1. The FoxMeyer Drugs’
ERP PRESENTATION

2. About the Company
Second-largest wholesale drug distributor in the United States with annual sales of about 5 billion US$ and daily shipments of over 5,00,000 items.
FoxMeyer servers in healthcare services
25 distribution centers located in USA
2 operating units: FoxMeyer Corp. and Ben Franklin Retail Stores, Inc.

3. About the project The Delta III project began in 1993.
SAP R/3 in December of 1993.
Purchased warehouse-automation from a vendor called Pinnacle, and chose Andersen Consulting to integrate and implement the two systems
Implementation of the Delta III project took place during 1994 and 1995

4. The FoxMeyer mess was "not a failure of automation
The FoxMeyer mess was "not a failure of automation. It was not a failure of commercial software itself . It was a management failure".
Bankruptcy in 1996
In 1998 trustee of FoxMeyer announced that is suing SAP, the ERP vendor, as well as Andersen Consulting, its SAP integrator, for $500 million each.

5. Project risk Failure of FoxMeyer is classified into: Customer mandate
Scope and requirement
Execution
Environment.

6. Reasons for failure PLANNING:
No consideration of other consultants’ advice
Lack of contingency planning
No end user involvement

7. IMPLEMENTATION: No restructuring of the business process was done
Insufficient Testing
Over-ambitious project scope
Dominance of IT specialists’ personal interest
Poor management support
Lack of end user cooperation

8. Not having proper change management policies and procedures
Going for consultants without prior experience or ERP solutions
Nothing having a clear end user training program to transfer skills to employees.
Having the management over committed(excessively ambitious, prompting unrealistic deadlines).
Internal resistance to changing the ‘old’ process.
The client does not properly address and plan for the expenses involved.
The management is not controlling the scope of the project.

9. Solutions PLANNING: Software Selection Contingency Plan
Stakeholder’s Involvement

10. implementation
IMPLEMENTATION
Inclusion of the necessary business process reengineering.
Thorough testing.
Realistic project scope.
Close Monitoring of project status.
Seek end user support.
Post implementation review.

11. Thank You Presented By: MARGI MARSONIA (BBA- 14131048)
PARIE SHARMA (BBA )
PRIYA SHAH (BCA )
VIDHI VADODARIA (BBA )

12. References
histories/foxmeyer-health-corporation-history/
Material/MIS/ERP/FoxMeyer.pdf