ERP SOFTWARE

at NESTLÉ USA

Group 3: LE THI CAM TU

PHAM THI NGOC HANH
1
INSTRUCTION Nestle
company
Headquarters Nestle USA
Virginia USA
o Nestle USA is a subsidiary of
Nestle SA - a multinational o Owning 6 brands of value including
manufacturing company Friskies, Coffe mate, DiGiorno, Purel
headquartered in Vaud, Gerber and Stouffers
Switzerland ST
o Up to 51,000 employees, 97% of
o Owning market share in 191 households in the US use Nestle
countries products.

o Revenue reaching 26 USD as of o 15 buildings reach LEED standard

2017 report (Leadership in engergy and
environmental design)
o Owning 87 home hosts at 47 states

In 2000, Nestle applied ERP in its business

processes
 Powdered and Liquid Beverages

Nestle
Products
Milk products and lce cream

Prepared dishes and cooking aids

Nestlé Nutrition

PetCare

Confectionery

Water
CONTENT 1. 4.
Enterprise ERP
resource implementation
planning life cycle
(ERP) 5. Principles
of ERP

2. ERP
Modules
6. Applying
ERP software
at Nestlé USA
3. Implementation
of ERP
 Definition ERP
1. ▸ Enterprise resource planning (ERP) is a process used by
companies to manage, integrate automating and
connecting the important parts of their businesses

▸ ERP as a system that maintains a database of information

related to business processes anywhere

▸ ERP tools share a common process and data model,

covering broad and deep operational end-to-end processes

▸ ERP applications automate and support a range of

administrative and operational business processes across
multiple industries
2. ERP
Modules
• Finance: it allows businesses to understand their current financial state and
future outlook

• Procurement: known as the purchasing module, helps an organization secure

the materials or products it needs to manufacture and/or sell goods

• Manufacturing: helps manufacturers plan production and make sure they

have everything they need for planned production runs

• Inventory Management: The inventory management module enables

inventory control

• Order Management: tracks orders from receipt to delivery, tracks their status
as they’re prepared, fulfilled and shipped to the customer

• Warehouse Management: this application can efficiently guide warehouse

employees

• Supply Chain Management: tracks each step in the movement of supplies

and goods throughout the supply chain
• Customer Relationship Management (CRM): stores all customer and
prospect information

• Professional Services Automation: tracks the status of projects,

managing human and capital resources throughout, and allows managers
to approve expenses and timesheets

• Workforce Management: monitor workers’ attendance and hours and

measure things like employee productivity and absenteeism

• Human Resources Management: tracks detailed records on all

employees and stores documents

• Ecommerce: allows companies to quickly launch a business-to-business

or business-to-consumer ecommerce website

• Marketing Automation: help manages marketing campaigns

 Greatly improved business insight
and understanding

Lower the business’ operational

costs

Foster collaboration in,

and between, departments

Reduce business risk and improve

Implementation security
of ERP
Better customer service

Improved Supply Chain

Management

Improved Process Efficiency

9
 Maintenance
Selection of packages

1 Ste
ep p8
St

2
Project Planning Application

Ste
Step

p7
4. ERP
Implementation
Analysis GAP to 3 life cycle

Ste
p
Ste

6 p
4 p
St
ep Testing
Ste 5

Re-engineering
Training
Step 1: Selection of packages
 The company has to select a good ERP package
 Suits the company and business needs,
 Depend on the basis of the company environment
 Product that is manufactured by the company

Step 2: Project Planning:

 Scheduling timelines
 Deadlines for projects
 Identifying roles and assigning responsibilities for the
ERP implementation process

Step 3: Analysis GAP to

 Create a clear and complete model
 Identify the current state of the company
 Direction company will head to in the future
Step 4: Re-engineering
 Alteration in the number of employees
 Job responsibilities which should be performed
carefully

Step 5: Training
 Company need to update with all the new skills
needed

Step 6: Testing
 User error detections
 System overload
 Simultaneous multiple user log-ins
 Data security
Step 7: Application
 The implementation of the new ERP system
will be done and then, the old system will be
removed

Step 8: Maintenance
 System should be updated corresponding to
the future updates of the software solution
provider
 5. Principles of ERP

