The Opportunity
Teepak had been acquired by a private equity firm that instructed the management team to
prepare the corporation for a potential sale.
The potential sale was made less attractive due to disjointed systems and high IT costs. From a
global perspective Teepak’s technical infrastructure consisted of multiple hardware and operating
system platforms that were not compatible. The catalogue of applications software included two
manufacturing ERP systems, two different financial ERP systems, a Human Resources system,
multiple MES (Manufacturing Execution Systems), and proprietary consolidation routines.
Management could not effectively analyze the cost of the same product manufactured at different
sites. Nor could sales view customers from a global perspective due to multiple master files
systems and nomenclatures. And management could not provide financial statements to the
private equity ownership in a timely and confident manner