Importance of ERP Systems in Nestle: Achieving Competitive Advantages and Saving Money

This report discusses the importance of implementing ERP systems in Nestle to achieve competitive advantages and save money. It also highlights the benefits of ERP systems in improving communication, supply chain management, inventory control, and more.

Module case study

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................4
3. Biggest payback comes from ..................................................................................................4
4. ..................................................................................................................................................6
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Over the last few decades motivations to introduce ERP systems in company have
varied . It is essential for companies to improve communication with customers and supplies so
that they can gain competitive advantages. Nowadays, MNC is implementing ERP systems so
that they can easily access data to improve business performance and processes related to it. The
present report will be based on one of the largest food and beverage company in the world Nestle
which provides high quality products to enhance customer experiences. The major purpose of the
company is to work effectively for providing good food in order to enhance lives.
3. Biggest payback comes from
As we all know that management of ERP systems is very important as it aimed to address
matters of organizations. Standardizing IT Systems could be a driver for adopting systems like
ERP. Nowadays, international firms like Nestle is implementing ERP systems so that it will help
them to improve communication with customers and sellers. If everything is organized perfectly
and differently then it can support savings. IT savings can enhance the higher level cost saving
with the help of software called ERP (Pereguda, 2018). Frameworks related to ERP can be
custom fitted to nestle business operations to help them succeed and achieve competitive
advantages. One of the critical manners and important element by which ERP programming can
open the business capabilities is by just providing effective arrangements that are explicitly
customized to company and its operations. With the help of ERP software business can save
money which helps them to achieve success in the competitive world. The biggest payback come
from savings done from software called ERP and usage of technology. Enterprise resource
planning systems is very essential for business and finding solutions to problems. With the
implementation of an ERP systems in the business like nestle the company can get a chance to
re-engineer business processes. By using ERP systems the company can empower people by
giving them access to all the data of firm in real time which helps them to make decisions on cost
savings. By grasping these opportunities the company can achieve high price in terms of
financial costs and solves issues related to people. For managing supply chain and logistics in the
company, industries are using technology. In today's business world, ERP solution can do so
much more to gain competitive advantages (Chofreh and et.al., 2020). ERP helps business to do
proper accounting, provide service management, project management, material maintenance and
customer resources management. By taking these aspects into considerations the company can

easily achieve competitive edge and earn success. If ERP is used correctly by company them it
will surely drive savings in multiple categories of operations related to business. All requirement
planning of material can be maintained by ERP which helps company to save money and time
(Huang and et.al., 2019). It has been said that the use of ERP solutions can be very helpful for
savings in the company. By using ERP system in nestle business operations the company is able
to operate more efficiently so that they can work for achieving success. With the support of ERP
the company can help people working in the departments in such a way that they can work
accurately and rapidly. With the introduction and implementation of ERP systems in the business
can be helpful to solve miscommunication about logistics, orders and inventory as it keep record
on regular basis. Not only savings the company can also increase customer experience by
realizing them how much faster everything starts to move after the implementation of ERP
software (Paxton and et.al., 2020). Lack of technology and IT solutions can slow down business
operations so it is very essential for Nestle to make people more productive by using ERP
systems. As we all know that if people doing more work effectively in less time without
affecting the cost the productivity among work can be gain. Hence, it is said that part of
productivity gain comes from the business centralization and business management processes
into a single system. By using ERP system in the payback process the people can get continuous
and real time overview of important data with regard to inventory orders and things related to it.
ERP is very useful to save money on daily basis and there are another specific areas that must
needs to consider: Supply chain management- If company use ERP software for supply chain management
then it enables them to coordinate purchasing of services and goods and supply chain.
With the help of ERP systems the company is ale to keep involved everyone and inform
them about the latest production statuses (Sutduean and et.al., 2019). This is how the ERP
software is able to promote a sustainable supply chain which helps company to achieve
business success as sustainability is one of the most trending thing done by industries. Better control over inventory control- as we all know that control of inventory and
keeping records about it is one of the most important task done by industries. Company
have to pay more on inventory management as it is one of the critical area which must
have taken into consideration for the betterment of business success. Without controlling
inventory, company cannot achieve customer satisfaction. Inventory needs more cost for

