SlideShare a Scribd company logo
ERP IMPLEMENTATION
CASE STUDIES-SUCCESS & FAILURES
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
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.
ERP Implementation
Success
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.
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.
Key brands of Cadbury in India.
ERP Implementation
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.
• 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.
Benefits of ERP
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
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.
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.
ERP Implementation
Failures
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
• 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
ERP Implementation
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.
case study on ERP success(cadbury) and failure(hershey's)
Impact of ERP Failure
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
• 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
Reasons of Failure
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.
Learning from Failure
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
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
“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)
REFERENCES:
• http://www.scribd.com/doc/39650132/ERP-
IMPLEMENTATION-AT-CADBURY%E2%80%99S
• http://en.wikipedia.org/wiki/Enterprise_resource_planning
• http://www.webopedia.com/TERM/E/ERP.html
• http://www.itbusinessedge.com/cm/blogs/lawson/kraft-
cadbury-deal-means-major-erp-integration-work/?cs=38891
• http://www.ft.com/cms/s/0/1cb06d30-332f-11e1-a51e-
00144feabdc0.html#axzz2vdMyHJ14
Submitted by:
Chitrangada Roy – 07
Saumya Saksena – 19
BFTech
Semester- VI
2011-2015

More Related Content

What's hot

Nestle finall
Nestle finallNestle finall
Nestle finall
Abhishek Nair
 
Erp
ErpErp
Ford Motors Company - Business Process Reengineering
Ford Motors Company - Business Process ReengineeringFord Motors Company - Business Process Reengineering
Ford Motors Company - Business Process Reengineering
ivy buncaras
 
Dell Case Study
Dell Case StudyDell Case Study
Dell Case Study
Raminder Pal Singh
 
DELL supply chain management
DELL supply chain management DELL supply chain management
DELL supply chain management
Ashwarya Chaudhary
 
FoxMeyer - Case Study
FoxMeyer - Case StudyFoxMeyer - Case Study
FoxMeyer - Case Study
FarhaNaaz38
 
ERP Project: Implementation Failure in HP
ERP Project: Implementation Failure in HPERP Project: Implementation Failure in HP
ERP Project: Implementation Failure in HP
Gunjan Kalita
 
Erp Failure In Hershey’s
Erp Failure In Hershey’sErp Failure In Hershey’s
Erp Failure In Hershey’s
Ankit Malhotra
 
Enterprise Resource Planning- BEST PPT
Enterprise Resource Planning- BEST PPTEnterprise Resource Planning- BEST PPT
Enterprise Resource Planning- BEST PPT
Siddharth Modi
 
Erp ppt business case
Erp ppt business caseErp ppt business case
Erp ppt business case
Madhav Chhabra
 
ERP
ERPERP
ERP Implementation Coca-Cola Hellenic
ERP Implementation Coca-Cola HellenicERP Implementation Coca-Cola Hellenic
ERP Implementation Coca-Cola Hellenic
Stathis Simeonidis
 
01 nestle sales and distribution
01 nestle sales and distribution01 nestle sales and distribution
01 nestle sales and distribution
Selvakani Nadar
 
Erp presentation
Erp presentationErp presentation
Erp presentation
aman lingkon
 
Business process reengineering
Business process reengineeringBusiness process reengineering
Business process reengineering
Neelkamal Sharma
 
"Erp implementation at Tata Steel" XIMB
"Erp implementation at Tata Steel" XIMB"Erp implementation at Tata Steel" XIMB
"Erp implementation at Tata Steel" XIMB
Rahul Singh Chauhan
 
ERP Implementation Failure with example of Hershey and HP
ERP Implementation Failure with example of Hershey and HPERP Implementation Failure with example of Hershey and HP
ERP Implementation Failure with example of Hershey and HP
Samanway Bera
 
Enterprise resource planning (erp) systems
Enterprise resource planning (erp) systemsEnterprise resource planning (erp) systems
Enterprise resource planning (erp) systems
Rao Majid Shamshad
 
ERP implementation
ERP implementationERP implementation
ERP implementation
Sourabh Jain
 
Applications of ERP software
Applications of ERP softwareApplications of ERP software
Applications of ERP software
Chetu
 

What's hot (20)

