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ERP Implementation Failure at Hershey Foods Corporation
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ExcerptsBackground NoteImplementing ERPHershey priced its products low, and to achieve sales of almost US$ 5 billion, huge quantities of the products needed to be sold. This called for highly efficient logistics and supply chain systems duly supported by information technology (IT). In the early 1990s, the spending on IT in the food and beverage industry was among the lowest...
What Went Wrong?The top management of the company as well as industry analysts began looking at the reasons for the problems at Hershey. Though SAP was blamed for Hershey's debacle, the company's management viewed it differently... Bouncing BackAfter the debacle, Hershey made efforts to stabilize SAP and other systems. The company appointed a CIO, George Davis from Computer Sciences Corporation. Under his leadership, a rigorous software testing program was implemented...
ExhibitsExhibit I: Hershey's Products
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