Online order system snafus blamed for 50% drop in 1999 net incomegreenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread
Online order system snafus blamed for 50% drop in 1999 net income
By Julia King 02/15/2000 Thomas & Betts Corp., an electronics components manufacturer in Memphis, blamed problems with a new Internet-based ordering system for $20 million in shipment delays and a nearly 50% drop in 1999 income.
"We chose to transition to those new systems at a time when our organization was already engaged in a massive cost-reduction program, integration of acquisitions and preparation for the Y2k changeover. That caused missteps," said CEO Clyde R. Moore in an earnings statement released today.
In addition to the $20 million in delayed shipments, the company said its failure to launch its new Thomas & Betts Order Processing System, or TOPS system, until fiscal 2000 led to nearly $24 million in lost sales and $18 million in increased freight and labor charges for the year.
-- Martin Thompson (email@example.com), February 19, 2000