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MGT513 Supply Chain Management Nestle

Added on - 16 Mar 2020

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Supply Chain Management[DATE]HEWLETT-PACKARD[Company address]
Running Head: ReportContentsIntroduction to Supply Chain Management and Nestle:........................................................................2Role of Supply chain in operations:...............................................................................................3Goals of Supply Chain Management in the Nestle:...............................................................................4Impact of Supply Chain to Nestle’s Operations:............................................................................5Nestle Supply Chain Strategy:...............................................................................................................6Implementation of Supply chain strategy in Nestle operation:.......................................................6Nestle Major Suppliers..........................................................................................................................8Role of Suppliers:..........................................................................................................................9Performance of Nestle Palm Oil Suppliers:.........................................................................................10Conclusion:..........................................................................................................................................11References...........................................................................................................................................131
Running Head: ReportIntroduction to Supply Chain Management and Nestle:A network of facilities and options related to the distribution which helps in performingvarious functions like materials procurement, then turning these materials intointermediate and finished products, and later making these products available to the endcustomers by distribution process is known as supply chain. It is also known as logisticsnetwork and it includes manufacturing centres, suppliers, distribution centres,warehouses, retail outlets, etc. and also include raw materials, inventory related to workin process and finished products. It is a complex chain of management and its complexityvary from one industry to another and one firm to another[ CITATION Gan95 \l 1033 ].In order to understand the concept of supply chain management in more detail andclearly, we will analyze the case study of Nestle’s Palm oil crisis and the company’ssupply chain management.Nestle is more than 140-year-old company which is one of the leading company forhealth, nutrition and wellness. The company mission is “Good Food, Good Life”. It hasacquired many companies under its ownership and is operational in more than 72countries with a workforce of 260,000 globally[ CITATION Nes17 \l 1033 ].It has almost 450 equipped factories and operations globally. With a marketcapitalization of nearly Swiss Francs 220 Billion, it is the market leader in the foodindustry. It produces dairy products, baby food, breakfast cereals, snacks, beverages,etc., among which KitKat, Nescafe, Maggi are its highest selling products.The company is in a PR battle with the Greenpeace, who claims that Nestle is, to sourcepalm oil, one of its main ingredients used in food, from Sinar Mars an Indonesian2
Running Head: Reportcompany, who were its main supplier. Sinar Mars temperature of peatland clearance,illegal deforestation and illegal child and human labor.While other companies suspended their contract with the Sinar Mars, but Nestle wasstill using its supplier's services. The company said that supply chain full review willtake a year or so. Nestle is trying to improvise its palm oil supply chain transparency andreporting[ CITATION CSC17 \l 1033 ].Role of Supply chain in operations:Supply chain management forms an integral part of the day to day operations of acompany as well as it is very essential to the company’s success and providingsatisfaction to the customers.It is like the backbone of the company wherein it manages issues which are very criticalfrom an organization point of view and are directly or indirectly related to the corporatestrategy, like its rapid growth, expanding globally and issues related to the environment.Few of its 140-year-old roles are making goods available to the users, helps in efficientmanufacturing strategy etc.At Nestle, the supply chain management has a critical role where it makes sure that onlyquality products are reached to its customers and consumers. The company collaborateswith its team and forecast the demand which is then provided to the suppliers, so thatthey can provide materials. Inventory levels are balanced with the operations so thatexact supply of products can be done. The supply chain of Nestle, after the production, isresponsible for its safe storage and transportation to customers and consumers demandson time. Nestle is an organization which is agile and aligned kind of organization, which3
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