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Clorox's Major Upgrade on Track Despite Setbacks, Aiming for Strong Returns by 2026
Clorox has achieved a major milestone in its Enterprise Resource Planning (ERP) overhaul, completing the first phase of the project in Canada on July 1, as reported in the company’s recent earnings update. This marks a significant step as the company gears up for the U.S. rollout of the new system, according to CEO and Chair Linda Rendle.
In a detailed update during Clorox’s Q4 2024 earnings call, which concluded on June 30, Rendle emphasized the importance of this transition. “We’ve been meticulous about documenting every detail we’ve learned to ensure a smooth and effective transition for the U.S. rollout,” Rendle said. “The real value from this ERP project will start to materialize in 2026 and beyond, once the full implementation is complete.”
The ERP overhaul, part of a comprehensive five-year modernization program, had faced delays after a cyberattack disrupted operations, impacting sales and causing outages. Despite these challenges, Clorox remains on track. The company now estimates that the total cost of the modernization program will be between $560 and $580 million, about $60 to $80 million more than initially projected.
As Clorox moves forward with the U.S. launch, the company is poised to leverage this significant investment for long-term benefits, aiming to enhance efficiency and drive substantial returns well into the future.
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