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Infor pays UK building and construction retailer Travis Perkins ₤ 4.2 m settlement following cancelled upgrade of ‘Sellotape and elastic bands’ ERP system

Infor pays UK building and construction retailer Travis Perkins ₤ 4.2 m settlement following cancelled upgrade of ‘Sellotape and elastic bands’ ERP system
Global ERP slinger Infor has paid UK hardware and construction retailer Travis Perkins £4.2m in settlement for a four-year failed ERP project that cost £108m. In its half-year interim results [PDF] published last week, the retailer said the "gain of £4.2m is the result of the full and final settlement of claims in relation to…

Global ERP slinger Infor has paid UK hardware and building and construction seller Travis Perkins ₤ 4.2 m in settlement for a four-year failed ERP job that cost ₤108 m.

In its half-year interim outcomes[PDF] published recently, the retailer said the “gain of ₤ 4.2 m is the outcome of the full and last settlement of claims in relation to the cancelled replacement of the Group’s merchant ERP system”.

The settlement connects to an earlier statement from Travis Perkins’ full-year 2019 results[PDF], released in March 2020, which stated: “Following the modification in technique to the replacement of the Group’s merchant ERP system revealed in July 2019, the Group terminated its relationship with Infor … in October 2019 and formally set out its damages claim.”

The full-year outcomes likewise detailed a ₤108 m problems relating to the stopping of the ERP replacement programme. The choice to end the program leaves the ₤ 7bn-revenue retailer, a home name in the UK, running its main enterprise systems in green-screen environments dating back to the 1980 s, sources close to the execution told The Register

In reality, Travis Perkins confessed as much when then CEO John Carter told the audience of Infor’s New York conference in 2016 that its systems were “being held together by Sellotape and elastic bands”.

With fantastic excitement, Carter and after that Infor president Stephan Scholl shared the phase to talk about the 24,000- user application of the CloudSuite version of Infor’s core M3 ERP product in a deal anticipated to be worth $200 m to the software application vendor over 15 years.

According to reports, Scholl stated: “It’s the largest cloud ERP deal in this game.”

But sources speaking to The Register said it was not long before the task began to go incorrect.

” It was just an absolute mess,” one source stated.

By 2018, Travis Perkins was no longer able to hide issues with the project. Half-year results[PDF], released in June 2019, stated the “ERP replacement program in December 2018 as this program has continued to face substantial challenges”.

The trading declaration continued: “As an outcome, the Group is thinking about whether to execute the numerous elements of an ERP system as different products, after modernising the Group’s core IT architecture. A revised method may integrate components from the existing project, however under accounting standards the Directors have actually concluded that the existing properties of ₤111 m must be written off.”

However by the end of 2019 it was all over. As ending the relationship with Infor, the full-year outcomes detail the Group’s “possible responsibilities under the relevant agreements, which consist of break clauses restricting the Group’s maximum possible legal exposure to circa ₤65 m”.

” In the view of Directors, it is probable that the Group will be able to successfully solve this matter without making any payments to the software application supplier,” the results said. “Accordingly, no provision has actually been made in respect of these contracts. The Directors anticipate this matter to fix in the next 48 months.”

It continued to describe “improvements required to core IT and digital platforms to allow business to perform, and to adjust their propositions as customer needs alter”.

Travis Perkins has not reacted to The Register‘s requests for comment.

Infor’s revenue was $ 3.2 bn as of 2019[PDF]. It was purchased by the independently owned Koch Industries in February 2020 in an offer thought to deserve $11 bn. It has likewise declined the opportunity to discuss its relationship with Travis Perkins. ®

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