Supply Chain Drives Competitive Advantage

The contribution of supply chain
management Towards
competitive advantage - The case
of NESTLE Malta
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Table of Contents
1. INTRODUCTION.......................................................................................................................3
1.1 Background to research..........................................................................................................4
1.2 Research questions.................................................................................................................4
1.3 Justification for the research..................................................................................................4
1.4 Methodology..........................................................................................................................5
1.5 Outlines of the chapters.........................................................................................................6
CHAPTER -2 LITREATURE REVIEW.........................................................................................8
CHAPTER-3 .................................................................................................................................20
RESEARCH METHODOLOGY ..................................................................................................20
Research type ............................................................................................................................20
Research approach ....................................................................................................................20
Research philosophy .................................................................................................................21
Data collection...........................................................................................................................22
Sampling....................................................................................................................................23
Data analysis .............................................................................................................................23
Ethical consideration..................................................................................................................24
Reliability and validity ..............................................................................................................24
Research limitation ...................................................................................................................25
CHAPTER -4.................................................................................................................................27
DATA ANALYSIS .......................................................................................................................27
CHAPTER – 5...............................................................................................................................46
CONCLUSION..............................................................................................................................46
DISCUSSION............................................................................................................................46
CONCLUSION -.......................................................................................................................48
RECOMMENDATION -...........................................................................................................51
REFERENCES..............................................................................................................................54
APPENDIX....................................................................................................................................57
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Topic- The contribution of supply chain management (SCM) towards competitive advantage –
the case of NESTLE Malta
1. INTRODUCTION
Supply chain management termed out as management of flow of good and services and
inclusive of processes that transform raw materials into final commodities. It aids to streamline
business supply activities that maximize value of customer and gain competitive advancement in
marketplace. SCM plays crucial role in integral part of firm success and also increases
competitiveness and customer satisfaction. Additionally, efficiently running supply chain
management allow enterprise to deliver commodities to end user for low cost. Supply chain is
composed of firms and individual contributors that involves in creating commodities from raw
materials to semi finished merchandise. Thus, activities under supply chain management are as
farming, refining, design, manufacturing, packaging and transportation etc.
However, the purpose of supply chain management is to keep chaos at bay-synchronizing
the activities of network. It is defined as central planning process that created to manage an
enterprise demand and supply network that includes of activities as primary and two secondary
activities. Supply chain management aids to streamline business supply side activities to
maximize value of customer and also gains competitive advancement in marketplace. It is the
core responsibility of SCM is to handling the entire production flow of good and services to
deliver the final commodity to customer.
Furthermore, report is based on topic as to determine the contribution of supply chain
management towards competitive advantage with referenced to enterprise as Nestle. The quoted
enterprise is a Swiss international Food and Drink processing that headquartered in vevey, vaud
and Switzerland. Furthermore, chosen firm offers product and services as baby food, medical
food, bottled food, breakfast, dairy products, pet foods and snakes etc.
However, assignment will emphasize on activities as to outline the aim and objectives on
the basis of topic to undertake research activity. Additionally, literature review will be conducted
with highlighting the resourceful information of varied authors. Moreover, methodology will be
defined to adopt suitable methods that can aid to undertake further research study effectively.
Thus, data will be analysed with use of suitable research method to analyse the findings of
research study. Lastly, reflection and implication of whole study will be defined to under review
to the research.
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Aim- To examine the extent on how (SCM) can lead NESTLE to become competitive in the
importation and distribution of fast moving consumer good.
Objectives
1. To establish the characteristics of supply chain management.
2. To define how competitive advantage can be gained by NESTLE in Malta
3. To recommend initiatives on how NESTLE Malta can use supply chain management to
the benefit of the organization
1.1 Background to research
The present report is based on topic as to examine the contribution that supports the
supply chain management towards to gain competitive advancement.
1.2 Research questions
 What is the concept of supply chain management?
 What are the characteristics of supply chain management?
 How to define competitive advantage of NESTLE?
1.3 Justification for the research
The present dissertation is based on topic to determine the issues and significance relates
with contribution of supply chain management in order to gain competitive advancement. The
main purpose of supply chain management is to ensure about the speedy collection and deliveries
of good to downstream enterprise or end users. Additionally, this enterprise has core focus on
activities as to ensure safe, secure and environment appropriate storage for all raw material,
ingredients and commodities.
Henceforth, the study has primarily focused on issues relate with supplier chain
management towards to gain competitive advancement. The main purpose of research study is to
frame out the effective supply chain management strategies that enable firms to improve product
flow through accurate demand and forecasting about the sales to facilitate better inventory
management. This report will focus on SCM at three level as strategic, tactical and operational.
Therefore, this topic will help to streamline business supply activities to maximize value to
customers and also aids to gain competitive advancement in the marketplace.
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1.4 Methodology
The Research methodology termed out as systematic and theoretical analysis method to a
field of study. It is defined as effective method that assist to collect information and data with
aim of making business decision. Thus, common methods to research defined as-
Research type- It is defined as careful focus on study in relation to particular concern with help
of using scientific methods. Thus, research has two types as qualitative and quantitative.
Additionally, quantitate research type based on quantities obtained with use of the quantifiable
measurement process. On the other hand, qualitative type of research aids to record the
information that are descriptive, subjective and typical to measure out. So, researcher will have
the use of qualitative technique to gain information about the effective contribution of supply
chain management towards to gain competitive advancement.
Research philosophies- It is defined as undertaking development towards research assumption,
nature and knowledge. Therefore, research philosophy classified into categories as
interpretivism, positivism, epistemology and ontology. To find out the impact of supply chain
management towards to gain competitive advancement, researcher will use interpretivism and
pragmatism to interpret the elements of the study.
Research approach- This is defined as plan and procedure that is inclusive of detailed
explanation to data collection, analysis and interpretation. Thus, research approach is classified
into categories as inductive and deductive. Henceforth, researcher will use inductive techniques
as this aids to generalize the information to draw effective conclusion.
Research strategy- This is defined as step by step actions that provides direction to research
study. It aids to gather the descriptive information on the topic of research. Thus, research
strategy classified into categories as experiments, survey, case studies, ethography and grounded
theory etc. However, to make this research effective researcher will have the use of descriptive
method to gain depth insight about the topic.
Data collection- This is defined as systematic approach that aids to gather and measure
information from the variety of sources. Thus, data collection is classified into categories as
primary and secondary. Henceforth, in order to determine contribution towards supply chain
management the researcher will use primary and secondary techniques.
Sampling- This is defined as statistical process that aids to predetermine the observation that
needs to be taken from larger population. Thus, sampling classified into categorize as stratified,
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cluster, multistage and systematic random sampling method. In this research, researcher will use
sample random technique with use of probabilistic method to represent the problem relate with
study.
Data analysis- It is defined as process that aids to evaluate data with use of analytical and
statistical tools to identify the core information about the topic. In this, thematic analysis will be
used to interpret the gather data. Under this, interviews will be conducted to analyse the findings
relate with the topic.
1.5 Outlines of the chapters
The whole study has covered the five chapter to produce research effectively. It will
define the overall structure of research project and this also inclusive of differed chapters.
Additionally, structure of the project defined in the below context manned as-
Chapter 1: Introduction
This is first chapter that streamlines the overall structure of research report. Henceforth,
researcher will define background, aims, objectives and research questions etc. Additionally, this
all needs to be achieved. However, this is initial phase that plays crucial role in undertaking the
whole research study in significant mode.
Chapter 2: Literature review
It is second chapter that assist to analyse the secondary information by the use of books,
journal and article etc. Therefore, this aids to gather the depth information on given topic to
research. However, secondary information can be collected in ease mode and this can be
assistive in term to gather detailed information to research.
Chapter 3: Research methodologies
This step will define various method to research study. With application of statistical and
logical technique it can be easy to determine, elaborate and measure the data effectively.
Additionally, it defines the systematic plan for collecting the research and also includes method
as implication, data collection and interpretation etc.
Chapter 4: Data analysis
It is term that defines systematic information about the research topic. However, the
chapter will show that first-hand information to the research can be defined with use of primary
data. It is attractive approach that defines how all data can be collected and interpreted. In order
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to explain it, the researcher can use graph, chart, table etc. Valid and reliable data can be
collected with help of tables, interpretation etc.
Chapter 5: Discussion and analysis- This is chapter that is inclusive of the discussion and
analysis of the topic. In this, the conclusion of the above chapter will be produced to make
research more effective and reliable.
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CHAPTER -2 LITREATURE REVIEW
This is defined as search and evaluation of the available literature about the given subject
and chosen topic area. Henceforth, it is aids to include the current knowledge, theoretical and
methodological contribution to the particular given topic.
2.1 Introduction
Supply chain management defined as management of flow of goods and services that
inclusive of all processes that aids to transform the raw material into the final commodities.
Henceforth, the mainly four elements to supply chain management are defined as integration,
operations, purchase and distribution. Additionally, this defined as flow of good and services that
includes all processes that aids to transform raw materials into final commodities. With help of