A Single Customize Flexibility

Centralize with to Fit Your
d Database Modules Needs

All departments
provides business
utilizing the same it allow business the flexibility to bend
central database flexibility on how they the solution to fit
ensure that the want to setup their unique needs,
information is ERP solution. allowing business to
consistent across all
make changes on the
departments
fly as things develop
further
6
Applying ERP
software at Nestlé
USA
 The goal of ERP
application is
In 1998, Nestle USA The project will Before ERP, Nestle
Project lasted 6 homogeneous ,
started the ERP apply 5 SAP USA had 6 different
years with a cost of independently
application project modules including: numbers and 29
200 million USD consolidating the
called the BEST Purchase , sales different access
trademark in a
Import Sales and distribution, points (customer
single corporation.
Certificate (Business finance and points). Each branch
Consolidation
Excellence through accounting makes business
activities of
System Technology) decisions that create
branches to expand
heterogeneity and
development. Take
ineffectiveness in
the number of
operating
customer access
organization
points and ledgers
down to 1.
“The goal is to develop best
practices for all company
operations from production
to sales and to eliminate old
methods.”
Project teams for stakeholders are not aware of the images
grouped directly by the new system.

Neither their employees nor their managers know how to use

the new system. This causes depression and many
resignations are sent.

The project team neglected to unify the modules. This

results in inconsistent behavior between modules.

Project was halted in June 2000 and project management

was transferred. The Nestle USA executive board meets for
3 consecutive days to discuss the project's direction

Initial Failure
In April 2001, a blueprint was created for the
project team to implement.

A project change manager is assigned to link

between the project team and different functional
units.

CHANGE
 Nestlé USA saved more than 325 million dollars in
2002, mainly thanks to improvements in the supply
chain, especially the anticipation of demand

Result Nestlé USA unifies activities within the organization.

Factories use a common process that simplifies
operations and centralizes functions such as the
training process (only one training protocol needs to
be developed for all factories)will listen to you or read
the content, but won’t do both.
 Conclusion
To apply ERP successfully, it is It is not possible to force a project to a
necessary to select the right fixed time frame. It is more important
individuals to join the project from the to define the project objectives clearly
very beginning. More people are and then build a time frame based on
needed as company-wide change that in
takes place.

Strong focus on staff training when Need to spend time evaluating

employees are directly affected by the business processes will suffer from
new system. design load when applying ERP
THANKS!
Any questions?
ACTIVITY /
WORKSHOP RELATED
TO THE TOPIC
 Rule:
 We will have 5 questions for this Topic
 Each question will have a score of 10-9-8-7 corresponding to the
Rule team about 1-2-3-4
 The first team to finish will receive an envelope. Once the teams
Group activities: have finished, first team that finishes opened the envelope and
reads their information and executes them.
 After 5 questions, the team with the most points will have a gift
for the winner
  As you know in this Topic, we talked about Erp Systerm

 To start the game, we come to question 1: fill in the blanks.

 This is a very simple starter question
1. Definition
ERP  After the answer is complete, you will send a representative from
the group to check answers with the organizers. If you are wrong,
you will be able to return to work again.

 Good luck
 • Enterprise resource planning (ERP) is a process
used by companies to _____________ the
important parts of their businesses
• ERP as a system that maintains a database of
information related to business processes
anywhere
1. Definition • ERP tools __________ a common process and
ERP data model, covering ________________
• ERP applications __________ a range of
administrative and operational business processes
1. broad
across and deep
multiple operational end-to-end processes
industries
2. automate and support
3. share
4. manage, integrate automating and connecting
  As you know in this Topic, we talked about 13 ERP Modules

 We will give you 13 ERP MODULES your task is to properly arrange

13 ERP MODULES.
2. ERP  After the arrangement is complete, you will send a representative
Modules from the group to check answers with the organizers. If you are
wrong, you will be able to return to work again.

 Good luck
  As you know in this Topic, we talked about Erp Systerm
 We come to another simple question
 After the answer is complete, you will send a representative from
the group to check answers with the organizers. If you are wrong,
you will be able to return to work again.

 Good luck
3. ERP
Question 1: Which operating principle of ERP is correct
 A. A single centralized database
 B. Application
 C. HRM
Question 2: What is the acronym for ERP?
Your answer: ___________________________
  As you know in Topic recently, we talked about ERP
Implementation life cycle

4. ERP  We have 8 steps of ERP Implementation life cycle, your task is to

Implementation record those 8 steps
life cycle  After writing, you will send a representative from the group to
check answers with the organizers. If you are wrong, you will be
able to return to work again.

 Good luck
* Hint: The icons next to them are in the correct order
  As you know in this Topic, we talked about the Principles of ERP

 We will provide you with 3 Principles. Your task is to correctly align

the meaning of those three principles.
5. Principles of  After the arrangement is complete, you will send a representative
ERP of the group to check answers with the organizers. If you're
wrong, you'll be able to get back to work.

 Good luck