Accenture helped Mondelēz International establish an incremental zero-based budgeting system, new global operating model and supporting global business services. The improved visibility into spending, new budgeting processes, accountability for cost management and change management program helped Mondelēz International make rapid savings of $350 million in 2014, with $1 billion expected over three years. By embedding cost consciousness into its culture, Mondelēz International’s ongoing efficiency savings can be reinvested into growth initiatives.
Mondelēz International is a global snack food powerhouse with billion-dollar brands like OREO®, LU®, NABISCO®, CADBURY®, MILKA®, TRIDENT® and TANG®. It serves consumers in 165 countries and reported $34 billion in revenue in 2014.
Although Mondelēz International experienced high growth, it needed to improve operating margins, which were lower than its peers. Mondelēz International asked Accenture to establish a zero-based budgeting system that would help it compete more effectively in an increasingly challenging economic environment. Mondelēz International and Accenture collaborated to drive companywide cultural change that would help control indirect costs to improve margins and reinvest for growth.
In only three months, Mondelēz International’s new operating model was up and running. In the first year, the company delivered savings of $350 million. Over three years, the company aims to save $1 billion. The savings have also helped increase operating margins. More importantly, the new budgeting processes and change management program have helped embed cost consciousness in the company’s day-to-day operations and culture. Mondelēz International employees are equipped with the processes and tracking tools to meet their budgetary targets. This cultural change is delivering ongoing efficiency savings that can be reinvested into growth initiatives.
MONDELĒZ INTERNATIONAL, OREO, the OREO Wafer Design, the OREO Milk Splash, LU, NABISCO, CADBURY, MILKA, TRIDENT and TANG are trademarks of Mondelēz International group, used with permission.