Implementation Of An Enterprise Resource Planning

1581 Words7 Pages
1.0 Introduction Implementation of an enterprise resource planning (ERP) system is a complex undertaking that requires meticulous planning and forward vision to see risks and making amends to mitigate these risks. The Hershey Chocolate Company (Hershey) had previously used a legacy system to manage its logistics and daily operations. However, due to the system’s anticipated date related software issues with the coming Y2K, the company felt that it was time for a new enterprise resource system. This paper will examine the Hershey Chocolate Company, its journey to the new ERP implementation, determine the root causes for its implementation failure, and provide lessons learned based on their experience. 2.0 Hershey’s Background Founded in 1894 by Milton Hershey, the Hershey started out as an established candy store in Philadelphia which then moved to New York where the candy business failed. Following his candy business failure, Milton Hershey moved back to Lancaster to start a caramel company. His caramel company became such a success that during its prime years, it sold caramel products all over America with exports going to Europe. However, Milton Hershey was still not satisfied with just producing caramel goods. In 1895, Milton Hershey ventured on producing chocolate coating for his caramels. It was not until 1899 that through trials and errors that Milton created the perfect recipe to become America’s first milk chocolate company. In 1900, the caramel company was sold to
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