Why Nestle implemented the ERP software in itself ?

Nestle SA is the candy making company and it is headquartered in Switzerland. Currently it has employed more than 2 lakh employees and currently its product is going through the 80 countries of this world. In 2000 Nestle SA decided to incorporate ERP software in its premises because of the leveraging purposes of its employees. This aspiring project was cost values at 80 million dollars.

How did the ERP was needed in the Nestle SA company ? -

Nestle SA decided to implement the ERP software of SAP in 2003.Before this in Britain Branch of company had already implemented the ERP software of SAP. In 2003 the SAP ERP was implemented in five modules - purchase, financials, sales and distribution, accounts payables and receivables. The following motives were there to fulfill their motive -

Nestle wanted to act as one company instead of multiple brands.

• To monitor the cost of vanilla products.
• To control the operations data in a integrated system.
• To make flexible to forecasting data, accounting transaction information.
• Company wanted to come out from the competitive disadvantage.
• To get the real time monitoring data.

In the implementation of ERP project, there were 50 top executives and 10 senior IT professionals were included to set the best achievable goals. They decided to implement the proper data structure in the company and it was necessary to include the workforce commitment in implementing the ERP software.

The implementation phase of ERP software was started in April 2001 and it was completed after 2 years in the first quarter of 2003. There was a contract of 200 million dollars for the implementation of ERP software in Nestle company.

Benefits -

• A saving to 325 million dollars
• Improvements in supply chain improvements
• Common databases and business processes led to the proper demand forecasting
• Company has more control on the inventory and reduced the cost.
• Simplified training procedures and operating to employees.

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by - university ERP