Transportation and Distribution Management Assignment
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Added on 2020-04-21
Transportation and Distribution Management Assignment
Added on 2020-04-21
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Running head: TRANSPORTATION AND DISTRIBUTION MANAGEMENTTransportation and Distribution ManagementName of the Student:Name of the University:Author’s Note:
1TRANSPORTATION AND DISTRIBUTION MANAGEMENTTable of ContentsIntroduction......................................................................................................................................2Overview of Nestle..........................................................................................................................2Incoterms Selection Consideration..................................................................................................3Transportation and Distribution Approach used by Nestle.........................................................4Carrier Selection Criteria.................................................................................................................5Carrier Relationship Management...................................................................................................7Recommended Incoterms used by Nestle....................................................................................9Conclusion.....................................................................................................................................12References......................................................................................................................................13
2TRANSPORTATION AND DISTRIBUTION MANAGEMENTIntroductionThe concept of transportation and distribution is defined as the movement of people,animal, raw materials and the finished goods. The business organizations with the help ofdistribution and transportation channel move their products from one place to another such asfrom warehouse to the end customers. The major modes of transportation used by the businessorganizations include space, road, rail, vehicles, cable, and pipeline (Su et al., 2012). Therefore,the significant features of distribution and transportation include effective management ofinfrastructure, organizational operations, employees and the vehicles used for distribution. Thedelivery of raw materials and finished goods at the accurate time to the target customers ensuressuccessful distribution and transportation. This report introduces the effectiveness of the distribution and transportation with respectto the goals and objectives of Nestle. Overview of NestleNestle was established in 1866 in Switzerland and is one of the globally recognizedHealth, Wellness and Nutrition Company that promotes healthy living for the people. Nestle hasmade the successful international venture in countries such as Asia, United Kingdom, UnitedStates and Canada since its origin. “Good Food, Good Life” is the mission of the company due towhich the company aim towards providing highly nutritious beverage and food to the targetcustomers globally. Nestle sells a wide range of products that include confectionary, pet carefood, chocolate, meals, desserts, beverages, ice creams, coffee, and wafers. In 2015, Nestle
3TRANSPORTATION AND DISTRIBUTION MANAGEMENTgenerated 9.066 billion as the annual revenue that is comparatively lower than the profitgenerated in 2014. In 2014, Nestle generated approximately 14.456 billion ("Nestle", 2017) In 2013, Nestle was ranked as one of the companies in the top 10 within the culturalcategory. This is due to the immense popularity and admiration of the company among the targetcustomers globally. The company has always aimed towards enhancing the quality of life of thecustomers by providing them with highly nutritious and healthy food. The company aim towardscaring and helping the family of the customers. Thus, the principal aim of Nestle is to encourageand support people in leading a healthy life. Respect is one of the core values that Nestle followswhile conducting the business. Nestle believes in respecting their customers, the surroundingbusiness culture, environment, customers, future generation, and diversity. Mars, Danone,Cadbury and Mondelez International Inc are the potential competitors of Nestle ("Nestle", 2017).Incoterms Selection ConsiderationLevel strategy is implemented by Nestle for appropriate conduction of planning andproduction. According to the concept of the approach, the company emphasizes to developvalues for the target customers along with exploring the core competencies thereby, achievingthe competitive advantages. The strategies and decisions used in managing the distribution andtransportation aim towards establishing a strong customer relationship thereby, gainingcompetitive advantage. The incoterms follows the international commercial terms that isapplicable for the importer and the exporter during transaction. Additionally, the incotermsmonitors the action of the stakeholders in order to ensure risk management and responsibility(Zheng et al., 2014).
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