MANAGEMENT
INFORMATION SYSTEMS
COMPANY: NESTLE
INTRODUCTION
• Nestle India is a subsidiary of Nestle S.A of Switzerland
• Presently the world’s largest and most diverged food company
• 443 factories, across 194 countries
• 7 in India
• Formed its first company in India in the year 1961 at Moga, Punjab
• Vision: being best in everything they touch and handle
• Mission: continuously excel to achieve and maintain leadership position in
the business
Board of directors
• Paul Bulcke
Chairman of the Board of Directors, Nestle S.A.
• Mark Schneider
Chairman's and Corporate Governance Committee
• Henri de Castries
Vice-Chairman of the Board of Directors, Nestlé S.A.
• Beat Hess
Chairman's and Corporate Governance Committee
• Jean-Pierre Roth
Compensation Committee
SWOT Analysis
Strength:
• World Renowned brand
• Extensive distribution system
• Broad Product portfolio
• Large workforce
Weakness:
• Maggi Controversy
• Brand structure
• Legal & consumer issues
Opportunities:
• Healthy breakfast
• Expanding market
• Increasing Income levels
Threats:
• Competition in the market
• Price of commodities
• Buyers power
Competitors
Products Competitors
• Dairy whitener segment Amul, Britannia
• Noodles Knorr, ITC
• Coffee Bru
• Chocolates Cadburry
• Curd Mother dairy, Amul
• Baby food Heinz
IT Management System
• Foresight is an important part in a leadership, as it defines the companies position
in the succeeding cycle.
• In 1990’s Nestle took a strategic descion to deploy SAP as its ERP provider. Along
with this it provided consultation, maintenance and updates in a $280 million deal.
• In late 2000 a descion was taken by the board of putting a centralized project
called: ‘GLOBE’.
• 700 people from within different department were a part of this project.
Sales and Order Processing
• Modal point where all the back office supply chain meets the front office.
• Case and Line fill rate (CLFR) as a basic standard to check improvements.
• Standardization of the whole process.
Purchasing
• Created three levels of purchasing co-ordination, they are worldwide, zone and
country.
• GLOBE purchasing model helped to save $35 Billion over the years.
• System doesn't allow a supplier who is not approved and documented by the
system, reducing error and cost.
Distribution
• GLOBE terms this as ‘Material Handling’. Handling of finished goods down the
supply chain.
• SAP implementation includes: maximum automation, real time data and the
concept of ‘right rate’ at the ‘right time’.
• Functionality is based on time.
Demand and Supply Planning
• Also known as sales forecasting, GLOBE demands the timeline for 18 months
with little variation in accuracy.
• Overhaul in change of culture for small countries.
• Multi Dimensional team.
• SAP module of ‘Advance Planning and Optimization’.
Manufacturing
• Post GLOBE factories were told what to produce by the planning team.
• Master Production Schedule.
• Quality Control.
SAP Benefit
• Integration of all departments and functions
• Timely decision making by reporting operations
• Helps the top management to analyse problem
• Creates controlled environment
• Maintains proper standard
• Secure database to share
SAP Limitations
• High maintenance
• Lack of flexibility
• Training cost
Tangible Differences in The IT Management
• Nestlé implemented SAS® Forecast Server to enhance its processes and achieve
greater accuracy in demand planning.
• Technological Development : 2 roles
First to develop break through technologies, building blocks.
Second to deploy those technologies to the company’s operations.
• Demand & Supply Planning
• Nestlé Improves Its Financial Reporting with Management Science
• Nestlé Uses Nimble Tax System :
A powerful Tax system that will change the way you work. NimbleTax offers
countless time and money saving features that will allow you to efficiently manage
your sales tax while focusing on what’s truly important: keeping your customers
satisfied and spending!
• SAP software in existing IT framework, which helps the company to maintain effective
records of its close competitors
What Is SAS Technology ?
• Forecasting software that automatically generates large numbers of high-quality
forecasts.
• Benefits :
a) Don't write code – unless you want to.
b) Reduce the chance of personal bias.
c) Deliver forecasts that reflect reality.
d) Plan more effectively for the future.
Website Comparison (Competitor)
• https://www.nestle.in/ (Nestle)
• https://www.hul.co.in/ (Hindustan Unilever)
Nestle Global v/s Nestle India
Website Comparison
NESTLE INDIA
NESTLE GLOBAL
CHALLENGES AND SOLUTIONS
• Employees resisting the change of the systems.
SOLUTION- Give proper training about the system before implementation
• The .NET Enterprise Servers contained information about the consumers for the purpose
of implementation of new marketing initiatives.
SOLUTION- Store these data in highly secured data farms.
• Large Organisation-> Enhanced Security Measures-> Increase in cost effects the
standardization policy of Nestle.
SOLUTION- There is no solution to this issue as this a basic requirement to stay in
competition with its competitors.
• Certain functions don’t come under SAP and they are stored in local data farms.
SOLUTION- Try to bring it under SAP as this will reduce costs and the data will be more
secure.
• Decision making issues on the feasibility of the project/change in the
systems
SOLUTION- The organisation has already found the solution to this issue by
introducing LCC (Local Control Centres).
THANK YOU
PRESENTED BY
1. Anish Gupta
2. Prachi Routray
3. Vedantam Gupta
4. Vishal Paul
