ERP Implementation Failure at Hershey Foods Corporation
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Hard pressed for time, Hershey went in for Big Bang ERP implementation which led to several problems pertaining to order fulfillment, processing and shipping. The retailers who ordered for Hershey's products could not get them on time, even though the company had ample supplies stocked at its warehouses. Hershey's revenues dropped by 12% during the third quarter of 1999 compared to the third quarter of 1998. The case explains in detail, the events leading to the failure of ERP implementation and examines the reasons behind it.
» Understand the process of ERP implementation in a large organization.
» Study the circumstances that led to ERP implementation failure at Hershey.
» Evaluate the role played by top management in ERP implementation.
Hershey Foods, Enterprise Resource Planning, Enterprise-wide Information System, mySAP.com, Legacy Systems, Enterprise 21 Project, Manugistics, SAP Modules, Big Bang Approach, SAP R/3 Software, Inventory Problems, Integration Issues, Program Management, Executive Leadership, Testing and Training Plan
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