Nestle finall
Nestle finallNestle finall
Nestle finall
 
Erp
ErpErp
Erp
 
Ford Motors Company - Business Process Reengineering
Ford Motors Company - Business Process ReengineeringFord Motors Company - Business Process Reengineering
Ford Motors Company - Business Process Reengineering
 
Dell Case Study
Dell Case StudyDell Case Study
Dell Case Study
 
DELL supply chain management
DELL supply chain management DELL supply chain management
DELL supply chain management
 
FoxMeyer - Case Study
FoxMeyer - Case StudyFoxMeyer - Case Study
FoxMeyer - Case Study
 
ERP Project: Implementation Failure in HP
ERP Project: Implementation Failure in HPERP Project: Implementation Failure in HP
ERP Project: Implementation Failure in HP
 
Erp Failure In Hershey’s
Erp Failure In Hershey’sErp Failure In Hershey’s
Erp Failure In Hershey’s
 
Enterprise Resource Planning- BEST PPT
Enterprise Resource Planning- BEST PPTEnterprise Resource Planning- BEST PPT
Enterprise Resource Planning- BEST PPT
 
Erp ppt business case
Erp ppt business caseErp ppt business case
Erp ppt business case
 
ERP
ERPERP
ERP
 
ERP Implementation Coca-Cola Hellenic
ERP Implementation Coca-Cola HellenicERP Implementation Coca-Cola Hellenic
ERP Implementation Coca-Cola Hellenic
 
01 nestle sales and distribution
01 nestle sales and distribution01 nestle sales and distribution
01 nestle sales and distribution
 
Erp presentation
Erp presentationErp presentation
Erp presentation
 
Business process reengineering
Business process reengineeringBusiness process reengineering
Business process reengineering
 
"Erp implementation at Tata Steel" XIMB
"Erp implementation at Tata Steel" XIMB"Erp implementation at Tata Steel" XIMB
"Erp implementation at Tata Steel" XIMB
 
ERP Implementation Failure with example of Hershey and HP
ERP Implementation Failure with example of Hershey and HPERP Implementation Failure with example of Hershey and HP
ERP Implementation Failure with example of Hershey and HP
 
Enterprise resource planning (erp) systems
Enterprise resource planning (erp) systemsEnterprise resource planning (erp) systems
Enterprise resource planning (erp) systems
 
ERP implementation
ERP implementationERP implementation
ERP implementation
 
Applications of ERP software
Applications of ERP softwareApplications of ERP software
Applications of ERP software
 

Similar to case study on ERP success(cadbury) and failure(hershey's)

k11922 opc
k11922 opck11922 opc
k11922 opc
shahbaz pathan
 
Enterprise Resource Plannning
Enterprise Resource PlannningEnterprise Resource Plannning
Enterprise Resource Plannning
Shri Hari Agrawal
 
Erp failure- Implementation Failure Hershey Foods Corporation
Erp failure- Implementation Failure Hershey Foods CorporationErp failure- Implementation Failure Hershey Foods Corporation
Erp failure- Implementation Failure Hershey Foods Corporation
Parth Purohit
 
A study on issues related to implementation of an Enterprise Resource Plannin...
A study on issues related to implementation of an Enterprise Resource Plannin...A study on issues related to implementation of an Enterprise Resource Plannin...
A study on issues related to implementation of an Enterprise Resource Plannin...
Rishi vyas
 
Use of enterprise resource planning(erp) in food industry
Use of enterprise resource planning(erp) in food industry Use of enterprise resource planning(erp) in food industry
Use of enterprise resource planning(erp) in food industry
food tech blog
 
Best ERP Software Company in Delhi, NCR
Best ERP Software Company in Delhi, NCRBest ERP Software Company in Delhi, NCR
Best ERP Software Company in Delhi, NCR
Dennis Mark
 
Itec620 team1 project rev5
Itec620 team1 project rev5Itec620 team1 project rev5
Itec620 team1 project rev5
mcramer62
 
k10715 ankit kr. verma (Case study)
k10715 ankit kr. verma (Case study)k10715 ankit kr. verma (Case study)
k10715 ankit kr. verma (Case study)
shailesh yadav
 
