Description
ERP is important, condition of Nestle prior to implementation, condition post implementation, learning, lessons learned and difficulty faced while implementing ERP.
ERP SUCCESSFUL IMPLEMENTATION
? It offers a company the chance to re-engineer business processes
? Coordinate the systems
? Consolidate data, and empower users ? To leverage its size and begin acting like the giant ? To standardize its business processes if it wanted to be competitive ? In
case of Nestle the SAP system helped centralize a conglomerate
owns 200 operating companies and subsidiaries in 80 countries
? In 1997, that Nestle USA’s brands were paying 29 different prices for vanilla
– to the different vendor
? The company had nine different general ledgers and 28 points of customer
entry
? They
had multiple purchasing systems and No way to compare across
plants/divisions to see manufacturing costs.
? They
had no clue how much volume they were doing with a particular
vendor because every factory set up their own vendor masters and purchased on their own
? Formation of project team to implement five SAP modules: oPurchasing oFinancials o Sales and distribution oAccounts payable and accounts receivable o Supply Chain was done via Manugistics ? Each Module deployed under each Nestle division
?Employees’ acceptance of the system the workers could
not understand the system and the new processes
?Technical difficulties between the modules, the modules
were uniform across divisions but were not integrated between themselves
? The project halted midway in 2000 ? Began from beginning right from requirements gathering,
and then reaching an end date
? Improving relations between the project team and
divisions
?Conducting regular surveys for employees dealing with
the system changes
?As of 2002, Nestle USA realized a savings of over $325
million
?Most
of the savings
came from Supply chain
improvements, specifically demand forecasting
?Leads to more trustworthy forecasts
?Nestle
came together as one organization with use of common processes(eg. Training)
?The new SAP system has reduced inventory levels
? For successful implementation of ERP, right individuals need
to be involved in the process from the beginning
? First redefine the project requirements and NOT the timeline ? Remember the integration points
? Large focus has to be on training
? Spend time evaluating the business process re-engineering ? Limit the number of customizations ? Obtain universal buy-in for the project
doc_337028318.pptx
ERP is important, condition of Nestle prior to implementation, condition post implementation, learning, lessons learned and difficulty faced while implementing ERP.
ERP SUCCESSFUL IMPLEMENTATION
? It offers a company the chance to re-engineer business processes
? Coordinate the systems
? Consolidate data, and empower users ? To leverage its size and begin acting like the giant ? To standardize its business processes if it wanted to be competitive ? In
case of Nestle the SAP system helped centralize a conglomerate
owns 200 operating companies and subsidiaries in 80 countries
? In 1997, that Nestle USA’s brands were paying 29 different prices for vanilla
– to the different vendor
? The company had nine different general ledgers and 28 points of customer
entry
? They
had multiple purchasing systems and No way to compare across
plants/divisions to see manufacturing costs.
? They
had no clue how much volume they were doing with a particular
vendor because every factory set up their own vendor masters and purchased on their own
? Formation of project team to implement five SAP modules: oPurchasing oFinancials o Sales and distribution oAccounts payable and accounts receivable o Supply Chain was done via Manugistics ? Each Module deployed under each Nestle division
?Employees’ acceptance of the system the workers could
not understand the system and the new processes
?Technical difficulties between the modules, the modules
were uniform across divisions but were not integrated between themselves
? The project halted midway in 2000 ? Began from beginning right from requirements gathering,
and then reaching an end date
? Improving relations between the project team and
divisions
?Conducting regular surveys for employees dealing with
the system changes
?As of 2002, Nestle USA realized a savings of over $325
million
?Most
of the savings
came from Supply chain
improvements, specifically demand forecasting
?Leads to more trustworthy forecasts
?Nestle
came together as one organization with use of common processes(eg. Training)
?The new SAP system has reduced inventory levels
? For successful implementation of ERP, right individuals need
to be involved in the process from the beginning
? First redefine the project requirements and NOT the timeline ? Remember the integration points
? Large focus has to be on training
? Spend time evaluating the business process re-engineering ? Limit the number of customizations ? Obtain universal buy-in for the project
doc_337028318.pptx