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Nestle supply chain analysis
Importance of supply chain management essay
Nestle supply chain analysis
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Introduction
Nestle is one of the largest organization, effectively working all over the world and provided food and beverage product to the customers. For effective and smoothly running business and organization operations, it is necessary to have excellent command on each section of the system. Supply chain management is one of the most important departments that help in delivering the products from manufacturing sector to the end user. It refers to the process or function in such manner that satisfied the customer order. It includes all the standards, such as: quantity, quality, time, accurate documentation and also consider the cost sales expense as well (Klapper, Hamblin, Novak and Vivar, 1999).
Nestle is not only supplying their product domestically but also export their products more than 50 countries. International supplier theory and exporting strategic developed globally supply of product to the end user. It is essential to pay special consideration of following section in supply chain management
International supplier
Managing international suppliers
Exporting
The paper give consideration on nestle supply chain management functions and state recommendations for improvement and its implementations domestic and international business. Further identify the elements that play substantial important role in developing supply chain management.
The steps included in the procedure to improve the supply chain management were as follow:
1. Weekly and monthly spreadsheet for updating and working flow inflammation.
It helps in developing coordination among different departments and along with inflow of information without any hurdle, weekly and monthly spreadsheet updated information keeps employees on track.
2. Manag...
... middle of paper ...
...glomerates thrives (outside the US). Harvard business review, pp: 111-119
Schiff, J (2011). 11 ways to improve your supply chain management. Retrieved from
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The times 100. Creating shared value in the supply chain: A nestle case study. [online], available http://businesscasestudies.co.uk/nestle/creating-shared-value-in-the-supply-chain/introduction.html#axzz2inev9xnp [24 December, 2013]
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In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
The global supply chain has almost become a necessity for companies that want to continue to grow their business. The need to find lower cost, improve quality, and gain new customers has created the need to go global. With planning, communication and training a company can successfully navigate the global supply chain risks and opportunities. According to Manuj (2008), “by understanding the
The business environment is increasingly becoming competitive and challenging. In the recent past, manufacturers have found themselves facing the threat of dwindling profit margins due to unfortunate global events such as the 2007 global financial crisis and the on going Europe economic crisis. The need to improve operation efficiency so as to ensure current and future investment yield the highest rate of return has therefore become extremely important. Manufacturers are now actively engaged in, managing their costs, Research and Development, adopting best procurement strategies, among other Actions. While such actions might eventually lead to positive results, additional business value can be achieved through proper management of the supply chain (Waymer, Ivanaj & Mussa 2009; Krivda 2004).
“Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistic activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third parties service providers and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.’
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Sethi, S, Yan, H, & Zhang, H. (2005) Inventory And Supply Chain Management With Forecast Updates New York, NY : Springer.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Sustainability of the supply chain has increasingly become a crucial aspect of corporate responsibility. Apart from being good for business, management of social, economic, and environmental effects of supply chain remains the right thing to do. Constantly changing markets have created complex landscapes that businesses must navigate to build sustainable supply chains. Sustainable supply chains aim at creating social, economic, and environmental value for all stakeholders throughout the supply chain. Building sustainable supply chains not only benefits the stakeholders but also aims at safeguarding business interests. Businesses can easily become sustainable by understanding who they are and working closely with people. Nestle is company that has been at the forefront in advocating for sustainable supply through the ‘creating shared value’ platform. The report makes recommendation on the role of supply chain management in attaining sustainability.
Over a decade ago, Chris Johnson, Executive Vice President at Nestle, was presented with a huge project that would change the way Nestle operates. He established a “Global Business Excellence program, [which is] a worldwide initiative to implement a single set of procurement, distribution and sales management system (Steinert-Threlkeld)” and he was struggling to generate buy-in from managers. He had one chance to help managers ...
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
Dairy companies in their quest for improvement are investing in tools and systems that optimize their processes and have made significant progress by employing various technologies for increasing efficiencies and costs effective. The high competitive landscape makes it valuable for their businesses to continuously evolve with an emphasis on optimizing all levels of the value chain. Hence supply chain management, provides the next logical stage in the evolution of competitiveness for the manufacturing organization. Supply chain management is integrated suppliers to the end consumers and emphasizes the need for collaboration to optimize the whole system. The basic aim of any supply chain management function is to make the organization more robust and nimble footed to respond to drastically changing consumer preferences by capturing the data of material flow at all levels of the value chain.
Supply chain management is an imperative part of frameworks and operations management in an organisation. The management of operations is fundamental in regard to each organisation since it is the operational viability that permits the organisation in productively meeting out the necessities of their clients. There are different imperative ranges that are incorporated inside the operations organisation in regard to an organisation, and Supply chain management is one such vital region. Supply chain management as the name proposes is worried with the management of stream of materials to the organisation and their conveyance to the last shoppers after they are being handled to completed items.
The key performance drivers of Supply Chain Management (SCM) are - facility effectiveness, inventory effectiveness, transportation effectiveness, information effectiveness, sourcing effectiveness, pricing effectiveness, delivery effectiveness, quality effectiveness and service effectiveness. These drivers include various performance markers that may be measured quantitatively by gathering information and applying them in SPSS. The works here may principally be quantitative with spellbinding measurable investigation. In the current world, practical supply chain management to help the triple primary concern, (nature, domain, and economy) is likewise included in the extent of supply chain performance drivers. This is relatively a quite new research region.
The challenges of today’s companies are to find the right balance between the management of their processes within the supply chain and meeting the expectancies of their customers, i.e. customer satisfaction. However, the latter will be only available if all the components of the supply chain will lead towards this customer satisfaction, and not only process optimization and effectiveness-research. Companies had yet to shift towards a solely customer-oriented process, however by doing so it definitely brings what we can call Demand Chain Management. Indeed, the emphasis is now on the needs of the market instead of the manufacturers’ needs. In this case, the supplier itself has to also adapt to the needs of the demand. This is why an often forgotten side that is marketing has also to be implemented in the process.