86355121 Supply Chain Management of Nestle

7/24/2019 86355121 Supply Chain Management of Nestle

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SUPPLY CHAIN

MANAGEMENT

OF NESTLE

PRESENTED BY:

ARPANA(20013)

PRIYANKA(20019)

NISHA(20038)

PRIYANK(20021)

FARJENDRA(20017)





RANKING

• Fortune 500:

Net!e " r#n$e% &8t' o*#n+

• ,et -!o.#! ,r#n%

Ne#/e I *!#e% #t 2t' r#n$

Net!e Foo% " *!#e% #t 58t' r#n$



ABOUT NESTLE• Ne#/e # %ee!o*e% "n 1930 #n% "t

.e#e # #"n .eer#e /or t'eAer"#n er"n "n Euro*e #n% A"#

• 4ot#! #!e "nre#e% .+ 125 "!!"on/ro1938 to 19&56

• It e*#n% "t *ro%ut !"ne out"%e

/oo% #r$et #n% #u"re ore#! t'eoet" o*#n+ "n197&6 Preent!+"t 'o!% 26&; '#re "n t'e o*#n+6



MISSION• Net!e " %e%"#te% to *ro"%"n t'e

.et /oo% to *eo*!e t'rou'out t'e"r%#+< t'rou'out t'e"r !"e<t'rou'out t'e or!%6

• ="t' our un"ue e*er"ene o/

#nt""*#t"n onuer nee% #n%re#t"n o!ut"on6 Net!e ontr".uteto +our e!! .e"n #n% en'#ne +ouru#!"t+ o/ !"/e6



VISION

• 4o .e t'e !e#%"n /oo% #n%.eer#e o*#n+ "n t'e or!%

*ro"%"n utoer "t' 'e#!t'+/oo% #t #>or%#.!e *r"e6



PRODUCT LINE

• ?o>ee

• =#ter An% @t'er *ro%ut

• Iere#

• ?'oo!#te

• D#"r+ Pro%ut

• In/#nt nutr"t"on



PURCHASING ISSUES

• 4'e *ur'#"n o.Bet"e o/ Net!C #re to *ro%ue #n%

#r$et /oo% *ro%ut t'#t #t"/+ utoer #n% onuere*et#t"on< #n% to *ro"%e oo% u#!"t+ /oo% #n% #!ue/or one+6

• 4'e $e+ r# #ter"#! *ur'#e% .+ Net!C #re: "!$<

o>ee< #n% oo#6 4'ee< # e!! # /ru"t< eet#.!e<ere#!< *ot#toe #re *#rt!+ oure% %"ret!+ /ro /#rer



NESTL’S PRINCIPLESOF PURCHASING

Pur'#"n Ro!e:

• 4o *r"#r+ *ur'#"n ro!e t'#t eno*# tr#te" #n%o*er#t"on#! #t""t"e #re ue% "n Net!C:16 Str#te" ,u+er*er/or tr#te" #t""t"e u' # #r$et ree#r' or#n#!+"< u**!"er *ro!"n #n% e!et"on< neot"#t"on<

ontr#t #n#eent< "n o!!#.or#t"on "t' ot'er *ro/e"on#!(e66 en"neer /or #'"ner+ !o"t" /or tr#n*ort #r$et"n/or e%"#)6



• Str#te" ,u+er #n re#"n "t'"n t'e"r /unt"on#! #re#< #!on # t'ere " # !"ne o/ re*on"."!"t+ to t'e re!e#nt He#%o/ Pur'#"n6 4'" "!! enure t'#t t'e+ #re "n/ore% o/ #n%ontr".ute to *ur'#"n tr#te"e< tr#"n"n< .u%et< et6

• @*er#t"on#! ,u+er *er/or o*er#t"on#! #t""t"e u' #en%"n *ur'#e or%er< #!!o> ##"nt #t#!oue< et6

4'ee #t""t"e #+ .e *er/ore% .+ e.er o/ #n+or#n"#t"on#! un"t reu"r"n oo% or er"e6



LEGAL REQUIREMENTSFOR PURCHASING

• =r"tten Areeent

• Gu#!"t+ ?on/or"t+

• D"*ute Reo!ut"on ?!#ue



SUPPLIERS• 4'e Net!C Su**!"er ?o%e et#.!"'e nonneot"#.!e

"n"u t#n%#r%

• 4'e+ #$ t'e"r u**!"er< t'e"r e*!o+ee< #ent #n%

u.ontr#tor to re*et #n% to #%'ere to #t #!! t"e'en on%ut"n .u"ne6

• 4'e Net!C Su**!"er ?o%e 'e!* to "*!eent o"tent6 4o enure .ot' re*on".!e our"n #n% u**!"er

re!#t"on'"* t'#t %e!"er # o*et"t"e #%#nt#e6



SUPPLIER SELECTION•In o*!"#ne "t' Net!C ?or*or#te ,u"ne Pr"n"*!e<

•Net!C e!et u**!"er .#e% on t'e /o!!o"n r"ter"#: A."!"t+ to o>er # o*et"t"e #!ue*ro*o"t"on

