1.

About Nestle company

 History of Nestle Nestle which means the little nest(who become the logo of the
company) was established by Henry Nestle in 1867 over 150 years ago
 Nestle owns close to 8000 brands and in 2011, 450 factories and it was operate in
86
 Countries with about 291 000 employees. Nestle was become the Number one as
the world’s most profitable food company
 Product is not only about baby milk coffee, tea, and chocolate but there are a lot
of new products like cereals,yogurt cream, frozen food, seasoning and many
more.
 In 2000, Nestle applied ERP in its business processes
2. Theory of topic
2.1 Definition
 Enterprise resource planning (ERP) is a process used by companies to manage,
integrate automating and connecting the important parts of their businesses
 ERP as a system that maintains a database of information related to business
processes anywhere from human resources to customer relationship management,
it allows for the automation and integration of business processes, therefore
reducing the amount of manual labor, simplify workflows, more importantly,
reliable levels of service to customers
 ERP tools share a common process and data model, covering broad and deep
operational end-to-end processes, such as those found in finance, HR, distribution,
manufacturing, service and the supply chain
 ERP applications automate and support a range of administrative and operational
business processes across multiple industries, including line of business,
customer-facing, administrative and the asset management aspects of an
enterprise
2.2 ERP Modules
Source: https://www.netsuite.com/portal/resource/articles/erp/erp-modules.shtml

Finance: it allows businesses to understand their current financial state and future
outlook, include tracking accounts payable (AP) and accounts receivable (AR) and
managing the general ledger.
Procurement: known as the purchasing module, helps an organization secure the
materials or products it needs to manufacture and/or sell goods. Companies can keep a
list of approved vendors in this module and tie those suppliers to certain items. The
module can automate requests for a quote, then track and analyze the quotes that come in
Manufacturing: helps manufacturers plan production and make sure they have
everything they need for planned production runs, like raw materials and machinery
capacity. During the manufacturing process, it can update the status of goods-in-progress
and help companies track actual output against forecasted production
Inventory Management: The inventory management module enables inventory control
by tracking item quantities, helps businesses manage inventory costs, making sure they
have sufficient stock without tying up too much cash in inventory
Order Management: tracks orders from receipt to delivery, tracks their status as they’re
prepared, fulfilled and shipped to the customer
Warehouse Management: this application can efficiently guide warehouse employees
through all warehouse processes based on the layout of the facility, from putaway when
shipments arrive to picking to packing and shipping
Supply Chain Management: tracks each step in the movement of supplies and goods
throughout the supply chain, from sub-suppliers to suppliers to manufacturers to
distributors to retailers or consumers
 Customer Relationship Management (CRM): stores all customer and prospect
information includes the company’s communication history with a person—the date and
time of calls and emails, for example—and their purchase history
Professional Services Automation (Service Resource Management): tracks the status
of projects, managing human and capital resources throughout, and allows managers to
approve expenses and timesheets
Workforce Management: monitor workers’ attendance and hours and measure things
like employee productivity and absenteeism
Human Resources Management: tracks detailed records on all employees and stores
documents like performance reviews, job descriptions and offer letters. It tracks not only
hours worked but also paid time off ,sick days and benefits information.
Ecommerce: allows companies to quickly launch a business-to-business or business-to-
consumer ecommerce website
Marketing Automation: help manages marketing campaigns across digital channels like
email, web, social media and SMS. It can automate email sends based on campaign rules.
3. Implementation of ERP
 Greatly improved business insight and understanding: help business gain a
deep understanding of different business processes, spending and budgeting, and
much more, over every single aspect of the company from the moment a customer
engages business, to the moment the product is shipped from the warehouse
 Lower the business’ operational costs: through improved inventory planning,
better procurement management, better customer service
 Foster collaboration in, and between, departments: teams and departments can
work together with integrated data locations, enabling them to cross reference and
collaborate together
 Reduce business risk and improve security: ERP solutions can help keep
everything safe and secure as they are generally equipped with firewalls,
restriction controls, compliance controls and other regulatory process standards
 Better customer service: better access to customer information, faster response
times, improved on-time delivery, improved order accuracy
 Improved Supply Chain Management: ERP system bolsters supply chain
management in a variety of ways, improvement results in shortened lead times,
more on-time deliveries and many other benefits that enhance the overall
operation and success of business
 Improved Process Efficiency: ERP platform eliminates repetitive processes and
greatly reduces the need to manually enter information, which not only improves
user productivity, but it eliminates the possibility of inaccurate data which could
lead to making costly business mistakes. Besides that, it streamlining business
processes, which makes it easier and more efficient for companies to collect data
4. ERP implementation life cycle

Step 1: Selection of packages

 The company has to select a good ERP package
 Suits the company and business needs,
 Depend on the basis of the company environment
 Product that is manufactured by the company
Step 2: Project Planning: company should come up with a clear and realistic plan for the
process includes
 Scheduling timelines
 Deadlines for projects
 Identifying roles and assigning responsibilities for the ERP implementation
process
 Step 3: Analysis GAP to
 Create a clear and complete model
 Identify the current state of the company
 Direction company will head to in the future
Step 4: Re-engineering
After the proper analysis of all the situations in which the organization is in, the next step
would be redefining the plans and making changes in existing plans to get further more
benefits and profit to the company
 Alteration in the number of employees
 Job responsibilities which should be performed carefully

Step 5: Training

 To enhance the efficiency, cop up with these changes, company need to update
with all the new skills needed by the company to survive in the heavy
competition in the market by providing relevant training to its employees
Step 6: Testing
It is necessary to test the product that is manufactured or the service that is provided by
the company is in favor of their consumers or not
 User error detections
 System overload
 Simultaneous multiple user log-ins
 Data security

Step 7: Application

 After analysis, re-engineering, and testing, the implementation of the new ERP
system will be done and then, the old system will be removed

Step 8: Maintenance

 Employees will learn to face and deal with system related problems, system
should be updated corresponding to the future updates of the software solution
provider
5. Principles of ERP
 A Single Centralized Database: no matter what ERP tool is tracking, it will
always store information into this centralized database. All departments utilizing
the same central database ensure that the information is consistent across all
departments
 Customize with Modules: it allow business flexibility on how they want to setup
their ERP solution. ERP applications use different “modules,” which allow
business to customize the solution to fit their direct needs. Depending on what the
 business does, there are different modules that can be included to build out the
perfect solution
 Flexibility to Fit Your Needs: provides business the flexibility to bend the
solution to fit unique needs, allowing business to make changes on the fly as
things develop further. For example: if your business is selling products to
customers, your ERP modules would include sales, marketing, manufacturing,
supply chain management, and customer relationship management. But if your
business is in the repair industry, this would require modules like helpdesk
ticketing, order processing