A food manufacturer with consolidated sales of about USD2129 million and a history of more than 100 years,
Glico’s website on May 1 states the following
Due to a system failure that occurred on April 3 as a result of a switchover in the core system, we had been aiming to resume shipments of chilled products by mid-May, but has postponed the resumption in order to take all possible measures.
The failure of 17 products for more than a month is the biggest failure that has ever occurred in Japan. ?Including sold on consignment, the total number would be around 50)
Glico estimates the decrease in sales at USD97million, but I believe that there will be even greater costs, especially in relation to retailers. The inability to provide a stable supply is terrible for major retails, which will ask huje penalty.
The switch to HANA (integration of sales, procurement, manufacturing, logistics, and accounting by building on HANA) was scheduled for December 2022 at USD138 million , but has been postponed to March 2024 and is said to become USD 220 million.
It has long been said that SAP is not fit Japanese manufacturing industry.
I was actually going to write an article about a recent HANA implementation failure at a major manufacturing company, but a much bigger failure has occurred.
Is this happening in your country?