- October 23, 2024
Custom applications for better shop monitoring and raw material cost reduction using SAP and Cognos for Nestle
About the Client:
Nestle USA is a subsidiary of the world’s largest foods company, Nestle S.A. and has a presence in the chocolate, beverages, ice-cream, bottled water, ready-to-eat foods and pet food markets.
It is the largest food company in the world, measured by revenues and other metrics, since 2014. It ranked No. 64 on the Fortune Global 500 in 2017 and No. 33 on the 2016 edition of the Forbes Global 2000 list of largest public companies.
IndustryFood, FMCG
The Project Challenges:
Nestle was encountering challenges in expenses of raw materials due to inefficient third-party vendor processes, milk being one of the major raw materials of Nestle. The production was also affected with other issues in improving internal functions and supply chain logistics. The client wanted Visvero to help with:
Raw Material cost containment
Yield Management
Operational efficiency
Logistics
Visvero’s Solutions Approach:
Visvero consultants deployed applications in various areas that required improvement. We implemented the applications to reduce raw material cost by vendor consolidation. Visvero developed an application that enabled better monitoring of shop floor processes and also helped in helped in improving the routing patterns and time taken to move inventory for the stockists and distributors of the products.
Overall Performance & Results:
Visvero improved the production, reduced cost and implemented a very effective logistics for smooth operations leading to:
8.73%reduction in the raw material prices.
7% increase in yield from milk products.
Reduced the transition time of the process lines by 75%