handling costs like receiving and shipping. With the help of ERP, the company can easily
do production management which helps to save time and money. ERP helps company
automate many of these processes and systems. This software keep up to date reporting
and forecasting to know about what is going on with regard to costs. It helps firm keep
inventory carrying costs to a minimum which helps to support in costs management. Smoother and faster information flow- as we all know that ERP is having centralized
nature and its rich data reporting capabilities have support flow of information in the
company (what return can you expect from an ERP investment, 2022). By using ERP
software nestle is able to manage task, result in a faster and smoother flow of important
information across the departments of the firm. More accurate timely invoicing- by using ERP system the company can easily speed up
their cash cycle with timely invoicing. Not only this it is very beneficial for financial
management and managing accounting in the nestle business operations.
 Easily able to react to problems- when company implement an ERP system, they
naturally expect a good return which is beneficial for success. This return can be in the
form of good performance and increased profits to reach desired goals (Uddin and et.al.,
2019). By using this software the company can save its time and money both at the same
time. Data visualization can provide team-members the ability to see potential
production. Not only this, ERP can react to problems related to inventory. In this way,
they can solve problems and provide response before they cause any kind of trouble.
So, it is essential for company to understand the concept behind how well they can
implement ERP system in the working. As we all know that technology can help us to achieve
our goals but its only people who can make it work. The software like ERP won't do much if
employees working in the firm aren't making the most of it.
4.
As we have already discussed importance of implementation of an enterprise resource
planning system, it has been noted that the individual countries to take part and be involved in
the project. ERP provides the company a chance to achieve competitive advantages and save
money and time at the same time. A more effective cash flow can be done with the help of sales

team in the nestle. Lower operational costs can be maintained which helps company to improve
their production efficiency. Kiss of death means that failing of business in the world of
competition (Kitta, 2019). With the help of proper supply chain management, the company can
improve its performance. As we all know that projects in the countries are generally based on a
balance between three measurable elements such as quality, money and time. Managing a project
in the different countries is a crucial role that is required by the project manager to be prepared
for difficult situations. For this, it is essential to plan project in such a way that it would help
them succeed project completion.
It is essential to manage event timing so that they can deliver on time services, different
countries provides various types of benefits regarding processes. The project manager has to
coordinate timing with effective resources in each country. For this project management it is
important to use ERP systems and software to adjust the work and schedule planning (Harun and
et.al., 2021). In order to get the individual countries to take part and be involved in the project,
the company needs to use project management techniques such as:
Daily team meetings- To manage global level projects it is essential to conduct regular
team meetings and motivate people to be involved in the project. It is important to schedule time
according to the time zone of different countries as per their business hours.
Project cost control- When talking about how will individual countries take part in the
project, mentioning cost management is necessary (Uddin and et.al., 2019). The project manager
always concern about how can all costs be managed in a single project budget. So, they use
effective techniques like ERP system ensuring costs doesn't exceed the budget throughout the
project.
Risk management- when talking about managing risk, it is essential skill for project
manager to get countries involved in the project. By using effective strategies like risk
management methods company will be put in place to manage important project risk in countries
that have different appetites for risk.
Not only this it is essential for company to gather feedback and opinion from the project
team members, stakeholders, and others people like clients about the outcome of projects. By
doing so, they can get information about what parts of the projects went according to the set
goals and what part needs more improvement. With the help of multi country ERP systems,

business can handle lengthy projects that can easily achieve success among the individual
countries.
As we all know that the key to successful business is to know about how well business in
able to embrace the major change happen in technology and instigate about the changes.
However, it is said that if company is not able to change things swiftly then it can create issues
like struggle which adapting things hence, the company can face kiss of death. So, the question
arises here is how company should avoid kiss of death. As we all know that the kiss of death is
very well-known as a change resistant business culture. Mental health and well-being of
employees is important factor which must be taken into consideration because it can have
negative and positive affect both. They are always worried about their security and health and
their future success and financial security (AboAbdo, Aldhoiena and Al-Amrib, 2019). Hence, it
is said that employees perform at their best when they are well and motivated towards goals.
This cam be done with the help of leaders who willingly support their staff members to enhance
their confident level. No employee and leader perform well when they are not motivated and are
totally anxious. So, in order to avoid kiss of death it is essential for company to provide training
to employees in every aspects so that they can work effectively.
An effective leader must use strategies like motivation as it is vital that they give people
the skills and knowledge for using tools they need to thrive in this uncertain world where
competition is very high especially in technological aspects. It is very essential to have
knowledge on sales order processing and purchasing concept. Purchasing in most companies is
an effective business area of strategies- both to know about the model from a process point of
view and also how to implement from a technology point of view example like enterprise
resources planning.
Zone- nestle has recently reduced from five zones to three zones. So, in this way they can
enhance their purchasing in order to avoid kiss of death and have been possible at this level. It is
essential to work for the betterment of business worldwide as this is the best option available for
the purchase of GLOBE. Nowadays, experienced buyers were moved out of individual countries
for the purpose of achieving goals and can be employed at zone level once which can be critical
mass of GLOBE had been gained in each zone. On the other side, GLOBE was important to
achieve success and it has been delivered in a consistent way to achieve data. With the help of
purchasing in zone had gathered together accurate forecasts about how much material related to

