SAP Rollout Hits Wabash Profits

By Marc L. Songini

September 18, 2006 12:00 PM ET

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Computerworld - Wabash National Corp. is working to stabilize an implementation of SAP business applications.

The Lafayette, Ind.-based maker of commercial truck trailers had said that problems that resulted from the flawed rollout of the software have hurt its production and shipping operations, contributing to disappointing second-quarter earnings. It reported $5 million in profits for the period, down from $49 million in the same period last year.

A spokesman for Wabash National last week declined to discuss the complications that resulted from the SAP implementation.

However, the company claimed that the problems are not related to the SAP software, which is replacing a mix of homegrown and third-party applications.

The company was hit with materials shortages just after going live with the SAP software in May, Wabash said. The problems hampered manufacturing operations, even causing downtime on the production line, the company said.

Wabash said it expects the materials shortage will limit its ability to make trailers until November.

An SAP spokesman last week said the vendor is helping Wabash National handle the problems, which he also noted "were not related to the software."

Read more about erp/supply chain in Computerworld's ERP/Supply Chain Knowledge Center.

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