The IUP Journal of Operations Management
Case Study
ERP Implementation Failure at Revlon

Article Details
Pub. Date :August, 2021
Product Name : The IUP Journal of Operations Management
Product Type : Article
Product Code : IJOM40821
Author Name : Syeda Maseeha Qumer and Debapratim Purkayastha
Availability : YES
Subject/Domain : Management
Download Format : PDF Format
No. of Pages : 16



This case is about the failure of ERP implementation at global cosmetics giant Revlon Inc and the impact this had on the company's business. In early February 2018, Revlon rolled out a new ERP SAPS/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. Revlon was unable to fulfil product shipments of approximately US$64 mn of net sales during 2018. 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?

ERP problems, including implementation failures, are common. But an ERP problem that results in an investor lawsuit is rare.i

- Jim Johnson, Founder and Chairman, The Standish Group
International Inc., A Research and Consulting Firm, in May 2019.

In 2019, global cosmetics giant Revlon, Inc. (Revlon) faced a series of class action lawsuits from its investors over the planning and implementation of its new Enterprise Resource Planning system (ERP) SAP S/4HANA1. Four law firms had filed the class action suits based on the company's quarterly results with Revlon admitting that it had been unable to fulfil orders to the tune of $64 mn when one of its