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Nestlé has completed the first phase of a major digital upgrade, implementing what it says is the “world’s largest” transition to SAP S/4HANA Cloud Private Edition.
The upgrade forms a central part of Nestlé’s digital transformation, designed to streamline processes and support the wider use of AI and automation in areas such as supply chain management, procurement and order fulfilment.
Nestlé has been making the transition from SAP ERP to SAP S/4HANA Cloud Private Edition since 2022. The company first standardised its global operations on SAP ERP in 2000.
According to the company, it expects the upgrade will give it access to real-time data to match supply with demand across its in-store and online retail channels; enable consistency in reporting and planning processes; and automate procurement processes.
This upgrade will also include the future integration of Joule, SAP’s intelligent conversational AI copilot, which will be embedded directly into Nestlé’s core business systems. Nestlé said Joule will help employees access insights more easily, automate routine tasks, and make faster, more informed decisions.
“We are building a future-ready enterprise – one that works smarter and faster. Having a common ERP system as our backbone is already a tremendous advantage for Nestlé. It provides a unified platform and data foundation that allows us to execute end-to-end and have visibility across our entire company and beyond,” said Chris Wright, Nestlé CIO.
“With the upgrade, we gain more flexibility, capabilities and insights that will help us roll out new products globally faster to meet the needs of our customers and consumers. And with the use of AI and automation at scale, we’ll drive efficiency and effectiveness, throughout our value chain.”
CFO Anna Manz added the effort will help the company build digital-first marketing and sales platforms for areas such as cold coffee, therapeutic pet food and modern cooking aids.
“We need to combine great consumer insights and innovation with flexibility and scale, to provide great quality products to consumers around the world when, where and how they want them,” she said.
Some 50,000 Nestlé employees across 112 countries in the Asia, Oceania and Africa region are expected to benefit from the new capabilities. The company expects to complete the enterprise-wide upgrade within the next two years.
