Kraft Foods: Customer Reference Video

Kraft Foods Inc. is one of the world's largest food and beverage companies, with 2007 revenues of more than $37 billion. Discover how this global giant used SAP ERP to take advantage of shared services, leverage new business opportunities, and enable efficient acquisitions.

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    • Kraft is one of the largest food-and-beverage companies in the world. We have $37 billion of revenue. We're in 150 countries, 72 of them we have operations in. We have 103,000 employees and about 191 manufacturing facilities throughout the world. Kraft wanted to harmonize all of our business processes across Europe, to provide greater consistency both in terms of how we reported, in terms of how our functions were operating. Because at that time we did already have a couple of functions that were operating on a European basis, and we wanted to help those functions with a common system, as opposed to several piecemeal SAP implementations. We've had SAP since the early '80s in some of the countries, and in the '90s we saw a lot of SAP implementations in Europe with Kraft. And we initially positioned this project as a system-replacement project. And yet we found ourselves having taken a very strategic decision, and we realized the power of having a system as opposed to several systems. And we're now capable of having shared services being set up. So rather than doing, for example, accounts payable in 18 countries, we can now do accounts payable in one country or two with a shared service. I think the biggest change was that all of these countries were now in one system as opposed to being in their own systems, and therefore a lot of care was taken to harmonize the business processes, which was a change to the countries, because they had come from specifically developed for their particular country systems, and we now went into a single instance where all business processes were the same. We have common processes in all of the areas, so in order to cash, for example, we have a common order process, where all of the countries are going through that order process in exactly the same way. The same is true about our year-end close. All of the countries in Europe are able to close the year in exactly the same way, in exactly the same time frame, which gives tremendous opportunities for the business. We definitely have a competitive advantage having SAP. We've been able to integrate, acquire businesses in record time, because we do have a solution. A solution that works, a solution that is proven and is working throughout Europe. As we acquire additional businesses, we can take those businesses into this solution. And we do have people around Europe that are already quite fluent within the business processes, capable of helping the newly acquired business to get adjusted and then eventually work efficiently.
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