Mondelez Launching $1.2 Billion ERP and Supply Chain Transformation
Mondelēz International is overhauling its enterprise resource planning (ERP) and supply chain operations as part of a $1.2 billion multi-year effort.
To drive enterprise efficiencies, Mondelēz is staging an SAP-, Accenture- , and o9-partnered change, implementing a new ERP system implementation program by region across multiple phases over a period of five years.
Luca Zaramella, CFO, said the staggered approach will allow the company to focus on a single part of the business, allowing it to roll resources into the next wave of the approach as the transformation progresses.
The Road to Transformation
Mondelēz, which recently announced Filippo Catalano as their new chief information and digital officer, took an 18-month preparatory lead-up to the gradual implementation. The timeline is intended to limit disruption or potential issues by focusing on individual SAP modules within a particular region vs. a full-blown, “big-bank” approach.
“We believe, given also the resources we have internally, and importantly, the ones we have secured through SAP and Accenture, that we will have a good opportunity to execute as well,” said Zaramella during a recent call with investors.
The company is working with o9 for the supply and demand planning aspect of the digital transformation, focusing on inventory and the material opportunities it presents, she said.
Mondelēz expects to finalize the implementation by the end of 2028.
CPG ERP Efforts
Several other CPGs are undergoing ERP transformations. Ralph Lauren is investing in a global ERP system to support an increased focus on DTC, consolidating into a single platform as part of multi-year investment efforts, which also include integrated business planning tools and enhanced logistics automation.
Also, Dollar Shave Club and UNTUCKit have launched ERP upgrades to improve operations, automate processes, and expand products online and in-store as part of efforts to streamline direct-to-consumer and retail operations through a singular platform.
The Hershey Company has made significant progress on its ERP front after several years of tech investments to better evaluate opportunities and challenges, identify redundancies, implement increased connectivity, and use automation to solve problems more efficiently.
