We encouraged our client to begin implementation of a new ERP platform (NewSystem) for their facilities. At the beginning of the case, every member of the management team was convinced this was not the right answer, but the business case and process Bain facilitated persuaded them to begin pilots and pursue implementation. The expected annual run-rate benefits are 2% of revenue.
A range of other benefits were realized as part of the project. These include a $4 million one-time inventory reduction, $3 million in savings from generic product selection, improved customer service/retention and risk reduction, leading to fewer regulatory issues. Furthermore, operating efficiency was increased, performance metric reporting improved the establishment of an IT steering group help the business alignment/value assurance efforts.