Nestlé’s starting points go back to 1866, when two separate Swiss undertakings were established that would later frame the center of Nestlé

ERP assignment
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Jubail University College

Department of Business Administration

Semester 382

Assignment 1

Course Name:

Enterprise Resource Planning (ERP)

Course Code:

MIS 420

Section:

202

No.

Student ID

Student Name

Total Mark

1

34120119

Yasmeen AlAssaf

2

34120185

Deema AlAnazi

3

35120142

Razan AlOufi

4

35120197

Noura AlKhaldi

Business Area:

Food Industry

· Nestlé

Nestlé Profile and History:

Nestlé’s starting points go back to 1866, when two separate Swiss undertakings were established that would later frame the center of Nestlé. In the succeeding decades, the two enterprises forcefully extended their organizations all through Europe and the United States. In August 1867 Charles (US consul in Switzerland) and George Page, two siblings from Lee County, Illinois, USA, set up the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. Their first British activity was opened at Chippenham, Wiltshire, in 1873. In September 1866 in Vevey, Henri Nestlé created dairy based infant food, and soon started promoting it. The next year Daniel Peter started seven years of work idealizing his creation, the milk chocolate fabricating process. Nestlé was the urgent co-activity that Peter expected to tackle the issue of expelling all the water from the milk added to his chocolate and subsequently keeping the item from creating buildup. Henri Nestlé resigned in 1875 however the organization, under new proprietorship, held his name as Société Farine Lactée Henri Nestlé.

Lately, Nestlé Health Science has made a few acquisitions. It gained Vitaflo, which makes clinical healthful items for individuals with hereditary scatters CM&D Pharma Ltd, an organization that represents considerable authority in the advancement of items for patients with endless conditions like kidney infection and Prometheus Laboratories, a firm that works in medications for gastrointestinal maladies and malignancy. It likewise holds a minority stake in Vital Foods, a New Zealand-based organization that creates kiwifruit-based answers for gastrointestinal conditions.

In December 2014, Nestlé declared that it was opening 10 healthy skin inquire about focuses around the world, extending its interest in a more quickly developing business sector for social insurance items. That year, Nestlé spend about $350 million on dermatology innovative work. The first of the examination centers, Nestlé Skin Health Investigation, Education and Longevity Development (SHIELD) focuses, opened mid 2015 in New York, trailed by Hong Kong and São Paulo, and later others in North America, Asia and Europe. The activity is being propelled in association with the Global Coalition on Aging (GCOA), a consortium that incorporates organizations, for example, Intel and Bank of America.

The headquarter address: 1800 Vevey avenue Nestlé 55, Vevey 1800. The building is located in a small town called Vevey surrounded by a lake called Geneva and mountains. The headquarter building was designed by the architect of Lausanne, Jean Tschumi in 1960, and it is been remodeled after 4 decades in 2000. Nestlé have 418 factories in 86 countries therefore they have a lot of branches and office buildings around the world.

Nestlé Product and Services:

Nestlé has more than 8,000 brands with an extensive variety of items over various markets, including espresso, filtered water, milkshakes and different drinks, breakfast oats, newborn child nourishments, execution and human services nutrition, seasonings, soups and sauces, solidified and refrigerated sustenance’s, and pet nourishment. The main brands of Nestlé are: maggi noodles, milk products and baby food, cookie dough, bottled water and so many others.

The business status before moving into the existing ERP:

The business process at Nestlé before using ERP is not specified in any source in the internet nor books and journals, but how they moved to an ERP system because an executive at Nestlé realized that the company needed to standardize its business processes if it wanted to be competitive. The rollout was scheduled to take three years for Nestlé SA’s largest sites with the others to follow. Included in the implementation were the mySAP.com financials, accounts payable, accounts receivable, planning, production management, procurement, direct procurement, supply-chain, demand planning, fulfillment, and business-intelligence modules (Konicki, pg. 185).

Nestlé had challenges before moving to ERP one of the challenges was high profile failures dot the headlines and companies are often intimidated not only by the high price but also the negative effect implementations can have on their business, Vendors such as SAP are working diligently on shaking this reputation and have made great strides in meeting their goals (NetSuite, 2018). Also the other problem was they have challenges with the access to all the company’s data in real time and its geographically dispersed locations (NetSuite, 2018). It’s taking longer and longer to reconcile financials at the end of the month. The sales forecasts are based more on guesswork than solid figures (Uwosh.edu, 2018). Also Nestlé is having trouble keeping up with its order volume and customer satisfaction is faltering as a result. Nestlé found it hard to determine how much inventory they have in their warehouse. All of these challenges made Nestlé move to ERP (Uwosh.edu, 2018).