Basics of ERP
Basics of ERPBasics of ERP
Basics of ERP
Bhuvnesh Goyal
 
Erp Implementation: Your 12 step Implementation Stratergy
Erp Implementation: Your 12 step Implementation StratergyErp Implementation: Your 12 step Implementation Stratergy
Erp Implementation: Your 12 step Implementation Stratergy
www.hashcodesolutions.com
 
Presentation on ERP
Presentation on ERPPresentation on ERP
Presentation on ERP
Shishir Rahman
 
Manish tripathi-mis-erp-failure-14 august2016
Manish tripathi-mis-erp-failure-14 august2016Manish tripathi-mis-erp-failure-14 august2016
Manish tripathi-mis-erp-failure-14 august2016
A P
 
Erp pptx
Erp pptxErp pptx
Erp pptx
anwar666
 
INFORMATION TECHNOLOGY PROJECTS IN BUSINESSES
INFORMATION TECHNOLOGY PROJECTS IN BUSINESSES INFORMATION TECHNOLOGY PROJECTS IN BUSINESSES
INFORMATION TECHNOLOGY PROJECTS IN BUSINESSES
ANKUSH
 
INVESTMENT IN ERP
INVESTMENT IN ERPINVESTMENT IN ERP
INVESTMENT IN ERP
SANAL C.WILSON
 
ERPAL + ERP Solution, Case Study
ERPAL + ERP Solution, Case StudyERPAL + ERP Solution, Case Study
ERPAL + ERP Solution, Case Study
Aniket Maithani
 
Enterprise Resource Planning(ERP)
Enterprise Resource Planning(ERP)Enterprise Resource Planning(ERP)
Enterprise Resource Planning(ERP)
Makan Singh
 
Enterprise Resource Planning(ERP)
Enterprise Resource Planning(ERP)Enterprise Resource Planning(ERP)
Enterprise Resource Planning(ERP)
Tej Kiran
 
Enterprise resource planning
Enterprise resource planning Enterprise resource planning
Enterprise resource planning
Mhd Khaled Alhalai
 
ERP Planning and Implementation
ERP Planning and ImplementationERP Planning and Implementation
ERP Planning and Implementation
Usman Tariq
 

Similar to case study on ERP success(cadbury) and failure(hershey's) (20)

k11922 opc
k11922 opck11922 opc
k11922 opc
 
Enterprise Resource Plannning
Enterprise Resource PlannningEnterprise Resource Plannning
Enterprise Resource Plannning
 
Erp failure- Implementation Failure Hershey Foods Corporation
Erp failure- Implementation Failure Hershey Foods CorporationErp failure- Implementation Failure Hershey Foods Corporation
Erp failure- Implementation Failure Hershey Foods Corporation
 
A study on issues related to implementation of an Enterprise Resource Plannin...
A study on issues related to implementation of an Enterprise Resource Plannin...A study on issues related to implementation of an Enterprise Resource Plannin...
A study on issues related to implementation of an Enterprise Resource Plannin...
 
Use of enterprise resource planning(erp) in food industry
Use of enterprise resource planning(erp) in food industry Use of enterprise resource planning(erp) in food industry
Use of enterprise resource planning(erp) in food industry
 
Best ERP Software Company in Delhi, NCR
Best ERP Software Company in Delhi, NCRBest ERP Software Company in Delhi, NCR
Best ERP Software Company in Delhi, NCR
 
Itec620 team1 project rev5
Itec620 team1 project rev5Itec620 team1 project rev5
Itec620 team1 project rev5
 
k10715 ankit kr. verma (Case study)
k10715 ankit kr. verma (Case study)k10715 ankit kr. verma (Case study)
k10715 ankit kr. verma (Case study)
 
Basics of ERP
Basics of ERPBasics of ERP
Basics of ERP
 
Erp Implementation: Your 12 step Implementation Stratergy
Erp Implementation: Your 12 step Implementation StratergyErp Implementation: Your 12 step Implementation Stratergy
Erp Implementation: Your 12 step Implementation Stratergy
 
Presentation on ERP
Presentation on ERPPresentation on ERP
Presentation on ERP
 
Manish tripathi-mis-erp-failure-14 august2016
Manish tripathi-mis-erp-failure-14 august2016Manish tripathi-mis-erp-failure-14 august2016
Manish tripathi-mis-erp-failure-14 august2016
 
