What We Do

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What We Do

Supply Chain IT Due Diligence Service Line

Supply Chain IT Due Diligence Service Line

Effective IT support is fundamental to successful operation of modern inventory and supply chain management. The GRA Supply Chain IT Due Diligence Service Line examines the effectiveness and viability of an organisation's IT system from the perspective of supply chain requirements. In this case 'supply chain' is the all encompassing set of processes which govern suppliers, internal processes and distribution to clients. The GRA Supply Chain IT Due Diligence Service Line is essential during mergers and acquisitions and can be very helpful in gaining insight into performance issues for on-going businesses.

GRA Supply Chain IT Due Diligence considers the overall strategic fit including the integration of the supply chain IT function across the two disparate entities which can have a significant effect on the value and effectiveness of the acquisition. Acquiring a company with a dysfunctional supply chain IT function could mean significant extra costs involved in fixing the IT issues that have not been taken into consideration in the acquisition costs. The acquiring company must also decide how to integrate the acquired company's IT after the acquisition. If the two companies have incompatible systems, additional costs may be incurred in merging them.

GRA IT Due Diligence conducts its assessment in two phases:

  • Pre-merger
  • Post-merger

The 'Pre-merger phase' is to determine what aspects of the acquisition target's IT function have implications that should be understood for the supply chain before the acquisition. Premerger assessment enables the acquiring company to get a practical feel for the target organisation's IT function and evaluate how much value it adds to or takes away from the acquisition's supply chain effectiveness and / or cost.

During the Post-merger phase GRA will assist the management team in systematically evaluating the acquired company's supply chain IT function in detail. GRA will identify all significant risks that need to be mitigated, including compliance, operational and strategic risks, so the IT function of the acquired company can be relied on to meet the acquiring company's supply chain business objectives. GRA's methodology is designed to bring to light significant issues that need to be addressed to align the IT strategy with the company's strategic objectives.

GRA IT Due Diligence follows the ITADD Conceptual Framework and examines the Supply Chain IT system using the following domains:

  • Strategy Support
  • Business Continuity
  • Human Capital
  • Operations
  • IT Assets

GRA IT Due Diligence allows managers to provide several value propositions for their companies. Better valuation of the target's IT assets can contribute to negotiation strategy. Early detection of potential IT integration problems can contribute to negotiation strategy as well as operational strategy.

Most important, effective assessment enables a successful integration of the two companies' Supply Chain IT functions, providing an enduring basis for the profitability gains expected by investors and upper management.



Our Professional Services include:

Typical Benefits
  • increased service levels up to 99.9%
  • 20-40% inventory reduction
  • the ability to fund business initiatives from operating cash flow (OCF) improvements
  • improved return on capital employed (ROCE)
  • improved debt to equity ratios
  • 10-15% reduction in supply chain costs & improved operating efficiencies
  • a minimum 3:1 ROI for work undertaken (10:1 to 30:1 typical)