Enterprise Resource Planning: Success And Failure Stories?

ERP Implementations - Success/Failure Stories

Enterprise Resource Planning (ERP) is a business management software which is used to integrate, manage and store data from different business stages which includes:

• Planning Cost

• Manufacturing

• Inventory Management

• Sales and Shipping

ERP Implementation - Success Stories

MonaVie:

MonaVie is a multi-level company, manufacturing and distributing fruit juices and powders. The main goal of this company is to provide healthy nutrition to people from natural products.

MonaVie want to streamline its business process which can be made possible by using Enterprise Resource Planning (ERP). It is not an easy job as it multisite manufacturing partners. However, in spite of the challenging task they

So, implementation alone is not enough, it needs good training and documentation for maintenance and future enhancements.

ERP Implementation - Failure Stories

Shane:

Shane Company, one of the largest jewelry retailer in US, went bankruptcy because of the ERP implementation failure and slow economy.

The major reason for the failure is the time delay for implementation. It was supposed to be completed by 1 year which actually took 3 years for its implementation. The second reason was over budget. It took 30 million dollars for implementation instead of the actually planned cost 10 million dollars. The implementation failure lead to overstock and improper inventory results. Hence, the overstocking lead to the large increase of the stock along with the reduction of the income to the company. ERP implementation has adverse results on the sale of the company.

My Opinion:

Even a single failure lead to a heavy loss if it is because of multiple failures then it even leads to closure of the company. Here the major failure was because of in efficient MRP’s. The quality of their work is very low and more over the improper estimation of the budget and time was another important reason for