streaming the supply chain management activities the business supply side activities aids to
enhance the value of customer by gaining competitive advancement in marketplace.
Additionally, it can be stated that SCM is one of crucial term as it increases the
competitiveness and customer satisfaction. It is integral system that supports enterprise to
efficiently run supply chains and allow firms to quickly deliver product and services to the
consumer end. SCM is also defined as activity that manages the movements of materials or
product throughout an organization to maximize customer value and also maintains sustainable
competitive advancement. Henceforth, it can be stated that inventory management and keeping
track about the finished commodities is also one of the crucial aspect of supply chain
management to attain high amount of profitability and reduction in cost. Hence, SCM covers the
areas as planning, designing, implementation, control and monitoring supply chain activities with
aim of creating net value and support to gain competitive advancement to leverage worldwide
logistic.
Theme 1: Establishment of characteristics of supply chain management.
Supply chain excellence termed out as ability to improve portfolio of matrix. However,
the characteristics of effective supply chain includes consistency of leadership, technology
implementation, effective and improved supply chain planning and network design. As per the
view of author stated that characteristics of effective supply chain is the consistency of
leadership that assists to build strong foundation for an effective supply chain. If an entity is
switching leaders quite a bit then the foundation of effective supply chain will be sloppy.
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In view of the author, it has been stated that supply chain management plays a crucial
role in enhancing the efficiency of the corporate. Due to cropping up of the liberalization and the
globalization of international trade, the factors of the production that are involved in the sourcing
and the consumer products from the destinations around the world has developed an
interdependence in between the wholesalers and the producers on worldwide supply chain. Most
importantly, the present elevating significance of the computer-based technologies for
communication has influenced an application of the communication networks within the
management of supply chain.
According to the author, supply chain management is been defined as the system of the
suppliers, customers, retailers, manufacturers and the distributors where the product flows from
the suppliers to consumers, whereas an flowing of information is been made from both the
directions. In other words, supply chain is been referred as network of the facilities and the
distribution options that is operated fro procuring and transforming the material into the
intermediate and the finished goods along with the distribution of these finished items to the
consumers.
Author reviewed that there are several characteristics of the SCM approaches which
differs from the other types of the channel relationships. According to the Author (Bernhardt.,
2017) leaders of the supply chain management is one of the important part. this chain
consistency of leadership is an characteristic of an supply chain management. The leadership
consistency helps to make a strong foundation for the supply chain management. If the
organization is switching their leaders again and again then foundation will be slow. They they
have a consistence leader then it will more fast as comp[are to the other organizations. A leaders
of the supply chain management. Leaders need a extra ordinary skills to run this management
effectively if the leaders are driven by the metrics then they need to able to explain n and make a
list the factors which are affecting the cost and arability. They have to encourage their
organization to do best possible practice analysis. They have to give rewords and organize the
incentive programs to encourage employees of the organization. This can be helpful ion the
company process. This will also make the supply chain management more effectively and this
can create a growth opportunities for organization.
As per the View of (Vanalle And et.al., 201) technology implementation is the effective
characteristic of the supply chain management. If an organization implement technology
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properly then it will be helpful in the foundation for an effective technology and it will also
involve the overtime. For example ; if any organization create or develop the technology
properly at the first time it will be causing their business to involve more time. The proper use of
the technologies is helpful for the organizations to keep track of their inventory. It is also
helpful for the business to track their process as far product arability and finance. Technology
is helpful in the business to decrease the product cost and it has a ability to make product more
better design and looking. It is also helpful to run the functions like organization , planning ,
and help in making strategies for an organization.
According to this author (MORAIS and Silvestre., 2017.) planning of and design are also
a characteristic of the supply chain management . In the network design is helpful in the
company to being able to meet a long term goals and objectives. This network design can be
used to highlighting the interaction between a company. Organizations activity design can be
valuable network in order to mange the variability of supply and demand of the product. It is not
only effective for the company to create better chain supply it is also used to ensure the
satisfaction of the customers. Satisfaction of the customers are more important for the
organization because it make the business keep going and customers will buy more product if
they are satisfied with the products. It is important for company to understand the fictions of the
inventory and and companies should enhance their foundation of the effective supply chin
management. Business are good at the supply chain planning in order to balance the portfolio of
metrics.
According to this author(Cooper., 2017) Customization is the tricky aspects of thee best
supply chain management. This characteristics are the most appropriate to define a
customization as an individual ERP systems for the each of the supplier and the distributor. And
the retailer as well within the supply chain management. Supply chain management of the
organization is customize according to the how unique the supply chain process is implemented
across the chain provide the customers with what they are need and what are the demands of the
customers. For example ; if any of the custom want a any cellphone the they have to fulfill it
within 24 hours and during the device packing and all this done during this working hours. If
company increase the more numbers of suppliers and facilities then it will take more time to
reach product to the customers. The service part of the supply chain of then company will need
to be adopt and create the customized parts to meed this growing demands of the customers. It
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started in manufacturing , and it has trickled down to individual homes. The same process will
occur with renewable energy resources. And tomorrow's supply chain leaders will need to be
ready to proactive role.
As per the view of (Bernhardt., 2017) Proactive use of big data – Both Supply chain
service provider and supply chain management uses data to identify inefficiencies , implement
such solution and create proposed solution, such data are applied to create verifiable forecast for
needs in inventory.
As per the view of (MORAIS and Silvestre., 2017.)Inventory optimization - Inventory
optimization relies on correct , precise forecast for needed items, it is also requires an extensive
evaluation and rapid identification of sudden changes in the market which will impact the
manufacturing and all other aspect of the supply chain process.
As per the view of (Vanalle And et.al., 201) the economy becomes more interconnected
with emerging market increase the number of the corporate players under the supply chain. This
lead to the ultimate problem. Flexibility may be defined as the ability or technique of the supply
chain to adopt the change within the political climate , other events and market, which will
affects the supply chain. As per the view of (Cooper., 2017) rapid fulfilment may be defined
as the widespread increase in connectivity particularly through mobile device. The transport has
not yet been invented so the alternative remain ensuring orders are processed without error .
Quickly and via the fastest method of transport, supply chain will combine varying methods of
transport to gain a competitive advantage to giving consumers their rewards.
According to the view of (Vanalle And et.al., 201) the most significant aspect of a best in
class supply chain will concentrate on maintaining compliance and visibility. Visibility ca
eliminate all of the potential issues by allowing others to see into the supply chain.
As per the view of Bahari, F.A and et.al., (2017), supply chain management(SCM) is a
management where raw material convert into final product. There are various process to get final
product. In this supply chain management raw material gets from sources then supply to
producer. Producer convert it into final product and hand over to distributor while distributor
distributes products to customers. Customer provides their services to consumer through delivery
of final product. Thus, supplier, distributor and producer are interlinked to each other and flows
of goods and services through supply chains. It assists to maximizing customers value and
supports to increase competitive advantages in business market. While effective supply chain
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management assists tom minimizing cost, waste and time in production procedure thus help both
manufacture and retailer. Effective SCM reduces operation cost like purchasing cost, production
cost and overall supply chain cost. it assists to improve financial position by reducing supply
chain cost that increases profit in organization. It plays good role to enhance cash flow because
this supply chain provides new platform product flow to customer within days. This supply
chain improves quality of life for example it opens various job options in supply chain
management. SCM includes various job opportunity in various department like transportation,
warehousing department, inventory management, packing and logistics information department
etc. it reduces pollution for example some products which can emit some hazardous gas and can
pollute environment. This problem solves out through supply chain activities because before
transportation of products requires packaging. It boosts customer services by delivering right
product in optimum quantity and on right location. It supports in sales by providing demanded
product in few days. Effective supply chain management assists to establish good relationship
between manufacturer and retailers.
As per the view of Diachkov, D and et.al., (2018), activities of supply chain management
is also assisted manage day to day operation with in organization. Activities are foundation that
supports every manufacturing organizations. It assists in customer relationship management
where it provides approach to maintain organization's interaction with current to efficient
customers. It improves relationship with customers and focuses to retain customer so ultimately
sales growth maximize out. Customer service management is vital role in supply chain
activities where establish good relationship with customers through providing good services and
goods so that customers comes in loyalty and retain with organization prolong time. It provides
services to remote customers through online services. Thus, supply chain provides vast
globalization marketing to cover whole area. Supply chain activity also assist in warehouse
management where maintains day to day procedure in warehouses. Warehouses management
keeps all detailed regarding product like product tracking, receiving product, cycle counting,
route planning etc. it also helps to manage bulk product in multiple warehouses. Demand
management style provides planning on the basis of market demand. demand management
analyses size of market then analyses currently and potential customer views regarding product
and their demands, after analysing whole data forecasting and influences demands. On the basis
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of demand supplier forecasting and acquiring demands. Thus, both management enables to get
the best value for customers.
Supplier relationship management is the approaches in supply chain management to
access supplier's contribution in goods and service flow and it also influences in organization's
success. It monitors supplier's performance and develop strategic plan for enhance better
performance. Management maintains relationship with supplier's by communicating regular
basis. Management builds good relation with supplier's through interaction and provides
payment on time while manufacturing flow management refers as supply chain management
which consist various process. for example obtains raw material from plants and supplies to
manufacturing department and it transforms raw material into final product. Product
development and commercialization process provides sophisticated model for processing and
transfers new product in existing market through the helps of supplier's while commercialization
refers transfer new products in market through various services like production, distribution,
marketing, sales, customer supports etc. assists to achieve commercial success in business
market. Return management maintain return policies regrading product and keeps customer
updated about product return process. This return management system allows multiple channel
of return etc. thus return management enables to provide return services to customers and builds
trust of customers regarding product or company. Thus, whole activities of supply chain
management keeps away potential roles in supply chain management.
As per the view of Chang, Abate and Park, (2017), supply chain management activities
is crucial to gain competitive advantages. Offers greater values to customer by offering good
