Cadbury implemented SAP ERP successfully, reducing costs through integrated systems. However, initial rollout caused excess inventory as production was not properly coordinated. Hershey rushed its ERP implementation in 2.5 years instead of 4, sacrificing testing. This caused order fulfillment issues, lost sales of $150M, and a 25% inventory increase, showing risks of compressed schedules. Both show ERP can integrate operations but must be carefully planned to avoid disruptions.
The presentation is about ERP Implementation failure case study of the Famous Choclate manufacturing brand Heshey's. What went wrong and what could have been done? is explaind!
The presentation is about ERP Implementation failure case study of the Famous Choclate manufacturing brand Heshey's. What went wrong and what could have been done? is explaind!
ERP Implementation Failure with example of Hershey and HPSamanway Bera
Enterprise resource planning or ERP implementation failure explanation with an example of Hershey and HP and general solution on the basis of that ERP implementation.
In this ppt you find what is ERP?
1. What is ERP?
2. Why we need ERP?
3. Traditional Business Process.
4. Morden Business Process.
5. Major problem without ERP.
6. Advantages of ERP.
7. Types of ERP.
8. Which TYPE ERP best FOR organization?
9. Introduction of SAP ERP in short.
We have to learn ERP because in future if we get to develop an ERP module or work on it, then we must understand the business needs that it is trying to fulfill.
When we clearly understand the functioning of a department in an enterprise, then we will be able to develop a module to automate it.
We also need to understand the interaction between modules.
Coca-Cola Hellenic, one of the largest Coca-Cola bottlers worldwide, has started a three year long project to substitute all legacy systems with a SAP implementation called Wave 2, in order to maximize efficiencies in use of resources and apply common best practices and polices accross the group.
A study on issues related to implementation of an Enterprise Resource Plannin...Rishi vyas
ERP is a business management software, usually a suite of integrated applications that a company can use to collect, store, manage and interpret data from many business activities.
ERP Implementation Failure with example of Hershey and HPSamanway Bera
Enterprise resource planning or ERP implementation failure explanation with an example of Hershey and HP and general solution on the basis of that ERP implementation.
In this ppt you find what is ERP?
1. What is ERP?
2. Why we need ERP?
3. Traditional Business Process.
4. Morden Business Process.
5. Major problem without ERP.
6. Advantages of ERP.
7. Types of ERP.
8. Which TYPE ERP best FOR organization?
9. Introduction of SAP ERP in short.
We have to learn ERP because in future if we get to develop an ERP module or work on it, then we must understand the business needs that it is trying to fulfill.
When we clearly understand the functioning of a department in an enterprise, then we will be able to develop a module to automate it.
We also need to understand the interaction between modules.
Coca-Cola Hellenic, one of the largest Coca-Cola bottlers worldwide, has started a three year long project to substitute all legacy systems with a SAP implementation called Wave 2, in order to maximize efficiencies in use of resources and apply common best practices and polices accross the group.
A study on issues related to implementation of an Enterprise Resource Plannin...Rishi vyas
ERP is a business management software, usually a suite of integrated applications that a company can use to collect, store, manage and interpret data from many business activities.
Use of enterprise resource planning(erp) in food industry food tech blog
www.foodtechblog.in
use of enterprise resource planning (ERP) in food industry.introduction of ERP in food industry.history of ERP ,what are the objectives of ERP,use of ERP in food industry,Regulatory complains ,quality ans supply chain management,inventory management,production process management,financial management,potential benefits of ERP,vendors of ERP,reason for success of ERP in cadbury,failure of ERP implementation (IN CASE OF HERSHEY'S),reasons for failure.
Best ERP Software Company in Delhi, NCRDennis Mark
Our ERP solutions simplify key business operations whilst improving operational efficiency. Our web based ERP solution in India consists of several key modules such as finance/accounting, sales/marketing, purchase, inventory and much more making it a perfect pick for businesses involved in diverse industry verticals in whole India. For more details please visit our website www.brinnam.com
Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. ERP software integrates all facets of an operation, including product planning, development, manufacturing, sales and marketing.
INFORMATION TECHNOLOGY PROJECTS IN BUSINESSES ANKUSH
Company generates huge amount of data that needs to be stored, managed and analysed.
