ERP Case Study

on
Success & Failure

Arun Kumar
Varun Mehrotra

Pacific Dunlop Garments

Pacific Dunlop Garments, in business for over
a century, owns the production and
distribution rights for many well-known
international brands and is the largest
garment retailer in Australia. It currently
operates seven factories in Beijing, Shanghai
and Guangdong.

Need of ERP
A decade ago the Group became over-extended and had
operational problems which led to insolvency. It used
information technology to strengthen production
management and control costs, reduce inventory, and
shorten production cycles.
The clothing industry is undergoing a transformation:
suppliers have to offer more than quality and value; they
must react quickly to the needs of customers and the
market; producers have to produce on a large scale and
standardize management practices; all enterprises in the
supply chain must learn how to co-ordinate and interact
more efficiently (integration between departments)
MAE installed in 1991 March at flagship organization.

Expected Benefit From New ERP

(MAE Millenar Apparel Enterprise )
To shorten its production cycle from three to
nine months to just fourteen days
Inventory Control
Supply Chain Collaboration
Change of Operation Mode

Results Of Successful Implementation

The MAE implementation team performed detailed
business process analyses in each of the Groups six
factories in China. Based on this, the team advised Pacific
Dunlop how to use MAE to re-engineer the Groups
business processes to streamline operations and improve
the efficiency of management and production. Pacific
Dunlop has achieved unprecedented profits after
implementing this solution.
Their product planning process has changed(earlier made
to stock)
Reduced stock inventory (65-80% )and warehousing(25%)
Shortened production cycles from 3 month to 14 days
Inter-connectivity in between different departments.

Why Was It Successful?

ERP System Testing
Careful And Analytical Selection Of ERP
Provider
Systematic study

Deloitte SAP ERP project failure

overview (2009)
Problem faced in entering data for various
department like HR, Payroll, Finance.
Problem faced in intra-connectivity
Financial, HR, and Payroll systems were
implemented by Deloitte.

Reasons for failure

Trainees / unqualified consulting resources on the
project
Pay rates, payroll, and wage information were
incorrect.
Huge amounts of custom coding to replace
standard SAP functionality.
Inability to easily make adjustments and resolve
compensation.
Insufficient training and change management.

Thanks..