ERP Implementation Failure at Revlon
| Case Code: ITSY116 Case Length: 13 Pages Period: Pub Date: 2020 Teaching Note: Available |
Price: Rs.400 Organization: Revlon, Inc. Industry: Cosmetics & Toiletries Countries: United States Themes: Enterprise Resource Planning, Management of Information Systems, ERP Failure,Change & Risk Management in ERP implementation |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In 2019, global cosmetics giant Revlon, Inc. (Revlon) faced a series of class action lawsuits from its investors over the planning and implementation of its new Enterprise Resource Planning system (ERP) SAP S/4 HANA . Four law firms had filed the class action suits based on the company’s quarterly results with Revlon admitting that it had been unable to fulfil orders to the tune of US$64 million when one of its plants in North Carolina rolling out its first SAP go-live, experienced shipping delays and lost sales due to production stoppages. According to the lawsuits, the company made false or misleading statements and failed to disclose the extent of its issues with the SAP implementation. The ERP related problems became known in March 2019 after Revlon reported that difficulties in implementing the company’s new ERP system had disrupted its business operations and caused a material weakness in the company’s internal control over financial reporting...
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