Carve-outs are among the most challenging transitions a company can face. For Supply Chain managers, the process is not just about splitting assets, it’s about ensuring business continuity, managing change, and supporting teams through uncertainty.
Experience, preparation, and proactive management make all the difference. This blog outlines the role of the Supply Chain manager in a carve-out, the key challenges, and the pitfalls to avoid.
As a Supply Chain manager, you’ll need to adapt quickly to new boundaries between entities. Where collaboration once flowed smoothly, you’ll now encounter more transactional customer-supplier relationships. The Supply Chain is often split, making it harder to maintain a holistic overview of lead times and process flows.
System-wise, the carve-out introduces technical complexities. Financial approaches must be clearly defined, and a “freeze period” is often required to split IT systems. This can put pressure on project plans and increase the risk to business continuity. Your main goal is to ensure the transition is as smooth as possible, minimizing disruption and risk. In newly formed companies, legacy processes may need to be rethought, creating opportunities for rationalization and simplification. Product portfolios and strategies are often re-evaluated, sometimes leading to significant changes.
Early involvement is crucial. Supply Chain managers should be involved in the carve-out process as early as possible. The earlier the preparation, the better the Supply Chain team can handle the transition. Often, there’s a year-long transition period, but designing new processes and managing change typically require more time. Carve-outs usually come on top of existing business activities, so early engagement is critical for a smooth transition.
During a carve-out, Supply Chain managers face several critical decisions. System-wise, Solventure provides extensive advice to help managers keep business processes running smoothly. The recommendation: maintain current flows as much as possible, then re-evaluate post-transition. There are many steps that may not be immediately obvious but are crucial for success.
The biggest challenges I often see in carve-outs revolve around people. Teams may be split, and change management becomes critical. You’ll need to support your team through uncertainty, maintain trust in partners, and proactively manage risks. Handling incomplete information is common; the best approach is thorough preparation, transparent communication, and leveraging both your experience and that of external partners.
In complex carve-outs, such as those involving deeply intertwined processes or long lead times, careful reflection on costs and process changes is essential. Sometimes, making tough decisions quickly is necessary to avoid prolonged uncertainty.
At Solventure, we remain a partner throughout the carve-out process, supporting clients with change management, helping them adapt to new realities, and guiding them through portfolio evaluation and complexity reduction. With early involvement, proactive change management, and the right partners, Supply Chain managers can avoid common pitfalls and ensure a smooth transition.
Carve-outs are challenging, but with early involvement, proactive change management, and the right partners, Supply Chain managers can avoid common pitfalls and ensure a smooth transition. The expertise of a partner specializing in Supply Chain carve-outs makes all the difference. In carve-outs, “cash is king”, but so is experience.
If you need more information or would like to discuss your specific carve-out challenges, please don't hesitate to contact us and we will be happy to provide further guidance and support tailored to your organisation's needs.
