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AN EXPOSITION OF THE SUPPLY CHAIN MANAGEMENT OF NESTLÉ’S NESCAFÉ
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1.0. EXECUTIVE SUMMARY
Nescafé is a brand of instant coffee made by Nestle and was first introduced as a
coffee powder on April 1, 1938 in Switzerland after eight years of development. This
coffee product comes in many different forms, flavours and sizes; in the United States,
the Nescafé name was used on its products until the 1960s and later Nestlé introduced a
new brand in the US called "Taster's Choice", which supplanted Nescafé for many years.
Later, Taster’s Choice was also introduced into Canada at the same time, and is
continuously being sold as a separate product, branded as superior to Nescafé, and is
higher priced.
The objectives of this exposition include of finding out how they collect the
materials that they will be using for production, and discovering their supply chain
management. Part of the study is understanding the strategies that they’ve been using to
distribute their products to the end consumers. Lastly, we are also to find out the
effectiveness of supply chain management in their firm.
Part of the research is mainly focused on the supply chain management of Nestlé
in a global approach. Logistics has been looked upon together with their customer
relationship and their procurement practices and strategies. Modes of transportation for
the distribution of the products are also being considered together with the warehousing
practices of the products manufactured.
With the analysis that has been done with the supply chain management of Nestle
around the globe, the participating channel partners are the distribution centres, retail
distribution centres, order fulfilment centres, cross-dock facilities, super stockiest,
wholesalers, and retailers.
Commented [Y1]: Improve, not substantial enough.
AN EXPOSITION OF THE SUPPLY CHAIN MANAGEMENT OF NESTLÉ’S NESCAFÉ
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They have researchers that are well-inclined with their role. They also have a
software for their inventory named SAP (system application and products) software and
inventory management software. Each person has a separate account, which will give
them access to the status and conditions of the products, shortage, excess, total number
of products sold, and others.
They also have this so called “4c certification programme”, which is under the
Nescafe plan, one of the firm’s procurement practices and strategies. This in effect
increases the coffee producers’ income and improve the living conditions of the farmers.
Nestlé’s partnerships with third-party logistics providers enable them to track
environmental performance and improve efficiency by reducing miles travelled, GHG
emissions, fuel consumed, noise and congestion.
Nestlé goal is that they wanted to be closer to their consumers and be better to
adapt their products to their needs and preferences. As the supply chains utilized by
companies becomes more diverse, business leaders need to implement new strategies
to best deal with the risks inherent today.
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2.0. SUPPLY CHAIN MANAGEMENT
"Supply chain professionals at Nestlé play a critical role in ensuring quality
products reach our customers and consumers. To achieve this, we collaborate with the
commercial teams to develop the demand forecast, and with our suppliers around the
world to ensure responsibly sourced materials. In alignment with operations, we balance
inventory levels to establish the right supply of our products. Once produced, the supply
chain is responsible for safely storing and transporting our products to meet our
customers' and consumers' needs in-full and on-time. We are an aligned, agile, and
adaptable organization that is committed to delivering results, not only within supply chain
but also in support of overall business priorities.
Supply chain professionals can take many different paths in building a rewarding
career at Nestlé. Whether you join us in Demand and supply planning, Procurement,
Physical logistics or Customer service, you'll help us gain a real competitive edge by
bringing us closer to our customers and making sure our products are available at the
right time in the best condition.
With the large scope of opportunities at Nestlé, you can change roles and
locations, even globally."
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Nestlé coordinates and integrates their flow of distribution from different channel
partners that they will be partnering with. In lieu, costs in distribution, payment terms and
debtor control, inventory management, and product sales and payments are all put into
concern.
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Supply chain and procurement | Nestlé Global. Nestle.com. Retrieved 15 October 2017, from
http://www.nestle.com/jobs/functions/supply-chain-procurement
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With their distribution of coffee products, their participating channel partners are
the distribution centres
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, order fulfilment centres
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, cross-dock facilities
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, super stockist
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,
Manufacturing
Plant
Carrying and
Forwarding Agent
Super Stockist
Re-distributor
Retailer Wholesaler
Modern Trade
DC's
Cash Distributor
Retailer Wholesaler
STING
