Consolidation in the Last Mile Summer 2023 - Final | Page 38

more conservative ventures .
In addition , almost all new TMS startups have failed over the past two years due to a poor understanding of final-mile customization requirements .
The current economic pressures and lack of success stories make investors choose
CLDA Mag : What are the tech issues involved when two companies merge ?
Kravitz : Merging two companies involves various complex processes , and from a technological perspective , several issues need to be addressed to ensure a smooth merger .
Below is a list of the common tech issues involved when two or more companies merge :
• IT Infrastructure Integration : Both companies will have their own IT infrastructures , including networks , servers , data centers , and software systems . Merging these infrastructures requires careful planning and coordination to ensure compatibility , security , and optimal performance .
• Data Integration : Combining data from two different companies can be challenging . Data might be stored in different formats , databases , or systems . The merged entity must establish data governance policies , map data fields , and handle potential data duplication or inconsistencies .
• Application Integration : Companies may use different software applications ( i . e ., TMS systems , accounting
systems , ticketing systems , analytics ) to manage various aspects of their business . In the final-mile , many couriers have TMS systems with integrations customized to their customers . Integrating or migrating these applications and integration smoothly is essential to maintain business continuity and avoid disruptions .
• Security and Access Control : When merging IT
systems , it is crucial to address security concerns . Access control measures , firewalls , and cybersecurity protocols should be reviewed and updated to protect sensitive data and prevent unauthorized access while the companies merge .
• Email and Communication Systems : Ensuring seamless communication during and after the merger is essential . Companies may need to integrate email systems , messaging platforms , and collaborative tools to facilitate effective employee communication .
• Website and Online Presence : If both companies have their own websites and online presence , merging them may require consolidating content , domains , hosting services , and SEO strategies .
• IT Staff Integration : Merging companies may have redundant staff or skill gaps . Companies must assess the IT workforce , determine the most effective organizational structure , and handle any potential layoffs or reassignments .
• Licensing and Software Compliance : Merging companies must review their software licenses and ensure compliance with the terms and conditions . Some software licenses may have limitations on usage or installation across multiple entities .
• Business Continuity and Disaster Recovery : The merged entity should have a robust business continuity and disaster recovery plan in place to deal with potential IT disruptions or emergencies .
• Cultural Integration : Tech issues are not solely technical . The corporate culture of both organizations also impacts them . Getting the people part of this is often overlooked and can significantly affect whether the new company succeeds . Members of the two companies may have different work practices and approaches to technology . In addition , the people involved with each company may have some resistance to change that must be acknowledged and dealt with . This should be considered and harmonized for a successful merger . A well-thought-out change management plan can make all the difference for the success of a merger or acquisition .
• Legacy System Integration : Both companies may have legacy systems still in use . Integrating or replacing these systems may be complex and time-consuming .
38 customized logistics & delivery Magazine I summer 2023