Ricoh was moving to a shared service supply chain model across three companies who had recently merged. Ricoh, Lanier and Savin
Each had separate supply chains - separate organizations - separate systems - separate operations. They all needed to MERGE!
Ricoh retained a network modeling company to lead the strategy development and found through Fortna that modeling is only a small part of developing the right implementable strategy.
Fortna "operationalized" the modeling effort, developed a sound implementation plan and led the implementation to a shared services model.
Critical factors considered:
- Inventory costs and deployment methods
- Organizational concerns - since they had three organizations
- Real estate divesture, expansion or acquisition costs
- Systems considerations
In tandem with the Ricoh team, Fortna led the effort to define, sequence and estimate each of the various efforts that needed to change to make this transformation happen: operations, transportation, sourcing and demand planning, real-estate organizational design, and systems. Fortna worked with leaders from each of the work-streams to develop a true path to their shared services model becoming a reality.
The transformation was a regional approach around the country (changing sites, organizations, systems, cultures) one region at a time. The approach was managed risk, was pragmatic and understandable to all levels and was respectful to the people, Ricoh's finances and their ability to absorb change.
The "Big Picture" here is that mergers and consolidations represent a much different challenge. Projects of this magnitude require a partner that:
- Has a proven track record with mergers and consolidations
- Can craft an appropriate solution while leveraging existing assets
- Has the resources to manage different initiatives at the same time
- Will team with your team and Guarantee Results