Hershey’s Enterprise System By Carol Flaa

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

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

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

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

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

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

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

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