Nestlé Pieces Together Its Global Supply Chain - ' Nestl'

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é By the Numbers">

Headquarters: Avenue Nestlé 55, CH-1800, Vevey, Switzerland
Phone: 41-21-924-21-11
Business: The world's largest manufacturer of food products; has extensive holdings in coffee, chocolate, baby formula and bottled water.
Chief Executive Officer: Peter Brabeck-Letmathe
Project Leader: Chris Johnson
Financials in 2004: Net income of $5.4 billion on sales of $69.9 billion
Challenge: Implement a single set of procurement, distribution and sales management systems and processes worldwide.

BASELINE GOALS:
Save $2.4 billion by the end of 2006, from supply chain, sales generation
and support activities.

Spend no more than $2.4 billion in capital, to get these savings.

Cap spending on information technology, companywide, at 1.9% of sales each year.

Increase percentage of company operating on GLOBE systems to 80% by end of 2006, from 30% at end of 2005.

Story Guide:

Nestlé Cooks Up A Global Supply Chain

One Supply Chain, 127,000 Products

Signed: Global Project Manager; Undefined: The Project

Project Plan: Finalized; Schedule: Not So Much

Drafting a Project Team of Business-Unit All-Stars

Standardizing IT: No So Tough; Standardizing Managers: Not So Easy

Project Costs: Capped; Project Schedule: Changed Again

Rollout: Fix it as You Go; Goal: Customer Can't Feel the Pain

SAP Project: Global; Computing Resources: Limited

Nestlé By the Numbers
Player Roster: Who's Who Among Nestlé Project Planners
Roadblock: Regional Managers
Hurdles Overcome: Deploying a Common Global System
Base Technologies: Nestlé
SAP: Not Pretty, But It Did the Job

>>> More Projects: Processes Articles          >>> More By Tom Steinert-Threlkeld