Supply Chain Management at Nestle

Topics: Supply chain management, Supply chain, Management Pages: 15 (2834 words) Published: February 18, 2015

Supply Chain Management at Nestle

Summary 03
1: What is Supply Chain? Aspects and Management of Supply Chain04 2: Why Sustainable Supply Chain is Important for a Good Business06 3: Supply Chain Management at Nestle07
4: Recommendations 09
5: Conclusion 10

The report aims at highlighting the meaning, importance and key aspects of supply chain management of any company. This study is conducted at examining the overall supply chain of a global and leading brand Nestlé to get an extensive insight of importance of supply chain management in establishing a successful business. Supply chain deals with a series of connected activities performed at different organizations to develop a final end product. This process involves efficient handling of information and resources in the light of expert and innovative leaders. Nestle is among top 25 leading supply chains due its focus on value creation and end consumers. Though company has its emphasis on direct dealing with maximum possible suppliers but it needs to develop similar direct relation with end users. This would help Nestle to achieve its goals based on its focus on end customers. In addition to this, the main lag found in the supply chain of Nestle is using child labor in the production of coffee and chocolate products in the region of Africa. The study on Nestle is helpful in understanding the key framework involved in the process.

What is Supply Chain? Aspects and Management of Supply Chain Dr. Robert Handfield, professor of supply chain management at Bank of America University defines supply chain management as: “the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.” All the products used by end-users are the collective efforts of a number of companies and these companies are stated as supply chain. Supply chain companies are connected via stream of tangible goods and relevant information. Tangible goods involve revolution, transfer, storage and delivery of products to the next organization in the supply chain until it reaches the end-user. All this process is supported by right and timely information exchange across the supply chain (Handfield, 2011). Dabas, Sternquist and Mahi (2012) stated that with the passage of time and invention of technology the supply chain model has also developed. Figure 1 in the appendix show a traditional and a modern flow chart of a simple supply chain of fast moving consumer goods. Modern supply chain management calls for efficiency and accuracy at every stage of manufacturing the product i.e. from product design to finished good. This requires certain main aspects to be added in the supply chain. Companies of the current business world are trying hard to compete on the bases of creating value, building competitive advantage, maintaining its sustainability and giving best to their stakeholders through efficient supply chain management (Hanifan, Sharma, & Mehta, 2012). With the advancement in the technology, supply chain management process now involves efficiently using resources to get maximum output with minimum occurrence of loss and wastage. Moreover, companies have developed sense of preserving natural resources by reducing wastage ratio and reusing and recycling raw materials (Walport & Lapthorne, 2013). Figure 2 in appendix depict such a modern and environment friendly chain of manufacturing goods. Leading companies are giving their best, not only to the...

References: Dabas, C. S., Sternquist, B., & Mahi, H. (2012). Organized retailing in India: upstream channel structure and management. Journal of Business & Industrial Marketing, 27(3), 176-195.
Hawksley, H., 29 June 2012, Nestle 'failing ' on child labour abuse, says FLA report. Retrieved from
Nestle, 2014
Figure: 1: Flow Chart of a Simple Supply Chain of Fast Moving Consumer Goods (Dabas, Sternquist & Mahi, 2012)

Figure 2: Modern and Environment friendly Supply Chain Model (Walport & Lapthorne, 2013)
Figure:3: Sustainable Supply Chain Framework (Chengxi, 2010)
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