Nestle Operations Management Plan: Supply Chain Strategies

This report provides an overview of Nestle's operations management plan, highlighting its evolution from a technology-driven to a science-driven company focused on nutrition, health, and wellness. It discusses Nestle's business strategies, including product innovation, research and development, and cost reduction, which contribute to its competitive edge in the global market. The report also examines Nestle's complex supply chain management structure, emphasizing its role in ensuring product quality and meeting global standards. By monitoring the production process from raw materials to distribution, Nestle maintains customer trust and meets increasing demand. The operations management plan incorporates actions, strategies, and tactics to align corporate goals, utilizing methods such as selection, identification, recording, examination, submission, installation, and maintenance to optimize processes and ensure consistent production.

Running Head: Operations Management Plan
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Subject: Operations
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Contents
Overview & History of company...............................................................................................3
Supply Chain..............................................................................................................................4
References..................................................................................................................................5

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Overview & History of the company
According to Nestle (2019), it is the world biggest, most diversified beverages and Food
Company. They are globally present in 190 countries. The company had received the number
one position as the most profitable organization in fortune global 500. They are
manufacturing items for over 150 years (Nestle 2019).
Company Situation
Nestle has changed its business strategy in the last 20 years. The company has changed its
strategy from being a technology driven company to a science-driven company and similarly,
their focus is shifted from convenient, tasty food & beverages for sustenance to nutrition,
health & Wellness Company. Nestle is adopting a different way to cope up with the business
environment such as:
Product innovation – Nestle is continuously introducing new products in the market.
Research and Development – In four continents has over 17 centres with a staff of 3500
people who are engaged in research of new and innovative products.
Low Cost – The Company keeps the operation cost low which helps them to minimize the
competition and provides a competitive edge (Nestle 2019)
Products and/or Services
Nestle has over 8,000 brands and is globally present with their product range which includes
coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant foods,
performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated
foods, and pet food.
Operation Management Plan: The business plan is containing a method of actions,
strategies and tactics an organization needs for the development of the organization. It allows

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incorporation, alignment and linking the corporate goals. The necessary procedure of method
study is;
Selection: Management has to take responsibility for the choice of business.
Identification: Through detail search technique we can reveal significant issues and focus on
one area at a time.
Recording: Management should select the best recording technique, the process chart, Charts
using a time scale and Diagrams indicating movement.
Examination & Development: Develop a method from the critical analysis of recordings and
to ask what to be done, where, when, by whom and how.
Submission: Proposals should show clearly the advantage of the method with supporting
factual evidence.
Installation & Maintenance: before installing new methods management should consider that
it should not disturb the average production (Managers n.d.).
Supply Chain – The company has a complex supply chain management structure that
enables the company to deliver standard products. This is monitored from the initial stage of
the raw materials, packaging, and distribution of items to the customers. The items and
commodity of the company are monitored while in the production process which creates trust
among customers and they feel safe with the products, which increases demand of products.
To meet the global regulation and standards commodities are monitored on the production
process (Stadtler, 2015).
The supply chain management is one of the major components which could increase or
decrease at any given point as per the customer’s demand & predict/forecast the flow in
arrangement to fulfill the request of the people is known as supply chain management system
(Babai et al., 2016).

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References
Stadtler, H. (2015), Supply chain management: An overview, In Supply chain management
and advanced planning (pp. 3-28), Springer Berlin Heidelberg, Available 25 March
2019 from
Babai, Z., Boylan, J. E., Kolassa, S., & Nikolopoulos, K. (2016). Supply chain forecasting:
Theory, practice, their gap and the futureAuthor-Name: Syntetos, Aris A. European
Journal of Operational Research, 252(1), 1-26, Available 25 March 2019 from
Nestle (2019), Understanding Nestle, Available 25 March 2019 from
Michael Wilson (2017), Case Study: A Deep Dive Into Nestlé’s Supply Chain, Available 25
March 2019 from
Lancs (2017), Supply chain forecasting:theory, practice, their gap and the future, Available
25 March 2019 from http://eprints.lancs.ac.uk/78811/
Reid, R. D., & Sanders, N. R (2015), Operations Management (6th ed), US, PA: Wiley
Assignment help, Figure: The Supply Chain Management, Available 25 March 2019 from
https://myassignmenthelp.co.uk/freesample/supply-chain-management-for-product-
of-nestle
Managers (n.d.), An Outline Of Method Study, Available 25 March 2019 from
https://www.managers-net.com/MS_Outline.html