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Food industry
January 23, 2024

Success Story – NESTLÉ PORTUGAL

Major player in the agri-food industry, Nestlé, has been relying on Generix Group’s solutions for digitalizing processes for two decades

Use Case

Nestlé offers a broad portfolio of products and services catering to the needs of people and their pets throughout their lives. Its portfolio includes more than 2,000 brands, ranging from international staples like NESCAFÉ and NESPRESSO to locally recognized brands such as CERELAC, NESTUM, and SICAL, among others.

The company’s performance is guided by its strategy of nutrition, health, and well-being and is supported by strong commitments to environmental protection across all its activities, with the ultimate goal of achieving “net zero” by 2050. To meet this roadmap, Nestlé is dedicated to advancing regenerative food systems across all its products, involving its entire value chain in this effort.

In Portugal, Nestlé has been present since 1923 and currently employs 2,347 people, generating a turnover of 625 million euros in 2021. It currently has two factories (Porto and Avanca), a distribution center (Avanca), and five commercial branches across the mainland and islands.

Origin of the EDI and Electronic Invoice Project

The size of Nestlé Portugal, its extensive product portfolio, various business areas, and a high number of clients necessitate the adoption of fast and efficient administrative management processes, minimizing the likelihood of errors and disruptions in the daily information flows exchanged between the company and its suppliers and customers.

These are some of the reasons that led the company to adopt technical solutions early on to work with the necessary agility to remain a leader in its sector. With this goal in mind, Nestlé Portugal adopted Generix’s EDI and electronic invoicing solutions for the exchange of dematerialized documents with distributors and other business partners.

Adoption of a process to dematerialize documents and facilitate information exchanges

In the late 1990s, Nestlé Portugal implemented Generix EDI solution for electronic transmission of documents such as orders, invoices, and delivery notes.

With EDI, it is possible to exchange electronic documents in a standard format between the various information systems of the partners with whom Nestlé maintains business relations. This way, the company can send and receive documents quickly with its customers and suppliers, with a maximum level of security, and the data is automatically integrated into its ERP.

The entire process unfolds in three steps: document preparation, message translation into EDI format, and document transmission to the partner. In 2006, the company took a new step in streamlining processes with the implementation of the electronic invoicing solution. This tool allowed Nestlé to improve the invoice processing process and increase productivity levels.

The trust placed in Generix’s solutions for over two decades demonstrates the reliability and robustness of these tools over time. It showcases Nestlé Portugal’s innovative vision, which timely implemented its digitalization and modernization of information flows. The post-pandemic context highlighted the need for digital transformation and digitalization processes for business competitiveness and efficiency.

Luís Silva IT System Analyst/Business Analyst, Nestlé Portugal

The use of EDI at Nestlé has significantly improved the process of exchanging documents and information with all the clients with whom we have implemented this system. As a result, the entire process has become faster, standardized, more agile, and much safer, which often benefits the trust relationship between Nestlé and its clients… Furthermore, EDI has also helped reduce errors typically caused by manual processes, thereby reducing administrative burden and costs”.

Key Benefits Identified by Nestlé Portugal

Accelerated processes and closer relationships with customers and suppliers: The digitalization of processes, communication speed, and automation for document processing and information flows have allowed Nestlé Portugal to gain speed, efficiency, and differentiation in its relationships with stakeholders.

Better document control: Given the high information flows exchanged between Nestlé and its partners, having solutions that provide better control and visibility over incoming and outgoing files is crucial. This accuracy is ensured by the EDI system.

Fewer errors and conflicts: Thanks to process automation, data enters the company directly, avoiding data entry errors (e.g., misplaced commas or order inconsistencies) that can lead to increased costs, delays, and potential conflicts.

Optimization of team members’ time: Tasks that were previously performed manually are now automatically carried out through the implementation of EDI and electronic invoicing solutions. This has sped up document exchanges and processing, saving the company time and improving efficiency.

Cost reduction: The company no longer receives or sends paper purchase orders or invoices; documents are now sent directly into its system. This saves costs previously associated with managing paper documents.

Reduced environmental footprint: Nestlé is committed to social and environmental responsibility. Implementing such projects and solutions allows the company to eliminate paper documentation and reduce its ecological footprint.

Solutions

  • EDI Software: Electronic Data Interchange Invoice Digitization

Software:

  • Invoice Services

Luís Silva IT System Analyst/Business Analyst, Nestlé Portugal

Nestlé’s relationship with Generix is built on mutual trust, reinforced by a partnership spanning several decades since Nestlé was one of Generix’s first EDI clients (formerly Influe Portugal). Over the years, we have always had very good professional and personal relationships with Generix, which has helped us maintain and strengthen this partnership. They have consistently provided excellent service in this area. Generix has been, is, and will certainly continue to be our reference entity for anything in this field”.

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Use Case
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Food industry

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