Dive Brief:
- The Clorox Company rolled out the first phase of its ERP implementation plan in Canada on July 1, according to its earnings report. The U.S. component is next, as mentioned by CEO and Chair Linda Rendle.
- Rendle emphasized the importance of documenting lessons learned for the upcoming ERP transition, aiming for significant benefits in 2026 and beyond.
- Despite disruptions caused by a cyberattack, Clorox’s cloud-based ERP project remains on track, albeit with higher projected costs as part of a five-year modernization program.
Dive Insight:
Digital transformation through ERP overhauls is a substantial investment that can yield long-term benefits for global organizations, even though it poses short-term operational challenges.
Clorox’s increased IT spending is geared towards enhancing its supply chain, digital commerce, innovation, and brand-building capabilities, aligning with other brands seeking agility and efficiency improvements through modern ERPs.
Companies like Hershey and Mondelēz are also focusing on ERP implementations to drive cost savings, operational optimization, and supply chain enhancements, reflecting a growing trend of prioritizing system migrations, with SAP playing a significant role in supporting these transitions.