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The market leader of automobile wheels suffered from a new ERP system

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19.08.10, 17:10, Msk

Problems with recently implemented ERP system forced the largest world supplier of automobile wheels, Superior Industries International company, to delay providing financial results of the second quarter, said in the statement of the company and U.S. Securities and Exchange Commission.

According to Rosa Periana (Ross Perian), CIOs of Superior Industries International, recently the company implemented the QAD system. Mr. Perian did not provide the additional information about the project, it is known only that a system was brought into operation on March 29 the current year.

As it is stated in the document though the company management "works hard", it "does not allow without additional efforts and expenses" to prepare financial statements because of the "unforeseen delays" connected with the ERP system.

Problems generally arise because closing of quarter is performed the first time in the ERP system and also in connection with changes in legislative structure of Mexico where there is also a company.

QAD do not comment on current situation.

Superior Industries International, Wang-Nays, the State of California, in 2009 gained income of $419 million. The company sharply suffered economic downturn and also recession in automotive industry as in 2008 revenues of the company were $755 million.

Meanwhile, problems with the ERP system in Superior do not seem such heavy, as in Levi Strauss company which in 2008 really felt considerable decline in income because of errors when implementing the ERP project.

According to the analyst of Forrester Reseach Paul Hamerman, in general it is important to consider difficulties at accomplishment of the ERP project in the correct context. ERP systems represent for the companies both new opportunities, and potential problems as they can be configured taking into account business needs. It quite often leads to a failure of large projects. The basic functionality of a system provides 70-80% of functions necessary for the enterprises, and then expensive completion of software which can never be finished is required.

Besides, according to Mr. Hamerman, other problem is represented by bad project management and wrong assessment of that, this system of the specific organization how well approaches. Nevertheless, the most part of ERP systems are started successfully even if and with small delays.

In the market of the ERP systems provided according to the SaaS model such resonant unsuccessful projects, as were not observed at deployment of "traditional" software. One of the reasons of it can be the fact that SaaS of ERP still sootvetvut to requirements of medium business and the small companies, and do not provide the same level of opportunities for setup.