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Integrating purchasing in M&A: An interview with Lenovo's chief procurement officer

• Chinese computer maker Lenovo’s 2005 acquisition of IBM’s PC division created a giant operational challenge for Qiao Song, Lenovo’s chief procurement officer.
• The task? Manage the rapid integration of two purchasing groups with different processes, management systems, and cultures—and save the new company more than $150 million in direct-spending costs within 18 months. The team not only exceeded the target but also successfully created a new unit to manage nonproduction-related spending.
• Qiao Song recently spoke with McKinsey about the challenges of integration, his approach to managing talent, and how the procurement function in the technology sector may change.