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ERP Implementation atNestle

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AgendaO Benefts o ERP in F&B Industry

O About Nestle

ONeed or Implementation

O ERP Project Planning

O eneral Implementation o ERP

O Implementation in Nestle

O ResultsO !onclusion

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About NestleO 'ultinational ood and be#erage company rom ,-./

O Presence in ,-0 countries and *ead%uartered in +)it1erland

O 2argest In re#enues 3 4 -567 billion

O Nestle 8+A3 a subsidiary o t*e +)iss conglomerate ormed in early

,--.9s

O Employees: ,73... and Re#enues: 4 ; billion

O 'ajor brands: Alpo3 !o

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Need or ERP implementationO In ,--,3 Nestl@ 8+A reorganized itsel and di

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ERP Project PlanningO BE+: Dbusiness ecellence t*roug* systems tec*nology6D

O*ree= to f#e=year plan )it* estimated cost o 45.. million6

O'ore t*an a sot)are c*ange = business processreorgani1ation

O Project team o /. top business eecuti#es and ,. senior

inormation systems proessionals de#eloped Best PracticesG

O+maller tec*nical team = to set up a common data structure

O Plan completed by 'arc* ,--;

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Nestle 8+A=ERP

+upply!*ain

'oduleH'anugistic

s

Purc*asing'odule

=+AP

Financial'odule =

+AP

+ales'odule =

+AP

Jistribution'odule =

+AP

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Implementation in Nestle

July 1998

Je#elopment o t*e modules began

1999 - Employees acceptance

Employees did not understand *o) to use t*e ne) system and did notunderstand t*e ne) )or( processes t*ey )ere being orced to adopt

June 2000 - Technical diculties

In t*e rus* to beat t*e >5" deadline t*e project team *ad o#erloo(ed t*eintegration points bet)een t*e modules6

2001 ! "ew #lueprint

Jesigning a ne) blue print t*at )ould o#ercome t*e tec*nical di$culties

2002 - $a%ings were identi&ed

200' ! (ast roll out happened in &rst )uarter o* 200'

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ResultsBy 5..53 Nestle 8+A reali1ed a sa#ings o 4L5/million 'ostly in t*e area o supply c*ainimpro#ements

it* +AP3 databases and business processes

lead to trust)ort*y demand orecasts or t*e#arious Nestle products

Nestle 8+A *as come toget*er as oneorgani1ation6 +impliy operating procedures andallo) or t*e centrali1ation o unctions

Employees responsibility is to stay ocused on

continuous impro#ement rat*er t*an simplytrying to maintain eisting systems

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!onclusion

Brea(do)ns occur in spite o prior planning

+ot)are Implementation is more about !*ange management

Important learning rom Nestle 8+A ERP implementation

In#ol#e rig*t indi#idual rom t*e beginning o t*e process6

Plans must be Meible enoug* to c*ange mid=stream to o#ercome

obstacles t*at appear during t*e project

ERP implementations combine disparate data sources3 re=engineer

processes3 and in#ol#e large numbers o users and locations6

*e di

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ueries