services in lower prices and gains more benefits through competitive advantage. Logistic
department works on aim to fulfil customer demands at the lowest prices with good quality. it
assists the flow of material, information and funds among supply chain partners like
manufacturer, retailer, suppliers etc. supplier's relationship management is fruitful to gain
competitive advantages because supplier's flows information, ideas and feedback of customers to
company. Through supply chain services gets positive impact on cost and customer services.
Manufacturing flow management is convert raw material into final product where flows of
product is completed through suppliers. Manufacturing department manufactures product in
optimum quantity according to demand which is analyses by commercialism department so that
will leads profitability because company will meet customers to demanded product. It will
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enhance trust of customer and will retain customer prolong time. In this way company easily can
gain competitive advantages. Return management assists to build customer's confidence
regarding product and their services. Return management also maintains return policies of
product if product isn't get up to customer's desire. It also keeps an eye customer's feedback.
Through feedback improves performance of services and product quality so that customer's
retention efficiency raise out. It increases competitive advantage's ratio through good feedback of
customers. Warehouse management plays vital role in impulsing growth and profitability in
production industry, In warehouses can keep multiple bulk product and supplier's can supply
large amount product according to demand. Thus, warehouse assist to store large amount
products and distributes as per demand of supplier or manufacturer and gains competitive
advantage's to fulfil require amount of product. Hence, whole chain of supply management keep
away vital role to gain commercial benefits.
Theme 2: Determine how competitive advantage can be gained with help of effective supply
chain management activities.
According to Lim-Camacho and et.al., (2015) supply chain management assist firm in
generating competitive advantage. World leading firms like FedEx and Dell are known for fast
service and quick transport of goods across globe. These firms observe high amount of cost
savings in their business which lead to earning of higher amount of profit in the business. It can
be said that supply chain management play a crucial role in cost cutting for the business firms. In
respect to supply chain management business firms focused on two areas namely cost and time.
Firms like Nestle make attempt to reduce goods transportation time so that on time same can be
delivered to the customers. In other strategy focus is not only on time control but also on cost
reduction in the business. Thus, it can be said that supply chain management lead to strong cost
control and time reduction in the business. This is the reason due to which in past 10 to 20 years
focus is mainly on supply chain management. Especially when economy is passing through
recession profit erode and, in that situation, only cost cutting through supply chain management
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is the option that is available to the firms in terms of cost control in the business. Such kind of
scenario attract attention of more and more business firms in past years. This is the reason
because of which firms are using additional tool and techniques to control cost through supply
chain management.
As per views of Öberg and Graham, (2016) in order to gain competitive advantage now a
day’s business firms are using machine learning and predictive analytics methods. Machine
learning algorithms refer to the approaches that use method like regression to make predictions.
Under this methods machine learn pattern of data and on that basis make accurate prediction. In
past couple of years many business firms make use of machine learning algorithms results to
make supply chain-based decisions. It is observed that decisions that are taken on basis of ML
algorithm prove accurate and assist firm in generating economies of scale in their business. All
these things lead to huge cost control and high amount of profit in the business. Thus, it can be
said that there are multiple benefits of ML algorithms from supply chain management
perspective.
Dubey and et.al., (2017) state that there are some of limitations of the use of machine
learning algorithms in decision making process of business firm. One of major limitation is that
business environment keep on changing consistently and such kind of changes can not be tracked
by system. Hence, if decision will be taken just on basis of regression results then in that case
wrong decisions can be taken. System can just take decisions on basis of data and it cannot
understand system that heavily affect business. Thus, if manager just make decision only by
taking in to account results generated by system then in that case they can make wrong decisions
which may lead to high elevation in cost. Hence, machine can support individual in making
decision but it cannot take place of human being in terms of making decisions.
As per views of Jabbour and de Sousa Jabbour, (2016) supply chain management have
number of benefits which provide business firm competitive advantage over its rivals. Supply
chain management make business firms more efficient in their business. This is because business
firms analyse their business goods transportation routes in proper manner. Also identify
alternative routes and by comparing actual vs alternative cost best path of transportation is
identified by using which in small time period goods can be transported from one place to
another and cost can be cubed. Another major benefit of using supply chain management is that
cost effect reduces substantially if supply chain management is excellent. If duration of transport
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will reduce then in that case automatically cost will reduce in the business ultimately this will
lead to increase in profit in the business. Good supply change management also ensure that
product quality will be maintained. For example, edible items for long time cannot remain fresh.
Thus, if transportation system is good then in that case food items will be approached to the
relevant destination in just few days which will prevent deterioration of quality. Thus, it can be
said that there are multiple benefits of supply chain management for the business firms.
There are the variety of ways to improve the supply chain which is discussed and have
various effective efficient results on the business. Every business wanted to increase their profits
and productivity with the proper supply of the products and services in the operations of the
business. It will decrease the hidden risk of the company and expand the business to the higher
level. Improvement in the supply chain is necessary because competition is increasing rapidly
this will helps to maintain the business in the competitive environment. Effective planning is
need in the management of the supply chain for the success and growth.
Theme 3: Recommending the ways through which supply chain management of the
company can be improved.
As illustrated by the Formentini and Taticchi, (2016) supply chain management refers to
the flow of goods and services in the management of the company which works to convert the
raw material into finished goods. There are different ways to improve the management of supply
chain in the company. Controlling, monitoring and designing of the supply chain management is
very important for the successful business operation. Finding the perfect people for the effective
chain of supply in the management with the good skills of the communication and maintaining
relation for internal and external stakeholders. They help the company by creating their skills and
enhance their ability for increase ion the values. Effectiveness of the supply chain received only
the right people will organize and manage the chain. For improving the supply chain mechanism
should be created for continuous relationship in the company. For solving the problems related to
the supply chain there is need top find the better methods for the improvements. Make sure that
the performance level of the company employees should be effective and leads to the success
and growth of the company. For effective efficient, fast and flexible chain of supply different
kinds of skills and knowledge is required in the business. If the business develops the variety of
supply chain in the company then it will fulfill the requirement of the supply and demands
related to the business. If the business accurately identify and measure the key points of the
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business. By improving the information process supply chain management will also improve
simultaneously. For achieving the success and growth of the company there is requirement of the
correct products at the perfect time at the increasing rate will improve the management of supply
chain. Limitations on the level of the inventory helps to transfer the supplier information faster.
Selection of the technology as per the wants and needs of the process using in the company
supply chain management. Taking help from the outside of organization this will reduces the
waste and evaluate the process of the business. Expert should be hired from the outside helps to
check the whole management of the supply chain and also increase the efficiency of business
operation.
As per the view of Meixell and Luoma, (2015) supply chain management should be
improved by different techniques use in the business operation of the company. Managers of the
supply chain make sure that the in the whole process everything is done effectively, efficiently
and faster. So for improving the supply chain management in the company there is need of the
strategic process and this process includes strategic planning, demand planning, supply planning.
Procurement and manufacturing, transportation warehousing and fulfillment of the order. In the
process of strategic planning before implementation of the supply chain in the business their
need to evaluate, design and organize the model of supply chain. For the effective and efficient
business proper identification of the areas of supply chain is necessary such as resource, products
and locations. Demand planning is very important because it ensures that the production of the
products will satisfy the needs and wants of the customers or not. Forecasting should be done
through different methods such as statistics, judgment of the human, analysis and by the
combination of all. Promotion planning helps to design the effective plans to promote the
products of the company which will increase the productivity of the company. Supply planning
focuses to manage the plan to ensure that the company have the necessary level 0f the inventory
of stock in all the ares of the business. Supply planning also includes the planning of supply
networks and it consists that for fulfilling the needs and wants of the customer calculation of
products which is going to transport at the ares of the customer should be maintained. Planning
of distribution helps to give the best strategy of very short period which fulfills the demand and
stocks by proper distribution of the supply in every location. Next process for the effective
supply chain management is the process of procurement which helps to manage the process of
purchase order, confirmation of the receipt and verification of the invoice. The company will
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confirm and issue the order only if they find the effective factors for the raw material to identify
the requirements of the procurement.
According to the Schönsleben, (2018) supply chain management is improved with the
help of three main point such as there should be created and difference in the strategies of the
corporate and supply chain, in the company creation of the long term chain of the supply and the
establishment of the performance level in the company. These three methods helps to achieve the
maximum productivity of the business by improving the supply chain of the company. The first
method explains that the strategy and the supply chain must goes hand in hand it means. It says
that all the leaders of the company must work together in the business which explains the chain
of the supply which is working in the business operation. Functions of the supply chain and
development of the products identify the different ways in creating the new products which
fulfills the needs and wants of the customer and reduces the cost of the company. The next
method is the appointment of the manager by the company for checking the performance and
improves the functions of the marketing and manufacturing and take the whole responsibility of
the company. The company measure that their supply chain together with the business operations
with effective ability and decision-making of the company. For identify the opportunity and the
risk there is need to create the team in the company for taking effective decision to reduce the
risk of the business. Make sure that the functions of the information technology helps in the
collaboration and decision-making of the company which increase the profits of the company. In
the last method the company improves the supply chain by the managing the perfect and
effective performance for the whole company by giving benefits to the management of the
supply chain that works to increase the value of the products when they protect from the risk of
the company. The measurement of the performance is done when the needs and wants of the
business fulfills. The market and products are the basic needs of the any business it includes the
production cost of the important players, products supply must be stable, the best innovations of
the new products in the markets and changing demands in the markets which leads the business
to the success.
As stated by the Wiengarten, and et.al., (2016)for the improvements in the management
of the supply chain the effective and better strategies must be adopted in the business for the
success and growth. Effective measure should be taken to reduce the risk like suppliers going out
of the business, political risks and calamities of the nature which affect the manufacturing of the
18

