J&J Snack Foods isn’t sorry it implemented a new enterprise resource planning (ERP) system, even though doing so dragged down the company’s results in the latest quarter.
J&J reported a drop in net earnings of 46%, to $3.3 million, for the quarter March 26, compared with the same period last year. The drop occurred even though net sales, at $281.5 million, were up 9.8% year-over-year.
J&J executives attributed much of the earnings decline to operational problems with the implementation of a new ERP system. Even so, installing it was necessary for the company to shore up its supply chain, they say.
“Having a robust ERP platform provides a more seamless integrated process from raw materials through production, warehousing, inventory management and electronic order fulfillment,” CEO Daniel Fachner told analysts. He said the worst of the ERP problems are behind J&J and that the company expects nothing but benefits going forward.
