Cadbury blames IT for £12m profit dent
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Posted in IT Director, 9th June 2006 10:19 GMT
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Chocolate maker Cadbury Schweppes blamed problems with its SAP inventory system for a £12m downturn in profits.
The introduction of the system in the fourth quarter led to glut of Cadbury products. Coupled with weak sales in January - all those New Year Resolutions - the company was forced to heavily discount some chocolate bars to clear its inventory.
The new ERP system is part of a global IT project at Cadbury called Probe which is looking for £50m in annual savings.
The chocolate maker also blamed high oil prices for its problems - forecasts were made on the basis of $60 a barrel rather than $70.
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