By Eric Kimberling, CEO of Third Stage Consulting
Yes, you read that right—ERP software nearly ruined gummy bears.
Several years ago, Haribo, the beloved German candy company behind those colorful, chewy bears, ran into a digital disaster during their SAP ERP implementation. The failure wasn’t just an inconvenience—it led to major supply chain issues during the busiest candy-buying season of the year. As a result, shelves were empty, operations crumbled, and my own family couldn’t find a single bag of gummy bears for the holidays. Devastating.
Let’s break down why the project failed, what lessons you can take away from it, and how you can avoid the same fate in your own digital transformation journey.
🍬 The Haribo ERP Meltdown: What Went Wrong?
Haribo’s ERP failure wasn’t just about budget overruns or blown timelines—it was about operational chaos.
They went live with SAP right before the holidays, a peak season for candy sales. The new system failed to handle their supply chain needs, resulting in product shortages across the board. Not only could they not get products on the shelves, but they also had to increase headcount to manage the fallout manually—driving up costs instead of driving ROI.
Industry analysts estimate that Haribo lost millions of euros as a direct result. And here’s the kicker: it wasn’t just a bad implementation—it was a strategic failure with avoidable root causes.
5 Critical Lessons From the Haribo ERP Disaster
1. The Real Risk Isn’t Just Budget—It’s Disruption
Most companies focus on budget, timeline, and resource allocation up to go-live. But what about what happens after?
Too few organizations think about the post-go-live risk: What happens if you can’t ship product? Run payroll? Close the books? Or worse—what if you damage your brand and customer trust?
Lesson: Factor in the real cost of operational disruption. That’s where true ERP risk lives—and where ROI can be won or lost.
2. Executive Alignment Isn’t Optional—It’s Everything
If a project fails this hard, you can bet the executive team wasn’t fully aligned or involved. In our experience, lack of top-down alignment leads to:
- Confusion around business process design
- Misalignment on target operating models
- Poor risk mitigation strategies
- Zero accountability for course correction
Lesson: Executive engagement isn’t about attending status meetings. It’s about owning the vision, making tough calls, and being hands-on with strategy and decisions.
3. You Can’t Implement for the Past
Haribo was in the middle of expanding its supply chain into Asia—yet their SAP implementation was built around their old operating model. The system they were launching didn’t support their evolving business requirements.
Lesson: Always define your future-state operating model before you configure technology. Your software should support where you’re going, not where you’ve been.
4. User Testing Is Not a Checkbox
Technical testing ensures your system functions. But what about the business side?
Haribo failed to properly test the system with real-world scenarios. User Acceptance Testing (UAT) and Conference Room Pilots should identify whether the software supports your actual business processes—not just whether the code works.
Lesson: Your people need to test the system using real data, real processes, and real use cases. Otherwise, you’re launching blind.
5. Don’t Underestimate Stabilization Costs
Haribo had to hire additional resources post-go-live to fix what the software couldn’t handle. This isn’t unique—most ERP failures involve a second wave of costs due to manual workarounds and firefighting.
Lesson: Account for post-go-live support and potential failure scenarios. A well-prepared stabilization plan is your insurance policy.
The Bigger Picture: Avoiding ERP Failure
Haribo’s ERP journey is a cautionary tale for every organization planning a digital transformation. The problem wasn’t SAP itself—it was the lack of strategy, planning, alignment, and execution.
At Third Stage Consulting, we’ve helped hundreds of clients navigate complex ERP and digital transformation journeys. And if there’s one thing we’ve learned, it’s this: software doesn’t fail—projects fail.
Want to Learn More?
If you’re preparing for a digital transformation, don’t go in blind. Download our free ebook, “Lessons from 1,000 Digital Transformations,” which includes detailed case studies from SAP, Oracle, Microsoft, and other major ERP platforms. It’s packed with real-world insights and practical frameworks to help you plan for success—not failure.
And don’t forget to join us at Stratosphere 2025—our flagship digital transformation conference happening live in Denver and virtually. This year’s theme: AI’s Role in Digital Transformation. Get your tickets at stratosphere2025.com and use our discount code below for exclusive access.
Final Thought
Digital transformation doesn’t have to be a disaster. It can be your competitive advantage—if you do it right. Let Haribo’s missteps guide your strategy so you’re not the next brand in the headlines… or the next family left gummy bear-less.
Want to talk ERP strategy with an independent expert? Contact us today.
