Nestle USA - PowerPoint PPT Presentation

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Nestle USA

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Nestle USA. No control of information. no unified system linking functional departments together ... Nestle SA. 500 facilities in 80 countries ... – PowerPoint PPT presentation

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Title: Nestle USA


1
Nestle USA
ERP System Implementation
  • Miki Dosen, Shannon Downey, Trisha Fielder, Mike
    Foley, Danielle Nicosia

2
The Company
3
Todays Menu
  • Problems Experienced
  • Benefits Achieved
  • Lessons Learned
  • Conclusion

4
Problems Experienced Before Implementation
  • Nestle USA
  • No control of information
  • no unified system linking functional departments
    together
  • 9 autonomous divisions
  • 9 different general ledgers
  • 28 different points of customer entry
  • multiple purchasing systems
  • Different coding method vanilla

5
Problems Experienced Before Implementation
  • Nestle SA
  • 500 facilities in 80 countries
  • factories conduct business according to rules
    that fit local culture
  • current technology a mishmash

6
Solution SAP
  • Nestle USA
  • 1997 SAP project (BEST)
  • 200M
  • 6 years
  • Goal Standardize 9 business units
  • Nestle SA
  • June 2000 signed 200M contract
  • Largest s/w sale in ERP vendors history
  • 3 years
  • Goal Create 5 data centers for 80 countries

7
Problems Experienced
  • During the Implementation
  • Culture shock
  • Employee resistance
  • Low morale and high turnover
  • Cost (200M)
  • Length of implementation (6 years)

8
Problems Experienced
  • During the Implementation
  • Data cleansing long and tedious
  • Stopped project at 3 years
  • Setting connection to their supply chain
  • switch to SAP cost 11.5M
  • Y2K

9
Benefits of Implementation
  • Uniformity
  • common databases business processes
  • 5 SAP modules each function operating in unison
    with their supply chain
  • Improved communication
  • Reduced inventory redistribution costs
  • More reliable forecasts

10
Benefits of Implementation
  • BEST project saved over 325M
  • comes from better demand forecasting
  • The pain was worth it

11
Lessons Learned
  • Training will be expensive
  • Beware of hidden costs
  • Implementation will take a LONG time
  • Be prepared to create and maintain Implementation
    teams
  • Customization can lead to problems
  • Retain the experts
  • Test. Then test again

12
New Lessons Learned
  • First change business processes, then implement
    the software
  • Include people (whose processes you are changing)
    in the planning process
  • Remember integration points

13
Conclusion
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