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  • ERP Implementation Failure at Revlon

    Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
    Case Code: ITSY116
    Case Length: 13 Pages
    Period: -
    Pub Date: 2020
    Teaching Note: Available
    Price: Rs.400
    Organization : Revlon, Inc.
    Industry :Cosmetics & Toiletries
    Countries : United States
    Themes: Enterprise Resource Planning/ Management of Information Systems / ERP Failure/Change & Risk Management in ERP implementation
    Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
    Abstract Case Intro 1 Case Intro 2 Excerpts

    Introduction

    In 2019, global cosmetics giant Revlon, Inc. (Revlon) faced a series of class action lawsuits from its investors over the planning and implementation of its new Enterprise Resource Planning system (ERP) SAP S/4 HANA . Four law firms had filed the class action suits based on the company’s quarterly results with Revlon admitting that it had been unable to fulfil orders to the tune of US$64 million when one of its plants in North Carolina rolling out its first SAP go-live, experienced shipping delays and lost sales due to production stoppages. According to the lawsuits, the company made false or misleading statements and failed to disclose the extent of its issues with the SAP implementation. The ERP related problems became known in March 2019 after Revlon reported that difficulties in implementing the company’s new ERP system had disrupted its business operations and caused a material weakness in the company’s internal control over financial reporting...

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