If your ERP implementation feels like you’re assembling IKEA furniture without instructions—at peak production season—this article is for you.
ERP systems are the digital backbone of modern manufacturing operations. But when these rollouts go wrong, they go spectacularly wrong. We’re talking millions down the drain, lawsuits flying, and reputations trashed harder than your old Excel sheets.
At Data V Tech, we believe learning from failure is smarter than repeating it. So, grab a coffee (or something stronger) and let’s dissect seven notorious ERP disasters. Why? Because if giants like Hershey’s and Revlon can mess it up, so can anyone—unless you’re paying attention.
“Instead of learning from other people’s success, learn from their mistakes.” – Jack Ma
1. Covered Oregon – Trying to Boil the Ocean (and Burnt $300 Million)
In 2012, Covered Oregon thought it was a good idea to simultaneously implement Obamacare and overhaul all of its transaction processing systems. Spoiler alert: it wasn’t.
Despite funneling $134 million to Oracle, Oregon couldn’t process even one application. Bad decisions snowballed until lawsuits were flying both ways. The lesson? Scope creep kills. Don’t tackle ten missions in one rollout.
2. Mission Produce – ERP Déjà Vu (Now with Avocados)
Mission Produce rolled out ERP in 2021 to boost global ops. What they got instead was unreliable inventory, invoicing delays, and $4.1 million in extra costs—$1M of which went straight to ERP consultants.
Even CEO Stephen Barnard admitted, “The extent and magnitude was greater than we anticipated.”
Lesson? Underestimate ERP at your own peril. Complexity is always higher than it looks from the outside.
3. National Grid – Testing? What Testing?
National Grid’s SAP deployment was blindsided by Hurricane Sandy. Based on testing from Wipro (who, by the way, didn’t fully grasp U.S. regulatory environments), they decided to go live.
The system promptly buckled under the pressure of emergency repair operations. Testing wasn’t insufficient—it was practically irrelevant by the time the environment changed.
Lesson: Test like you mean it—and test for the worst-case scenario, not just the ideal one.
4. Waste Management – When Trust Costs Half a Billion
SAP promised Waste Management $220 million in savings and an 18-month rollout. No proof. No prototype. Just vibes.
Spoiler: the system was a hot mess. Waste Management sued for $500 million. And yes, they regretted trusting the pitch without a solid reality check.
Lesson: If it sounds too good to be true, it is. Demand proof. And then test it yourself.
5. MillerCoors – Bad Blood with the Implementer
MillerCoors hired HCL Technologies to deliver a sophisticated SAP warehouse management system. But when the project went live in 2015, it already had over 50 known defects. Thousands more showed up after.
HCL billed $9.6 million extra. MillerCoors sued. The partnership crumbled. Everyone lost.
Lesson: Choose your ERP partner like you choose your life partner—with lots of vetting and a solid prenup (ahem, contract).
6. Revlon – Beauty Meets ERP Beast
After merging with Elizabeth Arden, Revlon wanted to centralize their systems using SAP S/4HANA. What they got was the digital version of a mascara meltdown.
$54 million in costs, lawsuits, a tanking stock price, and catastrophic issues at their North Carolina plant. Revlon didn’t just roll out ERP—they rolled over their operations with it.
Lesson: An ERP system that looks good but doesn’t fit your processes? It’s just lipstick on a legacy problem.
7. Hershey’s – Halloween Horror Show
In 1999, Hershey tried to go live with SAP during their busiest season. Add an unrealistic timeline, parallel systems, and minimal training, and you get empty shelves on Halloween.
Sales plummeted. Investors were spooked. And all because they thought they could implement ERP faster than a Kit Kat melts.
Lesson: Never, ever go live during peak season. That’s ERP 101.
Why ERP Projects Fail (Even for the Big Guys)
Let’s wrap this up with a checklist of common ERP sins:
- No confirmation of system requirements
- Unrealistic timelines
- Insufficient funding
- Overconfidence in tech vs. business outcomes
- Poor testing
- Choosing the wrong partner
- Skimping on training & change management
Sound familiar? Don’t panic. We’ve helped manufacturers across industries dodge these pitfalls and deploy successful, stable, scalable ERP systems.
Final Word: Fail Cheaply by Learning for Free
ERP systems aren’t inherently risky—bad planning is. Whether you’re a global manufacturer or a local powerhouse, the key is preparing smarter, testing deeper, and partnering better.
Need help? Contact Data V Tech for a free consultation. We’ll help you build a roadmap that avoids billion-dollar blowups and sleepless nights.
