Nestlé Pieces Together Its Global Supply Chain.doc

Nestlé Pieces Together Its Global Supply ChainJanuary 20, 2006 BaseLine Magazine By? Tom Steinert-Threlkeld Story Guide: Nestlé Cooks Up a Global Supply Chain ? One Supply Chain, 127,000 Products ? Signed: Global Project Manager; Undefined: The Project ? Project Plan: Finalized; Schedule: Not So Much ? Drafting a Project Team of Business-Unit All-Stars ? Standardizing IT: No So Tough; Standardizing Managers: Not So Easy ? Project Costs: Capped; Project Schedule: Changed Again ? Rollout: Fix It as You Go; Goal: Customer Cant Feel the Pain ? SAP Project: Global; Computing Resources: Limited ? Nestlé By the Numbers Player Roster: Whos Who Among Nestlé Project Planners Roadblock: Regional Managers Hurdles Overcome: Deploying a Common Global System Base Technologies: Nestlé SAP: Not Pretty, But It Did the Job VEVEY, Switzerland—Chris Johnson was under attack. Fifteen months into standardizing how Nestlé operates around the world, he was fending off a general revolt from managers in 40 countries. Why should they spend money on his GLOBE project? The Global Business Excellence program, a worldwide initiative to implement a single set of procurement, distribution and sales management systems, would just hurt their bottom line. And—in their opinions—make it harder to run their businesses. Johnson had been given the third day of a three-day meeting in October 2001 to sell the market managers on the importance of standardizing how Nestlé conducts business around the world. Improvising, he decided as the day started to take questions, any questions. And by midday, he was still answering them. During lunch, Johnson decided as head of the GLOBE program that he had to somehow take charge. Or he would lose control of the $2.4 billion project, which was critical to Nestlés operating efficiency in 200 countries around the world. And, quite possibly, his job. So, when the meeting resumed after the break, he offered to give his job away. To anyone. How