Hershey ERP
Question 1 answer
The company is Hershey Company that is a renowned company in confectionary sector. The company manufactures chocolate products. The size of company is large enough as it operates in various countries. The company employs around 18000 employees and it makes over 80 brands. The company revenue is in billions. Thus, the size of the company is very large.
Question 2 answer
ERP system provides an integrated platform to access real time information for informed decision making to a company. ERP solution is implemented to improve business efficiency and customer service. Such solution enhances collaboration between departments and security of data.
Question 3 answer
Hershey Company chose an ERP system to improve its business efficiency. The main purpose of the Hershey Company to choose an ERP system was to move from existing legacy system. The company also planned to implement this system to address Y2K problem. But the adopted system did not help company to achieve desired efficiency and productivity.
Question four answer
The project duration demanded was 48 months but the company management provided 30 months to complete this project. This caused a rushed deployment without considering the hidden complexities to implement an ERP solution. During implementation, Hershey planned to introduce three technologies for resource planning but it led to conflicts between many operations of the company. The company adopted a big bang approach than an incremental approach that hampered its business functions. Shortcuts were applied for data migration, system testing and training to employees. During the implementation phase, the executives of the company were too busy to help ERP implementation. The implementation phase clearly missed a due diligence approach. The company introduced this system during busiest session even the employees did not have received good understanding about the ERP system.
The implementation of ERP caused the company to suffer a loss of $100 million because it was unable to deliver products to customers during peak season. These reasons caused the ERP system failed to provide desired results for Hershey Company.
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