Ahmad khalifah Bani Younes

20191047
Assignment 2 ERP
Summery
Hershey company is a firm who began its career with enterprise system before
26 years, then it succeeded to install the system in 2002 and began utilizing
SAP, through this step they updated their criteria ( Establish a single supply
chain strategy , reengineering all the functional areas increase gross margin
and decrease cost), this Action has several dilemmas because they
applied current three software applications at the same time, project
delays, data entry in SAP was hard, and therefore lack of trained
employees and lack of support from top management and their
involvement in decision making, this let the new SAP enterprise
system to failure
What are the main objectives or the motivation that
led Hershey to implement an ERP system?
There where multiple objectives let the company
itself to implement ERP system firstly the supply chain
strategy was unified along all divisions, as well as the
company kept growing yearly 3 percent.
Additionally Streamline business processes have been
added by reengineering functions of the company,
which resulted generally in a better communication
between units.
Gross margin has been obviously increased by
updating a new effective supply chain.
The company saved over 75 million after restructuring
the units from the old form.
The old data related problems were replaced as well
as the mainframe IS server architecture.
What went wrong about the implementation of
ERP system at Hershey? (Explain the key
problems faced the implementation of the ERP
at Hershey)
Initially The system was not supported by the
fundamental positions in the management to decide
the properly during the implementation process. At
the beginning Hershey was pretty enthusiastic that
they wanted to change every thing at once( hasty).
Data entry played a very bad role. SAP was pretty
rigid in term of flexibility for management and
tracking
Employees had very bad training for data entry
because of the old system was flexible and now not.
The orders of the customers were missed although
there were enough inventory There where no
contact between IT and logistics because of the extra
capacity was not recorded.
 What are the lessons that can be learned
from the implementation of the ERP system
at Hershey?
Subsequently there were numerous lessons
that we have learned from the this ERP
Hershey's experience , Firstly decisions
making between top managers must be
absolutely coherent and consistent by
communicating with each other constantly
and eventually sum up with a compromise.
Secondly the amount of effort for technical
and organizational changes must be
definitely comprehended from the beginning
to consider unexpected issues that arise
suddenly out of no where.