Report on Nestlé's Operation Strategies, Challenges and Lean Benefits

This report provides an analysis of Nestlé's operation strategies, challenges, and the benefits of implementing lean management and quality philosophy. The report begins with an overview of Nestlé, highlighting its operational strategies, supply chain, and quality challenges. It explores the use of Kaizen principles and Artificial Intelligence to improve productivity and product delivery standards. The report examines various challenges, including minimum resource utilization, data management, and ethical issues. It then delves into supply chain challenges such as customer service, cost control, and supplier relationships, along with strategies to address these issues. The benefits of lean and quality management, including waste reduction and enhanced liquidity, are discussed. Finally, the report identifies futuristic challenges such as changing global food standards and rising raw material prices.

Presentation on operation strategies
and challenges and benefits of lean in
Nestlé

Nestlé: Established in the year 1905,
this global corporate establishment
has more than 447 factories and
provides a wide range of services such
as breakfast cereals, coffee, tea and
daily products. There are lots of
strategic challenges of Nestlé which
have more than 339000 employees .

1. Minimum utilization of resources.
2. Website based tool like Ecodex is
used to manage the economy of this
organization.
3. Data management experts are used
to manage the organizational data.
4. Quality assurance team maintains
the quality of products.
5. Level capacity plan and Chase
demand plan are important to
maintain the strategies of this
organization.
Operation
strategies of
Nestlé:

1. Treating the waste of the production
rooms,
2. Ethical issues of the workers of Nestlé,
3. Concepts sustainability development,
communication between the external
stakeholders with the internal stakeholders
are the other significant challenge faced by
Nestlé.
4. The other significant challenge of Nestlé is
conflict management.
Challenges of Nestlé: There are different
categories of challenges which can have a
direct impact on the productivity of Nestlé
such as the followings:

Following of the Kaizen principles
can help Nestlé to improve the
productivity of the workers and
improve the product delivery
standards (Barbosa-Póvoa, da Silva
and Carvalho 2018). The waste
generated in Nestlé can also be
reduced if Kaizen principles are in
the production room of Nestlé. At
the same time it can also be said
that the strategies built must be
aligning with both AI and Kaizen
principles.

Operation strategy and
solutions of Nestlé
All the operations of Nestlé can be
enhanced significantly enhanced
using Artificial Intelligence and use
of Kaizen Philosophy (Garcia and
You 2015).All the business
operations in terms of the decision
making can be enhanced
significantly using AI.

and strategies in Nestlé
The different categories of supply
chain challenges of Nestle such as
the followings:
1: Customer service
2: Cost control
3: Planning and risk management
4: Talent management
5: Supplier relationship issues
All these issues can be identified
using the PESTLE analysis. The
incorporation of the CRM can be
very much useful to address the
customer service issue, project
governance policy can be very much
beneficial to mange the cost control
and the different risks of production
rooms,

Benefits of lean and quality
philosophy in Nestlé
Quality management philosophy can
be very ,much significant to enhance
the quality of products manufactured
in this organization. The customer
experience can also be improved
using the quality philosophy.

The waste production of Nestlé can
be enhanced can be significantly
reduced using the lean management.
Liquidity and the cash flow of this
organization can be significantly
enhanced suing the lean principles
(Plenert 2016). Quality management
philosophy can be very ,much
significant to enhance the quality of
products manufactured in this
organization. The customer
experience can also be improved
using the quality philosophy.

which can be a source of
concern for Nestlé are as
followings:
1. Changing global food
standards.
2. Rising price of the raw
materials.
3. Changing consumer
budgets.
4. Changing legislative
rules
5. Regulation of each
countries
6. Rise of cost
consciousness consumers.

Reference
Plenert, G.J., 2016. Lean management principles for
information technology. CRC Press.
Garcia, D.J. and You, F., 2015. Supply chain design
and optimization: Challenges and opportunities.
Computers & Chemical Engineering, 81, pp.153-170.
Barbosa-Póvoa, A.P., da Silva, C. and Carvalho, A.,
2018. Opportunities and challenges in sustainable
supply chain: An operations research perspective.
European Journal of Operational Research, 268(2),
pp.399-431.