A Transformation at Emerson

Are you working in a company or industry where mergers and acquisitions are abundant? For Steve McKinney, vice president, supply chain for Emerson Network Power, NA, his 22 years at Emerson include six acquisitions of the company — four in the last five years. The end result was the formation of the Energy Systems Business Unit.

What McKinney and his team were tasked with was transforming a regionalized supply chain into a global organization. With top-down support and personal involvement from the CEO, as well as regular divisional board meetings, profit reviews, planning conferences and strategy reviews, the organization achieved consolidation of its product platforms and facilities and segmentation of its customer and supplier base.

These efforts resulted in development of a supply chain structure for standardizing manufacturing and engineering tools and processes. Depending on the customer and demand pattern, Emerson Network Power could manufacture, outsource or allow for flexible capacity. What remains is ongoing work to leverage areas of complex spend. However, McKinney has experienced significant profit improvement with less complexity through the consolidation efforts.

Is your company undergoing similar restructuring? What are some of your lessons learned?

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