(for the "customer agreement") and IBM Global Services (for "systems applications project assistance") as having open contracts with ALF.
Consequently, ALF’s inability to deliver vehicles had an immediate impact on ALF’s cash flow and created a liquidity crisis.ĪLF claims that IBM is responsible for the IT problems that precipitated the bankruptcy:ĪLF is currently analyzing potential causes of action against IBM based upon services provided by IBM in connection with the problem-riddled transition to the ERP System. This, in turn, severely limited ALF’s ability to deliver completed products to its customers. The conversion from the Freightliner system to the ERP System resulted in the inability to account for inventory on a reliable basis. The manufacture of highly-customized Emergency Vehicles requires the availability of a large number of inventory SKUs at key points in the production process. Despite such efforts, as a direct result of the problems with the ERP System, ALF became unable to complete the manufacture of many pre-ordered vehicles.
Some of the problems that ALF encountered in implementing the ERP System included, among others: (i) inability to reconcile data between the Freightliner system and the ERP System (ii) incorrect or incomplete inventory, purchasing and customer data due to either problems with the Freightliner system or the conversion of the data to the ERP System (iii) inaccurate or incomplete vehicle configurations loaded in the ERP System (iv) insufficient training on the ERP System and (v) missing financial information including accounts payable detail, incomplete or inaccurate accounts receivable data, and inaccurate beginning general ledger balances.įor the next several months following the changeover, ALF attempted to solve the plethora of problems with the ERP system. The bankruptcy filings describe the painful cutover from Freightliner:Īlmost immediately upon the changeover to the ERP System, ALF recognized serious deficiencies with the system that had a crippling impact on ALF’s operations. As part of the transition, ALF developed a "standalone" ERP system designed to support the firm after the Freightliner separation was completed.
During the transition, ALF outsourced "accounting, inventory, payroll, and manufacturing process services" to Freightliner. 08-10178), problems occurred when ALF was spun out as an independent company from Freightliner, the previous owner. American LaFrance (ALF), the "leading brand of custom-made fire fighting, fire rescue vehicles, ambulances, and heavy-duty work refuse vehicles," has declared bankruptcy, blaming IBM and a failed ERP implementation.Īccording to filings in the District of Delaware bankruptcy court ( PACER case no.
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