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

Trend Analysis: Digital Marketing Innovations for 2026

In an era where consumer attention spans shrink by the second and technology evolves at breakneck speed, digital marketing stands at a pivotal crossroads, challenging brands not just to keep up but to anticipate shifts that will redefine engagement by 2026. With over 80% of global consumers interacting with platforms like Google and YouTube daily, as reported by Ipsos, the

GitOps for Hybrid Clouds – Review

The realm of IT infrastructure management faces an unprecedented challenge with hybrid cloud environments becoming the norm for over 80% of enterprises today, creating a pressing need for effective solutions. As organizations juggle on-premises systems alongside public cloud platforms, the complexity of maintaining consistency, security, and speed in software delivery has skyrocketed to levels that demand innovative approaches. Enter GitOps,

AI in Coding to Boost Demand for Software Engineers

I’m thrilled to sit down with Dominic Jainy, a seasoned IT professional whose expertise in artificial intelligence, machine learning, and blockchain has positioned him as a thought leader in the tech industry. With a passion for exploring how emerging technologies transform various sectors, Dominic offers unique insights into the evolving role of AI in software development. In this interview, we

How Are Digital Payments Shaping Sri Lankan E-Commerce?

Today, we’re thrilled to sit down with a leading expert in e-commerce and digital payment systems, who has deep insights into the evolving landscape of online shopping in Sri Lanka. With years of experience in analyzing market trends and technological advancements in emerging economies, our guest offers a unique perspective on how digital payments are reshaping the way businesses and

How Will DP World and PayPal Transform Global Trade Payments?

What happens when the gears of global trade grind to a halt due to slow, costly payment systems? For countless businesses, delays in cross-border transactions mean missed opportunities, strained cash flows, and frustrated partners. In 2025, a seismic shift is underway as DP World, a heavyweight in global logistics, and PayPal, a pioneer in digital payments, unite to tackle these