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Nestlé Improves Its Financial Reporting with Management Science

Author

Listed:
  • Christophe Oggier

    (Nestlé Venezuela S.A., Edificio Polar, Plaza Venezuela, Los Caobos, Apartado 3367, Caracas 1010-A, Venezuela)

  • Emmanuel Fragnière

    (School of Management, Bath University, Bath BA2 7AY, United Kingdom)

  • Jeremy Stuby

    (Lombard Odier Darier Hentsch & Cie, 11 Rue de la Corraterie, 1204 Geneva, Switzerland)

Abstract

Nestlé’s executive information system (EIS) department gathers data from the firm’s subsidiaries (reporting units) to provide top management with operational, financial, and strategic information. In 1996, the EIS department decided to improve its service by using business analytics tools based on management science (MS) techniques. It wanted to encourage analysts and controllers to make better use of the information supplied. We developed four OR modules: sensitivity analysis, forecasting, simulation, and optimization, and integrated them into a more global modeling scheme for evaluating the economic profitability of Nestlé’s projects and more generally evaluating the value of the Nestlé group and its multifocal businesses. Disseminating this approach within the Nestlé group through training and internal consulting has been a long and important process that has increased the number of managers accustomed to quantitative decision making and established new reporting protocols imposing the use of MS models.

Suggested Citation

  • Christophe Oggier & Emmanuel Fragnière & Jeremy Stuby, 2005. "Nestlé Improves Its Financial Reporting with Management Science," Interfaces, INFORMS, vol. 35(4), pages 271-280, August.
    • Handle: RePEc:inm:orinte:v:35:y:2005:i:4:p:271-280
    DOI: 10.1287/inte.1050.0148
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    References listed on IDEAS

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    1. Daniel Fylstra & Leon Lasdon & John Watson & Allan Waren, 1998. "Design and Use of the Microsoft Excel Solver," Interfaces, INFORMS, vol. 28(5), pages 29-55, October.
    2. Thomas A. Grossman, 1999. "Teachers' Forum: Spreadsheet Modeling and Simulation Improves Understanding of Queues," Interfaces, INFORMS, vol. 29(3), pages 88-103, June.
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    Cited by:

    1. Thomas A. Grossman & Vijay Mehrotra & Mouwafac Sidaoui, 2016. "A Student-Centered Approach to the Business School Management Science Course," INFORMS Transactions on Education, INFORMS, vol. 16(2), pages 42-53, January.

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