ERP Failure: Where Hershey’s Went Wrong

Multiple ERP failure causes

In this article, we’ll go back to Hershey’s ERP failure. In the first entry, we covered the triggers. Today, we’ll analyze what gave way to that ERP project failure.

We’ll go back to this case study for the data. If you need any more help, book a free consultation here!

ERP failure recap: What happened?

In the last article, we covered the main issue: time. Hershey’s underestimated the project’s required resources and length. Thus, they ran into missed deadlines and operational downtime. In the long term, they fell behind schedule and lost crucial orders.

What caused this ERP failure?

But, what triggered those consequences? Hershey’s ERP project failure boils down to bad management. We’ve already covered why ERP project management is vital. But, we can summarize its pitfalls in the following factors.

Time and deadlines

As we’ve covered, deadlines are as crucial as risky. Improper deadline management can kill your ERP project. With Hershey’s, they wished to install three different modules. Yet, they estimated it would take the same as only one.

Timing and planning

Bad planning was the next step. The company implemented the software during peak season. Thus, they lacked time to validate and rectify each phase. As such, they were forced into the next big mistake.

The “big bang” approach

Now, that’s not a bad ERP implementation plan. Yet, we must remember Hershey’s whole plan. They wished to install ERP, CRM, and supply chain software. That’s three platforms. Naturally, a single-step approach for three technologies is a huge risk.

Little experience

Likewise, the company and its resources lacked experience. Such a large implementation requires special care. Thus, employees and managers had to learn too many things at once. That resulted in lost time and extra costs in external resources.

Unoptimized processes

Finally, the company also lacked an ERP-friendly environment. Business process re-engineering is crucial for ERP projects. Yet, the company failed to provide the required infrastructure. That goes from networks to human processes.

Avoid your ERP failure by working with professionals

As you can see, experience was this project’s bane. Yet, the company made a surprising comeback. Our last article in this series will focus on that.

For now, our best advice is to trust professionals. At Zero Point, we’ve helped dozens of organizations integrate ERP. We’re offering a free consultation for new clients. Book yours here!

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