The business status after moving into the existing ERP:

After implementing the ERP system Nestlé gains a lot of benefits out of number of features the new system provide. First, financial management, it helps Nestlé dealing the capital inflow and outflow. Produces money related reports for various divisions and specialty units. Second SCM (Supply Chain Management), allow Nestlé to monitor the requests, supply, and distribution of products. A key component is process mechanization. Third purchasing, make the dealing with the procedures associated with materials acquirement easier. Fourth inventory, it helps Nestlé measure stock targets, and other stock objectives. It utilizes item serial numbers to track and find things in your association. Fifth Sales & Marketing, Nestlé handles deals work processes like deals request, sales orders and sales invoices. The further developed ERP additionally includes tax collection guidelines and transportation tracker. Sixth manufacturing, these feature is referred to as Designing or Creation. It enables Nestlé to make manufacturing more proficient in zones, for example, item arranging, materials sourcing, day by day creation checking and item determining. Seventh CRM (Customer Relationship Management), a major consideration for Nestlé is the clients. ERP system help Nestlé oversees leads, openings and client issues. In like manner, it gives a 360-degree profile of your clients by combining information like their social media activities, purchase history and past interactions. Lastly HRM, the ERP system highlights standard HRMS instruments like time tracker, timesheet, and database for worker records, work profiles and skills. Nestlé may likewise incorporate execution surveys and payroll system. The features of ERP system help Nestlé utilizing the size as a quality in a quickly changing conditions. Nestlé gain a global competitive advantage and manage difficulties in work place.

Nestlé has claimed that their ERP implementation have given the company savings over $325 million, mostly in supply chain improvements, and specifically demand forecasting. SAP implementation lead to a reliable and dependable demand forecasts for many Nestlé products, it also provided a logical and automatic workflow from one department to another and that guaranteed a smooth transition of processes. Since all Nestlé brands are using the same data, it allowed Nestlé to forecast down to the distribution center level. Furthermore, the implementation allowed Nestlé to combine the 29 different brands of vanilla factories to come together and unite as one organization with a common database. Seeing that all of them using a common simpler operating procedure, it allowed for the centralization of functions such as the training procedures and a unified reporting system. That allowed for the flexibility of employee relocating in the USA from one factory to another, since each location follows the same training materials and procedures. Nestlé has gained a lot of successes from the implementation of their ERP system not only it saved a lot of time but, in only two years they were able to regain the money spent on the system. They also acquired a more disciplined attitude with regard to business processes at the same time they reduced their inventory levels and tightened control on inventory. (Glick, 7 Days, pg. 4). Additionally, the ERP implementation at Nestlé encouraged a “ culture of continuous improvement” which includes “ improvement priorities are clear” first, the internal opportunities; second, business-to-business; and third, business to consumer”. Nestlé has hired a process development manager whose main responsibility to ensure that the employees are concentrated on continuous improvement rather than just trying to keep up the existing systems by acting as the bridge between the business and the Information Technology department. (Glick, pg. 24)

References:

· Uwosh.edu. (2018). ERP Implementation at Nestlé. [online] Available at: http://www.uwosh.edu/faculty_staff/wresch/ERPNestlé.htm [Accessed 19 Feb. 2018].

· NetSuite. (2018). Discover the Top Five Signs Your Business Is Ready for an ERP System. [online] Available at: http://www.netsuite.com/portal/resource/articles/erp/business-erp-system.shtml [Accessed 19 Feb. 2018].

· Profile, N. (2018). Nestlé Company Profile – Bohat ALA. [online] Bohat ALA. Available at: https://bohatala.com/Nestlé-company-profile/ [Accessed 26 Feb. 2018].

Group collaboration:

Deema AlAnazi

· Collected A description of the business status before moving into the existing ERP.

· Revise.

Yasmeen AlAssaf

· Collected information of the current ERP system, its features and the advantages that the company gained from it.

· Revise.

Razan AlOufi

· Collected business information

And products / services information.

· Revise.

· Print.

Noura AlKhaldi

· Collected information of the current ERP system, its features and the advantages that the company gained from it.

· Revise.