SUPPLY CHAIN MANAGEMENT
Inventory Management
Nestlé believes in creating a shared value along the supply chain. The activities that take place in a supply chain
transforms raw materials to finished products, which are subsequently delivered to the end consumer. Nestlé’s
supply chain operates in a complex manner. The process starts with farmers growing the crops, then cooperatives
managing the sales, and finally processors and manufacturers producing the final products. The final products
are distributed to the retailers and to the consumers respectively
SUPPLY CHAIN STRATEGY
Continuous Excellence model (NCE),
Nestlé also runs the GLOBE project based on SAP’s
LEAN PRODUCTION
- KAIZEN
- MUDA
- VSM
- JUST IN TIME
- Under VMI, Nestlé’s distributor makes the main inventory replenishment decisions on behalf of the buying company
- Nestle monitors the buyers' inventory levels either using electronically with Electronic Data Interchange (EDI)
- These systems permit the rapid sharing of information between suppliers and retailers
- EDI enables the acquisition of data related to inventory, pricing, and product movement, along with other factors of inventory management
Thank You
Q & A
Risk Management Approach to ensure quality
Quality Policy
Background and Performance
Approach to supplier Approval
- Risk assessment - evaluate, monitor and track risks that can strike at any point of the food chain
- Risk management –decisions to allow products out of Nestlé are based on early warning systems and comprehensive scientific methods
- Risk communication – continuous communication with both internal & external stakeholders for quality assurance
- A Swiss company founded in 1876 by Henri Nestle
- Mission “Good Food, Good Life”
- Nestlé produces around 10,000 different products in its 447 manufacturing plants in 86 countries
- Forbes ranked Nestlé as the world’s largest food processing company with a market capitalisation of $233.52 billion
- The 39th Most Valuable Brand
- Portfolio of brands include: Nescafe, Maggi, Nespresso, Aqua Spring, Nestle Waters, Kit Kat, etc. most valuable brand
- Based on 4 principles namely
- Building trust by offering products & services that match consumer expectation
- Compliance with internal & external food safety standards
- Gaining zero –defect , no waste attitude by everyone in Nestlé
- Make quality a holistic objective.
Quality Management System (QMS)
PROCUREMENT
Quality Management at Nestlé
Synopsis of the entire QMS
Nestlé’s Supplier Code stipulates that the minimum requirements to be met when conducting business throughout the company’s entire supplier network. This in turns helps Nestlé’s adherence to international standards derived from agencies like ILO, OECD, and UN’s Ten Principles of Global Compact.
The Nestlé Supplier Code includes the following Four Pillars (Nestlé, 2014):
1. Human Rights
2. Safety and Health
3. Environmental Sustainability
4. Business Integrity
- Farm to fork- quality is ensured from raw materials to end products
- Quality by design –quality built in during product development stage
- Good Manufacturing Practices-only internationally recognised manufacturing practices applied (GMP)
- Hazards analysis & critical control points (HACCP)-this system promotes adherence with food safety
- Verified by external certification bodies against international standards
- Consumer services – prioritises quick responses to customers, and product labels are customer friendly
- It is the basis of Nestlé's success
- Encompasses both quality and safety aspects
- Unique in that it covers the entire value chain and everyone is involved (TQM)
- Guided by Quality Policy and have implemented a robust quality management system
- Also incorporate risk management to ensure quality
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