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Projects: Enterprise Planning



Hershey's Sweet Victory



By David F. Carr

  Table of Contents:
  1. Hershey's Sweet Victory
  2. ' What Went Wrong '
  3. ' What Went Wrong '
  4. ' What Went Wrong '
  5. ' Hershey Foods Inc'

The confectioner's holiday sales melted when it switched software in 1999. Now, a second try is succeeding. Here are the lessons learned.

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Hershey's Sweet Victory - ' Hershey Foods Inc'


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. Base Case">
Hershey Foods Inc. Base Case
Headquarters: 100 Crystal A Drive, Hershey, PA 17033
Phone: (717) 534-6799
Business: The leading chocolate maker and manufacturer of other confections.
Chief Information Officer: George Davis
Financials in 2001: $4.6 billion in revenue, $207 million in net income
Challenge: Restore confidence in distribution systems following a 1999 breakdown in Halloween orders, while extracting additional efficiencies from supply chain

Baseline goals:
  • Maintain sales growth of at least 3% to 4% per year, outpacing growth in the confectionary industry
  • Save $75 million to $85 million by the end of 2002 through restructuring initiatives, including closing of older distribution centers
  • Use supply-chain efficiencies to help increase gross margin above the 41.5% level achieved in 2001


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