SAP project costs cited in jeweler’s bankruptcy filing SAP project costs cited in jeweler’s bankruptcy filing SAP project costs cited in jeweler’s bankruptcy filing

This one is back from 2009 and not entirelty a bug, but still relevant and came in up conversation recently (I’m working with a team to implement an ERP at my day job):

Shane Co. signed a contract with SAP AG in 2005 for a “highly sophisticated point-of-sale and inventory management system,” with an original projected cost of $8 million to $10 million and a one-year rollout schedule, the filing states. But costs ended up skyrocketing to $36 million, and the implementation stretched out to 32 months before the ERP system eventually went live in September 2007.

The company noted that it subsequently discovered that the new system “did not yet provide accurate inventory count numbers,” causing Shane to become “substantially overstocked with inventory, and with the wrong mix of inventory.” That added to Shane’s capital costs and affected sales for the rest of 2007 and the first nine months of 2008, the court document says.

Source: https://www.computerworld.com/article/2530405/sap-project-costs-cited-in-jeweler-s-bankruptcy-filing.html