Nestle company has for long been on the forefront for providing food and pharmaceutical services in Switzerland. The organization has expanded significantly to cover a large area, and its services are exceptional based on the quality and amount of revenue generated in the company (Hudak, 2018). The high revenue development in the company has been attributed to the positive publicity and the high-quality service provided in the organization. Since the organization operates all over Switzerland, many branches have been established in all the major towns and cities in the country. The management of all this entities has however proven to be a challenge. The current technology employed in the management ensures that each of the established partners operates independently though they are members of the same enterprise. There is, however, uniformity in the branding of products, but the operations differ entirely (Hudak, 2018). For instance, the establishment of vanilla was found out to be offering completely different services from the main one in Switzerland. The process made it be viewed as a partnering organization rather than part of the organization itself. The activities differed and also the pricing of the products was found to be different for two selling points of the same company.
The ordering system for each unit was also not uniform, and the labeling for the same order obtained at different selling points was also seen to differ significantly. The various outlets in America were seen to be independent companies who were affiliated to nestle. The deviation in services from one outlet to the other reduced the reliability of the operations, and in some other cases, the operation cost for the organization in one outlet was seen to be higher than that of the other sections (Monk & Wagner, 2013). There are also challenges being faced in the efficiency of the organization since the production and distribution process is not coordinated uniformly every member is seen to operate in their ways which makes it difficult to control the entire operations of the organization.
Additionally enforcing security in the organization is also a challenge. Monitoring the food products in the institution is a problem since most of the products are produced without the knowledge of the leading organization. The number of headquarters is also high which makes coordination of all activities in the entire organization difficult. Each institution is required to report to their offices, and the report is not a real-time which creates chances of fraud and other crime-related activities. The method of data transfer involves one seeking information about a company through contacting and in most cases not every member is informed about a particular event in the organization the result is that the organization information transfer takes time before being processed and transferred to the other users. Each party has their operations and the information going out is only after it has been shared by the individual in the specific area to another department on request. The result is that there are delays in data transfer and activities are taking longer than they should lead to an effect on the efficiency and integrity of the information given.
In the light of the above analysis and the situation faced by the Nestle company, different parts need to be changed within the organization to minimize on the weaknesses of the organization. For instance, there is a need for change in the communication section of the organization. The organization’s communication is not integrated into a conventional system. Different units are operating differently, and information from one selling point to another takes a lengthy procedure to reach the other destination (Conard, 2014). Communication of changes in the operations and other important sections in the organization is also a challenge which leads to the demand for change in the conversation. A good organization needs to have every employee updated with real-time information for every institution which leads to standard services within the organization.
Additionally, Nestle needs improvement in the procurement and purchasing sector. The organization comprised different branches that operate independently and are not interlinked together. Each department has its procurement and purchasing system. The result is an imbalance in the cost of operations with some areas incurring more costs of production while others are paying less amount. The resultant effect is a significant variation in the prices of the products based on the geographical location of the individual. A proper working organization needs to strike a balance and standard of value to its customers (Tavana, 2013). The client needs to get similar services from every branch of the organization at their preferred cost. Variation in price from one location to another as influenced by the procurement method alters the reliability of the organization in offering the services and increases the chance for fraud.
An improvement also needs to be made in the marketing and finance section of the Nestle company. The current marketing strategies are localized in one department, and each segment of the organization markets its products independently. In a successful organization, however, needs to have a well-developed plan for marketing and the products being traded need to be a consistent quality which makes it necessary for the organization to maintain the standards (Walker, 2012). In nestle current situation, however, this achievement is not possible since the company has a significant variation in its products and more often the marketing department is present in every branch which also limits the resources available for marketing the products.
Likewise, the human resources section need to be developed and advanced to ensure that the organization is established in the best interest of the employees. Currently, there are many human resource sections, and hiring of an employee in any of the branches is dependent on the management of the area. All departments do it independently which creates the need for the organization to ensure that they have a standard hiring system. The total number of employees present in the organization is currently not known, and most of the people tend to see the name operating in their area. Each branch has an independent human resource section. Organization of activities such as training and development for the employees to enhance uniformity in the operations becomes difficult. Though the different divisions need to have their human resource personnel, coordination of some human resource function such as training and development as well as salaries and remuneration is necessary for all to feel part of Nestle (DeCenzo, et al., 2015).
