Supply Chain Management's Impact on Nestle Malta's Advantage

This report delves into the critical role of supply chain management (SCM) in fostering competitive advantage, with a specific focus on Nestle Malta. The study begins with an abstract and table of contents, followed by an introduction that outlines the research's background, objectives, and questions. The report then proceeds to a literature review, exploring the existing body of knowledge on SCM and its impact on business performance. The methodology chapter details the research approach, including research type (qualitative), research philosophy (interpretivism and pragmatism), research approach (inductive), and data collection methods (primary and secondary). The report also addresses sampling techniques and data analysis methods, including thematic analysis. The data analysis chapter presents the findings derived from the research, supported by relevant data. The report concludes with a discussion of the findings, conclusions, and recommendations for Nestle Malta, offering insights into how the company can leverage SCM to improve its competitive position. The research aims to establish the characteristics of SCM, define how competitive advantage can be gained by Nestle in Malta, and recommend initiatives for the organization. The report covers various aspects of SCM, including planning, design, implementation, control, and monitoring of supply chain activities.

The contribution of supply chain
management Towards
competitive advantage - The case
of NESTLE Malta
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ABSTRACT
In the dissertation supply chain is discussed in detail. In respect to the research topic literature
review section is prepared and data is analyzed. Results indicate that technology cost is high and
situational or environmental factors greatly affect supply chain management. Moreover,
coordination between employees have huge impact on successful implementation of supply
chain management at the workplace. Supply chain management generate value for end user and
due to this reason, it not only benefits business firm but it also benefits the customers. This is the
reason due to which supply chain management play crucial role in success of the business firm.
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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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