Product details

This case is about the failure of ERP implementation at global cosmetics giant Revlon Inc (Revlon) and the impact this had on the company's business. In early February 2018, Revlon rolled out a new ERP SAP S/4HANA for a large part of its North American business to support new customer support technologies and improve performance. However, the company faced issues during the ERP changeover that caused its Oxford manufacturing facility to experience service level disruptions and impacted its ability to manufacture certain quantities of finished goods and fulfil shipments to several large retail customers in the US. The company cited lack of design and identified material weakness in its internal control over financial reporting due to the implementation of the new ERP system. Revlon's ERP system failed after it went live in 2018, resulting in a loss of sales, a dip in stock price, and investor lawsuits. Revlon implemented a robust service recovery plan and resolved the service level disruptions resulting from failure of the ERP. Though the company took several steps to remediate material weakness in its internal controls, it remained to be seen whether it could prevent such ERP related problems from recurring in the future. What could Revlon have done to understand and mitigate the inherent ERP implementation risks and ensure that its go-live ERP did not affect its operations? Going forward, how should Revlon manage ERP implementation concerns to reduce disruption of operations?