How Nestlé Uses SAP S/4HANA Cloud to Scale AI Operations
Nestlé has completed the first phase of what it calls the world's largest SAP S/4HANA Cloud Private Edition upgrade. The move brings 50,000 users across 112 countries in Asia, Oceania and Africa onto a single, AI-ready ERP foundation. The result: embedded automation, faster decisions, and a cleaner path to scale AI across core processes.
This isn't a pilot. It's an enterprise-wide reset of how operations run day to day. SAP's Joule AI assistant is now integrated into Nestlé's core systems to automate routine work and surface real-time insights where people actually need them.
Scope and timeline
Nestlé operates on a single SAP ERP template across three regions, covering 185 countries. After moving from on-premise systems to S/4HANA Cloud Private Edition in 2022, the company is now executing a two-year plan to complete the upgrade across remaining operations.
The unified platform runs supply chain, manufacturing, sales, finance and HR on one backbone. That means one data model, consistent controls, and the ability to roll out changes globally without rebuilding the same thing 50 different ways.
How AI shows up in the work
Joule, SAP's conversational copilot, is embedded directly into S/4HANA Cloud. It automates journal uploads, service initiations and trade classifications, and provides context-based answers inside business processes. It currently supports 11 languages, which matters when you're rolling out to frontline teams at scale.
For operators and planners, this looks like fewer manual steps, higher-quality inputs, and faster cycle times. For leaders, it's more consistent data and measurable gains you can track week to week.
Operational shifts Nestlé is putting in place
- Retail fulfillment that matches supply with demand in real time across in-store and online channels to reduce out-of-stocks.
- Procurement moved fully to the cloud, creating global spend visibility and standardizing workflows.
- End-to-end visibility across planning and reporting, with decisions driven by real-time data instead of batch reports.
"Driving growth through innovation is a top priority," says Anna Manz, Nestlé's Chief Financial Officer and Head of Integrated Business Services. The upgrade, she notes, enables multi-year innovation pipelines, more agile production, and digital-first marketing and sales platforms across categories like cold coffee, therapeutic pet food and modern cooking aids.
"Having a common ERP system as our backbone is already a tremendous advantage," adds Chris Wright, Nestlé's CIO. "It provides a unified platform and data foundation that allows us to execute end-to-end and have visibility across our entire company and beyond."
Why this matters for operations leaders
- Standardize first, automate second. A single template and data model make AI useful and repeatable.
- Target high-volume tasks. Journal entries, service requests and classifications are ripe for automation.
- Make AI native to the workflow. Put assistance inside ERP screens, not in a separate app.
- Build for language, scale and governance from day one. If it won't roll out globally, it won't stick.
Execution playbook you can adapt
- Define the scope: pick 3-5 critical processes (e.g., order-to-cash, procure-to-pay, production planning) and map current vs. desired outcomes.
- Clean the data and standardize workflow variants before you automate.
- Create an automation backlog: prioritize by business value and ease of implementation; start with clear, measurable outcomes.
- Embed AI in the system of work (ERP, SCM, Finance), not as a sidecar tool.
- Stand up a small AI Ops team for prompts, quality checks, and change control.
- Roll out in waves with tight feedback loops; publish weekly wins and fixes.
Metrics to watch
- Order fill rate and on-shelf availability
- Plan adherence and cycle time in production and logistics
- First-time-right rates for journal entries and master data changes
- Procurement savings, PO cycle time, and compliance to preferred suppliers
- User adoption of AI-assisted workflows and exception rates
Market context
SAP S/4HANA Cloud has been recognized as a leader in Gartner's Magic Quadrant for Cloud ERP for multiple years, and sits at the center of SAP's RISE and GROW offerings. The cloud ERP market hit around US$44 billion in 2023, driven by demand for systems that integrate AI into everyday processes. SAP is targeting 400 embedded AI use cases across its cloud portfolio in 2025.
As Thomas Saueressig of SAP notes, scale can make innovation practical: a shared platform lets global brands anticipate demand, streamline operations and improve experiences consistently across markets.
What's next at Nestlé
The company expects to finish the global upgrade within two years. With AI and automation applied at scale, leadership is aiming for faster product rollouts, better supply responsiveness and more efficient end-to-end execution.
"With the upgrade, we gain more flexibility, capabilities and insights that will help us roll out new products globally faster," says Chris Wright. "And with the use of AI and automation at scale, we'll drive efficiency and effectiveness throughout our value chain."
Further resources
- SAP Joule AI assistant
- Gartner: Cloud ERP for Product-Centric Enterprises
- AI Automation Certification - Complete AI Training
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