17. other
modules
were
BEHIND
SCHEDULE
Planned
to switch
January over to
NEW
1999 SYSTEMS
April
1999
18. other
July
modules
were
1999
BEHIND
SCHEDULE Planned
Planned
to switch
3
to switch
Months
over to
behind
NEW
January over to
NEW
schedule
SYSTEMS
1999 SYSTEMS
April
1999
19. other
July
modules
were
1999
BEHIND
SCHEDULE Planned
Planned
to switch
3
to switch
Months
over to
behind
NEW Y2K
January over to
NEW
schedule
SYSTEMS problem
was
1999 SYSTEMS looming +
large
Orders from
April retailers
1999
20. other July
modules
were
1999
BEHIND
SCHEDULE
Planned
to switch
3 Months
behind Y2K
January over to
NEW
schedule problem
was
1999 SYSTEMS looming +
large
Orders from
April retailers
1999
22. Problem # 1 “delivery delays”
July can’t keep their usual
1999 5 day delivery
August still 15 days
1999 behind order schedule
23. Problem # 2
“Loss in Credibility”
because they failed to
supply products in time
“Loss of Market Share”
because suppliers looked for reliable
alternatives
24. “ lf you don't have my toothpaste,
I'm walking out. But for a chocolate bar,
I'll pick another one.
”
25. Problem # 3
Warehouse was
piled up with products.
“Inventory” In September 2000
inventory was 25% more
than in previous years.
26. Analysts say
the cause
of the
problem
was…
MISSING INVENTORY
DATABASE in
SAP R/3 ERP software
27. THE REASON FOR THE
lack of coordination
between
technical personnel
and people involved in
operations,
who did not update
Inventory data.
32. 3 VENDORS
reason
# 3 It was not possible to
test each component
IMPLEMENTATION…
Roll out each system
successively and then
carefully check the integration issues
33. Inevitable implementation
related problems due to high
number of interfaces of the
software packages
Problems integrating
SAP R/3 with the
software from Siebel
and Manugistics
reason #4
“ERP Suite Complexity”
34. IT Department
No CIO appointed
reason #5
+
the board did not have
any representative with IT
competence
35. Inexperience
Top management
did not conduct
enough groundwork
before
implementing the
ERP solution
#6
reason
37. Lack of
technological
Right processes werethe in place
savviness at not top
To keep senior management informed
8
reason # Top management failed to
understand the scope of the project
38. reason #9
“Lack of Evaluation”
Hershey
…was missing the
infrastructure to support
the project
…did not check the impact
on their network
to identify potential problems
39.
40. Hershey made
efforts
to stabilize SAP
and other systems
“…rigorous
software testing
program”
- George Davis
(CIO)
41. SEPTEMBER 1999
Most of the initial problems
with the ERP systems
were fixed
42. SEPTEMBER 1999
Most of the initial problems
with the ERP systems
were fixed
2000
$ales reaching
US$ 4.2
43. SEPTEMBER 1999
Most of the initial problems
with the ERP systems
were fixed
July 2001
Redesign of the
process and start to
work with SAP N3 4.6
2000
$ales reaching
US$ 4.2
44. SEPTEMBER 1999
Most of the initial problems
with the ERP systems
were fixed
July 2001
Redesign of the
process and start to
work with SAP N3 4.6
2000 June 2002
began using SAP for
marketing analysis an
$ales reaching brand management
order management
US$ 4.2
45. Hersheys new distribution center
ERP and the new
distribution center reduce
the order cycle times by
half
1.2 million sq. ft.
= 14 Football fields
46. Hershey
should that
…ensure
mistakes committed
earlier are not
repeated
…provide
adequate training
to employees
In 1999,for theproject: the ERP implementation. Hershey had selected theservices of three vendors SAP AGs (SAP), Siebel Systemsulsiebell and ManugisticsTIn January 1999,the remaining modules which were to be implemented by April 1999 were delayed and were implemented only in July 1999 ( when huge orders for the impending Halloween and Christmas Seasons received).
In 1999,for theproject: the ERP implementation. Hershey had selected theservices of three vendors SAP AGs (SAP), Siebel Systemsulsiebell and ManugisticsTIn January 1999,the remaining modules which were to be implemented by April 1999 were delayed and were implemented only in July 1999 ( when huge orders for the impending Halloween and Christmas Seasons received).
In 1999,for theproject: the ERP implementation. Hershey had selected theservices of three vendors SAP AGs (SAP), Siebel Systemsulsiebell and ManugisticsTIn January 1999,the remaining modules which were to be implemented by April 1999 were delayed and were implemented only in July 1999 ( when huge orders for the impending Halloween and Christmas Seasons received).
In 1999,for theproject: the ERP implementation. Hershey had selected theservices of three vendors SAP AGs (SAP), Siebel Systemsulsiebell and ManugisticsTIn January 1999,the remaining modules which were to be implemented by April 1999 were delayed and were implemented only in July 1999 ( when huge orders for the impending Halloween and Christmas Seasons received).
In 1999,for theproject: the ERP implementation. Hershey had selected theservices of three vendors SAP AGs (SAP), Siebel Systemsulsiebell and ManugisticsTIn January 1999,the remaining modules which were to be implemented by April 1999 were delayed and were implemented only in July 1999 ( when huge orders for the impending Halloween and Christmas Seasons received).
In 1999,for theproject: the ERP implementation. Hershey had selected theservices of three vendors SAP AGs (SAP), Siebel Systemsulsiebell and ManugisticsTIn January 1999,the remaining modules which were to be implemented by April 1999 were delayed and were implemented only in July 1999 ( when huge orders for the impending Halloween and Christmas Seasons received).
In 1999,for theproject: the ERP implementation. Hershey had selected theservices of three vendors SAP AGs (SAP), Siebel Systemsulsiebell and ManugisticsTIn January 1999,the remaining modules which were to be implemented by April 1999 were delayed and were implemented only in July 1999 ( when huge orders for the impending Halloween and Christmas Seasons received).
In 1999,for theproject: the ERP implementation. Hershey had selected theservices of three vendors SAP AGs (SAP), Siebel Systemsulsiebell and ManugisticsTIn January 1999,the remaining modules which were to be implemented by April 1999 were delayed and were implemented only in July 1999 ( when huge orders for the impending Halloween and Christmas Seasons received).
In 1999,for theproject: the ERP implementation. Hershey had selected theservices of three vendors SAP AGs (SAP), Siebel Systemsulsiebell and ManugisticsTIn January 1999,the remaining modules which were to be implemented by April 1999 were delayed and were implemented only in July 1999 ( when huge orders for the impending Halloween and Christmas Seasons received).