HOLY ANGEL UNIVERSITY

School of Business and Accountancy

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Prelims Paper on Enterprise Resource Planning

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NESTLE CORPORATION PHILIPPINES

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Presented to:

Mr. Ronald Bathan

Presented by:
Basco, Heinz Denzel
Cañon, Camella Mae
Gozun, Lico
Sunga, Trisha Marie
HR 331

September 10, 2020

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I. History and Background of Nestle Corporation Philippines

As stated in the article of Nestle Philippines Incorporation, Nestlé products

were already available in the Philippines far back on 1895, it was not until 1911 when The
Nestlé and Anglo Swiss Condensed Milk Company was established in the country, with its
first sales office in Calle Renta, Binondo.  It continued to import products such as MILO,
NIDO powder milk, MILKMAID and NESCAFÉ from other countries.  In the early 1950’s,
Filipro encountered difficulties when the Philippine government imposed import control.
Due to lack of imported products to sell, it was forced to become a distributor of peanut
butter, napkins, fruit preserves, and patis (fish sauce) just to keep its operations going.

In 1960, Nestlé S.A.and San Miguel Corporation entered into a partnership resulting
in the formation of Nutritional Products, Inc.  (Nutripro). In 1962, Nutripro’s first factory
started operations in Alabang, Muntinlupa to manufacture NESCAFÉ.   In 1977, Filipro, Inc.
and Nutripro Inc. merged under the name Filipro, Inc.  In 1986,  Filipro, Inc. changed to its
present  name as  Nestlé Philippines, Inc. Nestlé now has manufacturing facilities in Cabuyao
(Laguna), Cagayan de Oro, Lipa (Batangas), Pulilan (Bulacan) and Tanauan (Batangas) to
meet the growing demand for Nestlé products in the country. 

II. Nestle Philippines Incorporation’s Mission, Vision, Goals and Objectives

Vision

To bring consumers foods those are safe, of high quality and provide optimal
nutrition to meet physiological needs. In addition to Nutrition, Health and
Wellness, Nestlé products bring consumers the vital ingredients of taste and pleasure. 

Mission

Make better food so that people live a better life.

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 Goal

Inspired by the scientific breakthrough of our founder, Henri Nestlé, guided

by our values and with nutrition at our core, we work alongside partners to enhance
quality of life and contribute to a healthier future.

Objective

 Is to manufacture and market the Company’s products in such a way as to create

value that can be sustained over the long term for shareholders, employees,
consumers, and business partners.
 Nestlé does not favour short-term profit at the expense of successful long-term
business development.
 Nestlé recognizes that its consumers have a sincere and legitimate interest in the
behaviour, beliefs and actions of the Company behind brands in which they place
their trust and that without its consumers the Company would not exist. So the
needs & wants of consumers should be considered.
 Nestlé believes that, as a general rule, legislation is the most effective safeguard
of responsible conduct, although in certain areas, additional guidance to staff in
the form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization.

III. Objectives of the Study

The objective of the study is to find out what scope of ERP system should be
implemented in the company for its benefit. The main benefits are:
1. Cost Effectiveness
ERP system is efficient it does not require manual installation of information.
With ERP, it eliminates repetitive processes.
2. Integrated Information
With this, everything could be stored in one database. All information is kept
updated and consistent.

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 3. Divulge or Report
Through ERP software, everything could be reported easily customizable.
Through this features, employees do not need further help from an IT
personnel because the features are easy to access and the task could be
reported fast and accurately. Through this improved reporting capabilities, the
company can respond to complex database.
4. Customer Service
This could help the customer service agent to perform better while dealing
with the customers. Through the use of ERP system customer service agents
could easily look at customer’s information and history.
5. Security
Through ERP system it will improve the accuracy, consistency and security of
data. The restrictions of data could also be enhanced.

IV. Business Engagement

Employee Engagement

Nestle Philippines have developed a communication team where they focus on

the employee’s; through this team, it brings all departments close and so that the outside view

of the employee’s get to be reported. Also, this communication team helps achieve the main

objectives of the company. They provide counsel, strategy and planning, and ensure that

consistent and credible communications are delivered to key internal and external audiences

by strong communication professionals across the company. By developing and executing

proactive external and internal communications and engagement programs, this resulted to

monitored environment of the employees. 

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ERP Engagement

Some of the employees do not agree to ERP implementations but there are ways to

improve ERP engagements. Being clear to the employees, that ERP is very important to the

company can help maintain the engagement of the employees. By means of discussing the

advantage and disadvantage, this will further clear their perception on ERP system. Since

ERP implementation is costly and takes a long time to get implemented, recognition of hard

work to the employees is a must, to keep them motivated and productive.

Stakeholder Engagement

Nestle Corporation Philippines has decided that, to strengthen their business firm,

engaging the business with the stakeholder will sure uplift their organization. Through

meaningful engagement, stakeholders have helped the company improve and set the

priorities for Creating Shared Value strategy. Engaging the business with the stakeholder

could have huge impact; Nestle have global stakeholder not only local stakeholders; through

this, include employees, consumers, suppliers, communities, governments, non-governmental

organizations (NGOs), shareholders, trade associations and academia.

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V. Business Process

Figure 1.1

https://nestleanalysis2019.wordpress.com/2019/01/20/operations-strategy/

As shown in the Figure 1.1 this is the general business process of Nestle, it shown in

the figure the process of its primary activities. (1) Inbound Logistics, in general, these are

the group of people working inside to check with the raw materials, business partners and

finance management. Next on the list is the (2) operation, products are being operated and

being made. (3) Outbound logistics this are the group of people were they operate outside;

some of these people are the one who make the product and check the quality. Next would be

the (4) Marketing and sales, this is the sector were the products are being distributed to the

business sectors like markets and convenience store. Last would be the (5) service this is

where the customers come in, the products are being consumed to the customers.

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Figure 1.2

https://mpk732t12016clusterb.wordpress.com/2016/05/16/how-do-products-reach-us-distribution-channels-
and-its-significance/

In the figure 1.2 we can see how nestle distributes its product from sectors to sectors. (1)

Mother Godown, this is where the products are being held this is known as the warehouse.

(2) Distributor and Super-Stocklist; stockist is a commercial retailer or wholesaler that

stocks merchandise. Super stockist is the one who stocks the company's product to further

supply. Distributor an agent who supplies goods to stores and other businesses that sell to

consumers. After this (3) products are being distributed to the wholesalers and retailers.

Last, (4) end customer this is the final distribution where the final customers are.

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Figure 1.3

https://www.slideshare.net/samyakjain60/nestle-organisational-structure

References:

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History. (n.d.). Retrieved September 09, 2020, from
https://www.nestle.com.ph/aboutus/history

How to maintain engagement during ERP implementation. (2018, November 1). Retrieved
September 09, 2020, from https://abas-erp.com/en/news/maintain-engagement-erp-
implementation

Stakeholder engagement. (n.d.). Retrieved September 09, 2020, from

https://www.nestle.com/csv/what-is-csv/stakeholder-engagement