Seamless Integration of Product Acquisitions

Overview

A specialty pharmaceutical company growth strategy includes frequent acquisitions ranging from a single product to a small company.  Their rapid and continual growth led to the tripling of their southeastern distribution center’s footprint.
However, not all product integrations are of a scale that culminates in a building expansion.  Often, they are acquisitions of opportunity that must be executed with speed and precision.  Such was the case with a smaller-scale acquisition of a family of prescription products that required less than a 24-hour turnaround from receipt to shipping customer orders.

Challenge

Due to the financial, legal, and regulatory hurdles that must be cleared, the exact day of the close of an acquisition may not be known until it is within hours of occurring.  Upon the close of the deal, all activities to make the acquisition a reality must be in place and ready to execute.  The time we would like to have is not built into the timeline because doing so would result in lost sales and profit, either by customers building inventory prior to the close, or by late or missed shipments immediately after.  For that reason, the expectation is that once the deal closes, product is moved over night and shipping resumes the following business day.

Solution

Although smaller acquisitions are assumed to be quick and easy, the reality is that the same processes must be followed as is done with larger acquisitions.  Items Kenco prepared in advance include:

Results

This pharmaceutical’s smaller-scale acquisition was successful in large part because of the planning and coordination by Kenco with the customer in the days leading up to product transfer.  As a result, initial profits associated with the purchase were maximized because no inventory build-up by the end-customer was necessary and product availability and continuity were maintained.