business. The organization maintains the strategies of the promotion and pricing for increasing
the demands of the products, increase in revenue of the business. After understanding the
demands and risk of the business there is need to accept the changes in the opportunities of the
market and events. For the success of the business the company must ensure that the proper and
continuous planning is necessary for the effective and efficient operations of the business.
Optimum uses of the design of the product and management of the products to increase the
profits of the business from the supply, manufacturing and sustainability in the workings of the
business. To improve the supply chain in the business operation analyze the social and
environment sustainability will helps to increase the benefits of competition. The company must
ensure about that the supply must be reliable and predictable because in the absence of the
reliability services to the customer is not possible. The manager of the supply chain changes the
demands because it will incr4ese the profits of the company. Effective supply chain helps to
expand the business and increase the productivity of the company. Accurate strategies and the
perfect tools can help the business to improve the supply chain of management. Financial goals
must be achieved by the proper uses of the supply chain. It is the main elements for the success
and growth of the business through proper visibility of demand supply, product, and risk, of the
business
19

CHAPTER-3
RESEARCH METHODOLOGY
Research type
There are two type of researches namely primary and secondary research. In primary
research individual gather data from people and analyse it to arrive at specific conclusion. It can
be said that primary research assists one in bringing out new facts and figures about current
research topic and help other researchers in finding out changes that come in respect to research
topic. Thus, it can be said that there is significant importance of primary research for the
researchers (Macke. and Gass, 2015). On other hand, there is secondary research whereby old
facts are analysed by evaluating research papers previously prepared by the researchers. By
analysing research papers overall trend in respect to research topic are identified. There is huge
significance of secondary research because it gives overall picture of past scenario. In current
research study both primary and secondary research will be carried out. This is because review of
literature will help in identify past trends and will develop broad understanding about the
research topic. This assist in carrying out research in the right direction. In present research study
primary research will also be done because by using it new trends will be identified. Thus,
conducting both researches will lead to carrying out research in proper direction. Up to specific
time frame previous researches will be evaluate and attempt will be made to find out similarity
and difference between thoughts of varied scholars across varied time period. Such kind of
analysis assist researcher in finding out reason because of which varied researchers have
different views on same topic (King and Mackey, 2016). Views may be different because of
difference in size of research and difference in condition etc. Thus, such kind of analysis assist
one in gaining experience and by considering same size and scope of current research is
determined which ensure that it will be carried out in right direction. Hence, it is very important
to analyse previous researches so that chances of mistake in current study can be eliminated to
maximum possible extent. Thus, it can be said that both researches have due importance on their
place and because of this reason in research study both primary and secondary research will be
carried out.
Research approach
Research approach refers to the methods that are used to carry out research. There are
mainly two type of research approaches namely inductive and deductive approach. Both these
20

approaches are used in different situations. Researcher research always aim either to form new
theory based on current research or to prove whether past theory in current time period prove
correct. To prove these things there are different approaches which are known as inductive and
deductive approach. Inductive approach is one where researcher gather data and identify pattern
in same and at final stage form theory (Kumar, 2019). Opposite to this, there is deductive
approach where there is specific theory and researcher intend to prove its existence. Thus, both
research approaches are quite different. In present research study inductive approach will be used
because in current study main aim is to study data and to explore current trends which ultimately
lead to formation of theory. Interpretive research approach is one of the best option because main
focus of study is to identify role that supply chain management play in making Nestle more
competitive. Here main focus is on finding out varied merits of supply chain for the firm. Thus,
research topic is not scientific and because of this chosen research approach seems best fit for
present research study. Deductive research approach is mostly used in study where research is
scientific in nature. As it can be observed that in case of scientific research attempt is made to
find out whether specific thing appears on large scale in real world. Such kind of research is used
to find out whether on large scale trend change or it is almost same. In this regard research
results produced by researcher are compared with old literatures (King and Mackey, 2016).
Present research study aim is to just identify significance of supply chain management for the
firms not to identify magnitude of benefits firms receive through supply chain management
system. Hence, research is not scientific in nature and due to this reason inductive research
approach is selected for research subject.
Research philosophy
It is one of the most important section of the research study because it reflects the ways in
which data about research subject must be collected and analysed to arrive at specific conclusion.
There are two type of research philosophies namely interpretive and positivism philosophy that
are available as options to the researcher (Flick, 2015). Both these research philosophies are
different from each other in terms of analysis approach. In the interpretivism philosophy focus is
on interpreting research elements. This philosophy assumed that reality in respect to research
topic can be assessed only through shared meaning and instruments. Means that if most of people
have common assumption about specific thing then in that case that is assumed as reality. Main
focus here is not on magnitude of change. On other hand, in case of positivism philosophy case
21

is different and it is assumed that detailed and exact understanding about research topic can be
developed only when there are clear facts available to the researcher. It assumed that factual
knowledge gained through observation of research elements is trustworthy to great extent. In
current research study interpretivism philosophy will be used because present research study is
not scientific in nature and main aim is to identify common opinion of people. In other words,
research does not aim to find out magnitude of change or impact of supply chain management on
Nestle. Attempt will made to identify common assumption of people and due to this reason
interpretivism philosophy will be used. Under this philosophy questionnaire will be distributed
among same units and then thematic analysis method will be used to analyse data. By doing so
common thinking of people will be measured. Present research study is non-scientific in nature
and due to this reason also interpretivism philosophy is taken in to account.
Data collection
It is one of the most important segment of the research study because in this source from
which data will be gathered is determined. In current research study data will be gathered from
two sources namely primary and secondary sources. In initial stage of research paper and
journals will be reviewed. Journals and research paper those published after 2015 will be taken in
to account (Bresler and Stake, 2017). This is because with passage of time situation get change
and technology also innovate at fast pace. Hence, research results obtain 10 or 20 years before
and same of previous five years may totally be different. Due to this reason research papers and
journals published after 2015 will be taken in to account. Apart from secondary data primary
data will also be gathered. Under this, sample of 20 respondents will be taken and questionnaire
will be distributed among them. In order to prepare questionnaire, aim and objectives of research
will be taken in to account. By considering objectives for each one varied questions will be
prepared and in this way scope of research will be covered. Contact will be established with
those who have knowledge of supply chain management issues and working in Nestle. This will
ensure that accurate data is gathered from right people. Thus, it is expected that research will be
on right direction if everything will be gone according to plan. In order to prepare questionnaire
apart from considering previous literatures current trends that prevail in the market will also be
taken into account. Under this varied article published few months ago will be reviewed so that
more relevant and in-depth information can be gathered. All these things will ensure that
research is on right track and will generate valuable results.
22

