Nestle Is Best Known For Its Chocolate, Coffee, And Milk Products

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Case Summary
Nestle is best known for its chocolate, coffee (it invented instant coffee) and milk products. Nestle is the largest beverage and food company in the world, having more than 281000 employees at 500 facilities in 200 countries. They have their headquarters in Vevey, Switzerland; the company has an annual revenue exceeding $104 billion. The company sells hundreds of products, which are adapted to fit the market and culture. Nestle allows organization to conduct business as it saw fit, taking into consideration the local conditions and business culture. To support this decentralized strategy, there were 80 different information technology units the run 900 IBM AS/400 midrange computers, 15 main frames and 200 Unix Systems. Nestles management found allowing local difference created inefficiencies and extra cost that could prevent the company from competing efficiently in e-commerce. Years ago Nestle embarked on a program to standardize and coordinate its information system and business process. The company initially had SAP’SR/3 enterprise resource planning. This software integrated materials, distribution and accounting applications in Canada, USA and Europe. Nestle then expanded its enterprise system strategy to all the facilities, that way they act as a single-minded e-business. Once the project was complete Nestle was able to use the sales information provided by the retailers from different countries to measure the effectiveness of its

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