Nestle Erp Case Study

2298 Words Oct 20th, 2012 10 Pages
Case Study: Nestle ERP implementation
Background
Nestle is a multinational company based on Switzerland, was establish long ago in 1866 by Henri nestle which supplies different kinds of food products. Over the period nestle has grown as one of the big company. Nestle USA is a part of nestle company, having seven business divisions: beverage, confection and snacks, food service, foreign trade, nutrition, prepared food and sales. Some of Its popular products in USA were: Alpo, Nescafe, Tasters choice. Its annual revenue was 8.1 billion and 16000 employees were working. In 1992 enterprise resource planning (ERP) system provider SAP introduced the R3 system of client server architecture and Nestle USA has decided to implement R3 ERP system in
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As a result the implementation took place in quite excellent way that they started to benefit from new SAP system. The database system became more reliable on business intelligence such as demand forecasting, inventory reducing redistributing expenses which generated a lot of revenue. In addition Nestle made a five year deal with IBM in $500 million for software, hardware, IT services and integration of its mysap.com, e-business software system etc. Nestle was practically successful with SAP system and it was trying to solve the information management system by improving the SAP system all over the world. They were using e-procurement to its major regions to improve the system management.
Conclusion
ERP implementation is unlikely experience that any company will have. It has to be planned prepared and stimulated from the entire stakeholder otherwise it will sunk the millions of dollar and it drain the companies market. In case of Nestle USA, it confronted a lot of difficulties due to improper implementation plan yet be able to recover as a successful project. Many organisations have gone through the similar situation that there are plenty of lesson to be learned. We can conclude that ERP implementation needs big consideration on business requirement, business process reengineering, stakeholder’s involvement, hardware and software and other units.
Three important things
Change Management
Organisations in these days are dynamic…