Hershey's ERP Disaster

September 11, 2023
David Sunnyside

When businesses deploy ERP systems, they’re hoping for success. Unfortunately, the headlines are often dominated by ERP failures rather than ERP successes. One such example is Hershey’s mishandled implementation of an ERP system in 1999, which resulted in the company being unable to fulfill $100 million worth of orders for products that it actually had in stock at the time.

Hershey’s top management and board members probably had no idea of how complex an ERP system was going to be when they decided to switch from outdated legacy systems. Their rushed deployment—in response to the looming Y2K deadline—ended up costing Hershey $100 million in sales from being unable to fill customer orders during a peak season for its iconic products, and caused the company’s share price to dip 8 percent. The company ultimately recovered, and its Hershey Park features a rollercoaster that’s still operating today. Watch this episode of Discovery Plus to learn about how the company overcame its initial Y2K-related ERP disaster.

David Sunnyside
Co-founder of Urban Splatter • Digital Marketer • Engineer • Meditator
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