Sampling
It is one of another most important part of the research. It can be observed that there are
multiple approaches to take sample from the population namely simple random sampling
method, stratified sampling method, cluster sampling and convenience sampling. Simple random
sampling method is one in which on random basis sample units are taken in to account by the
researcher. Means that specific approach is not taken in to account to pick sample units from the
population (McCusker. and Gunaydin, 2015). On other hand, there is another method which
stratified sampling method is wherein population is divided in to multiple parts and from same
sample units are picked. This approach is used when researcher need specific sort of people as
sample units. Cluster sampling is method in which specific geographic are is classified in to
different parts and then from these parts sample units are taken in to account. This method is
used when one wants to do research in specific geographic area. Convenience sampling is
another approach wherein researcher according to its comfort pick sample units from population.
Thus, multiple alternatives are available to the researchers and one of above discussed need to be
picked according to research requirements.
Data analysis
In order to do data analysis thematic approach will be used because by using that approach
direction in which most of respondents give answer can be identified. Under this approach varied
charts are prepared which indicate sort of answer people give on asked question. There is another
approach of data analysis under which statistical tests are run to investigate relationship between
variables on which research study is carried out. Statistical tests like regression and t test as well
as descriptive statistics are run to explore data (Smith, 2015). In present research study thematic
approach will be used to analyse data because main aim of the present research study is to
investigate thoughts that sample unit have about research topic. If instead of this research main
aim was to identify extent to which supply chain management assist in achieving objective then
in that case in order to measure magnitude need was to apply statistical tools on data set. In
current research study inductive approach is selected and interpretivism philosophy is chosen
which means that thematic analysis is the best approach to do data analysis. Under this method
for each question theme will be prepared and below it table will be inserted which will indicate
number of respondents say yes, no, agree, strongly agree and strongly disagree etc. This
approach will reflect overall perception of sample units. Thus, it can be said that in current
23

research study most relevant and important method is used to analyse data and to arrive at
specific conclusion. It can be said that research is going on right direction.
Ethical consideration
In this section of the report ethical issues are discussed. Often data gathered during
research is highly valuable and sensitive in nature and due to this reason, there is always concern
from side of sample units whether it will remain safe or will go in other hands. In present
research study every effort is made to ensure that personal data provided by sample units is safe.
In this regard entire data set is saved in google sheet (Gabriel, 2015). Hence, only one that have
ID password of google sheet can access data set. This ensured that data provided by sample units
is in safe hands. Often it is observed that some time personal data get leaked and misused by
other entities. Due to this reason most of people do not prefer to give their personal information
or provide wrong facts. Without personal information it is not possible to do demographic
analysis and basic research. Thus, it can be said that proper steps are taken to control situation
and to ensure that research data is saved. Other scholars can carry out research study by reading
current study, due to this reason recent articles and last five-year journals are reviewed so that
front person can get latest information. Every effort is made to make research study more
relevant and useful for readers. However, there may be any point of limitation in research like
seen in most of researches conduct in past. There may be number of reasons behind limitation
like less availability of data and less availability of people who know in detail about research
topic.
Reliability and validity
Any research conducted must have reliability and validity of results. These are two pillars
behind successful research. In order to make research reliable only journals and research papers
published after 2015 are taken in to account. Thereafter, these research papers are reviewed and
only relevant one is taken in to account which reflect that secondary data analysis done in
literature review section is highly relevant (Attia and Edge, 2017). There is validity of obtained
results because sample size taken is appropriate and source from where sample units taken are
also highly reliable. Hence, data gathered is authentic and it can be said that there is high
reliability of current research study. Every effort will be made to ensure that research study is
highly reliable and valid. In this regard time to time review of current work will be done and
accordingly changes will be made in it. By doing so it will be ensured that research is carried out
24

in right direction. If there will be any error then in that case same will be detected in proper
manner. By doing so reliability of research study will be ensured. Many time questionnaires
given to respondents are not filled properly and few one gives wrong answers. If wrong results
will be taken in to account during data analysis then in that case research may go in wrong
direction. Thus, response given by each respondent is analysed thoroughly. In few cases
individual leave questions blank then by reading other question answers probable answer of
asked question is identified and accordingly hypothetically value is placed. In few cases
respondents does not give correct answer. This is tracked by comparing multiple questions
answers. If two questions are related then in that case their answers must also in estimated
direction. However, in few cases it is observed that respondents do not provide relevant answers
and due to this reason response is modified in few cases so that data can be made more reliable
for the research study.
Research limitation
It can be observed that most of research studies have some limitations and current research
study also have few limitations. One of main limitation is that sample size is small just 20
respondents. All these respondents work in Nestle at varied positions like managers, supervisors
and labor etc. From these three categories sample units drawn is very small which is major
limitation of the present research study (Hickson, 2016). However, attempt is made to ensure that
sample unit selected have wide knowledge of the research topic. Thus, obtained results are
accurate. Individuals working on different designations have varied experience about supply
chain management and due to this reason taking small number of manager, supervisor and labor
was risky for research purpose. However, sample units taken have good experience of supply
chain management and due to this reason small sample size must not be matter of concern for the
firm. Other limitation of present research study is that its scope is not so wide means that it
specifically focusses on characteristics of the supply chain management Nestle have in its
business and its competitive advantage. Research can be made wider in terms of supply chain
cost and specific issue associated with it. Present research is focused on competitive advantage
that supply chain management is generating for the business firm. Thus, it can be said that
research topic is good but by making its wide it was possible to make it more informative in
nature. The other limitation of research study is that few respondents did not answer specific
question or give wrong answers. As mentioned above in case answer is not given or wrongly
25

filled modification are made which is part of data cleaning which is done in most of researches.
There may be few respondents who have little knowledge of research topic and may give wrong
answers of asked question. In such cases it become inevitable for researcher to fill right answers
so that wrong results can not be obtained from research results. Attempt is made to select on
those candidates that have strong knowledge of research topic and only at few places changes are
made in obtained results. Thus, it can not be considered as big limitation of present research
study.
26

CHAPTER -4
DATA ANALYSIS
Theme 1 : Employees agrees that supply chain management is essential for an organization.
Particulars Number of responses % of responses
Agree 10 50.00%
Disagree 2 10.00%
Strongly agree 5 25.00%
Strongly disagree 3 15.00%
Total 20 100.00%
Interpretation- From the above table it has been analyzed that most of the respondents
agrees that managing the supply chain is a significant aspect fro an organization as it helps in
enhancing the satisfaction of the customers and builds competitiveness which in turn helps in
gaining success in the overall market. It plays as a crucial and an integral part of an entity's
success as running the supply chain efficiently allows the firms in delivering its products on a
27
Agree Disagree Strongly agree Strongly disagree
0
0.1
0.2
0.3
0.4
0.5
0.6
50.00%
10.00%
25.00%
15.00%
% of responses

quicker basis to the ultimate users at the low cost. Thus, SCM act as the most essential function
of an enterprise as it helps them in flowing their products from the premises to the consumers
within a specified time period in order to meet the demand of the consumers in an effective way.
Theme 2 : Respondent states that managing the efficiency is the main feature of SCM which
reflects the level of the service that the company could facilitate through along with its resources.
Particulars Number of responses % of responses
Capacity 5 25.00%
managing efficiency 8 40.00%
changes in output 3 15.00%
human factor 4 20.00%
Total 20 100.00%
Interpretation- The above assessment reflects that majority of the employees states that
managing efficiency is the characteristic which helps the company in facilitating quality services
28
Capacity managing
efficiency
changes in
output
human factor
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
25.00%
40.00%
15.00%
20.00% % of responses

in addition to the resources. In order to improve the efficiency of the SCM, Company needs to
improvise its processes, predictability, taking corrective measures for mitigating risk, minimizing
the working capital, optimizing the cost and analyzing the data. Managing efficiency could helps
the company in improving its plants, equipment, warehouses and the transportation vehicles. It
has a direct impact on the cash flow of the firm as delivery the product in a timely manner,
consumers could be able to purchase the goods when they are in needs of it. Managing the
supply chain efficiently increases the profit leverage because it helps in reducing and in keeping
the control over the supply chain costs.
Theme 3 : It has been identified by employees that a SCM is said to be effective when it leads to
meeting the wants of the customers and producing the product as per their specifications.
Particulars Number of responses % of responses
Meet need of the customers 4 20.00%
increasing satisfaction of the
customer 3 15.00%
fulfilling specification of
consumers 5 25.00%
All of the above 8 40.00%
Total 20 100.00%
29

Interpretation- It has been assessed from the evaluation that majority of the employees of
an enterprise believes that creating effectiveness in the practices of SCM, an entity could enjoy
several benefits which act as the major factor fro attaining growing success in the long run. It
helps in gaining better collaboration between companies and its suppliers in context of the flow
of an information. It also helps in achieving improved quality control by implementing the
minimum standard quality which directly enables the suppliers in meeting the necessary
requirements and also in verifying the compliance steps. Effective SCM reflects a positive
impact on the performance of the firm in respect of its high efficiency rate and also assist in
reducing the overhead which in turn resulted improvement in the cash flows. It builds the output,
boost cooperation, lower delay in the processes and enhanced the network of the supply chain by
by reducing the cost effects.
30
Meet need of the
customers
increasing
satisfaction of
the customer
fulfilling
specification of
consumers
All of the above
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
20.00%
15.00%
25.00%
40.00%
% of responses

Theme 4 : As per the response of the employees it has been assessed that efficiency management
highly relates to better communication and the coordination in between several employees.
Particulars Number of responses % of responses
Variations in the output 2 10.00%
efficiency management 11 55.00%
capacity utilization 3 15.00%
human resource 4 20.00%
Total 20 100.00%
Interpretation- The above stated analysis shows that 55% of the respondents indicates
that efficiency management in the SCM means better communication and the coordination
31
Variations in the
output
efficiency
management
capacity
utilization
human resource
0
0.1
0.2
0.3
0.4
0.5
0.6
10.00%
55.00%
15.00%
20.00%
% of responses

between various employees. In other words, it means for improving the working conditions,
building proper communication and the harmony among the departments is of great importance
as it leads to achieving the goals efficiently and effectively and will be seek fro working in a
common direction that in turn improves the overall supply chain of an enterprise. Thus, it is
considered as the most important measure or characteristics of the supply chain management as it
it also relates to the smooth functioning of the firm in the overall market. It helps in enhancing
the activities that are involves in the SCM practices in a better way.
Theme 5 : Creating trustworthy relationship among the supplier, enterprise and the customer
plays a crucial role in evaluating the performance of SCM practices.
Particulars Number of responses % of responses
Growth 3 15.00%
trustworthy relationship among
the supplier, enterprise and the
customer 9 45.00%
Better relationship between
customer and the company 6 30.00%
good relations between supplier
& corporate 2 10.00%
Total 20 100.00%
32

