Transcript Hershey`s Enterprise System

Hershey’s Enterprise
System
By
Carol Flaa
Agenda
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Case Introduction
Solving Y2K Problems
Problems Experienced
Financial Information
Current Industry
Competition
Conclusion
Hershey Prepared for Y2K
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Enterprise 21 Included:
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Replace legacy mainframe systems
Implement an ERP system
Bring in different software systems
Replace 5,000 desktop computers
Install Bar Coding equipment at all sites
Problems with Enterprise 21
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Lack of Planning
Lack of Testing
Lack of Training
Not enough time to implement
Direct Cut over method
Retail candy shelves were empty at
Halloween and Christmas
Financial Information
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Cost of the Enterprise 21 Project
– Over $112 Million
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Lost Sales Revenue
– Over $100 Million
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Current Company Status
– $4.5 Billion Profits last year
Current Industry
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Industry is Growing
– Sales and profits are increasing
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Expanding in Types of Products
– Candy and gum
– Snacks and nutrition bars
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Produce mass amounts of products
– Halloween and Christmas are the busiest
Hershey’s Products
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Hershey bars and Kisses
Twizzlers
Ice Breakers Gum
Reese’s Peanut Butter Cups
Mounds / Almond Joy
Jolly Rancher
Smartzone Nutrition Bars
Hershey’s Competition
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Nestle Company
– Nestle Crunch Bars, Butterfinger
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Mars Incorporated
– M&M’s, Snickers, Twix
Hershey’s Conclusion
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Enterprise 21 was a huge project
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Hershey’s lost millions of dollars in sales from the
Enterprise 21 project
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Problems could have been avoided
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Hershey’s has bounced back and recovered from
their losses
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Today the company is expanding in
– Chocolate and confectionary products
– Snacks and nutrition products