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ScanSource Sues Avanade For Alleged Botched ERP Project

By Scott Campbell
January 02, 2013    7:17 PM ET

Page 3 of 3

Prior to selecting Avanade, ScanSource conducted a 16-month due diligence study of several ERP platforms including Microsoft, SAP and Oracle and several implementation partners for each, said Ellsworth, ScanSource's general counsel.

"We did get references from everyone. Usually people give you good references. No other global enterprise-level Dynamics implementation we saw was shown to be problematic or made us second-guess the platform or the implementation partner at that time," Ellsworth said. "We still believe Dynamics is the best fit for us as a company, but what Avanade told us they could do and implement did not happen as they said it would."

Aside from cost overruns and resources committed to the project, ScanSource said the Avanade project has not had impact on sales or customers.

"It's been distracting to have this project go on for three-plus years, but nothing [distracting] in terms of business interruption. We're still running on legacy systems," Ellsworth said. "This is our first time doing a global ERP implementation project. All along the way, we had our best and brightest on the project. It became apparent to us that we were missing go-live dates that Avanade was putting out there. As more continued to happen for different and various reasons, we began to challenge them more. We said when you sold us this project, you said you were going to deliver within a year with this price tag. We're more than three times past the time and four times past the cost. That's not what we signed up for."

PUBLISHED JAN. 2, 2013

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