sugar coffee and cocoa each country was wanting to buy. This record is kept in the project
management software called ERP system (Samiei and Habibi, 2020). It is also essential to do
demand and supply planning which helps people to derived directly from the planning team.
The best way to avoid kiss of death is to follow two major steps such as:
start with customer segment and planning to customer satisfaction because choosing customer
segment will be very helpful for the company as it can help them to achieve customer
satisfaction as per their convenience. Also, it is essential to get in front of people who are willing
and interest in products company provides.
Team player- it is essential that in business environment, to enhance teamwork. No man
can achieve success without becoming team player. It is noted that people need to get along with
support of leaders and managers and support each other before any uncertainty arises.
Flexible while working- being flexible is very necessary to avoid any kind of uncertainty
in the business. If there is one thing that is constant about the business world it is change happens
in the business environment (Uddin and et.al., 2019). So, it is essential to become flexible while
working and support team-mates. Otherwise, it won't help people to achieve success and can
assist for team's culture.
CONCLUSION
To conclude, Nestle is one of the largest food and beverage company in the world which
provides high quality products to enhance customer experiences. The major purpose of the
company is to work effectively for providing good food in order to enhance lives. By evaluating
the study it has been concluded that ERP systems plays a vital role in enhancing working
environment as it helps to share information across the organization and increase collaboration
between different departments which also helps to improve production efficiency. By using ERP
system in a proper manner the company can save time and money which helps them to increase
cash flow and enhance more effective sales team. Not only this, it is helpful to reduce inventory
costs. In order to avoid kiss of death the company needs to focus on developing the use of
updated strategies and tools. It is essential to provide training to employees of nestle so that they
can integrate manufacturing and accounting of products.

REFERENCES
Books and Journals
AboAbdo, S., Aldhoiena, A. and Al-Amrib, H., 2019. Implementing Enterprise Resource
Planning ERP system in a large construction company in KSA. Procedia Computer
Science. 164. pp.463-470.
Chofreh, A. G. and et.al., 2020. Development of guidelines for the implementation of
sustainable enterprise resource planning systems. Journal of Cleaner Production. 244.
p.118655.
Harun, S. and et.al., 2021. Enterprise resource planning implementation within science and
technology park (STP) organisations: an avenue for future research. A systematic
review. F1000Research. 10(1148). p.1148.
Huang, S. Y. and et.al., 2019. Critical success factors in implementing enterprise resource
planning systems for sustainable corporations. Sustainability. 11(23). p.6785.
Kitta, A., 2019. The Kiss of Death: Contagion, Contamination, and Folklore. University Press of Colorado.
Paxton, A. B. and et.al., 2020. Meta-analysis reveals artificial reefs can be effective tools for fish
community enhancement but are not one-size-fits-all. Frontiers in Marine Science. 7.
p.282.
Pereguda, A. V., 2018. Enterprise resource planning: implementation issues. European science,
(1). pp.62-66.
Samiei, E. and Habibi, J., 2020. The mutual relation between Enterprise resource planning and
knowledge management: A review. Global Journal of Flexible Systems
Management. 21(1). pp.53-66.
Sutduean, J. and et.al., 2019. Supply chain integration, enterprise resource planning, and
organizational performance: The enterprise resource planning implementation
approach. Journal of Computational and Theoretical Nanoscience. 16(7). pp.2975-2981.
Uddin, M. A. and et.al., 2019. A study of the adoption and implementation of enterprise resource
planning (ERP): Identification of moderators and mediator. Journal of Open Innovation:
Technology, Market, and Complexity. 6(1). p.2.
online

what return can you expect from an ERP investment. 2022. [online]: available through
<https://www.geniuserp.com/blog/what-return-can-you-expect-from-an-erp-investment>
multi country projects. 2022. [online]: available through
<https://www.pmi.org/learning/library/multi-country-projects-preparing-unknown-challenges-
495>