How Did ERP Issues Cause Lamb Weston $135M Sales Drop?

Lamb Weston, a company known for its prowess in producing frozen potato products, recently encountered significant turbulence in its business operations due to an enterprise resource planning (ERP) system overhaul. The transition to a sophisticated SAP platform — intended to streamline their complex supply chain — became encumbered with obstacles. Missteps in the system’s implementation caused a detrimental lapse in inventory visibility at distribution centers, leading to a staggering $135 million drop in net sales over one fiscal quarter.

The ERP upgrade resulted in a sharp 16% sales volume downturn. This impact was most profound for customers needing a diverse product mix. Lamb Weston faced a domino effect of complications ranging from order receipts to delivery, thus affecting not only their financial stability but also jeopardizing valuable customer relationships due to order delays and cancellations.

Lamb Weston’s Mitigation Strategies

Lamb Weston executives Tom Werner and Bernadette Madarieta publicly acknowledged the severe difficulties faced during the company’s Q3 earnings call. To counteract the ERP launch problems, they assigned company personnel to distribution centers to manually correct data inconsistencies and adjust operational hitches directly at the source. Their hands-on approach eventually restored inventory oversight to its original effectiveness.

To repair weakened customer connections, Lamb Weston initiated a comprehensive plan: re-establishing direct sales communication and committing to heightened service standards. The subsequent rollout of the ERP system across North American facilities has been approached with extreme caution, employing test-driven pilot phases to avoid a recurrence of previous errors.

Lamb Weston’s encounter with ERP implementation pitfalls sends a stark reminder to large organizations embracing technological innovation: always prioritize preparedness, flexibility, and the recognition of how new systems can potentially disturb essential business workflows.

Explore more

Why Corporate Wellness Programs Fail to Fix Workplace Stress

The modern professional often finds that for every dollar spent on a meditation app by their employer, nearly one hundred and fifty dollars are drained from the global economy due to systemic burnout and disengagement. This economic disparity highlights a growing tension between the wellness industry, which has grown into a juggernaut worth sixty billion dollars, and the eight point

How to Fix the Workplace Communication and Feedback Crisis

The silent erosion of professional morale often begins not with a grand failure of strategy but with the subtle, persistent friction caused by poorly articulated managerial guidance. This disconnect between managerial intent and employee performance represents a significant hurdle for modern organizations, as traditional critique methods frequently lead to burnout rather than improvement. Addressing the central challenge of workplace communication

How Can You Close the Feedback Gap to Retain Top Talent?

When elite professionals choose to resign, the departure frequently stems from a prolonged absence of meaningful dialogue regarding their trajectory within the organization and the specific expectations surrounding their professional contributions. This silence creates a vacuum where uncertainty flourishes, eventually pushing high achievers toward the exit. Research indicates that nearly half of all employees who voluntarily leave their roles cite

Can AI Infrastructure Redefine Wealth Management?

The once-revolutionary promise of digital wealth management has hit a ceiling where simply layering more software atop crumbling legacy systems no longer yields a competitive edge for modern firms. This realization has sparked a fundamental shift in how the industry approaches technology. Instead of pursuing cosmetic updates, firms are now looking at the very bones of their operations to find

Family Office Models Reshape Korean Wealth Management

The skyline of Seoul no longer just represents industrial might but also signals a historic accumulation of private capital that is forcing the nation’s most prestigious financial institutions to rewrite their playbooks entirely. The traditional private banking model, once centered on the 1-billion-won investor, is undergoing a radical metamorphosis. As of 2026, a burgeoning class of ultra-wealthy households has redefined