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NESTLE



PRODUCTS Dairy products Soluble coffee Breakfast cereal Infant foods

Ice cream Chocolate Pet care

Cosmetics



THE OLD WAY…

Each local organization conducted business asit saw fit

80 different information technology units

No corporate computer center

Limited Data sharing amongsubsidiaries



INITIAL PROBLEMS

Decentralized Strategy

Inefficiencies and Extra Costs

Lack of Standard business processes

Multiple Purchasing Systems



ERP

SAP



MEASURES TAKEN

The project called BEST (Business Excellence ThroughSystem Technology) was undertaken.

Team of 50 top business executives and 10 senior information

system professionals.

Developed a set of best practices.

Common data structure for the whole company.

Manugistics’ module for supply chain was used.



SAP’s modules for purchasing, financials, sales anddistribution were used.

Nestle SA also contracted with SAP to purchase anddeploy the new version called mySAP.com

They also decided to create up to five computercenters around the world to run mySAP.comenterprise financial, planning, production, supplychain, business intelligence software.

$280mn required for the SAP contract and installingall the system for the global company.



PROBLEMS FACED DURINGIMPLEMENTATION

Project BEST( Business Excellence Through S ystems T echnology)

Corporate Culture

NOT just about software

Early planning Stage

Installation of Y2k changes



BENEFITS The new system will not only standardize and

coordinate the whole company’s information systemsand business processes, but will also extend SAP’senterprise software to the web.

It will allow each Nestle employee to start work froma personalized web page linked to his or her jobfunction.

The employee’s job is structured to conform to the“best practices” defined by SAP for 300 wok roles.



SOLUTIONS Project Leader Removed. 3 days retreat She decided to replace all but a couple

of parts of the Manugistics system withAPO Integrated the existing components

Decided to start over again



Created a detailed road map for the projectby April 2001

Agreed to educate employees

Nestle achieved significant ROI and savedupto $ 325 million



PRESENT SCENERIO

Number of employees 224,541

Total numbers of factories 479

Market leader worldwide in coffee and mineral water

Major share in pet food market

Nestle has about 260 000 shareholders

Nestlé has saved $325 million from SAP.

Wal-Mart has named the company "Vendor of the Year"for three consecutive years



RECOMMENDATIONS

1. Don’t start a project with a deadline inmind.

2. Update your budget projection atregular intervals.

3. ERP isn’t about the software…

4. Include in the planning the peoplewhose processes you are changing.



CONCLUSION"If you try to do it with a system first, you will

have an installation, not an implementation, andthere is a big difference between installingsoftware and implementing a solution."



Rules & Regulations

Time given

for

presentation

15

min

Group size should not exceed 4 members

Bonus points for related video

Bonus points for answering question (when other present

Negative points for not answering the questions (when

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