Nestle SA is a world renowned multi-billion dollar profit
earning company headquartered in Switzerland. Historically, each of its branches in
different nations were allowed to operate as they please, as long as they adapted to their host country’s business culture. Upon performing an internal check, management realized that the multitude of companies on foreign shores were immensely costly and severely inefficient particularly in the United States of America. This deficiency in standard commercial processes hindered Nestle from boosting productivity.
Behind this discovery lay the reasons for inefficiency. The first was that Nestlé couldn't leverage its global purchasing power for the raw materials used in its products, even though each production plant used the same worldwide suppliers. This occurred because each company not only negotiated its own purchases and its own prices, but also made their own business decisions. The essence of this problem, stemmed from the autonomous decision making of the companies. For the resource vanilla, there existed twenty-nine... [continues]
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(2008, 11). An Analysis of Nestle's Erp Odyssey. StudyMode.com. Retrieved 11, 2008, from http://www.studymode.com/essays/Analysis-Nestles-Erp-Odyssey-176364.html
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