Dive Brief:
- Mondelēz International launched a $1.2 billion, multiyear transformation of its ERP system and supply chain to drive enterprise efficiencies, the company said in its Q2 2024 earnings statement.
- The plan was approved in July by the board and will roll out in several phases. The food and snack company is partnering with SAP, Accenture and o9 to complete the implementation, which is expected to conclude in 2028.
- “We believe that the preparation we have been doing for the last 18 months positions us well in terms of successful execution,” Mondelēz CFO Luca Zaramella said during the call. “We have tried to minimize all potential issues.”
Dive Insight:
Mondelēz’s goal for technology upgrades to unlock efficiencies comes in the midst of a tech leadership transition.
The food manufacturer tapped Filippo Catalano as its chief information and digital officer in July, who replaced Javier Polit. The company did not provide information related to Catalano’s role in the ERP project. At the time of his appointment, Mondelēz tasked Catalano with accelerating global technology transformation once he joins later this year.
Mondelēz is not the only food company that sees ERP modernization as key to scalable growth.
The Hershey Company is nearing the end of its multiyear ERP implementation project to optimize operations. The project is part of a larger focus on cost savings, a priority for food companies as pressure from consumer spending cutbacks continues.
“As we look through the transformation work, as we look through the ongoing productivity work, and even now moving past the ERP and some of the savings we can leverage off the back of that … all of those things are helping us focus on costs,” Hershey SVP and CFO Steve Voskuil said during the company’s Q2 2024 earnings call Thursday.
