Nestle Struggles with Enterprise Systems Essay

Words: 2420
Pages: 10
Open Document
PSCM (2006): MIS Course work
Case study: Nestlé Struggles with Enterprise Systems
Nestlé SA (www.nestle.com) is a giant food and pharmaceuticals company that operates virtually all over the world. Headquartered in Vevey, Switzerland, the company had 2004 revenues of $76 billion and more than 253,000 employees at 500 facilities in 80 countries. Best known for its chocolate, coffee (it invented instant coffee), and milk products, Nestlé sells thousands of other items, most of which are adapted to fit local markets and cultures.
Traditionally this huge firm has allowed each local organization to conduct business as it saw fit, taking into account the local conditions and business cultures. To support this decentralized strategy, it has had …show more content…
The team members expected the changeover to take three to five years. Dunn knew it was more than a software change, and she later said "We made it very clear that this would be a business process reorganization and that you couldn't do it without changing the way you did business." The long time period was the result of Dunn's expectation that "There was going to be pain involved, it was going to be a slow process, and this was not a software project." By October, Nestlé had established a project team of 50 top business executives and 10 senior information systems professionals. They developed a set of best practices to become common work procedures for manufacturing, purchasing, accounting and sales. A smaller technical team was set up that took 18 months to examine all data for every item in all divisions and set up a common data structure for the whole company.

At first the project decided not to use SAP's supply chain software because that module was brand new and appeared to be risky. It turned instead to Manugistics for its supply chain module. The team did decide to use SAP's purchasing, financials, sales, and distribution modules. All of these modules would be installed throughout every Nestlé USA division. The plan was completed by March 1998 and development work began in July 1998. The project was called Best for "business excellence through systems technology."

In June 2000, Nestlé SA followed the lead of Nestlé USA and contracted with
Show More

Related Documents: Nestle Struggles with Enterprise Systems Essay

Essay about Assignmant 1 Unit 38 Business Level P1,D1

property slump in China sapped demand in the world’s biggest consumer. Prices won’t follow the slump in oil or iron ore, which fell more than 40 percent last year, as those raw materials “underwent revolutions on the supply side” while copper producers struggle to boost output, Barclays said. Commodities fell to a 12-year low this month as crude oil tumbled amid rising supply. Elasticity of demand “the measure of how much the quantity demanded of a product responds to a change in price” • Elasticity of…

Words 3990 - Pages 16

Essay about Management Information Systems Aymen Hajlaoui JX1408209

Final Report for the Investment course 杨海军 Candidate: Aymen Hajlaoui School of Economics and Management Beihang University, Beijing, China 1. Nestlé struggles with enterprise systems 1.1. Principle The efficiency of financial markets is a theory derived from the concept of pure and perfect markets designed in the nineteenth century, whose definition is evolving. The first definition of market efficiency comes…

Words 3779 - Pages 16

Food Stamp Revision Policy Proposal

Food Stamp commodity. The third issue, involves the link between poor nutrition, obesity and medical costs. I am convinced that careless eating due to convenience and broad limitations has caused a rise in obesity rates. Nutrition expert, Marion Nestle, NYU professor of nutrition states “Obesity was not a problem when food stamps started. Now it is. Food stamp recipients, she said, “could still buy what they like — just not with taxpayer dollars. It is time to consider the idea of limits (Tuttle…

Words 4190 - Pages 17

Managing Information Technology (7th Edition) Essay

CONTENTS: CASE STUDIES CASE STUDY 1 Midsouth Chamber of Commerce (A): The Role of the Operating Manager in Information Systems CASE STUDY I-1 IMT Custom Machine Company, Inc.: Selection of an Information Technology Platform CASE STUDY I-2 VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier CASE STUDY I-3 The VoIP Adoption at Butler University CASE STUDY I-4 Supporting Mobile Health Clinics: The Children’s Health Fund of New York City CASE STUDY I-5…

Words 239873 - Pages 960

Business: Luxury Good and Global Consumer Trends Essay

epitomise contradictions. They show a desire to indulge in luxury and instant gratification, expressed by the need for an even smarter smartphone, a passion for apps, a faster route to purchase and a craving for the visual. However, in parallel are struggles for better work/life balance, the concerns of eco-worriers, an appreciation of frugality and imperfection and a longing for the authenticity of home and community. Other dominant consumer trends include the importance of eating right, the “people’s…

Words 8819 - Pages 36