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Mondelēz International: Delivering savings with zero-based budgeting

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Accenture helps embed cost-consciousness at Mondelēz International, saving $1 billion over three years to reinvest in growth.

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Mondelēz International: Delivering savings with zero-based budgeting

  1. 1. Mondelez International: delivering savings with zero-based budgeting
  2. 2. Client profile Mondelez International is a global snack food powerhouse with billion- dollar brands like Oreo®, LU®, Nabisco®, Cadbury®, Milka®, Trident® and Tang®. It serves consumers in 165 countries and reported $34 billion in revenue in 2014. Opportunity Although Mondelez International experienced high growth, it needed to improve operating margins, which were lower than its peers. Mondelez International asked Accenture to establish a zero-based budgeting system that would help it compete more effectively in an increasingly challenging economic environment. Mondelez International and Accenture collaborated to drive companywide cultural change that would help control indirect costs to improve margins and reinvest for growth. Solution But delivering one-time savings wasn’t enough—Mondelez International wanted those savings to be sustainable over time. Similarly, while Mondelez International sought to streamline operations, it also wanted to preserve key ingredients that made it a successful company. Accenture and Mondelez International’s leadership, therefore, took a measured approach to zero-based- budgeting, reducing costs in all areas of the business. The team focused on taking cost out of low-value areas like travel and other overheads so Mondelez International could reinvest the money in areas that create a competitive advantage, such as product development and marketing. Together, Accenture and Mondelez International created new budgeting processes and embarked on a far-reaching change management program to establish accountability for cost management. As part of the work, Accenture helped design a new global operating model and supporting global business services unit that delivers cost-effective and efficient finance, HR and procurement services. Accenture is also providing finance and accounting and order-to-cash BPO services. Results In only three months, Mondelez International’s new operating model was up and running. In the first year, the company delivered savings of $350 million. Over three years, the company aims to save $1 billion. The savings have also helped increase operating margins. More importantly, the new budgeting processes and change management program have helped embed cost consciousness in the company’s day-to-day operations and culture. Mondelez International employees are equipped with the processes and tracking tools to meet their budgetary targets. This cultural change is delivering ongoing efficiency savings that can be continuously reinvested into growth initiatives. “We needed to quickly become more agile and improve our profitability within our unique culture. The approach we took with Accenture delivered short- and long-term value, enabling us to turn cost management into a competitive advantage." Brian Gladden, EVP and CFO About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 323,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com. MONDELEZ INTERNATIONAL, OREO, the OREO Wafer Design, the OREO Milk Splash, LU, NABISCO, CADBURY, MILKA, TRIDENT and TANG are trademarks of Mondelez International group, used with permission. Copyright © 2015 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  • leebogner

    Aug. 13, 2015

Accenture helps embed cost-consciousness at Mondelēz International, saving $1 billion over three years to reinvest in growth.

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