Cosmetics giant Revlon had acquired Elizabeth Arden, Inc., in 2016. Both companies had had positive...
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Cosmetics giant Revlon had acquired Elizabeth Arden, Inc., in 2016. Both companies had had positive experiences with ERP rollouts in the past Elizabeth Arden with Oracle Fusion Applications, and Revlon with Microsoft Dynamics AX. But the merged company had made the fateful choice to go with a new provider, SAP HANA, by December 2016.
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The rollout was disastrous enough to essentially sabotage Revlon's own North Carolina manufacturing facility, resulting in millions of dollars in lost sales. The company blamed "lack of design and maintenance of effective controls in connection with the ERP implementation" for the fiasco in March 2019, and noted that "these ERP-related disruptions have caused the company to incur expedited shipping fees and other unanticipated expenses in connection with actions that the company has implemented to remediate the decline in customer service levels, which could continue until the ERP systems issues are resolved." The crisis sent Revlon stock into a tailspin that in turn led to the company's own stockholders to sue. What could be some of the mistakes undertook by Revlon for its unsuccessful ERP implementation? Name five (5) potential issues.
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