Nestlé to Scale AI, Digital-First Marketing With ERP Upgrade
Nestlé has completed its ERP upgrade to SAP S/4 HANA as part of an enterprise-wide digital transformation effort.
The move embeds SAP's AI copilot directly into the consumer goods company's core functions. This will introduce increased agility and decision-making, providing employees with more access to insights and efficiencies through automations in areas such as supply chain management, procurement and order fulfillment.
Specifically, the company expects the following benefits:
- Optimized order fulfillment for retail (in-store and online) that leverages next-generation intelligence to match supply and demand instantly.
- Consistent reporting and planning through real-time, data-driven decision-making.
- Standardized and automated global procurement processes via a cloud-based platform.
It's the latest step to help scale AI across all of its business operations so Nestlé can free up resources and better respond to shifts in consumer trends and retailer needs. Anna Manz, CFO, said the effort will help the company build digital-first marketing and sales platforms for areas like cold coffee, therapeutic pet food and modern cooking aids.
"We want to really scale shared services and drive world-class services throughout our markets," said CEO Philipp Navratil of the strategy during a recent earnings call. "So when we talk business transformation, we think about how we want to become a faster, more nimble company that is driving growth."
With the common ERP system as the IT backbone, Nestlé can tie together core business processes from manufacturing to sales to supply chain and finance and HR, according to Chris Wright, CIO and head of IT.
"It provides a unified platform and data foundation that allows us to execute end-to-end and have visibility across our entire company and beyond. With the upgrade, we gain more flexibility, capabilities and insights that will help us roll out new products globally faster to meet the needs of our customers and consumers," Wright said in a statement.
"And with the use of AI and automation at scale, we'll drive efficiency and effectiveness throughout our value chain," he added.
Fifty-thousand Nestlé users across 112 countries within its Asia, Oceania and Africa regions are the first to benefit from the new capabilities. The company expects to complete the enterprise-wide upgrade within the next two years.
