Nestle's Cost Control Culture

For Nestle it is important that all of the resource that they are producing are for the right projects make the most effectiveness of what they spend. Nestle have a strong cost control culture. They trying to improve our operations and deliver savings by business Excellence which create a back office competence to help them leverage their size and scale to convey competitive advantage and liberate resources. Growth, brand support, Research and Development, innovation and renovation are the main driver for it. Nestle always challenge themselves to find a new opportunities and place where they can contribute to the issue society faces. This creates shared value for the communities where we operate and for our shareholders. We are contributing

Most of the savings are from organisation redesign more than implementing GLOBE but in my opinion implementing GLOBE also another way that they can safe more money by creating a template for all of the employees all over the world to work in the same way and also calculate the thing that they need to do for instance the template can calculate the amount of order how much ingredients do they need and also block if some worker wants to order some irrelevant product. As I mentioned GLOBE could help save $35 billion. In addition, changes in purchasing create more business benefit than any other reasons. To be more specific the saving comes from getting the experiences buyers from individual countries and put them in Zone level once a critical mass of GLOBE had been achieved in each Zone. Furthermore, GLOBE is important because it will deliver consistent master information so all the countries have a consistent way of getting many variety types of the ingredients they need for example wheat, sugar, coffee, cocoa and all the more obscure additives like fats, colourants, preservatives, stabilizers etc. Moreover, common databased and business processes lead to more trust worthy demand forecast for the various products as mentioned before. This new SAP system has allowed Nestle to reduce inventory and save on supply chain costs. Nestle can forecast down to the distribution centre level that allows the

With the help of technology and the access through all the employee throughout the company make create a same value that we share so it could drive our company to other level. Another important factors that we have learn from Nestle is that they are brave enough to implement ERP system even though it is difficult decision to change the whole system for all the employee around the world but it is turn out to be a success which encourage people to make a step or changes to be successful if you want to invest you have a look a the future and the big picture not in a short period of time.Nestle use all of their 150 years of experienced to develop and learn through their own path to create a new