ERP software can help a company streamline its operations and save millions of dollars. But this Forbes article points to some big ERP deployments that went wrong.
In the first case, back in 1999 Hershey tried to install SAP's ERP software right before Halloween. But the were problems with the installation, practically paralyzing the companies and affecting its stock price. Hershey was tight-lipped about the incident for years afterward.
In another example, Sony had a glitch in its
i2 ERP system, which had much the same results. The company lost $100 million and took a severe beating in the stock market with a 20 per cent drop in its stock price. The problem led to a supply chain nightmare, with the wrong quantities of certain products ending up in certain places.
Finally, there's an example from HP, which installed SAP ERP software and found out that one-fifth of its order weren't going through. The result? A $160 million loss.
The solution, the author says, is to get an outside consultant to advise you on the right ERP system--don't rely on the vendor to tell you.