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Theory of ERP and its Application as Illustrated by the Nestly SA Case Study

Introduction

It was typical in the past before the introduction of ERP (Enterprise Resource Planning ) to find companies which had all their subsidiaries and departments having their own independent computer systems . These systems still exist in some companies but ERP has given organizations a better way to manage their activities in an integrated manner such that there can be co-ordination

among departments and subsidiaries (Lejk and Deks , 2002 : 57-59 . Different people within the organization can share data and follow systematic procedures to bring out identical outcomes within the organization . Branches and departments can also be easily controlled from a central point . This seeks to explore the ERP technology , the theory behind it and its application . In to fulfill this objective , a comprehensive study on ERP is conducted identifying its origin , its operation and why it is of importance . More so , an analysis on the factors affecting its implementation is discussed . In to explain the concept of ERP , a case study of Nestle SA is incorporated

Nestly SA is an international food and pharmaceuticals firm operating in 80 countries around the world . The manufacturing giant whose headquarters are located in Vevey , Switzerland employs 230 ,000 people in its 500 facilities . In to centralize its operations , Nestly SA decided to make use of ERP by adapting SAP technology . Several obstacles are met...

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