1.
2.
3.
4.
5.
History of Nestle
Implementation of ERP System
What is SAP
Problems during implementation of ERP
system
How Nestle solved problems?
6.
7.
Lessons Learned
Successful implementation of an ERP
system at Nestle
 World
 First
largest food and beverage company
Opened in Cham, Switzerland
 In
1866
 By
Anglo-Swiss Condensed Milk Company
 Founder
Henri Nestle
 Headquarters
in Vevey, Switzerland
 30,000
 120
employees across 47 states
locations
 $10.1
billion sales in 2011
 Nestle
began an ERP project in
1997 known as ‘B.E.S.T’
 $200
 $80
million contract with SAP
million for consulting and
maintenance
A

Germany multination software corporation
Headquartered in Walldorf, Baden-
Wurttemberg, Germany.
 Makes
enterprise software to manage
business
 Implement
five SAP modules:
Purchasing
 Financial
 Sale and Distribution
 Accounts Payable
 Accounts Receivable

o
Each location of Nestle acted on
its own behalf
o
29 different prices for vanilla – to the
same vendor
o
Negotiated own deals
o
Vendor not consistent with pricing
 Executives
and Senior IT Professionals
assembled to develop a set of
best practices
 Discontinue
 Poor
old and adopt new
employee acceptance
 By
2000, implementation turned into a
disaster
 Not
understanding new system – forced to
adapt
 Left
out of planning and development
 Employees’
 Confused
acceptance of the system.
by system processes.
 Implement


TPS and EDI
TPS- Transaction Process System
EDI- Electronic Data Interchange
Result:
Better tracking of accounting and demand
forecasting
 Reassigned
Project Manager and completed
last rollouts during the first quarter
of 2003
 In
2002, Nestle USA had already
realised $325 million in savings
 Last
rollout completed first quarter 2003
 $235
 ERP
million in savings
become “Backbone” of Nestle
 Great
ERP
example of successful implementation
 Not
involving the right individuals
 Incomplete
 Lacked
 Not
training
a timeline
limited the customization
 1)
Fillion, Gérard; Braham, Hassen; Ekionea,
Jean-Pierre Booto. Testing Utaut on the Use
of Erp Systems by Middle Managers and EndUsers of Medium- to Large-Sized Canadian
Enterprises. Academic journal article from
Academy of Information and Management
Sciences Journal, Vol. 15 (No. 2). Retrieved
from http://www.questia.com/library/1P32751578661/testing-utaut-on-the-use-of-erpsystems-by-middle
 2) (n.d.) About Us. Retrieved from
http://www.nestleusa.com/about-us
 3)
(n.d.) Nestle Worldwide. Retrieved from
http://www.nestle.com/aboutus/globalprese
nce
 4) Worthen, Ben. (2002). Nestle’s ERP
Odyssey. CIO. Retrieved from
https://www2.bc.edu/~spang/mi703/nestlec
ase.html
 5) Dieringer, Derek S. (2004). Enterprise
Resource Planning Systems. Retrieved from
http://www.uwosh.edu/faculty_staff/wresch
/ERPNestle.htm
Thank
for listening