Global Business Organisation Nestle

RUNNING HEAD: GLOBAL LOGISTICS AND SUPPLY CHAIN
MANAGEMENT
GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT
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GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT1
Executive Summary:
Nestle is a global business organisation in the food and beverage industry. This company is
successful to expand its business globally. The efficiency of the global logistics and supply chain
of Nestle is beneficial for this company to accomplish business objectives. This report aims to
analyse the global logistics and supply chain of the Nestle group. The analysis of supply chain
management of Nestle refers that this company is facing certain issues like shortage of raw
materials, and disruption due to the IT infrastructure. The management team of this company has
to address these issues to maintain a sustainable supply chain. With the help of innovation, this
company can manage the issues of supply chain management.

GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT2
Table of Contents
Introduction:....................................................................................................................................3
Company background:.....................................................................................................................3
Literature review:.............................................................................................................................5
Critical analysis of current performance:........................................................................................7
Product design:............................................................................................................................8
Process design:.............................................................................................................................9
Planning and control:...................................................................................................................9
Quality management:...................................................................................................................9
Distribution:...............................................................................................................................10
IT and appropriate innovation:..................................................................................................10
Challenges faced by Nestle:.......................................................................................................11
Contrast with the SCM strategy of Kraft Heinz:.......................................................................11
Implication literature:................................................................................................................13
Recommendations:........................................................................................................................13
Conclusion:....................................................................................................................................14
References:....................................................................................................................................15

GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT3
Introduction:
Supply chain management is useful activities of a business organisation to accomplish
competitive advantage. By improving global logistics and supply chain management a business
organisation can enhance efficiency and productivity. It can be said the supply chain
management is one of the most significant business function for a business organisation which
will help the company to accomplish the business goal. The primary goal of production is to
fulfil the need of the customer by providing products and services at the right time (Mangan and
Lalwani 2016). The profit margin of a business organisation depends on the efficiency of supply
chain management and logistics. This paper aims to critically evaluate the global logistics and
supply chain management of a global business organisation. To understand the significance of
supply chain management literature review will be done in this report. The global logistics and
supply chain management of Nestle, a leading business organisation, will be analysed in this
report to identify challenges, faced by this company. The way the executive team of this
company has managed the supply chain management issues will be analysed in this report. The
supply chain management, followed by Nestle, will be compared with the supply chain
management, followed by Kraft Heinz, the main competitor of Nestle. In the end, there will be
recommendations for Nestle to improve supply chain management.
Company background:
One of the most popular food and beverage business organisation in this world is Nestle.
Headquarter of this company is situated in Vevey, Switzerland. In 1866, this company was
established by Henry Nestle (Nestlé Global 2019). ULF Mark Schneider is the CEO of this
company. In 2018, more than 308,000 people are working in this company as an employee