Mondelēz invests US$1.2B in supply chain, ERP transformation strategy

USA- Snacks giant Mondelēz International has announced the complete overhaul of its supply chain operations and enterprise resource planning (ERP) strategy as part of a US$1.2 billion five-year effort to improve output and performance through incorporating advanced technologies. 

The company is looking towards incorporating advanced technologies and digital transformation to drive enterprise efficiencies in the next five years.  

The confectionary company revealed wit will implement the ERP transformation strategy through collaborating with SAP and Accenture, tech companies whose partnerships and industry-specific solutions in generative AI, cloud computing and advanced analytics have helped improve efficiencies. 

According to Mondelēz International, the collaboration and infusion of generative AI into operations should aid in accelerating accurate and reliable interoperability within all aspects of the organizations, albeit anchored by this digital core. 

The revitalized ERP strategy is expected to help the snacks giant better identify and evaluate challenges and opportunities, identify sources of redundancy, implement improved communication and connectivity across departments, and use automation to solve problems promptly. 

The collaboration and outsourcing of technological skills and infrastructure provided by the two tech companies will provide the snacks giant with the valuable opportunity to focus entirely on its core business. 

Luca Zaramella, the company’s CFO, expressed optimism over the strategic change, saying, “We believe, given also the resources we have internally, and importantly, the ones we have secured through SAP and Accenture, that we will have a good opportunity to execute as well.” 

The CFO also revealed Mondelēz will work with o9 Technologies, another tech company specializing in AI solutions as implemented in supply chain management. The tech company will help Mondelēz with formulating and implementing solutions that will enhance inventory management, logistics, and freight. 

The digital transformation strategy was announced barely a fortnight after the confectionary giant revealed Filippo Catalano as its new Chief Information Officer (CIO). The new CIO, a pioneering figure in AI application and digital transformation in the food and beverage sector, is expected to lead this digital transformation effort. 

Although competitors like the Hershey Company have also implemented their version of technology-driven ERP strategies, Mondelēz’s implementation is expected to have a more profound effect on the confectionary industry by virtue of its scale and monetary investment. 

Liked this article? Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World. HERE