Copy of Copy of Enterprise Resource Planning (ERP)

Krafts Implementation

• One size does NOT fit all
• BackOffice Associate - DataDialysis
• Reset & revisit the resource plan
• Data had to be clean on migration
• Delays = opportunity costs
• Key success factor: availability

Kraft Foods / Mondelez International

References

• http://insiderprofiles.wispubs.com/article.aspx?iArticleId=6430
• http://www.sap.com/search/search-results.epx?Query=Kraft+Foods+ERP
• http://www.kraftfoodsgroup.com/About/index.aspx
• http://www.mondelezinternational.com/SiteCollectionDocuments/pdf/mondelez_intl_fact_sheet.pdf
• http://www.computerworlduk.com/news/outsourcing/18379/kraft-facing-mammoth-sap-integration-as-it-buys-cadbury-for-12bn/
• http://consumergoods.edgl.com/case-studies/Kraft-Foods-Drives-Change49354
• http://webcache.googleusercontent.com/search?q=cache:X-bZbM-hjwsJ:people.stfx.ca/x2011/x2011ucb/SAP/ERP%2520configuration/ERP%2520configuration.pdf+kraft+foods+hr+department+uses+erp&hl=en&gl=ca
• http://www.boaweb.com/

Enterprise Resource Planning

Benefits of ERP Software

• Consolidated business data
• Improved financial insights and results
• Accelerated time to market
• Quick response to customer demand
• Streamlined business processes
• More efficient acquisitions

Finance

• Finance Department Use of ERP
• Benefits of ERP for Finance Department
• Consistent year end process across all countries
• Net revenue grew 29%
• COGS decreased 3%
• Operating income increased 3%
• Total savings of approximately $1.5 billion

Finance

Customers

Sales & Marketing

Suppliers

Operations & Logistics

Sales & Marketing

Operations & Logistics

• Same order-to-cash process in every country
• Oversight of multiple product sales
• BusinessObjects BI 4.0
• Allows quick visual representation

Customers

ERP System

• Transportation networks managed through Oracle
• 2007, eliminated 500,000 miles that their truck fleet traveled empty
• Has 500 shipping points and supports over 6,000 destinations
• Central logistics server controls:
• Transportation shipping and loading
• Determining all the shipping costs.
• Ingredient information storage for multiple products
• eliminating data redundancies and discrepancies

• More accurate insight into customer needs
• Faster response time through employee empowerment
• Personalized customer experiences
• More flexibility in customer relationships

Suppliers

• Implemented SAP NetWeaver MDM
• Better oversight of vendor information
• Benefits:
• More effective decisions
• Improved collaboration
• Easier to comply with reporting requirements

Human Resource

• HR reporting & payroll
• Labor force analysis
• Placement
• Talent management
• Recruitment & training

Human Resource

• Cadbury implemented SAPs ERP software in 2006
• Resulted in overproduction
• Cadbury Blamed system for £12 million in losses
• Kraft attributed £400 million in savings to ERP
• Integration Cadbury's ERP systems cost $1.3 billion
• Annual savings of $250 million administrative cost, $300 million operations, $125 million from sales