IT problems cost Cadbury

IT problems at the UK arm of Cadbury Schweppes have contributed to a £12m deficit in profits, according to its chief executive, Tod Stitzer.

IT problems at the UK arm of Cadbury Schweppes have contributed to a £12m deficit in profits, according to its chief executive, Tod Stitzer.

There were manufacturing and supply chain issues relating to the implementation of Probe, a £200m four-year global IT programme for realising the benefits from a SAP enterprise resource planning system, said Stitzer.

“We entered 2006 with higher stocks in the trade and higher inventory than we would normally expect and we took the decision to clear this stock through higher discounts ahead of Easter.” The problems have now been resolved, Stitzer said.

The Probe project will build an integrated system for sales, finance, planning, manufacturing, distribution, marketing and purchasing.

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