Nestlé has signed a $500m (£330m) contract with IBM as part of a
plan to consolidate its global IT systems into five regional
datacentres. The company is looking for savings of $1.8bn over the
next five years.
The reworking of Nestlé's IT hardware infrastructure will provide
the underpinning for a common software and business process
environment globally, based on mySAP.
The deal is indicative of a trend for multinational companies to
bring together disparate IT systems into one whole, with common
procedures and shared infrastructure, a move which provides cost
savings.
Companies such as Royal Dutch Shell, Unilever and Cadbury Schweppes
are among those which have announced projects to consolidate
formerly disparate IT systems in the past year.
Nestlé's common IT platform will be built on a mySAP portal
interface. This will give employees access to information according
to their role in the organisation.
IBM is to supply servers, storage equipment and database software
for the five datacentres - two in Switzerland and one each in
Australia, Germany and the US.
As part of the project all product, supplier and customer data will
be harmonised, with sections made available to business partners
via a private exchange to facilitate real time e-procurement
activity.
Nestlé has 460 factories in 84 countries and has traditionally
allowed local business units independence in decision-making. It
intends to retain this culture while making operational savings
through the elimination of duplication in purchasing and
maintenance of the common IT environment.
Manufacturing IT analyst Simon Bragg of ARC Consulting, said the
move suited Nestlé's business structure. "Broadly the IT trends
reflect different business strategies. If the enterprise is
composed of multiple business units, which don't share common
customers, suppliers or competencies, then it is best to leave
business units alone, and have them make their own decisions about
IT," he said.
"But if your enterprise business units share common customers and
suppliers, like Nestlé, then it makes sense to integrate processes
across plants.
"Such an approach probably appeals to Swiss culture - a country
where everything that is not compulsory is forbidden," Bragg
added.
antony.adshead@rbi.co.uk