Delivery Assurance – Rescue & Recovery
Automotive | ERP Transformation
Rescuing and Delivering a Stalled ERP Transformation for a $10B Distributor
Impact At A Glance
System Modernization
ERP system implemented across 68 warehouses
Growth Enablement
Eliminated limitations of the legacy system and enabled efficiency gains
Financial Stability
Restored financial predictability mitigating further losses
Project Overview
A $10 billion distributor of tires, car parts, lubricants, petroleum, natural gas, and renewable energy products faced a critical situation. Their ambitious ERP transformation project, intended to upgrade their tires and automotive components division to Microsoft Dynamics 365 (D365), was severely behind schedule, over budget, and stuck in development after more than five years. Liberty Advisor Group was initially brought in to perform a program health assessment, but our findings led to an expanded role: leading the entire program to a successful conclusion.
The Business Problem
The distributor’s ERP project was plagued by multiple, interconnected challenges:
- Outdated Legacy System: The division was operating on a 25+ year-old legacy system that could no longer support the company’s growth, fueled by three major acquisitions and significant organic expansion.
- Extensive Delays: The D365 implementation had been ongoing for over five years (a year and a half past its original go-live date), with minimal progress beyond the initial design phase. Testing and actual development were significantly lacking.
- Budget Overruns: The prolonged delays and lack of progress had resulted in substantial cost overruns, raising serious concerns about financial control.
- Impeded Growth and Integration: The outdated system and the stalled implementation were hindering the company’s ability to integrate its acquisitions and effectively manage its expanding operations.
Our Approach:
Liberty Advisor Group implemented a three-pronged approach to rescue the project:
1) Comprehensive Assessment: We conducted a thorough program health assessment, meticulously analyzing the project’s history, identifying root causes of the problems, and evaluating the existing plan (or lack thereof).
2) Strategic Reprogramming: Based on the assessment, we developed a realistic and achievable revised project plan, including a clear timeline, well-defined milestones, resource allocation, and a robust risk management strategy.
3) Program Leadership and Execution: Liberty Advisor Group took on full leadership of the project, providing experienced project managers, technical experts, and change management professionals to drive the initiative forward. This included coordinating efforts between the client, Microsoft, and any other vendors.
The Outcome
Liberty Advisor Group’s intervention delivered three crucial outcomes for the client:
1) Successful Go-Live and System Modernization: The Microsoft Dynamics 365 ERP system was successfully implemented across all 68 warehouses in the automotive components division. This marked a significant achievement after years of struggle and provided the company with a modern, scalable platform to support its operations.
2) Business Integration and Growth Enablement: The new ERP system provided the foundation for integrating the recent acquisitions and streamlining operations across the expanded business. This eliminated the limitations of the legacy system and positioned the company for continued growth and efficiency gains.
3) Restored Project Control and Financial Stability (Revised Scope): While the original project scope and budget were unrecoverable, Liberty Advisor Group successfully brought the project to completion within the revised timeline and budget established after our assessment. This restored financial predictability and demonstrated responsible project stewardship, mitigating further losses.
Conclusion
Liberty Advisor Group has expertise in rescuing and successfully delivering complex, large-scale ERP transformations. By providing a clear assessment, a realistic plan, and strong leadership, we helped the $10 billion distributor overcome years of setbacks, implement a modern ERP system, and unlock its growth potential. The successful go-live, after a prolonged period of uncertainty, represented a major turning point for the organization.
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