Global Logistics and Supply Chain Management of Nestle

BSS051-6 Global
Logistics and Supply
Chain Management

EXECUTIVE SUMMARY
Global logistics is defined as the process in which an organisation is managing the flow
of goods from one place to another place. When organisations want to run their business on
international level then they need to understand the concept of global logistics and supply chain
management. It becomes very important for companies in order to manage the flow of goods
from one place to another place. During that time, organisation needs to manage the storage and
movement of goods. That means they require a particular management system which ensures that
flexibility of supply chain. This will helps in achievement of goals and objectives as it satisfy the
customer’s needs and wants. This report has an aims to critically analyse the performance of
Nestle in global logistics and supply chain management.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
About the company.................................................................................................................4
Supply Chain Management....................................................................................................4
Logistics management............................................................................................................5
Global Logistics and Supply Chain Management of Nestle..................................................7
Analysis and evaluation...................................................................................................................9
Nestle's Performance..............................................................................................................9
Key challenges faced in managing their supply chain and logistics......................................9
Compare/contrast with Nestlé’s main competitors’ SCM strategy......................................10
Conclusion.....................................................................................................................................11
Recommendation...........................................................................................................................12
REFERNCES:................................................................................................................................13
Books and Journals:..............................................................................................................13
Online...................................................................................................................................13

INTRODUCTION
Supply chain management includes the flow of goods and services. It is a wider term and
the process starts from procurement of raw materials and includes each and every thing till the
product is given to the end users. The main purpose is to provide the goods and services on time
to the customers with best quality (Craighead and et.al., 2020). It is necessary for an organization
to manage the logistics in order to achieve the final goals of supply chain management. This
report is based on Nestle. It is a Swiss multinational organization that has its operations around
the world. The organization came into existence in 1866. There is discussion related to the the
supply chain management strategy used by Nestle. For that purpose the organization is working
hard and its performance is evaluated in this report. The challenges that Nestle faces while
managing their supply chain and logistics are also analysed in the report. At the same time, the
report also aims to compare the SCM strategy of competitors with that of Nestle. In the end on
the report there are some suggestion that help to manage the supply chain in an effective manner.
MAIN BODY
About the company
Nestle is largest food company in the world. The organization came into existence
155years ago in 1866 by Henri Nestle. The products offered by organization are coffee, Baby
food, dairy products, confectionery, breakfast cereals, bottled water, pet foods and ice cream. It
is seen that organization manages its supply chain in an effective manner and that is the reason
they are able to earn around 10.46 billion in 2018. The organization has around 352,000
employees as per the details of 2019 (About Nestle, 2021). It is necessary to note that managing
the employees is necessary for effective functioning of the organization. It is seen that there are
so many products that are serves by the organization. So, the company manages the supply chain
and provides the final goods to end users in an effective manner. Nestle ranked 64 in Fortune
Global 500 in 2017. There are around 447 factories and it operates in 189 countries as to serve
more and more customers.
Supply Chain Management
According to Koberg and Longoni, 2019, supply chain management can be defined as
flow of goods and services hat includes each and every stage from procurement till final
consumption. It is necessary to provide the good to the customers and it helps them organization