Erp Systems Implementation – Challenges & Conseque Essay
2818 WordsDec 27, 201112 Pages
Enterprise Resource Planning-BAEB3209 | Hershey- ERP Systems Implementation – Challenges & Consequences | | HIGHER COLLEGE OF TECHNOLOGY
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Q1. What benefits did Hershey hope to get out of the implementation of its new system? Consider both impacts on the business and on their technology infrastructure.
Hershey's biggest continuous challenge was that it must rack up its multibillion dollars in sales of 50 cents or one dollar at a time, requiring huge numbers of its products to be sold. Such quantities means Hershey must have very reliable logistics systems. So, the senior management decided to implement the ERP systems gradually. The common advantages of implementing the ERP system in a conventional business scenario are:
Project Integration can be the most beneficial outcome of the ERP Implementation. Hershey is aiming for implementing ERP for reducing data redundancy and redundant data entry thus by strengthening the system integration. ERP does not improve the individual efficiency of users, so if they expect it, it will be a big disappointment. ERP improves the cooperation of users. Management believed that Enterprise 21 project would help Hershey better execute its business strategy of emphasizing its core mass-market candy business.
b) Increased Efficiency
Mainly, ERP software urges on integration and tends to not care about the daily needs of people. I think individual efficiency can suffer by implementing ERP. Hershey is expecting to increase the efficiency of the Production cycle so that he can meet all the purchase orders from the local and global market as well.
Mr. Bentz, Vice President Hershey Inc. noted that benchmark studies by the Grocery Manufacturers of America show that Hershey's IT spending trailed that of most of its industrial peers. The study concluded that