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