Interpretation- By interpreting the above results it has been seen that large number of the
respondents showed that for evaluating the performance of the SCM practices it is important to
create healthy and trustworthy relations with the customers as well as the suppliers so that
customers and the suppliers will not be the think to switch to the other firm and will show a high
level of loyalty towards an enterprise. This also helps the firm in measuring efficiency in supply
chain and act as the essential element in effective planning, decision making and the control.
Such a development of the better relationship induces the firms in expanding its business and in
gaining a wider market share with timely delivery and quality product to its customers.
Theme 6 : Employees of an entity indicated the company seeks for developing positive
trustworthy relationship in their SCM practices.
Particulars Number of responses % of responses
positive relationship 8 40.00%
negative relationship 3 15.00%
Partially positive 5 25.00%
33
Growth trustworthy
relationship among
the supplier,
enterprise and the
customer
Better relationship
between customer
and the company
good relations
between supplier &
corporate
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
15.00%
45.00%
30.00%
10.00%
% of responses

partially negative 4 20.00%
Total 20 100.00%
Interpretation- In supply chain management of the firm many entities operate together
and supplier are one of them. For effective operation of supply chain management, it is very
important for the firm to have strong relationship with suppliers. On asked question 40%
respondents state that Nestle have positive relationship with its suppliers. 25% respondents
believed that firm have partially positive relationship with its suppliers. 15% think that Nestle
have negative relationship with suppliers. There are 20% respondents which believed that Nestle
have partially negative relationship with above mentioned entity. It can be said that Nestle
moderately maintain good relationship with its suppliers. It may be because of poor working of
suppliers in supply chain or poor management of Nestle. Reason may be any but it is warning
signal for the firm because if it will not be able to maintain good relation with its suppliers then
in that case supply chain can not operate smoothly in business.
34
positive
relationship
negative
relationship
Partially positive partially negative
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
40.00%
15.00%
25.00%
20.00% % of responses

Theme 7 : From the analysis it has been seen that the SCM practices of Nestle is counted as fully
successful.
Particulars Number of responses % of responses
Fully successful 7 35.00%
partially successful 6 30.00%
not successful 4 20.00%
somewhat 3 15.00%
Total 20 100.00%
Interpretation- From the above table it can be interpreted that out of 20 respondents 35%
feel that SCM is fully successful as they ensure full quality of products and safety of products.
To meet the standards nestle company thoroughly follow the local and international regulation.
35
Fully successful partially
successful
not successful somewhat
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
35.00%
30.00%
20.00%
15.00% % of responses

30% of the respondents feel that it is partially successful as firstly company need to make
process which includes all the activities executed in the company and plan for production
process. SCM benefits company in keeping customers satisfied and plays an important role in
transferring information to customers. Supply chain theories leads to improvements in
production planning and will be beneficial for nestle to produce products at lower cost and make
goods available at affordable price.
Theme 8 : Employees of the Nestle feels that their customers are satisfied with the supply chain
management practices adopted by them.
Particulars Number of responses % of responses
Satisfied 9 0.45
not satisfied 2 0.1
partially satisfied 4 0.2
somewhat satisfied 5 0.25
Total 20 100.00%
36

Interpretation- From the analysis it has been assessed that in accordance with the
employees, their customers are highly satisfied with their supply chain management practices
because Nestle's product flow is very effective which begins with the raw material to the
consumers with ensuring the higher level of the quality and the safety before its product reaches
to the customers. The company also ensures highest possible standards in addition to the supply
chain which starts from raw material through the packaging and the distribution to consumers.
Within the supply chain, the product of the Nestle are been checked on product line and as the
result, customer feels very safe relating to its product. This factor clearly shows that the SCM
practices of Nestle leads to increase demand of its product across the globe which in turn reflects
success for the firm.
37
Satisfied not satisfied partially satisfied somewhat
satisfied
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
45.00%
10.00%
20.00%
25.00%
% of responses

Theme 9 : Staff of Nestle strongly agrees that the SCM practices pursued by them is best for
achieving success and growth.
Particulars Number of responses % of responses
Agree 6 30.00%
strongly agree 7 35.00%
Disagree 4 20.00%
strongly disagree 3 15.00%
Total 20 100.00%
Interpretation- The analysis shows that Nestle has adopted different strategies in relation
their supply chain management such as they fixed the standards quality for all range of their
products which attracts the suppliers and the customers towards their brand. There SCM
38
Agree strongly agree Disagree strongly disagree
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
30.00%
35.00%
20.00%
15.00%
% of responses

practices are so effective that make the process of delivering the product from the premises to the
end users timely and efficiently.
Theme 10 : Providing value to the ultimate users is counted as the major value attribute for
developing effectiveness in the SCM.
Particulars Number of responses % of responses
Value to end-user 5 0.25
low cost of production 3 0.15
customer service 2 0.1
improved quality 2 0.1
short period of lead time 3 0.15
fast delivery 2 0.1
quick response 1 0.05
meeting Demand 2 0.1
Total 20 100.00%
39

Interpretation- From chart given above it is observed that equal weight is given to all
options by the respondents. Data given above reflect that 25% believe that supply chain
management is generating value to the end user in multiple ways which either may be delivery of
product in short duration or low cost charged by the seller.15% respondents believe that firm is
generating economies of scale in the business through cost cutting in the business by adopting
supply chain management approaches. Cost cutting benefit is passed to the user by making
available product to it at cheaper price. 10% respondents assumed that because firm is following
supply chain management methods in its business customers service improved. These things lead
to retention of customers in the business. 15% respondents think that gap between order time and
delivery time decline substantially which prove effectiveness of the supply management system
for Nestle. In case of other options that were given to the respondent’s similar response is
received. Thus, it can be said that there multi benefits of supply chain management for the firms
and this ultimately benefits both business firm and its customers in terms of low cost of
production and less lead time. This is the reason because of which now a day most of small size
firms are also focusing on supply chain management.
40
Value to
end-user
low cost
of
productio
n
custome
r service
improved
quality
short
period of
lead time
fast
delivery
quick
response
meeting
Demand
0
0.05
0.1
0.15
0.2
0.25
0.3
25.00%
15.00%
10.00% 10.00%
15.00%
10.00%
5.00%
10.00%
% of responses

Theme 11 : Employees feels that creating effective strategies in respect of SCM enables Nestle
in gaining the competitive advantage over its competitors.
Particulars Number of responses % of responses
Yes 15 75.00%
No 5 25.00%
Total 20 100.00%
41
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8 75.00%
25.00%
% of responses

Interpretation- Table given above reflect that strategies prepared in respect to supply
chain management if proved effective then in that case it provides edge to Nestle over its
competitors. 75% respondents agree with the above fact and only there are 25% respondents who
believe that supply chain management is not play any crucial role in developing competitiveness
of Nestle over rivals. To some extent both can be considered right. This is because any firm
competitiveness is determined by the number of factors like technology it used, innovation in its
business, product line and cost structure etc. All these factors cumulatively determine the
competitiveness of the firm in comparison to its rivals. Those who come in 25% group assume
that it is product quality and innovation capability which make Nestle more competitive for
rivals. On other hand, those that comes in club of 75% assume that supply chain management
provide edge to Nestle over rivals because in recession when cost increase it is supply chain
management which assist firm in curbing cost of production. Thus, it can be said that both
opinions are right at their own place.
Theme 12 : It has been agreed by the employees of the company that environmental
uncertainties has a greater impact on your company's SCM practices.
Particulars Number of responses % of responses
Agree 10 50.00%
Disagree 2 10.00%
strongly agree 5 25.00%
Strongly disagree 3 15.00%
Total 20 100.00%
42

Interpretation- Changes in business environment heavily impact supply chain
management mechanism of the business firms. 25% are strongly agree with the fact followed by
50% respondents that are strongly agree on asked statement. There are 15% respondents that are
strongly disagree on above given statement and only 10% respondents are disagree with same
statement. Thus, it can be said that overall common assumption is that business environment
have huge impact on supply chain management. For example, if firm relationship with suppliers
deteriorate then in that case supply of goods heavily get affected which result in distortion in
entire supply chain management. This indicate that business firms need to maintain good
relationship with their stakeholders so that supply chain can be managed smoothly in the
business.
43
Agree Disagree strongly
agree
Strongly disagree
0
0.1
0.2
0.3
0.4
0.5
0.6
50.00%
10.00%
25.00%
15.00%
% of responses

