Enterprise Resource Planning and Software Systems

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Introduction
Hershey Food Corporation, the biggest manufacturer of candy products in the United States, decided to implement a new Enterprise Resource Planning system titled Enterprise 21 starting in 1996. The ERP system consisted of many different software systems. These systems included SAP AG, Manugistics, and Siebel systems. With the implementation of these software systems, Hershey believed its mass market candy business strategy would be emphasized. Hershey’s Expected Benefits of Enterprise 21

Hershey had many goals for Enterprise 21. In general, Hershey had a goal of upgrading and standardizing the hardware and software systems. In attempt to upgrade the hardware, Hershey moved from a mainframe-based network to a client-server network. This upgrade would allow for Hershey to use and share its information with people inside the company as well as distributors outside the company, a critical aspect of establishing good customer relationships.

The upgrade and standardization of the software system was a much larger goal. The SAP system, which allows for communication within company functions, was to be installed with other software systems. Manugistics software system would be used to forecast production and scheduling. Manugistics would also be useful as a transportation management system. The benefit of this system would greatly lower inventory holding costs and transportation costs, the two largest expenses in logistics management. Hershey also decided to implement Siebel systems, which is designed to aid in establishing and maintaining customer relationships, as well as a measuring device of the effectiveness of marketing strategies. Hershey’s Implementation Approach

The first part of Hershey’s implementation process started with the installation of a bar-coding system. A bar-coding system is necessary to improve logistic management by tracking inbound and outbound materials and products. Due to a modification of the SAP system, Hershey decided...
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