Case Study 4.1.2013

Recovering a $15M Oracle ERP Implementation

Trexin led a successful launch and a realigned operating model to recover a $15M investment.

Business Driver

Our Client initiated an ambitious transformation program centered on an enterprise implementation of Oracle ERP across six independent business lines. After a year of work and $15M, the system was still not in production for a single business line and the CFO asked Trexin to get the project back on track and create a road map for full remediation.

Approach

Responding with a crossfunctional recovery team comprised of program execution and technology specialists, Trexin embedded itself within the business units to assess the situation across nine critical success areas: strategies, ownership, program leadership, functional leadership, program management metrics, technology, readiness, support, and change management. Within two weeks, Trexin presented our Client with three alternatives:

  1. Immediately shutdown the program and fallback to legacy systems
  2. Pause to reset the team after the next build, or
  3. Continue forward more deliberately with stage-gate conditions for progression.

Our Client chose to continue and worked with Trexin to execute the stage-gate road map, emphasizing the introduction of baseline functionality before adding more sophisticated features. Trexin also began an extensive effort to reestablish organizational lines of communication, responsibility, and accountability needed to properly deploy the system.

Results

The first business was brought online within 5 months after deciding to continue Order backlog quickly improved by 50% and weekly shipment performance consistently measured above pre-implementation averages and was sustained for longer periods Tangible cost reductions were obtained (estimated at $5.5M over 3 years) related to:

  • Improved warehouse management system, directed picks, and put-aways
  • Computer operating expense reductions
  • Inventory accuracy improvements and head count reductions
  • Reduced fill penalties and higher margins associated with fill-rate improvement
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