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Hershey’s Enterprise System

Hershey’s Enterprise System. By Carol Flaa. Agenda. Case Introduction Solving Y2K Problems Problems Experienced Financial Information Current Industry Competition Conclusion. Hershey Prepared for Y2K. Enterprise 21 Included: Replace legacy mainframe systems Implement an ERP system

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Hershey’s Enterprise System

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  1. Hershey’sEnterpriseSystem By Carol Flaa

  2. Agenda • Case Introduction • Solving Y2K Problems • Problems Experienced • Financial Information • Current Industry • Competition • Conclusion

  3. Hershey Prepared for Y2K • Enterprise 21 Included: • Replace legacy mainframe systems • Implement an ERP system • Bring in different software systems • Replace 5,000 desktop computers • Install Bar Coding equipment at all sites

  4. Problems with Enterprise 21 • Lack of Planning • Lack of Testing • Lack of Training • Not enough time to implement • Direct Cut over method • Retail candy shelves were empty at Halloween and Christmas

  5. Financial Information • Cost of the Enterprise 21 Project • Over $112 Million • Lost Sales Revenue • Over $100 Million • Current Company Status • $4.5 Billion Profits last year

  6. Current Industry • Industry is Growing • Sales and profits are increasing • Expanding in Types of Products • Candy and gum • Snacks and nutrition bars • Produce mass amounts of products • Halloween and Christmas are the busiest

  7. Hershey’s Products • Hershey bars and Kisses • Twizzlers • Ice Breakers Gum • Reese’s Peanut Butter Cups • Mounds / Almond Joy • Jolly Rancher • Smartzone Nutrition Bars

  8. Hershey’s Competition • Nestle Company • Nestle Crunch Bars, Butterfinger • Mars Incorporated • M&M’s, Snickers, Twix

  9. Hershey’s Conclusion • Enterprise 21 was a huge project • Hershey’s lost millions of dollars in sales from the Enterprise 21 project • Problems could have been avoided • Hershey’s has bounced back and recovered from their losses • Today the company is expanding in • Chocolate and confectionary products • Snacks and nutrition products

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