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A Case Study on Hersheys ERP Implementation (一个案例研究在好时的ERP实施)
A Case Study on Hersheys ERP
Implementation Failure:
The Importance of Testing and Scheduling
Imagine waking up one day to find out that your companys supply chain has ground to a halt, making it
impossible to fulfill $100 million worth of orders. For Hersheys confectionary manufacturing and
distribution operations, this nightmare came true in 1999. Read this case study on Hersheys ERP
implementation failure. Learn about the importance of ERP system testing and project scheduling.
OVERVIEW - HERSHEYS ERP IMPLEMENTATION the bulk of its Halloween and Christmas orders.
FAILURE To meet the aggressive scheduling demands,
When it cutover to its $112-million IT systems, Hersheys implementation team had to cut
Hersheys worst-case scenarios became reality. corners on critical systems testing phases.
Business process and systems issues caused When the systems went live in July of 1999,
operational paralysis, leading to a 19-percent unforeseen issues prevented orders from
drop in quarterly profits and an eight-percent flowing through the systems. As a result,
decline in stock price. In the case study Hersheys was incapable of processing $100
analysis that follows, I use Hersheys ERP million worth of Kiss and Jolly Rancher orders,
implementation failure as a case study to offer even though it had most of the inventory in
stock.
advice on how effective ERP system testing
and project scheduling can mitigate a This is not one of those hindsight is 20-20
companys exposure to failure risks and related cases. A reasonably prudent implementer in
damages. Hersheys position
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