Theme 13 : According to the respondents technological cost is the biggest environmental
challenge that hinders the practices of supply chain in your firm.
Particulars Number of responses % of responses
Logistics 8 40.00%
technology infrastructure 2 10.00%
technology cost 10 50.00%
Total 20 100.00%
Interpretation- Technology heavily affect business firms to great extent. In many cases
cost of technology acquisition is very high and further maintenance cost of infrastructure fuel its
overall cost. In current time period large number of firms are using machine learning algorithms
to make supply chain management decisions. Cost of acquisition of license version of relevant
software’s is high. Apart from this, team of experts also need to be kept on floor which are
responsible to operate software and guide management in making decisions. Hence, on asked
44
Logistics technology
infrastructure
technology cost
0
0.1
0.2
0.3
0.4
0.5
0.6
40.00%
10.00%
50.00%
% of responses

question 40% respondents state that technology cost for logistics infrastructure is very high and
affect supply chain management operations cost. On other hand, 10% believed that cost of
maintain technology infrastructure is high. Apart from software’s, there are other machines that
are used in supply chain management, cost of these machines maintenance is very high which
cost of supply chain. Thus, it can be said that technology assist firm in managing supply chain
but sometimes it also elevates cost for the firm.
Theme 14 : Less number of the top executives in an organization is considered as the major
organizational challenge that directly affects the SCM practices.
Particulars Number of responses % of responses
Operating SCM practices 6 30.00%
customer 5 25.00%
lack of the top executives
support 9 45.00%
Total 20 100.00%
45
Operating SCM
practices
customer lack of the top
executives support
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.5
30.00%
25.00%
45.00%
% of responses

Interpretation- On basis of chart give above it is clear the supply chain management if
not worked properly due to lack of workforce then lots of problems can be faced by the firm.
30% respondents believed that if there will be lack of workforce then in that case operations of
supply chain will be performed poorly. 25% respondents believed that product will not be
available customers on time which will create negative image of the firm among customers. 45%
respondents think that due to high work pressure conflict can arise between top executives
managing supply chain. Thus, it can be said that it is very important to ensure that there is
sufficient workforce in supply chain management and there is good coordination between them
so that everything gone well in supply chain without any problem. Time to time management
must review its supply chain and must identify issues that are in supply chain. Timely resolve of
these issues ensured that everything will work in proper manner in supply chain.
Miscommunication, lack of coordination and politics can create challenges for effective
implementation of supply chain in the business. Thus, there must be specific group of managers
that work at top level and maintain eye on entire operations of supply chain network.
46

CHAPTER – 5
CONCLUSION
DISCUSSION
Supply chain management is related with process of managing and controlling the flow
of different types of goods and services of the company thereby including several processes of
business which is associated with transforming raw materials into the finished products. The
management function related with streamlining of supply chain business activities so as to
maximize customer value and level along with competitive advantages in the market. Supply
chain is basically comprises of both the firm and individual contributors involvement in
converting products from the raw materials stage to final product. Thus, activities as undertaken
by the company under the supply chain management are related to refining, designing,
manufacturing, packaging and transportation etc.
With the help of supply chain management, NESTLE can make its business operations
more effective as well as efficient which will directly adds to its profitability aspects. It is
considered as one of the most important business process as it assist NESTLE in increasing its
competitiveness thereby providing it a strong base for gaining competitive edge in the market
place as well (Hugos, 2018). By making use of supply chain management techniques, it has
assisted the company in attaining the aim of increasing its customer satisfaction level to some
extent. By making use of supply chains in effective manner, it helps the company in making
delivery of its products and services to its end user on proper time with minimum cost
expenditure as well. Thus, NESTLE by making use of such chain management tool has been able
to gain success in the tough market competition with the help of sound and strong business plans
and strategies formulation.
NESTLE has make compliance of all the four important elements of supply chain
management process viz. Integration, operations, purchasing as well as distribution function.
This has resulted in gaining competitive advantages in the market place along with high
customer base and market share. All the elements of this management process basically relies on
each other for performing their own business operations in effective manner. Thus, it helps
NESTLE in achieving its goals as per the plans and strategies formulated by its active

completion in an effective manner. As per the research conducted, it can be concluded that
quantitative research has been undertaken by the researcher for gaining deep insight about the
subject matter of the topic which is Supply chain management function of the NESTLE.
48

By implementing sound business techniques and advanced technologies, it has assisted
NESTLE in capturing large market share across the globe with the help of effective supply chain
over the period of time. By making plans as well as network design, NESTLE has been able to
attain its market objectives of long term nature. Also, it has been able to manage the demand and
supply function worldwide thus has become capable of achieving customer satisfaction level. It
is required on the part of NESTLE and its management team to define sound as well as clear
business aims and objectives along with the manner and strategies for attaining it. By laying
down norms, beliefs and value, it helps the employee in undertaking own business operations in
line with business aims and objectives which further assists in achieving own personal goals
along with the company (Heizer, Render and Munson, 2017). This report has made focus on the
key elements of supply chain management process which basically operates at three level viz.
strategic, tactical and operational. Thus, it can be said that by making use of supply management
process it helps NESTLE in undertaking its business related supply activities thereby
maximizing value to customers and making company capable of competing in the tough market
competition.
Supply chain management is thus has been considered as one of the most important as
well as integral part of every business organisation which helps NESTLE in achieving success
and growth in the near future. It helps the company in decreasing its inventories holding cost as a
result of which it directly brings positive impact on the purchasing cost of the company thus
providing positive return to the company.
By depending on supply chains, it provides NESTLE in making delivery of its most
expensive products safely and quickly so as to minimize its holding cost. Thus, it helps company
in increasing its profitability aspects along with improved production level. Supply chain
management also aids to the supply side activities of the business with the main aim of
maximizing the customer values and seeking benefits from the competitive advantages in the
current market place. It is thus considered as one of the core business responsibility of Supply
Chain Management process to handle the entire production flow of the goods and services so as
to deliver the final products to its customers across the globe timely.
The business enterprise selected for dissertation is having its core focus on its business as
well as supply chain management activities so as to ensure safety, security, environmental
friendly production and storage for all raw material, ingredients and commodities. In completing
49

this research project, use of qualitative technique has been done so as to gain information about
the contribution of supply chain management as made towards gaining of competitive
advantages. Such kind of research analysis has assisted many researchers in determining reason
which has created variations among different researchers for having different views on the same
subject matter of the research topic. Thus, by undertaking efficient operations related to running
of supply chain management, it has allowed NESTLE in delivering its products, commodities as
well as services to its end user for very affordable as well as low cost.
CONCLUSION -
From the above file it can be concluded that supply chain management is considered as
one of the most important business aspect for every company as it assist in conducting business
operations in effective manner. Supply chain management has been defined as the process of
managing the flow of goods and services which is inclusive of all the business related processes.
It aids the company in transforming its available raw materials, resources into the final or
finished goods. Henceforth, the four main types of supply chain management elements are
named as integration, operations, purchase and distribution (Stadtler, 2015). Furthermore, this
has been explained as the manner in which good and services flow is taking place in the business
in proper manner. With help of supply chain management activities, the business supply side
activities as undertaken by the NESTLE aids to enhance the value of customer by gaining
competitive edge in marketplace.
Thus, it has been assessed from the file that qualitative research has been conducted by
the researcher as it has provided better view point of the subject matter. Researcher has made use
of primary as well as secondary data sources for gathering more accurate as well as relevant
information about the subject matter of the research topic. It is thus a kind of analysis which has
directly assisted the researcher in gaining experience, knowledge as well as information related
to the particular aspects as required. By considering the same size along with the scope of current
research as determined has helped in ensuring that research is conducted in right manner. The
researcher has made use of Interpretivism approach as the current research study is not related to
the scientific aspects in nature and is having its main aim in identifying the common opinions
and experience of general people. From the perspective of collecting relevant as well as accurate,
researcher has selected sample of 20 respondents and a proper questionnaire has been distributed
50

to them for gathering information known to them. For preparing questionnaire, the main aim and
objectives of research has taken in to consideration by the researcher and 20 employees has been
chosen of NESTLE for ascertaining more correct and accurate data.
After the process of selecting sample size is done, the next step is related with the
sampling process. For completing this research study, the researcher has made use of random
sampling technique as it is related with the selection of sample units on the random basis which
has been taken in to account by the researcher. After sampling part is done, the next process is
related to analysis of data as gathered for deriving its meaning as well as useful information from
it. Thus, researcher has made different types of themes related to the research subject matter i.e.
supply chain management and its aspects on NESTLE. By making use of Thematic analysis tool,
themes has been prepared in line with the aims and objectives of the research study. Also, for
providing better understanding, researcher has made use of different types of charts and graphs
so as to make better interpretation of the data gathered. While conducting the whole research
study, it has been evaluated that all the ethical norms and standards has been complied in by the
researcher. No data has been copied as it is from the website as well as other internet sources
directly. Total rephrasing has been done of the data collected before using it for completing thee
research study.
Also, no respondent has been forced to provide information about the subject matter of
the research topic. As per the ethical norms, researcher has asked each and every researcher to
fill in the consent form depicting about their willing participation in providing data about the
topic. As per the reliability and validity aspects of the research, it can be said that all the
information as well as data collected are of reliable nature. These data are having authentic value
as it has been collected from the annual reports, official website and from the employees of
NESTLE company. Thus, it can be used by the end users as well as other scholars and
researchers in completing their research study as well. While conducting this research study,
number of research limitation has been faced by the researcher which has created impact on the
researcher in completing such project. For overcoming the issues being faced by the researcher is
basically related to lack of financial as well as time resources. Thus, it has forced researcher in
making use of available resources in form of secondary data sources, articles, journals, annual
reports of the company. It has resulted in saving both the time as well as financial aspects of the
researcher.
51

