Cost Impact Of Nestle

negative image of a branded manufacturer, then the brand might be transformed into a liability from an asset in addition to tainting the company in the eyes of consumers.

Although globalization brings with it increased opportunities to venture into the untapped emerging markets, it presents the threat of new competitors with cost advantages. The challenge comes about when the company cannot match up with the cost of processing and production in terms of logistics differentials. The companies are being exposed to commodity-driven product competition and value-added competition.

Another big challenge is market uncertainty which leaves companies to deal with the volatility in demand. This coupled with changing consumer demands has seen many companies in the industry incur losses since the buying decisions are dominated by fads, new preferences, and changes in buying behavior. However, the greatest challenge the companies are facing is competition since the companies have been unable to make the prices of their products competitive

Once the company’s planner turned the numbers containing the forecasts, the company turned them down since there was a SAP system in place that would provide a more trustworthy data about the company’s products. The implementation team and stakeholders were able to use common processes that simplified the operating procedures thereby allowing for centralization of functions, for instance, development of training procedures. However, each location would follow the same procedures, developing processes prior to implementing the ERP system enabled Nestle to develop training materials once, which would later benefit the employees as they relocate to other Nestle subsidiaries without adjusting to local