The bonus flooring sequence "implemented the many poignant phase" of its SAP plan during the entertain in late August, it reported Wednesday. Its components add a new point-of-sale network along with storage area administration and register modules.
While business one after another without stop during the project, and net sales rose US$6.7 million to $147.2 million, descend capability led to an estimated $12 million and $14 million in unrealized net sales, according to the company. Net income fell scarcely 45 percent to $4.3 million.
But Lumber Liquidators expects the SAP network to have poignant benefits is to firm over time, CEO Jeffrey Griffiths mentioned during a discussion call Thursday. It will help the firm blossom internationally, together with take value of a extended ecosystem of interdependent applications, he added.
He attributed the problems in the entertain to employees having difficulty adjusting to the SAP software, that he yet praised.
"One features of our formerly network is that it was really adjustable and easy to manipulate. SAP is sufficient more structured, you follow steps, but it's sufficient more sound since that was a change for us," he said. "There were a couple of things that didn't work quite right, a couple of things that were unique to our business that you didn't see as well forward of time," he added.
Prior to SAP, Lumber Liquidators moreover in use many handbook processes, running a few operations off spreadsheets, he said. With SAP, "we're assured that we're going to see poignant improvements and benefits."
As of now, Lumber Liquidators' staff is "probably at 85, 90 percent capability and you obtain improved every week," Griffiths mentioned
The incident differs from other plagued SAP projects, such as one conducted by Waste Management that led to a caustic lawsuit. That matter was eventually staid .
"Lumber Liquidators is a valued SAP patron and you sojourn burly and certain partners," SAP orator Andy Kendzie mentioned in a statement. "SAP is actively intent with the firm in completing their doing and you think this is completely on track. When complete, you are assured Lumber Liquidators will reap poignant benefits from the network and it will go on to be a vicious component in the company's expansion strategy."
Overall, ERP projects can go really bad for multi-part reasons, such as "changing inner mandate by the firm that slow down network integrator implementation, insufficient of resources for practice and network design, and complexity in the software," mentioned Altimeter Group researcher Ray Wang.
Chris Kanaracus covers craving program and general technology violation headlines for The IDG News Service . Chris's e-mail residence is Chris_Kanaracus@idg.com
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