sure you have a clear understanding of the goals you hope to achieve and how the merger will impact your day-to-day operations.
