4. Founded by Henri Nestlé
World’s biggest food & beverage Company
Developed 1st milk product in 1867
Merger with Anglo-Swiss Condensed Milk
Company
First expansion in Chocolate activity
Introduction of Nescafe
Merger with Maggi Seasoning & Soups
Acquisition of American Food Giant &
Dreyer’s.
5. To create value
Create trust among Customers
Ensures that the highest standards
are met throughout the organization
Recruitment of right people and
ongoing training & development
Continue to maintain its
Commitment
6. To support the decentralized strategy it has 80 different
information technology units that’s runs nearly 900 IBM
as/400 mid range computers ,15 main frames , and 200 Unix
system
The company had no corporate computer center
Local difference created inefficiencies and extra costs that
could prevent the company from competing effectively in
electronic commerce.
The lack of standard business processes prevented it from
obtaining lower prices for its raw material.
At first project decide not to use SAP’s supply chain software
because that module was brand new and appeared to be risky
Employees: 2,30,000
Facilities: 500
Countries: 80
7. Nestlé Company use following Information System in its
business operations to minimize the problems and
increase efficiency:
Enterprise Resource Planning (ERP)
Manufacturing Executive System (MES)
Product Lifecycle Management (PLM)
Supply Chain Management (SCM)
8. Enterprise Resource Planning (ERP) systems seem
to be the silver bullet for every company’s problems.
Enterprise Resource Planning (ERP) is MIS that:
Integrate and automate many of the business
practices
A system that standardize and coordinate
Information systems
Attempts to integrate all departments and
functions into one computer system
9. In 2000 Nestle signed a $200 million contract with
SAP to roll out an ERP system.
Nestle also committed to an additional $80 million
to be spent on consulting, maintenance, and
upgrades.
Keeps track of customer orders
Reduce overstocking
Enables group buying of materials
Data sharing among subsidiaries
10. “Manufacturing execution systems are computerized systems
used in manufacturing, to track and document the
transformation of raw materials to finished goods.”
MES may operate across multiple function areas:
The product life-cycle
Resource scheduling
Order execution and dispatch,
Production analysis and
Product Quality,
Materials track and trace
Management for Overall Equipment Effectiveness (OEE),
11. “Product lifecycle management (PLM) is the process of
managing the entire lifecycle of a product from inception,
through engineering design and manufacture, to service
and disposal of manufactured products.”
PLM integrates;
People
Data
Processes
Business systems
Provides a product information backbone for
companies and their extended enterprise
12. Product Lifecycle of Nestlé:
Managing Environmental Sustainability
The Environmental Life Cycle Of Products
Identifying And Addressing Environmental Hotspots
Sustainability By Design
Mandatory Rating System
Promoting Access To Data
13.
14. Supply chain management is the combination of art and science
that goes into improving the way a company finds:
The raw components it needs to make a product or service
Manufactures that product or service and delivers it
to customers
The most basic supply chain consists of the following parties:
Suppliers
Manufacturers
Warehouses/Storage
Transporters
Distributors
Retailers
Customers/Consumers
Producers
15.
16. Management of Nestlé faces many problems before
having a sound Management Information System:
Inability to understand the usage of the new
system by the workers
Failure to integrate various modules
Delay in the project due to employees’ resistance
to change inefficiency on the part of project co-
leader to handle situations.
17. Involvement of right individuals from the beginning
Avoid heavy customization
Defining the business goals of the project and then
create a timeline
Time should be spent evaluating the business process
re-engineering that will be done in conjunction with
an ERP implementation.
Training to employees throughout the project
18. All of Nestlé USA are using the same software and data
Producing better sales forecasts
Costs were cut down and had already saved $325
million by spring 2002.
Nestlé SA has learned from that project and expects to
have an easier success with its project.
By the end of 2004, about 10% of Nestlé’s global food
and beverage business was operating with standard
processes, data and systems.