Erp pptx
Erp pptxErp pptx
Erp pptx
 
INFORMATION TECHNOLOGY PROJECTS IN BUSINESSES
INFORMATION TECHNOLOGY PROJECTS IN BUSINESSES INFORMATION TECHNOLOGY PROJECTS IN BUSINESSES
INFORMATION TECHNOLOGY PROJECTS IN BUSINESSES
 
INVESTMENT IN ERP
INVESTMENT IN ERPINVESTMENT IN ERP
INVESTMENT IN ERP
 
ERPAL + ERP Solution, Case Study
ERPAL + ERP Solution, Case StudyERPAL + ERP Solution, Case Study
ERPAL + ERP Solution, Case Study
 
Enterprise Resource Planning(ERP)
Enterprise Resource Planning(ERP)Enterprise Resource Planning(ERP)
Enterprise Resource Planning(ERP)
 
Enterprise Resource Planning(ERP)
Enterprise Resource Planning(ERP)Enterprise Resource Planning(ERP)
Enterprise Resource Planning(ERP)
 
Enterprise resource planning
Enterprise resource planning Enterprise resource planning
Enterprise resource planning
 
ERP Planning and Implementation
ERP Planning and ImplementationERP Planning and Implementation
ERP Planning and Implementation
 

Recently uploaded

11EHS Term 3 Week 1 Unit 1 Review: Feedback and improvementpptx
11EHS Term 3 Week 1 Unit 1 Review: Feedback and improvementpptx11EHS Term 3 Week 1 Unit 1 Review: Feedback and improvementpptx
11EHS Term 3 Week 1 Unit 1 Review: Feedback and improvementpptx
mansk2
 
Allopathic M1 Srudent Orientation Powerpoint
Allopathic M1 Srudent Orientation PowerpointAllopathic M1 Srudent Orientation Powerpoint
Allopathic M1 Srudent Orientation Powerpoint
Julie Sarpy
 
SD_Integrating 21st Century Skills in Classroom-based Assessment.pptx
SD_Integrating 21st Century Skills in Classroom-based Assessment.pptxSD_Integrating 21st Century Skills in Classroom-based Assessment.pptx
SD_Integrating 21st Century Skills in Classroom-based Assessment.pptx
elwoodprias1
 
A beginner’s guide to project reviews - everything you wanted to know but wer...
A beginner’s guide to project reviews - everything you wanted to know but wer...A beginner’s guide to project reviews - everything you wanted to know but wer...
A beginner’s guide to project reviews - everything you wanted to know but wer...
Association for Project Management
 
matatag curriculum education for Kindergarten
matatag curriculum education for Kindergartenmatatag curriculum education for Kindergarten
matatag curriculum education for Kindergarten
SarahAlie1
 
Open Source and AI - ByWater Closing Keynote Presentation.pdf
Open Source and AI - ByWater Closing Keynote Presentation.pdfOpen Source and AI - ByWater Closing Keynote Presentation.pdf
Open Source and AI - ByWater Closing Keynote Presentation.pdf
Jessica Zairo
 
How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17
Celine George
 
10th Social Studies Enrichment Material (Abhyasa Deepika) EM.pdf
10th Social Studies Enrichment Material (Abhyasa Deepika) EM.pdf10th Social Studies Enrichment Material (Abhyasa Deepika) EM.pdf
10th Social Studies Enrichment Material (Abhyasa Deepika) EM.pdf
SSRCreations
 
JavaScript Interview Questions PDF By ScholarHat
JavaScript Interview  Questions PDF By ScholarHatJavaScript Interview  Questions PDF By ScholarHat
JavaScript Interview Questions PDF By ScholarHat
Scholarhat
 
SEQUNCES Lecture_Notes_Unit4_chapter11_sequence
SEQUNCES  Lecture_Notes_Unit4_chapter11_sequenceSEQUNCES  Lecture_Notes_Unit4_chapter11_sequence
SEQUNCES Lecture_Notes_Unit4_chapter11_sequence
Murugan Solaiyappan
 
