Case Study Of Hershey's Inventory System

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As Hershey needs to replace their inventory movement systems as the old one is quite outdated. Newly introduced ERP is the best choice for them to handle the problems of inventory as ERP has full potential to record, classify and summaries all the inventory movement transactions.
Secondly the need for new ERP system installation required to integrate their system to meet business plan and streamline their processes for future. Hershey had chosen SAP as a centralized system, which is then followed by planning and transportation management software from Manugistics, and new sales software from Siebel Systems. Central system must be integrated with sales and transportation software to achieve the best output and for smoothing of the system.
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In the iron triangle, it was the schedule, which was not followed. Halloween orders were on the cards and the new installation of the software ruined the schedule component of Hershey. And the Hershey paid the price for not planning for the future and they had enough stock in their hand, despite that they couldn't fulfill the orders. The other reason was the software disruptions that led to the way of lessening sales. There's another Hershey project that shows how its approach to big projects has changed. Hershey opened the new center in 2000 that was planned to overcome the challenges faced by the lack of inventory management enigmas. Hershey had controls in place to test the authenticity of the computer software systems, proper time was spend on a test of controls. They ran the pilot projects for loading and unloading for the items involved, and by assigning barcodes for each item. Testing the business processes before went successfully for …show more content…
The users who are going to use it on daily bases need this system to be easy to understand and to use, especially, if they are moving from an older system to a new system. At Hershey, he suspects that business and technology managers aligned with different parts of the business were pulling in different directions, and no one at the top pulled these demands together to guide the creation of a system that would work for the whole

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