BUSINESSWEEK ONLINE : DECEMBER 11, 2000 ISSUE
BUSINESS WEEK E.BIZ -- WEB SMART COMPANIES

Putting Order in Nestle's Technology House


Today Nestle (NSRGY) uses a chaotic muddle of different technologies. With the Web, it plans to create a coherent global information system that will help Nestle better leverage its size by tying together long-independent national tech-fiefdoms.

BEFORE E-REVOLUTION
Technology mishmash: The company runs five e-mail systems and 20 versions of accounting, planning and inventory software. Country operations use different computer codes for the same products so it's hard sharing supplies and data.

AFTER
Standardized software: Nestle is moving to one software package. The Web-linked program creates a single set of product codes, allowing buyers in one country short on, say, corn powder to get supplies from other Nestle divisions.


BEFORE E-REVOLUTION
Bad communication: Most employees have no access to production and sales figures from countries other than their own because they're not linked. A planner in France can't see data about KitKat bars being made for him in a German plant--making it tough to adjust his order.

AFTER
Centralized data: Nestle is building up to a half-dozen data centers so employees can get quick access to info via the Net. For the first time, Nestle will know how much it is buying from suppliers with far-flung operations. That will let it negotiate better contracts, centralize production, and buy more across borders.

DATA: NESTLE


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Cover for Dec. 11, 2000 issue of E.biz
e.biz Contents for Dec. 11, 2000 issue


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