Boeing's acquisition of KLX could upend the aerospace supply chain

Boeing | May 02, 2018

Boeing's acquisition of KLX could upend the aerospace supply chain
The merger and acquisition season is in full swing these days with the pending merger of T-Mobile and Sprint, ATT and Time-Warner, and now the Boeing acquisition of KLX. And it does not have to be the merger of somewhat equals. Companies like Apple and Alphabet scoop up early stage and small businesses on a regular basis to capture new technologies or to protect their market share.
While these megadeals may look good to Wall Street, they can wreak havoc on the global supply chain. Just the distant smoke of a merger rumour can add uncertainty to supply chain relationships. And these are just the ones that make the front page. Many other companies merge or get acquired and quickly there is a change in ownership, product offerings, customer service, and payment terms. Some operating divisions and associated companies even close their doors in the process.
We’ve all been victims of these merger activities in our personal lives, from banking to car dealerships to supermarkets to municipal trash pick-up. Those ‘welcome to our family’ letters promising no gaps in service are even more disingenuous when followed by the ‘please give us another chance’ letter you receive when the ATMs don’t work.

Spotlight

The bridge graphic was selected to illustrate that a firm’s journey to achieve supply chain and business superiority must align a variety of resources and the firm’s environment. The environment is composed of both internal and external elements, and the resources include a combination of assets, skills, competencies, and capabilities

Spotlight

The bridge graphic was selected to illustrate that a firm’s journey to achieve supply chain and business superiority must align a variety of resources and the firm’s environment. The environment is composed of both internal and external elements, and the resources include a combination of assets, skills, competencies, and capabilities

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Hillebrand | October 30, 2020

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