Supply Chain Management, Nescafé, Nestlé, Supply Chain Management Association, logistics, customer, consumer demands, Bangladesh, raw materials, warehouse factory
The Nestlé report for the first half of 2017 tells us that the net profit increased by 19% to 4.9 billion CHF. In the next chapters, we will try to analyze the role of the supply chain strategy in this success. First, we will define supply chain management, and then we will examine the strategy of Nestlé. The success story of Nestlé is analyzed based on the following article found in the magazine of the Supply Chain Management Association.
[...] In each organization, the supply chain is composed of a multitude of functions that deal with the receipt and satisfaction of consumer demands. The most basic supply chain includes the following parts: Suppliers Manufacturers Warehouses/Storage Transporters Distributors Retailers Customers/Consumers Effectiveness of Supply Chain Management of Nescafe Supply Chain at Nestlé drives functional excellence while supporting the total company transformation, resulting in success across the organization.''(Magazine, 2016) Supply chain management (SCM) of Nescafé Nescafe has two types of supply chain. These are following- Primary supply chain management Secondary supply chain management Primary Supply Chain Management: The following organigram resume those steps for a company installed in Bangladesh. [...]
[...] Analysis of the operations and supply chain management of Nestlé Company Introduction The Nestlé report for the half-of year 2017 tell us that the Net profit increased by 19% to 4.9 billion CHF. In the next we will try to analyse the role of the supply chain strategy to this success. First we will define the Supply Chain management. And then we pointed in the strategy of Nestlé. The success story of Nestlé is analysed based in the following article found in the magazine of the Supply Chain Management Association. [...]
[...] So they prohibit suppliers from using fertilizers and insecticides. Processing of raw material: They do not use any type of preservative that modifies the natural quality of cofee. Packaging: The goal of packaging is to keep the coffee fresh for a long time. Distribution: Thanks to their solid distribution network, Nescafé is available throughout the World. Conclusion: Nescafe, which is a popular brand of Nestle, has become very popular around the world. They are successful thanks to a solid distribution network, thanks to which they make Nescafé available in most of the world. [...]
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