Bombardier: Successfully Navigating the Turbulent Skies of a Large-Scale ERP

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What are the current challenges facing Bombardier? Bombardier has grown substantially via acquisitions since 1989. These acquisitions allowed Bombardier to expand operations, however, in doing so they inherited multiple different information systems, processes and business practices. Bombardier, had become a textbook silo company. Bombardier quickly realized that their aggressive acquisition strategy had become a much more expensive endeavor. By creating a silo environment, they created inefficiencies throughout the entire supply chain. Systems did not communicate, creating process delays, low inventory turnovers, price inconsistencies, and multiple bills of materials. They also had to hire personal to maintain multiple legacy systems. …show more content…

Bombardier has no easy task! In order for the integration to be successful, they need to integrate 63 systems. This would be a major undertaking as most sites had established their own information systems and databases. Ensuring that all the databases are merged into 1 global data warehouse will be a major feat. In order for SAP to function as intended, they will need to redesign their database architecture as well as endure the rigors of data cleansing and preparation. Another challenge will be the need to redesign processes, this will involve the need to find points where processes cross functional boundaries. This is an extremely important aspect as this will change their current processes and departments from silos to horizontal processes. However, the largest hurdle that most companies face during the implementation/integration of a new system or process are the users. It is normal to encounter resistance by users, they perceive change as a potential threat to their jobs, and removes them from their routine and/or comfort zone. What are the benefits expected from integration? Bombardier expects to save a substantial amount by integrating all their systems. They estimate that they will save approx. 1.171 billion including a one-time reduction in material inventory of 219 billion. They estimate that material acquisition accounts for 75% of their total costs. By integrating all of their systems, they could move towards

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