preview

Foxmayer Case Study

Best Essays

A Major Failed ERP Implementation—FoxMeyer Drug Mohamed Mohamoud and Jing Lei Table of Contents • Case Study: FoxMeyer Drug o Background of FoxMeyer o Implementation of ERP and the Selection of SAP R/3 o Bankruptcy Nightmare o What exactly went wrong? o Lessons from Failure o Conclusion • References • Appendix Case Study: FoxMeyer Drug Background of FoxMeyer Business FoxMeyer Drug, a holding company in the health care services industry, with 2700 employees in 23 union and non-union locations throughout the US and Canada. In December 1995, FoxMeyer Drug was a $5 billion-a-year company, one of the leaders among distributors of pharmaceuticals. The business of FoxMeyer …show more content…

Consulting Company: Andersen Consulting Anderson Consulting (now Accenture) is a large and diversified IT consulting company. In the area of enterprise business software it provides solutions to clients on a global basis. Andersen had at that time over 15,000 IT consultants dedicated to help clients improve their business result by implementing IT solutions. The strength of Andersen’s global capability with respect to SAP was embodied in the wide breadth of methodologies and tools offered to their customers with their SAP implementation. Because their clients’ strategies vary widely, Andersen actively investigates and evaluates both SAP tools and third party tools. Andersen also has invented its own tools to fill specific SAP functionality gaps or to meet specific customer requirements. Furthermore, Andersen tools are always consistent with SAP approach and complementary to SAP tools. In other words, Andersen seemed to be a most trusted consultant for implementing SAP systems. Implementation of SAP R/3 In September 1993, FoxMeyer contracted with SAP, Andersen Consulting and Arthur Andersen & Co. (AA), the parent company of Anderson Consulting, to implement the R/3 software. This multi-million dollar project covered the entire supply chain--warehouses, inventory control,

Get Access