Implementation of an enterprise resource planning ERP is necessary to solve the problem. the solution will require the use of the SAP ECC which comprise of the central component. The choice is arrived at due to the need of having control over all the activities of the organization which is actualized by the SAP ECC. The enterprise resource planning enables an organization to incorporate all the functions into one software for easy monitoring and control. The software has the linkage of a robust communication system that allows people within the organization to access real-time information from all the sections of the organization and allow for faster decision making (Monk & Wagner, 2013). Each employee in the organization will be able to give real-time information about all the other sections using the system. Additionally, ERP has a strong connection that enables the keeping of inventory information and purchases made in every organization which is needed to reduce discrepancies and chances of particular organizations to produce conflicting information about the procurement method (Padhi, 2013). In the implementation of the process will encourage the entire organization to be coordinated and managed together to achieve a universal institution.
The implementation process will begin with the training of all the human resource personnel who are to be involved in the functioning of SAP ECC. The training will be provided to inform all the employees about the technology and how it is going to be operated in the organization. Once the practice has accomplished its needs, the necessary infrastructure will be put in place, and tests will be conducted to evaluate the understanding of the employees from the training done (Boxall & Purcell, 2015). All the issues and concerns emerging from the use of the new technology will be addressed at this stage. Once a substantial number of people are aware of the further development and how it is operated in their section, the devices will be fitted in their offices and be allowed to work. The transition process will take the phased approach which enables the creation of understanding between the employees and the technology before doing away with the old technology (Bailey, 2016). In the initial state of implementation, the employees will be required to make copies of their work during the transition phase. The method will be used to ensure perfection during the transition process.
Additionally, there will be a series of training which will be done occasionally based on the evaluation results. The process will continue until all members have an understanding of all functions of the SAP ECC and have perfected in the operations ( Oregon department of correction, 2013). Complete integration of the SAP ECC will then be launched, and the activities will be evaluated in every section of the organization. The nestle will then have a series of operation and management team that will be monitoring the performance of the technology to ensure that it serves the purpose to which it was intended.
The timeframe for the implementation will be done as follows: The training will be conducted a month before the purchase of the necessary infrastructure for testing. The facilities will be purchased during the second month, and the activities launched in all sections during the third month. The transition period will be initiated and is required to take a total of three months after which the entire process will be ready to continue. After the launch, there will be a continuous evaluation every three months to ensure that the technology meets the desired objectives.
The SAP ERP central component (SAP ECC) business suits presented in the implementation of the ERP provides numerous advantages and solutions to the various issues that will face the business in the current and the future. For instance, the SAP ECC customer relationship management CRM will help shape the information sector and enhance communication network between the different departments and branches in the organization, therefore, improving integration and planning. The supplier relationship management SRM will foster positive relations with the suppliers which will influence the demand for supply tenders to the organization and increase the competitive advantage (Sheldon, 2014). Moreover, the supply chain management SCM will help in ensuring that the companies’ products are distributed to the clients within the required time which will encourage positive development in business and maintain a healthy and loyal customer base. The product lifecycle management PLM will help the organization on how to perform and survive the different stages in development to avoid reaching the decline stage faster. The human resource capital HRC assist in the management of the organization and develop a proper workforce that will be competent and increase the performance of the organization significantly (Tavana, 2013). All the advantages are incorporated in the SAP ECC which in its implementation will realize a sustainable organization and operations. The SAP ECC provides an interactive platform that can be used to promote both the internal and external communications creating positive publicity for the enterprise which is essential for a successful online business.
There are however training needs that will have to be addressed in the organization. The first training to be done will be during the introduction to the new technology which will be an induction training informing the people about the technology and its advantages as well as the problems they are to face (Rosario, 2016). The aim will be to reduce the resistance to change which is common in organizations. Further training needs will be assessed through the evaluation procedures and be addressed in the subsequent training that will be conducted after every three months. Employees’ feedback will be collected on the new technology and be used to inform further actions. Other issues to be put into consideration include the need for repair and maintenance and follow-up to ensure information is updated each day on the system.
The adoption of SAP ECC technology will help Nestle company to have a high competitive advantage over their competitors in many ways. For instance, through SAP ECC quality control for the organization will be enhanced since the organization will be brought to be under a joint administration. The involvement of SAP ECC also will foster the organization’s public image (Stanford, 2016). The services will be coordinated properly, and all the employees will be qualified and trained to meet the necessary criteria for inclusion making the organization to offer uniformity in service delivery. The prices for products will be standardized as well as the method of labeling the food being distributed which will make the brand to be outstanding regarding both quality and presentation method. There will also be a clear understanding of the organization’s proceedings and errors emerging from any section of the organization will be detected faster, therefore, encouraging faster action and prevent the information from going public. SAP ECC will also enhance the purchasing department and make sure that the organization realizes the places with the best offer for their inputs and therefore hire reputable suppliers who will deliver quality products at the time required to encourage continued business (Kirkpatrick & Kirkpatrick, 2016). The ultimate effect of all these benefits will be a profitable institution which is efficient in its service delivery as well as the internal operations increasing its rank among the successful organizations in the world.
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