Nestlé’s AI Playbook:
Moving Beyond Efficiency to Drive Growth in the FMCG Sector
In an era where many companies view artificial intelligence primarily as a tool for cost reduction, Nestlé’s Global Chief Information Officer, Chris Wright, offers a refreshing perspective. With nearly three decades at the company, Wright emphasizes that the real value of AI lies beyond efficiency—it’s about enabling smarter decision-making, strengthening customer relationships, and driving top-line growth.
For professionals in the fast-moving consumer goods (FMCG) and food and beverage industries, Nestlé’s approach provides a compelling blueprint for leveraging technology in a complex, globally distributed business.
AI as a Growth Accelerator, Not Just a Cost-Cutter
One of Nestlé’s key insights is avoiding overemphasis on efficiency metrics. Instead, the company prioritizes use cases where AI can enhance broader business outcomes—such as optimizing procurement, reducing factory energy consumption, and improving order fulfillment for retail partners.
A standout example is Nestlé’s generative AI assistant, which creates customized fulfillment plans for distributors and retailers. While large retailers like Walmart already benefit from highly automated processes, smaller merchants often rely on manual ordering. The AI tool not only generates plans faster but also produces more effective ones. As Wright notes, this improves order fulfillment accuracy—ultimately supporting sales growth.
Moreover, by freeing sales teams from time-consuming tasks, Nestlé enables them to focus on explaining the value of AI-generated plans to customers. This deeper engagement builds trust and increases adoption, creating a virtuous cycle of value creation.
The Foundation: Standardized Systems and Data
Nestlé’s ability to scale AI innovations stems from a deeply integrated technology backbone. Remarkably, 90% of the company’s core processes run on a unified global SAP template. This standardization allows Nestlé to pilot solutions in specific markets—such as Brazil or the Philippines—and rapidly roll them out worldwide when successful.
Wright highlights the importance of a connected data foundation that spans the entire value chain. This integration enables Nestlé to tackle complex questions—from optimizing media spend to enhancing factory performance—with end-to-end visibility and consistency.
Practical Applications: From Pricing to Supply Chain
Nestlé is deploying AI across diverse functions:
- Pricing Analytics: Instead of analyzing discounts, market share, and pricing in silos, AI now provides a holistic view, leading to more accurate and dynamic pricing models. Successful pilots in India and the U.S. are now being expanded globally.
- Supply Chain Optimization: AI-driven auctions for transportation and commodity orders, along with predictive maintenance in factories, enhance operational resilience.
- Virtual Sales Assistants: By automating tasks like pulling sales data or preparing product launch materials, AI allows sales teams to dedicate more time to high-value customer interactions.
Balancing Efficiency and Empowerment
While Nestlé has announced restructuring efforts impacting white-collar roles, Wright clarifies that AI is only one factor among many. Rather than simply eliminating positions, Nestlé seeks to redesign workflows—for instance, using AI to support senior product managers instead of relying on large teams of junior staff.
Critically, Wright emphasizes that human expertise remains irreplaceable. The goal is not to replace people but to augment their capabilities—whether on the factory floor or in the field. For example, could AI help sales representatives visit more clients or spend more quality time with key accounts? This focus on reallocating time toward value-added activities reflects Nestlé’s broader philosophy: technology should enable people to contribute more meaningfully.
Key Takeaways for FMCG Leaders
- Look Beyond Efficiency: AI’s greatest potential may lie in revenue growth, customer engagement, and strategic decision-making.
- Build a Unified Foundation: Standardized systems and data models are essential for scaling AI across global markets.
- Empower, Don’t Just Replace: Use AI to augment human skills and reallocate talent toward higher-impact work.
- Think End-to-End: Integrated data enables AI to optimize entire workflows, not just isolated tasks.
For FMCG and food beverage professionals, Nestlé’s journey offers a powerful lesson: in an industry marked by volatility and competition, AI success depends not on technology alone, but on a strategic vision that prioritizes both growth and human ingenuity.
Ready to rethink how AI can transform your organization? Share your insights or questions in the comments below.