Nestle Fuels Growth With AI Procurement, Consumer Feedback

Distribution is up, consumer engagement has increased and market share is improving for some of its underperforming businesses, according to Nestle. The company is largely attributing these improvements to its ongoing Virtuous Circle framework. 

During recent earnings conversations, the company shared that it has been implementing end-to-end digital transformation and simplifying the organization as part of this overall effort. 

“In doing this, we are leveraging Nestle’s scale, single ERP core and our enterprise data foundations while expanding our AI platforms,” said CEO Laurent Freixe during the call with investors. “This will further support us in improving execution, allowing us to run the business with greater agility and precision.”

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One particular area of focus has been procurement. Nestle has been using artificial intelligence to introduce new efficiencies within the invoice review process for e-auctions and for the deployment of global specifications catalogs.

“Looking ahead to the second half of the year and beyond, we will drive further procurement gains and start to deliver savings from operational efficiencies and improvements in commercial investments,” said Freixe, who added that the company is reinforcing its value proposition across four pillars: product superiority, value, visibility and brand communications.