Haribo struggling with production problems after ERP implementation

Again, the introduction of new enterprise software creates big problems for a company. This time it hits the gummy-bear manufacturer Haribo.

German confectionery maker Haribo is struggling with production problems in gummy bears, fruit gum vampires and other products. The introduction of a new software system has led to greater delivery difficulties than expected, the German press agency learned on Friday from business circles.

As the “Lebensmittel Zeitung” reports, the difficulties are related to the introduction of an SAP system. Virtually all products are affected. But the situation is now improving again.

The background: Haribo had begun in October 2018 to convert its outdated merchandise management system to a new program. The move was “no alternative”, said a company spokesman. However, the initial difficulties of the new system were greater than expected.

The “Lebensmittel Zeitung” reported that supermarkets had complained about missing deliveries. But according to Haribo the worst is over now. “Today, we see that our delivery capability continues to improve day by day and week by week,” said one company spokesman.

/The introduction of SAP systems have also caused complications for other companies. Thus, the change at the discounter Lidl caused according to media reports costs of up to 500 million euros/.

The production problems fall in a time in which Haribo has to fight in Germany anyway . After all, consumers were less likely to use Haribo products this year, as the company learned. The “Lebensmittel Zeitung” reported, citing market researchers, the sales of gummy bears had temporarily decreased by 25 percent.

Among other things, three new TV spots will help. For Haribo, it was self-critical: “In Germany, niche products have become too important.” In future, the company will focus more strongly on its core ranges and top products.

Business is currently running better abroad than in Germany. “The Haribo Group is growing better than average internationally and continues to gain market share,” emphasized a company spokesman. Since the middle of last year, Haribo is the number one in the US market and have last “sold even more gold bears than in Germany”.

According to industry analysts, such problems with project implementation are not exclusive to SAP, but can occur in any ERP projects. Haribo did not provide any details about the project, such as testing methods or project management plans, so analysts could not comment specifically on the situation in the company. However, problems such as what Haribo experienced with complex ERP implementations can be avoided or at least mitigated through careful project planning and further project management.