As per data analysis done, it has been assessed that most of the employees around 10 out
of 30 has agreed with the aspect that the supply chain management technique is considered as
one of the essential part for an organization. Also, it has been stated by the employees of
NESTLE that managing the efficiency of business operations is one of the main feature of
Supply Chain Management process which helps in reflecting the overall level of the service that
the company has facilitated with the help of its resources to its customers (Mangan and Lalwani,
2016). Furthermore, it has been identified that all the employees who have taken active
participation in the data collection process said that the process of supply chain management
needs to be more effective so as to make it capable of meeting all the customers needs and thus
producing such products which has been demanded in the market place.
Also, it has been assessed that the efficiency management is highly related to the better
communication process for which coordination in between employees is more important. With
the help of supply chain management, it assists NESTLE in creating trustworthy relationship
among different suppliers, business firms and customers. Also, it plays a very crucial role in
determining the overall performance level of the employees of NESTLE under the Supply Chain
Management practices. These practices have assisted in developing of the positive trustworthy
relationship among the employee of NESTLE which directly works towards attainment of the
business goals in timely as well as effective manner. Around 7 employees out of 30 has agreed
that the practices related to the supply chain management assist company in gaining competitive
edge and is considered as the most successful business process. 9 out of 30 employees believes
that its customers are highly satisfied with the supply chain management practices which has
been adopted by NESTLE.
Also, it has assisted in making high profit margins along with increased customer base as
well. Most of the employees of NESTLE strongly agrees that the practices related to the process
of supply chain management as pursued by them is one of the best aspects for achieving business
success and growth in the near future time period. It is supported by 22 number of employees out
of 30. Furthermore, it has been evaluated that providing value to the end users has been counted
as one of the major value which is attributable for developing and bringing effectiveness in the
process of supply chain management of NESTLE. 15 employees agrees that by creating effective
strategies in relation to SCM it enables NESTLE in gaining competitive advantage over its
competitors. Because of environmental uncertainties, the business operations of NESTLE has
52

been affected to a great extent. The biggest challenge for NESTLE is related to management of
technological cost which is hampering the supply chain management function to a great extent. It
is thus ascertained that by making use of effective business processes related to supply chain
operations, NESTLE has been able to capture large market as well as customer share in the
market place at the global level.
RECOMMENDATION -
Supply chain managers helps in achieving profitable growth and success in the near
future by considering cost factor, revenue as well as effective utilization of assets. On the basis
of the above research made, the following are the most appropriate recommendations to the
NESTLE for its better improved business operations:
1. Emphasis should be made on improving as well as defining sound relationship among the
employees as engaged in the function of supply chain management. By providing a
strong base for improved business performance, it is very much important for the
company to ensure proper coordination and communication among employees.
2. NESTLE should focus on providing authority to some designated teams and its members
thereby empowering them to make decision as required. It will help the employees in
making use of their skills, creativity as well as innovative thoughts related to business
operations with the help of which NESTLE can gain competitive advantages.
3. With the help of supply chain management, it will assist NESTLE in improving its
overall operational efficiency level to a great extent. Also, it will help company in
reducing its overall cost factor as a result of which the profit margin of the company
increases along with increase in the customer base (Christopher, 2016).
4. Emphasis should be made on formulating sound business plans and strategies in line with
the business aims and objectives so as to gain competitive edge in the market place.
5. By improving marketing as well as promotional activities of the business, NESTLE can
compete in the global market among its rivalry firms with its own products and services.
Making focus on targeted market segments as well as customer group, can help NESTLE
in building customer loyalty base to a great level.
53

6. Undertaking better improved promotional and marketing activities such as advertising,
sales promotion, sales representation, customer relationship management etc. can help
NESTLE in improving brand image and reputation among the customer group. Also, it
will help the company in providing a direct interface in between customers and the
product to be offered.
7. For making high profit margin, it is required on the part of NESTLE company to appoint
such sales personnel who are having full knowledge about the particulars of the products
they are dealing in which is being offered to the customers at large basis in the market
base across the globe.
8. The most important part of the supply chain management is related to the element of
strategy which is named as EDI I.e. an electronic data interchange system. With the help
of this system, NESTLE overall distribution system can directly connects with its
customers across the world.
9. By implementing good supply chain management process, it makes improvement in the
health care aspects of the human as well. As all the activities of supply chain is related
with human efforts, it ensures faster and quicker delivery of products and services as
demanded by the customer worldwide.
10. Also, with the help of this research activity NESTLE can get better understanding about
the relationship which is existing in between the supply chain management practices,
supply chain integration as well as supply chain performance thereby incorporating such
variable factors in to the business operation of NESTLE (Monczka and et.al., 2015).
11. By making appointment of knowledgeable as well as expertise key personnel for
conducting the supply chain management processes, NESTLE can minimize its
unnecessary cost expenditures as associated with its business operations.
12. Supply chain managers appointed by the company can decrease the overall use of
expensive as well as large fixed assets including plants, warehouses and transportation
related assets thereby declining cost amount.
13. As per the Supply chain management, it helps the company with a power to boost up its
customer service, reducing costs expenses as associated with the operational functions
and focusing on making improvement in the overall financial position of the company.
54

14. Thus, it can be said that supply chain management is creating a huge impact on the
operational efficiency of the business of NESTLE. It is very much important for the
company to deliver the right quantity as well as right product as per the demand of the
customer on time which can help in improving customer related services. Also, it helps
NESTLE in building customer loyalty base.
15. NESTLE should ensure that its distribution network is proper and accurately working as
the work of supply chain management is based on it. Any disturbance in operational
function of distribution network will affect the strategies and plans made in relation to
sales. Also, it will create impact on the delivery aspects of the products and services thus
making customer unsatisfied.
55

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The warehouse as a competitive advantage. 2015. [Online] Available through:
<https://www.foodlogistics.com/3pl-4pl/article/12050647/the-warehouse-as-a-competitive-
advantage>
58

APPENDIX
Questionnaire
Demographic profile
Name:
Gender:
Age:
1. Do you agree management of the supply chain is essential for an organization?
 Agree()
 Disagree()
 Strongly agree()
 Strongly disagree()
2. Which of the feature of SCM reflects the level of the service that the company could facilitate
through along with its resources ?
 Capacity ()
 managing efficiency ()
 changes in output ()
 human factor ()
3. what is the major benefit resulted from an effective SCM ?
 Meet need of the customers ()
 increasing satisfaction of the customer ()
 fulfilling specification of consumers ()
 All of the above ()
4. which characteristics of the SCM indicates communication and the coordination in between
several employees ?
 Variations in the output ()
 efficiency management ()
 capacity utilization ()
 human resource ()
5. Which of the attribute is given more importance in evaluating the performance of SCM
practices?
 Growth ()
59

 trustworthy relationship among the supplier, enterprise and the customer ()
 Better relationship between customer and the company ()
 good relations between supplier & corporate ()
6. What kind of the trustworthy relationship that your company is trying to inculcate in the
practices of SCM?
 positive relationship ()
 negative relationship ()
 Partially positive ()
 partially negative ()
7. Is your enterprise successful in relation to the SCM practices?
 Fully successful ()
 partially successful ()
 not successful ()
 somewhat ()
8. Do you think that the SCM practices adopted by your company brings satisfaction among your
customers?
 Satisfied ()
 not satisfied ()
 partially satisfied ()
 somewhat satisfied ()
9. In your view do you agree that the SCM practices pursued by your firm is best?
 Agree ()
 strongly agree ()
 Disagree ()
 strongly disagree ()
10. As per your opinion, among the following which characteristics is considered as the value
attribute of an effective management of supply chain?
 Value to end-user ()
 low cost of production ()
60

 customer service ()
 improved quality ()
 short period of lead time ()
 fast delivery ()
 quick response ()
 meeting Demand ()
11. Do you think that creating effective SCM strategies helps in gaining competitive advantage?
 Yes ()
 No ()
12. Do you think that environmental uncertainties has a greater impact on your company's SCM
practices?
 Agree ()
 Disagree ()
 Strongly agree ()
 Strongly disagree ()
13. In your opinion which of the factors under the environmental challenges might hinder the
practices of supply chain in your firm?
 Logistics ()
 technology infrastructure ()
 technology cost ()
14. In accordance to you, among below stated organizational challenges, which is the major
factor that hinders SCM practices?
 Operating SCM practices ()
 customer ()
 lack of the top executives support ()
15. Recommend the appropriate strategies for making improvements in the SCM practices ?
61