Hershey’sHershey’s EnterpriseEnterprise

SystemSystem

ByBy

Carol FlaaCarol Flaa

AgendaAgenda

Case IntroductionCase Introduction Solving Y2K ProblemsSolving Y2K Problems Problems ExperiencedProblems Experienced Financial InformationFinancial Information Current IndustryCurrent Industry CompetitionCompetition ConclusionConclusion

Hershey Prepared for Hershey Prepared for Y2KY2K 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 Install Bar Coding equipment at all

sitessites

Problems with Enterprise Problems with Enterprise 2121 Lack of PlanningLack of Planning Lack of TestingLack of Testing Lack of TrainingLack of Training Not enough time to implementNot enough time to implement Direct Cut over methodDirect Cut over method Retail candy shelves were empty Retail candy shelves were empty

at Halloween and Christmasat Halloween and Christmas

Financial InformationFinancial Information

Cost of the Enterprise 21 ProjectCost of the Enterprise 21 Project– Over $112 MillionOver $112 Million

Lost Sales RevenueLost Sales Revenue– Over $100 MillionOver $100 Million

Current Company StatusCurrent Company Status– $4.5 Billion Profits last year$4.5 Billion Profits last year

Current IndustryCurrent Industry

Industry is Growing Industry is Growing – Sales and profits are increasingSales and profits are increasing

Expanding in Types of ProductsExpanding in Types of Products– Candy and gumCandy and gum– Snacks and nutrition barsSnacks and nutrition bars

Produce mass amounts of productsProduce mass amounts of products– Halloween and Christmas are the Halloween and Christmas are the

busiestbusiest

Hershey’s ProductsHershey’s Products

Hershey bars and KissesHershey bars and Kisses TwizzlersTwizzlers Ice Breakers GumIce Breakers Gum Reese’s Peanut Butter CupsReese’s Peanut Butter Cups Mounds / Almond JoyMounds / Almond Joy Jolly RancherJolly Rancher Smartzone Nutrition BarsSmartzone Nutrition Bars

Hershey’s CompetitionHershey’s Competition

Nestle CompanyNestle Company– Nestle Crunch Bars, ButterfingerNestle Crunch Bars, Butterfinger

Mars IncorporatedMars Incorporated– M&M’s, Snickers, TwixM&M’s, Snickers, Twix

Hershey’s ConclusionHershey’s Conclusion

Enterprise 21 was a huge projectEnterprise 21 was a huge project

Hershey’s lost millions of dollars in sales from Hershey’s lost millions of dollars in sales from the Enterprise 21 projectthe Enterprise 21 project

Problems could have been avoidedProblems could have been avoided

Hershey’s has bounced back and recovered from Hershey’s has bounced back and recovered from their lossestheir losses

Today the company is expanding in Today the company is expanding in – Chocolate and confectionary products Chocolate and confectionary products – Snacks and nutrition productsSnacks and nutrition products