Mercantile Produce Brokers Case Study

The Mercantile Produce Brokers (Pvt.) Ltd has incorporated as a Private Limited Liability Company, under the Companies Act 1982, in September 1995. This is a tea brokering company. In 1992 MPBL had a market share of 1 percent with investment of Rs.14million. The Restructuring also involved the transfer of 60 percent of the share capital to Mercantile Produce Brokers (pvt) Ltd. The Company has a team of highly knowledgeable, skilled and experienced person in the Tea industry, which had been the main contributor to the company's success and hence should be treated as the most valuable asset of the company for its continued growth.
They normally known as a big player in tea brokering market, currently they hold the position of 4th place in market.
Through that it make huge chaos to the company. Basically that software system has mapped and interfere with the operations that has done by the company. But day by day the software popping up many misleading information regarding about the whole operational statics. Company maintain a loan lending scheme as well as a warehouse management system through that legacy software system. But at end of the day it has provided misleading information; with that information company has forecast wrong figures to the future market planning but due to the wrong figures it has mislead; the whole company forecasting strategies as well as operational cost has risen up by massively. When company is dependent on old legacy system both the front end and back end has integrated commonly. But that integration is not a good hurdle to pass information to the management. Because there’s no any separation in data and information towards to the management people. Because of that to the management it has generate wrong information about loan management when they try to recover loans from them they has literally paid for the MPB Company but the system has generating wrong information to them. That makes them to move to a back end new ERP solution to mitigate and solve the problems that pops up from the legacy
Therefore without disclosing the name of the company, they provided information as to how this was a failure. They are not disclosing information because it’s a black mark for their company profile. As a failure company they express that this is doing operations in logistics. Main reasons for that
 Ineffective communication
If a new system has to be implement they are should be a good communication with the ERP system. But in this case this tea brokering company doesn’t had a good communication with the ERP system builders there for they design their own way how they know but it makes a chaos to the company. Because it doesn’t makes compares with the tea brokering companies’ operational system.
 Squeezing deadlines
Mainly when an ERP system has to implement it mainly takes 9 months to 8 years. But the tea brokering company wants it within 2 months to implement. They at first give them 8 months’ time to complete but with the chaos pop up they wants to squeeze the time line in to 2 months with the budget. But somehow they completed the task but with no assurance about the system what they had