How To Update One2many Field From OnChange of Field in Odoo 17
How To Update One2many Field From OnChange of Field in Odoo 17How To Update One2many Field From OnChange of Field in Odoo 17
How To Update One2many Field From OnChange of Field in Odoo 17
Celine George
 
FINAL MATATAG Kindergarten CG 2023 pdf
FINAL MATATAG Kindergarten CG 2023   pdfFINAL MATATAG Kindergarten CG 2023   pdf
FINAL MATATAG Kindergarten CG 2023 pdf
maricelrudela
 
How to Manage Shipping Connectors & Shipping Methods in Odoo 17
How to Manage Shipping Connectors & Shipping Methods in Odoo 17How to Manage Shipping Connectors & Shipping Methods in Odoo 17
How to Manage Shipping Connectors & Shipping Methods in Odoo 17
Celine George
 
C# Interview Questions PDF By ScholarHat.pdf
C# Interview Questions PDF By ScholarHat.pdfC# Interview Questions PDF By ScholarHat.pdf
C# Interview Questions PDF By ScholarHat.pdf
Scholarhat
 
New Features in Odoo 17 Sign - Odoo 17 Slides
New Features in Odoo 17 Sign - Odoo 17 SlidesNew Features in Odoo 17 Sign - Odoo 17 Slides
New Features in Odoo 17 Sign - Odoo 17 Slides
Celine George
 
Introduction to Google Productivity Tools for Office and Personal Use
Introduction to Google Productivity Tools for Office and Personal UseIntroduction to Google Productivity Tools for Office and Personal Use
Introduction to Google Productivity Tools for Office and Personal Use
Excellence Foundation for South Sudan
 
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
Nguyen Thanh Tu Collection
 
What is Rescue Session in Odoo 17 POS - Odoo 17 Slides
What is Rescue Session in Odoo 17 POS - Odoo 17 SlidesWhat is Rescue Session in Odoo 17 POS - Odoo 17 Slides
What is Rescue Session in Odoo 17 POS - Odoo 17 Slides
Celine George
 
How to Manage Access Rights & User Types in Odoo 17
How to Manage Access Rights & User Types in Odoo 17How to Manage Access Rights & User Types in Odoo 17
How to Manage Access Rights & User Types in Odoo 17
Celine George
 
C Interview Questions PDF By Scholarhat.pdf
C Interview Questions PDF By Scholarhat.pdfC Interview Questions PDF By Scholarhat.pdf
C Interview Questions PDF By Scholarhat.pdf
Scholarhat
 

Recently uploaded (20)

11EHS Term 3 Week 1 Unit 1 Review: Feedback and improvementpptx
11EHS Term 3 Week 1 Unit 1 Review: Feedback and improvementpptx11EHS Term 3 Week 1 Unit 1 Review: Feedback and improvementpptx
11EHS Term 3 Week 1 Unit 1 Review: Feedback and improvementpptx
 
Allopathic M1 Srudent Orientation Powerpoint
Allopathic M1 Srudent Orientation PowerpointAllopathic M1 Srudent Orientation Powerpoint
Allopathic M1 Srudent Orientation Powerpoint
 
SD_Integrating 21st Century Skills in Classroom-based Assessment.pptx
SD_Integrating 21st Century Skills in Classroom-based Assessment.pptxSD_Integrating 21st Century Skills in Classroom-based Assessment.pptx
SD_Integrating 21st Century Skills in Classroom-based Assessment.pptx
 
A beginner’s guide to project reviews - everything you wanted to know but wer...
A beginner’s guide to project reviews - everything you wanted to know but wer...A beginner’s guide to project reviews - everything you wanted to know but wer...
A beginner’s guide to project reviews - everything you wanted to know but wer...
 
matatag curriculum education for Kindergarten
matatag curriculum education for Kindergartenmatatag curriculum education for Kindergarten
matatag curriculum education for Kindergarten
 
Open Source and AI - ByWater Closing Keynote Presentation.pdf
Open Source and AI - ByWater Closing Keynote Presentation.pdfOpen Source and AI - ByWater Closing Keynote Presentation.pdf
Open Source and AI - ByWater Closing Keynote Presentation.pdf
 
How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17How to Empty a One2Many Field in Odoo 17
How to Empty a One2Many Field in Odoo 17
 
