Assignment on Logistics Department of Nestle Company
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Added on 2020-04-07
Assignment on Logistics Department of Nestle Company
Added on 2020-04-07
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Running Head: INTERFACE OF LOGISTICS AND OTHER CORE FUNCTIONS AT NESTLECOMPANYTitle: Logistics ManagementDate of submission:Student’s name:Student’s number:Name of class and course:Lecturer’s name:1
Running Head: INTERFACE OF LOGISTICS AND OTHER CORE FUNCTIONS AT NESTLECOMPANY1.0Outline to the assignmentIt is evident that logistics department acts as the control unit of any company. Thistherefore implies that a lot of resources have to be channeled towards this sector to ensure thesuccess of any form of manufacturing company that aims at remaining competitive in thiscurrent business world. This assignment is therefore aimed at discussing the interfacebetween logistics department and other departments found at the Nestle Company. The studywill also analyze the effect that the current order cycle and inventory management have onthe company’s performance. 1.1introductionNestle is a food and beverage manufacturing Swiss company under the food and kindredindustry which was founded by Henri Nestle in the year 1866. The company invests close to 1.5billion US dollars annually in research and development activities and its products are marketedin 130 countries worldwide. The company manufactures close to 10,000 different products withan employment capacity of 250,000 people (Nestlé, 2017). On a daily basis nestle sells billionsof products to its wide customer base. The company is currently the largest food and beveragecompany globally. The company is expected to be the world’s leading industry in wellness,health and nutrition in the near future. Since its inception nutrition has always been at the centreof its business activities however a lot of emphasis has now been placed on wellness and healthactivities and practices (Forbes, 2017). Two of their units’ i.e. individual business unit andcorporate wellness unit are working in collaboration to ensure the company’s consumers getgood food and life. Some of the leading nestle brands include Milo, magi, kitkat, gerber, coffeemate, chef-mate, cookie crisp etc (Nestlé, 2017). In doing business the company is guided byvalues which are much rooted in respect. Nestle does not work in solidarity instead it worksalongside partners so as to ensure a shared value is created which makes great contributions tothe society to ensure the success of their business is long-term.2
Running Head: INTERFACE OF LOGISTICS AND OTHER CORE FUNCTIONS AT NESTLECOMPANY2.0 Nestle company and operation infrastructureThe main mission of nestle company is to enhance the quality of life of its customers bymaking contributions to a future that is healthy. The company aims at assisting in shaping theworld into a better and healthier environment. This is achieved through inspiring people to livehealthier lives (Nestlé, 2017). The top competitors of nestle include Keurig, Nigeria breweries,starbucks, magi products, unilever, walmart and Amul food and beverage companies. 2.1 InterfacesInterfacing is the art of interaction among different departments in a company. Thesedepartments are interdependent and any failure on one department may lead to negative impactsto the others (Morgan, Rebecca and Douglas, 2009). Logistics department at nestle company isthe central body in all the other departments. It interlinks all the other departments within theindustry. The core functional areas in business which include production, marketing, accountingand finance are all interlinked through the logistics department. The main function of logisticsdepartment at Nestle Company is to plan, manage and control all the activities involved in theflow of goods and services, data, information as well as human resources from original pointsand areas of destination (Morgan et al., 2009). Without the support of an effective logisticaldepartment, manufacturing and marketing activities of nestle company cannot be achieved. 2.1.1 Interface of logistics and production departmentFor nestle company to be able to produce finished goods there has to be the acquisition ofraw materials, components and parts of manufacturing equipment and this means there has to bepurchasing activities going on. Production is highly tied to logistics because the quality of thepurchased materials and items has to be good so as to have finished products that are of good3
Running Head: INTERFACE OF LOGISTICS AND OTHER CORE FUNCTIONS AT NESTLECOMPANYquality (Park, Cho and Kim, 2014). Any changes in logistics may have either positive ornegative impacts on the different stakeholders in the company. For example any efforts made tolower the logistics costs by making a consolidation of shipments that are small and using meansof transport that are slow will slow the production process thus delaying the availability of thecompany’s products to the market (Gulati, 2007). Source: https://www.google.com/search2.1.2 Interface of logistics and marketing departmentThere is a close link between logistics and marketing departments. This is as a result ofthe role these two departments play in the service to customers (Schramm and Morschett, 2006).There is a great contribution by logistics to the marketing mix dimension of the ‘place’ throughcreation of spatial which is the movement of different nestle products to the customer’sproximity and temporal where inventory is held till the customer places a demand. Al these areutilities for customers available in the market (Renner and Ringquist, 2016). Similarly, theinformation from real time point of sales which is often fed by retailers prepares manufacturersin the company to make production and keep the right stock level as depicted in the market trendand leads to reduced need for a large warehouse space. 4
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