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The following document contains case study related to the startup my friend started, DIGITERIA.NET . Due to the changing nature of our startup, we moved to ERPAL, which is a web based ERP solution, ideal for small/medium enterprises.
Deploying an enterprise resource planning (ERP) system is an expensive proposition, not just in terms of licensing and maintenance, but in terms of dedicated resources and time. The implementation of ERP systems has helped small and mid-sized companies, significantly improve their business metrics by process optimization, improving the entire supply chain process, better inventory control, better reporting to take decisions, integration across functionalities and increasing transparency across the company. Purchase department can see the sales department data, Sales department can see inventory data, and top management can see any data on a click of single button.
ERP Implementation Challenges and Package SelectionUsman Tariq
ERP implementations have a nasty reputation for being challenging.
These challenges can lead to your ERP implementation project taking too much time and being over budget.
The result can be you being left with an underperforming solution. Or, you avoiding implementation of an ERP at all costs.
While the challenges are real, they shouldn’t stop you from implementing one.
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2. Enterprise resource planning (ERP) is
business management software—usually a
suite of integrated applications—that a
company can use to store and manage data
from every stage of business, including:
•Product planning, cost and development
•Manufacturing
•Marketing and sales
•Inventory management
•Shipping and payment
3. Functions of ERP
• ERP provides an integrated real-time view of core business
processes, using common databases maintained by a database
management system. ERP systems track business resources—
cash, raw materials, production capacity—and the status of
business commitments: orders, purchase orders, and payroll.
• The applications that make up the system share data across the
various departments (manufacturing, purchasing, sales,
accounting, etc.) that entered the data.
• ERP facilitates information flow between all business functions,
and manages connections to outside stakeholders.
5. Company Background
• Cadbury is a British multinational
confectionery company owned by
Mondelēz International.
• It is the second largest confectionery
brand in the world after Wrigley's.
• Founder: John Cadbury
• Founded in: 1824, Birmingham, United
Kingdom
Cadbury over the years.
6. Currently, Cadbury India
operates in four categories
viz. Chocolate
Confectionery, Milk Food
Drinks, Candy and Gum
category. In the Chocolate
Confectionery
business, Cadbury has
maintained its undisputed
leadership over the years.
9. Cadbury turns out, in recent years, Kraft
implemented SAP ERP 6.0 (System Analysis
and Program Development) in what SAP
called one of its largest global ERP
implementations.
Kraft credited ERP with reducing operational
costs.
11,000 employees were sending data to the
company's SAP solution and it was linked to
1,750 applications by 2008.
That same year, Kraft aslo added SAP's master
data management solution, NetWeaver, with
an eye toward integrating legacy systems.
10. • Cadbury was left with a glut of chocolate products at the start of
the year, after the installation of a new SAP-based enterprise
resource planning (ERP) system led to an excess of chocolate
bars building up at the end of 2005.
• The new U.K. computer system is part of a five-year IT
transformation project, called "Probe", aimed at integrating the
Cadbury Schweppes' supply chain, purchasing, manufacturing,
distribution, sales and marketing systems on a global, SAP-based
ERP platform.
• Cadbury Schweppes is aiming for an ultimate savings from the
Probe project, but its implementation has been far from smooth.
The project was beset by problems and delays when it was first
introduced in Australia in 2002.
12. Benefits of ERP
• Cadbury was on a fast paced growth and could not continue with the
existing systems and the pace was too slow due to added
inefficiencies. ERP added efficiency and guided the led all the issues
fast paced growth.
• The implementation of ERP brought in a new way of warehouse
management system and brought in structure to branch offices and
the depots.
• While implementing the ERP systems, the company has built it upon
the past strengths of the company thereby not losing out on its
competitive
13. Benefits of ERP
• The initial implementation took time and then the successive
implementations took lesser time and cost and there is a huge
advantage in saving cost while in the implementation phase itself.
• The reaction from competition does not matter in this because this is
not a change that was advertised to the market. This is an internal
process restructuring and was a welcome change within the company
which badly needed the change.
• The company also has built in a robust regular feedback system to
monitor the changes and check if they go according to the initial plan.
