A new system should help your business achieve its goals. But software fit, implementation, or operational readiness issues can disrupt the processes that generate revenue and serve customers.

These cases illustrate different financial consequences, including estimated lost sales, reduced operating income, contract value, and disputed damages. The amounts are not directly comparable. The practical lessons below are Wayferry’s interpretation of the reported events.

ERP and software failure cases $10 million to $100 million

Mohawk Industries: Order System Conversion Reduces Operating Income by About $30 Million

Reported impact: Approximately $50 million in reduced sales and $30 million in reduced operating income in Q1 2025. These are two measures of the same disruption and should not be added together. ir.mohawkind.com

Source: Mohawk Industries, Q1 2025 presentation · Mohawk Industries, earlier account of the disruption

Mohawk Industries introduced a new order management system in its Flooring North America business after 2024 ended. The company reported shipping and invoicing errors, as well as invoicing delays. It said the conversion did not affect its manufacturing or financial systems, but order-management problems still disrupted its ability to serve customers.

In its first-quarter 2025 presentation, Mohawk estimated that the conversion reduced sales by approximately $50 million and operating income by approximately $30 million. These are two measures of the same disruption; don't add them together.

What buyers should verify

Test the complete path from customer order through shipment and invoicing, including partial shipments, corrections, and other exceptions. Use realistic data and transaction volumes, and set measurable standards for accuracy and timeliness. Confirm that the connected processes meet those standards before authorizing the transition.

Zimmer Biomet: ERP Transition Disrupts Order Fulfillment and Sales

Reported impact: Approximately $54 million in estimated sales impact in 2024. This is an industry publication’s estimate; Zimmer Biomet reported that the ERP implementation reduced annual net sales by less than 1% but did not give a dollar amount. sec.gov

Sources: Zimmer Biomet, 2024 annual report · ORTHOWORLD, estimated sales impact

Zimmer Biomet moved a significant portion of its U.S. and Canadian sales and commercial operations to a new ERP system in July 2024. The company reported problems fulfilling customer orders, including delayed shipments to international affiliates. Shipping returned to approximately its previous level by the end of the year.

Contemporary industry reporting estimated an impact of about $54 million on 2024 sales. In its annual report, Zimmer Biomet estimated that the implementation reduced full-year net sales by less than 1%, without specifying a dollar amount. The $54 million is an estimate of affected sales, not the cost of the ERP project or a measure of lost profit.

What buyers should verify

Test the complete order-to-shipment process across the locations and systems involved, including exceptions and shipments to affiliated businesses. Set measurable standards for order accuracy, shipping speed, and transaction volumes. Confirm that the business can meet those standards before expanding the rollout, and establish who can delay the next stage if it cannot.

Caleres: SAP Upgrade Contributes to $10 Million to $15 Million in Lost Sales

Reported impact: Approximately $10 million to $15 million in estimated lost sales in Q2 2024. Caleres attributed this amount to problems with its SAP upgrade. caleres.com

Source: Caleres, second-quarter 2024 earnings-call transcript

Caleres upgraded its SAP system to a cloud-based version for its portfolio of footwear brands. E-commerce and order shipping initially appeared to be working, but delayed operational reports left employees without information they needed to run the business. Problems with size reporting also made it difficult to fulfill some dropship and replenishment orders.

Caleres estimated that the system problems caused approximately $10 million to $15 million in lost sales during the second quarter of 2024. The company also cited weak seasonal demand and shipping problems unrelated to the ERP upgrade as contributors to its results. The $10 million to $15 million figure is Caleres’ estimate of the system’s sales impact, not its total quarterly sales decline.

What buyers should verify

Test whether employees can see and trust the information they need to make daily decisions, including operational reports and product-level data. Include dropship, replenishment, and other important order types in user acceptance testing. Check that reports are available on time and reconcile to the underlying transactions before approving the transition.

Revlon: ERP Disruption Prevents Approximately $64 Million in Shipments

Reported impact: Approximately $64 million in unfulfilled product shipments, according to an investor lawsuit. Revlon disputed the lawsuit’s allegations.

Source: Patrick Thibodeau, TechTarget

Revlon’s SAP ERP implementation disrupted operations at its Oxford, North Carolina, manufacturing facility. The problems affected its ability to manufacture products and fulfill shipments to major retail customers.

An investor lawsuit alleged that poor preparation and planning prevented fulfillment of approximately $64 million in net sales. Revlon disputed the lawsuit’s merits. The case shows how an operational disruption can extend into investor relations and litigation.

What buyers should verify

Establish how the business will continue manufacturing and fulfilling customer commitments during the transition. Require evidence that critical processes, inventory data, and interfaces are ready. Agree on the conditions for postponing go-live, the contingency arrangements if problems occur, and who has authority to make those decisions.

MillerCoors: A $53 Million Implementation Contract Leads to Disputed Claims

Reported amount: An implementation contract initially valued at approximately $53 million. MillerCoors subsequently sought $100 million in damages from HCL, but that claim does not establish an actual loss of $100 million. Computerworld

Source: Patrick Thibodeau, InformationWeek

MillerCoors hired HCL America to implement SAP under a contract initially valued at about $53 million. The brewer later sought $100 million in damages, alleging missed deadlines, defective work, and inadequate staffing.

HCL disputed responsibility and made counterclaims concerning MillerCoors’ own contribution to the project’s problems. The contract value and damages sought are different measures; neither establishes the final financial loss.

What buyers should verify

Define what each party must deliver and how completion will be demonstrated. Connect requirements to scope, named responsibilities, acceptance criteria, and delivery commitments. Verify the experience and availability of the people actually assigned to the project. Establish an escalation process that brings unresolved risks to accountable executives early.

Lumber Liquidators: Lower Productivity Leaves $12 to $14 Million in Unrealized Sales

Reported impact: Approximately $12 million to $14 million in unrealized net sales in Q3 2010. The company attributed the estimate to reduced productivity during its SAP transition. PCWorld

Source: Chris Kanaracus, PCWorld

Lumber Liquidators introduced a major phase of its SAP system covering store sales, warehouse operations, inventory, and product allocation. The company continued operating, but productivity declined across stores and warehouses.

The company estimated that reduced productivity resulted in approximately $12 million to $14 million in unrealized net sales during the third quarter of 2010. Its experience demonstrates that a system can remain operational while the business becomes less effective at fulfilling demand.

What buyers should verify

Measure readiness against business performance, including order completion, inventory availability, fulfillment speed, and employee productivity. Establish a baseline before implementation and agree on acceptable performance during the transition. Plan the staffing, training, and temporary support needed to maintain service while employees become proficient.

Decide before you commit to replacing your ERP

These cases show how costly problems can become when a new system does not deliver what the business needs. Before committing to a replacement, establish what your current ERP is holding back and whether a new system is worth the cost and disruption.

Wayferry’s standalone, fixed-fee ERP Replacement Decision Assessment gives your leadership team a documented recommendation: keep your current ERP, replace it later, prepare before replacing it, or proceed now.