Benefits of Enterprise Resource Planning

In: Business and Management

Submitted By frozenkrngod
Words 1226
Pages 5
Upon examining the benefits of Enterprise Resource Planning systems, one can deduce that it’s often the most straightforward solution which will be extremely effective and beneficial for a company to solve its problems. It gives a company the chance to consolidate data, provide management the administrative privileges to access company data at any moment, re-format business processes and procedures, and coordinate systems that are located sporadically geographically. However, these great benefits do not come without great financial cost, which may cause a company to fall behind to complete a deadline or surpass their budget which can come at a great expense to the company. Thus, we will be examining the purpose of the ERP, the contract with SAP, and the benefits it provided Nestle SA, Nestle USA, and Nestle UK. The reason why an ERP system was implemented can be seen by examining any one of the three Nestle stories. For instance, Nestle SA is the forerunner of the current company that it is now which is headquartered in Switzerland. In the year 2000, the company decided that it wanted to take advantage of the size and financial value of the company by implementing an ERP system. The company began by signing a huge $200 million contract with SAP to create an ERP system that incorporated all 230,000 employees dispersed around 80 countries worldwide. In addition to this huge financial expense, they also committed another $80 million to strengthen maintenance, upgrades, and consulting within the company. Executives and board members at Nestle SA came to conclusion that in order for the business to remain competitive it needed to standardize its business processes with the multiple subsidiaries of the company. The whole operation was designed to take three years for Nestle SA’s largest sites and subsidiaries for the ERP system to be completely implemented. Included…...

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