The entire implementation is cross functional and hence it is
important that there is a high increase in the efficiency.
14. Benefits of ERP
• The ERP vendor was also selected from among the best in class
vendors which helped the process occur in a streamlined fashion and
avoided any possible chances of hiccups during the initial
implementation phase.
• The system has also been deployed up to the vendors. They have a
portal called vendor connect where they can see their inventory
movement and make plans accordingly. Hence the restructuring
happens not only internally but also across to the supplier which will
add on to the benefits that are accrued.
• It was considered at low cost and high result implementation which by
itself highlights the success and the benefits.
16. Company Background
• Hershey's is the largest chocolate
manufacturer in North America.
• Its headquarters are in Hershey,
Pennsylvania, which is also home
to Hershey's Chocolate World.
• Chocolate Business was started by Mr.
Milton S. Hershey in 1876
• The Hershey Company was established
in 1894
• Hershey's products are sold in about
sixty countries worldwide. Hershey’s cocoa add from 1918
17. • Hershey's sales are roughly 80%
chocolate and 20% non-chocolate.
• Hershey’s Competitors include
Mars, Nestle, Russell Stover, Palmer
and Nabisco
Hershey’s Chocolate World at Pennsylvania.
Hershey’s Kisses Advertisement
19. To enhance company’s competitiveness
and Customer Service
• During late1996, the management of Hershey gave its
approval to a project named Enterprise21
• For this Hershey selected SAP's R/3 ERP software,
Manugistics SCM software and Seibel's CRM software
and IBM Global Service so as to manage integration
among these three systems.
• Overall Project Cost was US $10 Million
• The recommended implementation time for the
project was 4 yrs. and Hershey demanded for 2.5 yrs.
• Hershey decided to go with Big Bang Approach
instead of phased approach.
22. Impact of ERP Failure
• Problems pertaining to order fulfillment, processing
and shipping started to arise; Hershey would not be
able to meet its committed date of delivery
• Several of Hershey's distributors who had ordered the
products could not supply them to the retailers in
time, and hence lost their credibility in the market
• Product inventory started to pile up and by the end of
September 2000; the inventories were 25% more than
the inventories during the previous year
23. • After Hershey’s announcement in the market about
problems due to malfunctioning of the newly
installed computer systems, Hershey's stock price
plunged by 8% on a single day.
• Hershey's failure to implement the ERP software on
time cost the company US $150 million in sales. Profits
for the third quarter 1999 dropped by19% and sales
declined by l2%, in its 1999 annual report.
Impact of ERP Failure
25. Reasons of Failure
• Over-squeezing implementation schedules
• Big Bang Approach instead of Phased Approach
• Mistake of sacrificing systems testing for the sake of
expediency
• Cutover Activities and Go-Live was scheduled in
Hershey’s busiest business periods.
27. An ERP implementation project should not be forced into
an unreasonable timeline. Over-squeezing implementation
schedules is a sure-fire way to overlook critical issues.
Testing phases are safety nets that should never be
compromised.
The First Lesson
28. Never schedule cutover during busy seasons. Even in a
best-case implementation scenario, companies should
still expect steep learning curves and operational
performance dips. By timing cutover during slow
business periods, the company gives itself more slack
time to iron out systems kinks. It also gives employees
more time to learn the new business processes and
systems. In many cases, it is even advisable to reduce
orders in and around the cutover period. This tactic is
aimed at minimizing exposure to damages caused by
potentially undetected errors and less-than-perfectly-
trained users.
The Second Lesson
29. “There is no doubt that 1999 was a most difficult and
disappointing year for Hershey Foods Corporation.
While the year got off to a slow start due to excessive
retail inventories, we fully expected a strong finish in the
second half of the year. Instead, the implementation of
the final phase of the Corporation's enterprise-wide
information system created problems in the areas of
customers service, warehousing and order fulfillment.
These difficulties were exacerbated by our growth in
recent years which had resulted in shipping capacity
constraints. As a result, Hershey's sales and earnings fell
well short of expectation for the year.”
- Kenneth L Wolfe
(Chairman & CEO, Hershey Foods Corporation, in 1999)