10th Social Studies Enrichment Material (Abhyasa Deepika) EM.pdf
10th Social Studies Enrichment Material (Abhyasa Deepika) EM.pdf10th Social Studies Enrichment Material (Abhyasa Deepika) EM.pdf
10th Social Studies Enrichment Material (Abhyasa Deepika) EM.pdf
 
JavaScript Interview Questions PDF By ScholarHat
JavaScript Interview  Questions PDF By ScholarHatJavaScript Interview  Questions PDF By ScholarHat
JavaScript Interview Questions PDF By ScholarHat
 
SEQUNCES Lecture_Notes_Unit4_chapter11_sequence
SEQUNCES  Lecture_Notes_Unit4_chapter11_sequenceSEQUNCES  Lecture_Notes_Unit4_chapter11_sequence
SEQUNCES Lecture_Notes_Unit4_chapter11_sequence
 
How To Update One2many Field From OnChange of Field in Odoo 17
How To Update One2many Field From OnChange of Field in Odoo 17How To Update One2many Field From OnChange of Field in Odoo 17
How To Update One2many Field From OnChange of Field in Odoo 17
 
FINAL MATATAG Kindergarten CG 2023 pdf
FINAL MATATAG Kindergarten CG 2023   pdfFINAL MATATAG Kindergarten CG 2023   pdf
FINAL MATATAG Kindergarten CG 2023 pdf
 
How to Manage Shipping Connectors & Shipping Methods in Odoo 17
How to Manage Shipping Connectors & Shipping Methods in Odoo 17How to Manage Shipping Connectors & Shipping Methods in Odoo 17
How to Manage Shipping Connectors & Shipping Methods in Odoo 17
 
C# Interview Questions PDF By ScholarHat.pdf
C# Interview Questions PDF By ScholarHat.pdfC# Interview Questions PDF By ScholarHat.pdf
C# Interview Questions PDF By ScholarHat.pdf
 
New Features in Odoo 17 Sign - Odoo 17 Slides
New Features in Odoo 17 Sign - Odoo 17 SlidesNew Features in Odoo 17 Sign - Odoo 17 Slides
New Features in Odoo 17 Sign - Odoo 17 Slides
 
Introduction to Google Productivity Tools for Office and Personal Use
Introduction to Google Productivity Tools for Office and Personal UseIntroduction to Google Productivity Tools for Office and Personal Use
Introduction to Google Productivity Tools for Office and Personal Use
 
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH LỚP 12 - GLOBAL SUCCESS - FORM MỚI 2025 - ...
 
What is Rescue Session in Odoo 17 POS - Odoo 17 Slides
What is Rescue Session in Odoo 17 POS - Odoo 17 SlidesWhat is Rescue Session in Odoo 17 POS - Odoo 17 Slides
What is Rescue Session in Odoo 17 POS - Odoo 17 Slides
 
How to Manage Access Rights & User Types in Odoo 17
How to Manage Access Rights & User Types in Odoo 17How to Manage Access Rights & User Types in Odoo 17
How to Manage Access Rights & User Types in Odoo 17
 
C Interview Questions PDF By Scholarhat.pdf
C Interview Questions PDF By Scholarhat.pdfC Interview Questions PDF By Scholarhat.pdf
C Interview Questions PDF By Scholarhat.pdf
 

case study on ERP success(cadbury) and failure(hershey's)

  • 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.
  • 7. Key brands of Cadbury in India.
  • 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.
  • 21. Impact of ERP Failure
  • 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)
  • 30. REFERENCES: • http://www.scribd.com/doc/39650132/ERP- IMPLEMENTATION-AT-CADBURY%E2%80%99S • http://en.wikipedia.org/wiki/Enterprise_resource_planning • http://www.webopedia.com/TERM/E/ERP.html • http://www.itbusinessedge.com/cm/blogs/lawson/kraft- cadbury-deal-means-major-erp-integration-work/?cs=38891 • http://www.ft.com/cms/s/0/1cb06d30-332f-11e1-a51e- 00144feabdc0.html#axzz2vdMyHJ14
  • 31. Submitted by: Chitrangada Roy – 07 Saumya Saksena – 19 BFTech Semester- VI 2011-2015