Hillerich & Bradsby
Hillerich and Bradsby are best
known for the first name in bats--
the Louisville Slugger. Beginning
in 1857 as a manufacturer of butter
churners, the company became the
leading supplier of baseball bats in
the world. Baseball bats were the company's
sole products until the 1960's when Golf
and Hockey equipment were added to their product
lines. Wooden bats were the only bats made by
Hillerich & Bradsby until 1978 when they joined
the aluminum bat market.
The culture is one of innovation based upon a
strong family tradition of caring for one another,
according to the CEO. Leaders are promoted from
within the company and serve as coaches. These values
were put to the test in the 1990s, however.
The computer system for the company, its Legacy
system, would no longer be supported after the turn
of the century (or Y 2K). Competition was getting
fierce and the firm's internal systems were no longer
efficient or effective. There were problems in all
areas including order entry, production and inventory
control. The company faced a crucial decision--
to implement a system of connected stand-alone
computers or to start over moving toward supply
chain management that integrated all functions
within a central database.
The decision was made to replace the Legacy system
with an ERP system (Enterprise Resource Planning).
The transition was long, difficult, and challenging.
During the transition, management considered
"pulling the plug on ERP." The investment in ERP
was significant and no bottom line savings would be
realized for a long period of time.
The transition took 18 months to configure the
new ERP system; this resulted in high levels of stress
throughout the organization, and mistakes on production
and inventory abounded. It was five years before
quantifiable savings were realized. However, with the
new system 85% of orders are shipped on time and
complete compared to only 40% using the Legacy
system. Customer satisfaction ranges from 90-95%
with the new system fully operational.
Discussion Questions
Which of the major applications of information
technology did Hillerich and Bradsby turn to? Why?
Evaluate Hillerich and Bradsby's ERP system as
it relates to two of the characteristics of useful information
(complete and reliable).
What impact on "costs" do computers have in
relation to IT?
