OFS Supply Chain Merger Integration
Two oilfield service companies with $4 billion in combined revenues engaged McDaniel+Cullen to integrate their supply chains through a major merger. M+C built a center-led organization, established category management and S&OP processes, led sourcing events, and prepared both entities for Day 1 — resulting in a seamless transition and +$150 million in sourcing and merger synergies captured.
Situation
Two oilfield service companies with $4 billion in combined revenues were merging, and both brought limited supply chain capabilities — most purchasing was handled as operational buys without a strategic function. The merger created an urgent need to integrate two sets of suppliers, contracts, and processes.
Mergers put supply chain in the critical path: a poorly managed Day 1 can disrupt supply, frustrate customers, and destroy the very synergies the deal was meant to create. The combined company needed to be ready to operate as one from the first day while capturing the cost savings the merger made possible.
M+C Approach
McDaniel+Cullen built a new, center-led supply chain organization with category management for the combined company and established a new S&OP (sales and operations planning) process to align supply with demand. The team identified and ran multiple sourcing events to capture merger synergies quickly.
Beyond immediate savings, M+C developed in-house capabilities so the company could conduct strategic sourcing on its own going forward, and supported the selection of a new ERP system to put the combined business on a common platform. The team also identified potential Day 1 constraints in advance so the transition would not interrupt operations.
Results
A seamless Day 1 transition, +$150 million in sourcing and merger synergies captured, and a new supply chain organization in place.
Key Outcomes
- Seamless Day 1 supply chain transition with no operational interruption
- +$150 million in sourcing and merger synergies captured
- Center-led organization and new S&OP process established for the combined company
- In-house strategic sourcing capability built for the long term
- New ERP selection supported to unify the merged business
Client Feedback
"Mark and his team took action with key Supply Chain recommendations during our merger process. They identified potential Day 1 constraints and set us up for long term success. They initiated merger synergy capture and helped recruit key talent to sustain the best practice tools, skills and process they demonstrated. We could not have managed the downturn without the organization and processes put in place.