Nestle's Efforts towards Full Supply Chain Transparency

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Contemporary Issues in Supply chain and Logistics Management
HOW DOES NESTLÉ SPEEDS UP EFFORTS
TOWARDS FULL SUPPLY CHAIN TRANSPARENCY?
Course: AMSC700 Contemporary Issues in Supply Chain and Logistics Management
Assessment Two: Case Study
Instructor: Imran Ishrat
Student Name: ........................................................................................................................
Student ID: ..................................................................
AMSC700 Case Study (Assessment two)

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Contemporary Issues in Supply chain and Logistics Management
Contents
1. Research Question................................................................................................ 3
2. Executive Summary.............................................................................................. 3
3. Introduction........................................................................................................ 4
3.1 Industry Background.................................................................................... 4
3.2 Organizational Background..........................................................................4
4. Operations and Performance Measurement..................................................................4
4.1 Drivers of Supply Chain................................................................................ 4
4.2 Measurement of Supply Chain Performance.................................................5
5. Integration Considerations....................................................................................... 6
5.1 Internal Integration....................................................................................... 6
5.2 External Integration...................................................................................... 7
6. Value Generation.................................................................................................. 8
6.1 Illustration (Value Stream Map)....................................................................8
6.2 Value Creation and its Stages.......................................................................8
7. Conclusion.......................................................................................................... 9
8. References........................................................................................................ 11
AMSC700 Case Study (Assessment two)

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Contemporary Issues in Supply chain and Logistics Management
1. Research Question
Nestle was founded in 1866 which is headquartered in Switzerland. It is a FMCG company
which aims at creating better life with better future as well. The Supply Chain Management
of the company is the main point that has to be focused on in this report. The SCM of Nestle
makes sure to maintain a healthy environment by getting highly involved in every process of
its supply chain i.e. from raw materials to finished goods to end users. SCM has gained a lot
of significance in terms of serving operational activities. The SCM has now been considered
as core department of business. Earlier, it was known for support department. It aims at
managing and controlling the overall activities of the business (Peters et al., 2011). In
addition to this, the company has also shown a speedy transparency with the information
related to commodities. Thus, the transparency is quite beneficial and for this, the company
has opened palm oil and pulp and paper supply chain transparency along with soya, meat,
coffee, coconut, spices, seafood, eggs, sugar, cereals, hazelnuts and vanilla.
How does Nestlé speeds up efforts towards full supply chain transparency?
2. Executive Summary
The main idea behind this report is to majorly focus on Supply Chain Management of Nestle.
Nestle is a well-known FMCG company which serves huge varieties of product range
throughout the world. The company offers plenty of products to its potential customers. In the
below report, there are plenty of things that has been discussed related to supply chain
management and different technology that has been used by the company to enhance process
involved in supply chain. The company has amazing supply chain management however; it
must focus on two major areas. One is reducing child labor and other is increasing the use of
IT in order to manage relationship with vendors (Rao & Holt, 2005). Apart from this, the
company has list of suppliers and distributors which aims at working on the company’s
objectives and mission. The company has also majorly focused on value creation aspect
which is most important aspect in today’s world.
AMSC700 Case Study (Assessment two)

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Contemporary Issues in Supply chain and Logistics Management
3. Introduction
3.1 Industry Background
Nestle was established in 1866 headquartered in Switzerland, with the establishment of the
Anglo-Swiss Condensed Milk Company. Later, in 1905, Nestle group was formed by the
merger of Anglo-Swiss Milk company. The products offered by the company includes baby
food, water, cereals, coffee, confectionary products, dairy products, ice cream, pet foods and
snacks. It operates in 450 factories with globally working in 86 countries and 328,000
employees working (Shah, 2009). One of the major shareholder of L’Oréal (a giant cosmetic
company) is Nestle.
3.2 Organizational Background
The main purpose of the company is to enhance better life and contribute to create a healthy
life with better future as well. In addition to this, the company has defined their goals into
three categories given below.
FOR INDIVDUALS AND FAMILIES: Help 50 million children live heathier lives
FOR COMMUNITIES: Help 30 million livelihoods in communities directly
connected to the activities of business.
FOR PLANET: Work to create zero environmental impact in their business
operations.
The supply chain management of Nestle company ensures to maintain the highest possible
standards which takes place from the raw materials, packaging and distribution to the
customer. The products offered by Nestle are checked on the product line and as an outcome,
the customers are fully satisfied with the product which automatically boosts the demand.
Here the supply chain management of the company includes amazing production facilities
which has captured market since long time. The main reasons behind the successful business
is the transparency, vendor management and intelligent distribution system. As the world’s
top leading nutrition, health and wellness company, nestle aims on managing complex
operations by being totally dependent on the supply chain management (Mitra & Bhardwaj,
2010).
AMSC700 Case Study (Assessment two)