Waste Management sues SAP over ERP implementation

The trash-disposal giant Waste Management is suing SAP, saying top SAP executives participated in a fraudulent sales scheme that resulted in a failed ERP (enterprise resource planning) implementation.

Waste Management said it is seeking recovery of more than US$100 million in project expenses, as well as “the savings and benefits that the SAP software was promised to deliver to Waste Management.”

An SAP spokesman said via e-mail Thursday that “as a matter of policy SAP does not comment on ongoing litigation.”

In 2005, Waste Management was looking for a new revenue management system, according to a company statement. “SAP proposed its Waste and Recycling product and claimed it was a tested, working solution that had been developed with the needs of Waste Management in mind,” the Waste Management statement reads in part.

SAP promised that the software could be fully implemented throughout all of Waste Management within 18 months, according to the statement.

“From the beginning, SAP assured Waste Management that its software was an ‘out-of-the-box’ solution that would meet Waste Management’s needs without any customization or enhancements,” the statement reads. “Unfortunately, Waste Management ultimately learned that these representations were not true.”

Waste Management said product demonstrations by SAP prior to the deal employed “‘fake software environments, even though these demonstrations were represented to be the actual software.”

Waste Management’s original complaint, filed in Harris County, Texas district court, said senior SAP executives, including SAP Americas’ president and CEO, Bill McDermott, participated in the “rigged and manipulated” demos.

The company filed suit against SAP Americas and SAP AG on March 20 after “months of discussions with SAP and a recent consensual, three-day mediation that SAP ended after day two,” according to the statement.

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

CDN Staff
CDN Staffhttps://channeldailynews.com
For over 25 years, CDN has been the voice of the IT channel community in Canada. Today through our digital magazine, e-mail newsletter, video reports, events and social media platforms, we provide channel partners with the information they need to grow their business.

Related Tech News

CDN in your inbox

CDN delivers a critical analysis of the competitive landscape detailing both the challenges and opportunities facing solution providers. CDN's email newsletter details the most important news and commentary from the channel.