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MGT513 Supply Chain Management Nestle - Desklib

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Supply Chain Management (MGT513)

   

Added on  2020-03-16

MGT513 Supply Chain Management Nestle - Desklib

   

Supply Chain Management (MGT513)

   Added on 2020-03-16

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Supply Chain Management[DATE]HEWLETT-PACKARD[Company address]
MGT513 Supply Chain Management Nestle - Desklib_1
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
MGT513 Supply Chain Management Nestle - Desklib_2
Running Head: ReportIntroduction to Supply Chain Management and Nestle:A network of facilities and options related to the distribution which helps in performing various functions like materials procurement, then turning these materials into intermediate and finished products, and later making these products available to the end customers by distribution process is known as supply chain. It is also known as logistics network and it includes manufacturing centres, suppliers, distribution centres, warehouses, retail outlets, etc. and also include raw materials, inventory related to work in 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 and clearly, we will analyze the case study of Nestle’s Palm oil crisis and the company’s supply chain management.Nestle is more than 140-year-old company which is one of the leading company for health, nutrition and wellness. The company mission is “Good Food, Good Life”. It has acquired many companies under its ownership and is operational in more than 72 countries with a workforce of 260,000 globally [ CITATION Nes17 \l 1033 ].It has almost 450 equipped factories and operations globally. With a market capitalization of nearly Swiss Francs 220 Billion, it is the market leader in the food industry. 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 source palm oil, one of its main ingredients used in food, from Sinar Mars an Indonesian 2
MGT513 Supply Chain Management Nestle - Desklib_3
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 was still using its supplier's services. The company said that supply chain full review will take 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 a company as well as it is very essential to the company’s success and providing satisfaction to the customers.It is like the backbone of the company wherein it manages issues which are very critical from an organization point of view and are directly or indirectly related to the corporate strategy, 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 efficient manufacturing strategy etc.At Nestle, the supply chain management has a critical role where it makes sure that only quality products are reached to its customers and consumers. The company collaborates with its team and forecast the demand which is then provided to the suppliers, so that they can provide materials. Inventory levels are balanced with the operations so that exact 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 demands on time. Nestle is an organization which is agile and aligned kind of organization, which 3
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