Drawing from LEGO’s public ERP overhaul, Commerce Sphere’s approach mirrors the centralized implementation that cut inventory costs by 20% for global retail scalability.

Business Problem:
In the early 2000s, LEGO, the Danish toy company, faced near bankruptcy due to market competition after its brick patent expired in 1988. Fragmented systems led to inefficiencies in logistics, sales, and manufacturing, causing a 30% revenue decline by 2004. The lack of a unified ERP hindered global scalability for their multi-industry retail operations.

Process:
LEGO partnered with an ERP consultancy to implement a vendor-neutral ERP strategy, selecting SAP as the best fit after a thorough audit (not tied to vendor bias). The process included:

1. Needs Assessment: Mapping global supply chain and retail needs across 130+ countries.
2. Vendor Evaluation: Comparing SAP, Oracle, and open-source options for cost and flexibility.
3. Implementation: Centralized ERP for logistics, sales, IT, and manufacturing over 18 months, with phased rollouts to minimize disruption.
4. Training: Global staff training ensured adoption across SMB-like retail units and enterprise operations.

Completion and Results:
By 2006, LEGO’s ERP unified operations, reducing inventory costs by 20% and improving order fulfillment by 15%. Global scalability supported new product lines, contributing to a 10% annual revenue growth by 2010. This vendor-neutral approach avoided lock-in, enabling future integrations.

Client Benefits:

• 20% cost reduction in inventory management.
• 15% faster order fulfillment for global retail.
• Scalable ERP supporting multi-industry growth.