July 28, 2019—German lubricants manufacturer Liqui Moly made no bones about its troubles with a transition into a new software system.The new software that was supposed to simplify things apparently caused havoc within the company. CEO Ernst Prost summarized in a press release that the issues affected the company.
"If we were listed on the stock exchange, I would have to issue a profit warning," he said.
The company software manages purchases, controls production, handles shipping and issues invoices, according to Liqui Moly. The company switched over to a new system at the beginning of 2019. The troubles started and are still ongoing. It's affected delivery times, and Prost said that he's been apologizing to customers a lot lately.
"The company is also incurring considerable extra costs, for example, because containers can only be half filled, delivery vehicles have to wait longer than planned to be loaded, or air freight needs to be used when items that are needed urgently do not arrive by ship in time," the press release said.
The troubles also led to an 11-percent drop in earnings through the half of the year.
Liqui Moly is still working to fix the software issues. In addition, the company says its building a new central warehouse and will have all issues fixed by the end of the year.
Image: CEO Ernst Prost from Liqui Moly