Read the case study below and answer the questions that follow. A Deep Dive into Nestlé’s Supply Chain When it comes to
Posted: Sun Jul 03, 2022 4:26 pm
Read the case study below and answer the questions that follow.A Deep Dive into Nestlé’s Supply Chain When it comes to the foodand beverage market, Nestlé dominates over the competition as theworld's biggest company of its kind. Established in 1866 by Swisspharmacist, Henri Nestlé, the organization originally specialisedin infant cereal. From these humble beginnings, Nestlé grew overthe years by acquiring other companies into its fold. This mammothorganisation now operates from 70 different countries and hiresalmost 250,000 people worldwide. Through supply chain analysis,other businesses can learn a lot from Nestlé's immense success, asthe Swiss company continues to expand and evolve their products.Below, is an exposition of the business's four main strengths,alongside how they have outshone expectations in these areas.
1. Profiling the Consumer To create products that appeal toconsumers, Nestlé believes in a strategy they call "Brand Buildingthe Nestlé Way (BBNW)". One of BBNW's six founding principles isfocused on profiling their brand's consumers. Indeed, Nestlé isvery engaged with their customers, specifically over online venues.The company goes far beyond market research to reach theirclientele, as they strive to see who their demographic is and whatmakes them tick. As a company, Nestlé excels at interacting withreal-life consumers on social media. For instance, their 850Facebook pages for various brands carry a total of 210 millionfans. It's an inspiring way to gather customer responses quicklyand efficiently. To receive a high response level, the companyposts around 1,500 new items per day across their online platforms.When it comes to supply chain analysis, having an intimateknowledge of what your customers want from your products isimperative in running a successful operation.
2. Focusing on Responsible Sourcing During the supply chainanalysis of Nestlé, it's immediately clear that responsiblesourcing is a huge concern for the company. With 700,000 farmersworking for Nestlé, the Swiss company puts a strong emphasis onacting respectfully toward the many families and agriculturalcommunities who are dependent upon them. Consequently, Nestlé goesto great lengths to track their food product's origins, thusensuring that they're compiling with ethical practices. Thishonourable attitude gains Nestlé loyalty from both their suppliersand their consumers.
3. Acquisition for Better Product Diversity With over 2,000unique brands and 10,000 products on the market, Nestlé certainlyhas its fingers in a lot of pies. Much of the company's supplychain relies on acquisition, as they're consistently bringing newcompanies into their fold. This wave of buyouts happened after theBerlin Wall fell in 1989, opening up the European and Chinesemarkets.Nestlé's first major acquisition was Ralston PurinaCompany, a popular pet food maker, in 2001. They followed thispurchase up with Dreyer's, Movenpick, Jenny Craig, and Gerber overthe following years. Nestlé commitment to investing in othercompanies allows them to continuously put new, exciting products onthe market. Plus, by buying former competitors, they're eliminatingany threats and gaining access to these companies' suppliers in theprocess.
4. Transforming into a Zero-Waste Company After a media backlashin 2010 against Nestlé's environmental practices, the company movedquickly to revamp its policies. Their first change was implementinga "no deforestation" policy, in response to Greenpeace'sallegations over Nestlé's methods for gathering palm oil. Thecompany's current priority is to eliminate waste in their upstreamsupply chain. By 2020, Nestlé has committed to becoming fullyzero-waste-to-landfill, according to Pascal Gréverath, Nestlé'sHead of Environmental Sustainability. Through these practices, thecompany is invested in improving its supply chain's efficiency.It's clear that Nestlé will save itself money in the long run,since no amount of food will be waOverall, supply chain analysisshows that Nestlé's business model has a lot to offer allcompanies. Whether you're a fledgling start-up or a long-standingcooperation, this Swiss conglomerate displays the true importanceof market research, responsible sourcing, product diversity, andgoing waste-free. After all, Nestlé didn't reach a $247 billion networth by accidents
QUESTION TWO [20] Supply chain integration is a large-scalebusiness strategy that brings as many links of the chain aspossible into a closer working relationship with each other.Discuss supply chain integration at Nestle.
1. Profiling the Consumer To create products that appeal toconsumers, Nestlé believes in a strategy they call "Brand Buildingthe Nestlé Way (BBNW)". One of BBNW's six founding principles isfocused on profiling their brand's consumers. Indeed, Nestlé isvery engaged with their customers, specifically over online venues.The company goes far beyond market research to reach theirclientele, as they strive to see who their demographic is and whatmakes them tick. As a company, Nestlé excels at interacting withreal-life consumers on social media. For instance, their 850Facebook pages for various brands carry a total of 210 millionfans. It's an inspiring way to gather customer responses quicklyand efficiently. To receive a high response level, the companyposts around 1,500 new items per day across their online platforms.When it comes to supply chain analysis, having an intimateknowledge of what your customers want from your products isimperative in running a successful operation.
2. Focusing on Responsible Sourcing During the supply chainanalysis of Nestlé, it's immediately clear that responsiblesourcing is a huge concern for the company. With 700,000 farmersworking for Nestlé, the Swiss company puts a strong emphasis onacting respectfully toward the many families and agriculturalcommunities who are dependent upon them. Consequently, Nestlé goesto great lengths to track their food product's origins, thusensuring that they're compiling with ethical practices. Thishonourable attitude gains Nestlé loyalty from both their suppliersand their consumers.
3. Acquisition for Better Product Diversity With over 2,000unique brands and 10,000 products on the market, Nestlé certainlyhas its fingers in a lot of pies. Much of the company's supplychain relies on acquisition, as they're consistently bringing newcompanies into their fold. This wave of buyouts happened after theBerlin Wall fell in 1989, opening up the European and Chinesemarkets.Nestlé's first major acquisition was Ralston PurinaCompany, a popular pet food maker, in 2001. They followed thispurchase up with Dreyer's, Movenpick, Jenny Craig, and Gerber overthe following years. Nestlé commitment to investing in othercompanies allows them to continuously put new, exciting products onthe market. Plus, by buying former competitors, they're eliminatingany threats and gaining access to these companies' suppliers in theprocess.
4. Transforming into a Zero-Waste Company After a media backlashin 2010 against Nestlé's environmental practices, the company movedquickly to revamp its policies. Their first change was implementinga "no deforestation" policy, in response to Greenpeace'sallegations over Nestlé's methods for gathering palm oil. Thecompany's current priority is to eliminate waste in their upstreamsupply chain. By 2020, Nestlé has committed to becoming fullyzero-waste-to-landfill, according to Pascal Gréverath, Nestlé'sHead of Environmental Sustainability. Through these practices, thecompany is invested in improving its supply chain's efficiency.It's clear that Nestlé will save itself money in the long run,since no amount of food will be waOverall, supply chain analysisshows that Nestlé's business model has a lot to offer allcompanies. Whether you're a fledgling start-up or a long-standingcooperation, this Swiss conglomerate displays the true importanceof market research, responsible sourcing, product diversity, andgoing waste-free. After all, Nestlé didn't reach a $247 billion networth by accidents
QUESTION TWO [20] Supply chain integration is a large-scalebusiness strategy that brings as many links of the chain aspossible into a closer working relationship with each other.Discuss supply chain integration at Nestle.