Nestle S.a. · SIX:NESN
Nestle — Investor Day (May 2016)
23 slides from Nestle's investor day presentation, May 24, 2016
Slide 1: Nestlé Business Excellence
Nestlé Business Excellence Chris Johnson EVP, Nestlé Business Excellence Nestlé Investor Seminar 24 – 25 May, 2016
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements which reflect Management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements.
Slide 3: One organization leveraging specific skills & capabilities
One organization leveraging specific skills & capabilities 3
Slide 4: Nestlé Business Excellence: Fuel for Growth
SEX Business Nestle Excellence FUEL FOR GROWTH SIMPLIFY - STANDARDIZE - SHARE Optimize Provide Support Global End-to-End World Class Demand Focused Flows Business Services Organizations Qe | Global Business Nestlé Services ENABLE THROUGH PEOPLE Alignment, Leadership and Lean ways of working | boa) c
Slide 5: Fuel for Growth
FUEL FOR GROWTH La Oa
Slide 6: Simplify Standardize Share
. . SIMPLIFY STANDARDIZE SHARE 6
Slide 7: Simplify Standardize Share: Optimize Global End-to-End Flows
. . SIMPLIFY STANDARDIZE SHARE Optimize Global End-to-End Flows 7
Slide 8: Optimizing End-to-End Flows will bring value to consumers and customers
Optimizing End-to-End Flows will bring value to consumers and customers Idea to Launch Plan to Execute Record to Report Hire to Retire Order to Cash Source to Pay 8
Slide 9: End-to-End Flows Optimization Program
End-to-End Flows Optimization Program 2015 2016 2017 2018 2019 Concept Proof of Concept Deployment Concept Proof of Concept Deployment 9
Slide 10: Provide World Class Business Services
Provide World Class Business Services 10
Slide 11: Leveraging skills and scale to drive agility
Leveraging skills and scale to drive agility Non-Shareable Category / Business / customer In-Market (Local) focused Shareable Judgmental or competence-driven Center of Competence activities Shareable Transactional activities - limited Center of Scale judgment required 11
Slide 12: We have an effective but limited network of transactional shared services
We have an effective but limited network of transactional shared services Strong multi-functional service experience Non-standard flows and non-mandated service solutions Regional Service delivery model 12
Slide 13: Opportunities to increase penetration of Shared Business Services outside of IS/IT
Opportunities to increase penetration of Shared Business Services outside of IS/IT 100% 47% Information Technology 50% Other Business Services Nestlé Today Industry benchmark 13 Source: Deloitte, McKinsey
Slide 14: Support Demand Focused Organizations
Support Demand Focused Organizations 14
Slide 15: Supporting demand focused organizations
Supporting demand focused organizations Lean Value Stream Business Analytics eCommerce Social Media 15
Slide 16: Benefits
BENEFITS 16
Slide 17: Time and Effectiveness
Time and Effectiveness Less time on administrative activities and in meetings More . time for value added activities Better analytics for better decisions As-is: In the future: • 95% of process time is “waiting” • time to hire -30% • 30’000 hours spent keying in new hire data • time to on-boar
Slide 18: Speed and Agility
Speed and Agility More focus on innovation More investment behind our brands. More organizational flexibility As-is: • Over 55 m orders processed annually In the future: • 250 order processing centers • Over 30’000 sales representatives can spend • 90% of orders require rework up to 5% more ti
Slide 19: Quality and Compliance
Quality and Compliance Better relationship with suppliers, customers and consumers More . visibility and transparency More focused and efficient audits As-is: • Over CHF 30 bn in services/indirect materials In the future: purchased annually through over • E-Catalogue will improve efficiency an
Slide 20: Cost Efficiency
Cost Efficiency Better ability to leverage scale (e.g. Procurement) Less operational costs Less structural costs Benefits will be tracked within the Group’s existing initiatives. 20
Slide 21: Employee Engagement
Employee Engagement More collaboration, empowerment and fulfilment Better work-life balance More fast, intuitive and user friendly tools Enable employees to re-focus time on added value activities. 21
Slide 22: NBE for our future
NBE for our future 22
Slide 23: NBE take-aways
NBE take-aways PROVIDE FUEL FOR GROWTH 1 by leveraging Nestlé’s Size and Capabilities for Competitive Advantage to Win in the Marketplace and position Nestlé to compete in the 4th industrial revolution. ENABLE AGILITY 2 with consumers and customers through leading digital capabilities and within Nes