•Re*ut#t"on< n#n"#! "tu#t"on #n% reor% "t' Net!C

•@ner'"*< #n#eent truture #n% o*etene

•Inno#t"on< er"e !ee! #n% tr#n*#ren+

•A!re#%+ #**roe% or u.Bet to /or#! #**ro#! *r"or to rt %e!"er+

•

"n"u or*or#te o"#! re*on"."!"t+ t#n%#r%

•A."!"t+ #n% "!!"nne to or$ "t' t'e"r *re/erre% too!< *roee #n% o!ut"on *ro"%er

•Sut#"n#.!e .u"ne *r#t"e



PROCUREMENT• A one o/ t'e or!% !#ret /oo% r# #ter"#! .u+er<

Net!e *en% #roun% 0.n (S7165.n) # +e#r on entr#!*roureent< o/ '"' 22.n " *ent on "nre%"ent #n%

8.n " *ent on *#$#"n6 ="t' u' #n "eneoo%"t"ere!#te% *en%< "t " #!! too !e#r t'#t t'e"n o/ t'e oo%"t"e #r$et ou!% '#e # r#e"*#t on Net!e .otto !"ne6

• 4'e rou* " or$"n to "n""e t'e "*#t t'#t '"'*r"e #n% o!#t"!"t+ '#e on Net!e *rot#."!"t+ .+tre#!"n"n *roureent #n% #nu/#tur"n6



CPFR OF NESTLE

• CPFR Analyst - Wal-Mart

•

4'e ue/u! #**!"#nt "!! .e re*on".!e /or#n#"n ono"n ?o!!#.or#t"e P!#nn"nFore#t"n #n% Re*!en"'ent (?PFR) *roee.eteen Net!C #n% $e+ #ount() (e =#!#rt)"n or%er to enure #ur#te /ore#t"n< o*t""e%

re*!en"'ent #n% u*er"or ret#"! "nto$ #n%"nentor+ !ee!6



MAJOR

RESPONSIBILITIES• "n ?PFR *roe L re*!en"'ent tr#te"e< #"nt#"nt'e Ke+ #ount() t#ret "n to$ r#te< #n% ee$ o/u**!+6

• M ?oun"#te reoen%#t"on re#r%"n t'e reo!ut"ono/ "ue to t'e re!e#nt "ntern#! or etern#! *#rt+ #n%re#'e #reeent on t'e #**ro*r"#te orret"e #t"on

• M @r%er Proe"n re#te #n% *roe o#n#e% or%er6

• Dee!o* etern#! utoer re!#t"on'"* #n% /ou on t'eutoer #en%#6



SOURCING

• Sour"n '# to ontr".ute to t'e ut#"n#.!e #n%*rot#.!e %ee!o*ent o/ our o*#n+ .+*ro"%"n t'e .#e /or u#!"t+ %">erent"#t"on o/n"'e% *ro%ut (utoer O onuer#t"/#t"on) #n% .+ #"t"n o*er#t"no*#n"e to .e # o*et"t"e *ro%uer6

• 4'" reu"re # u**!+ o/ r# #ter"#! #t

*e"e% u#!"t+< "n t'e u#nt"t"e #n% #t t'et""n nee%e%< #n% #t t'e !oet *o".!e +teot6

STRATEGIC



STRATEGICSOURCING

• 4'e tr#te"e e*!o+e% "n our"n %e*en% ont'e *ro*r"et#r+ '#r#ter"t" o/ t'e r##ter"#! #n% on t'e reu"reent o/ t'e/#tor"e6

• ot o/ t'e r# #ter"#! #re .ou't t'rou' t'etr#%e< .ut *#rt #re .ou't %"ret!+ /ro /#rer6

• 4'" %"ret *roureent " ore oon /or

*er"'#.!e *ro%ut (e66 "!$)< #n% 'ere t'eo*#n+ '# *e" nee%6 Net!C %oe not on#n+ oer"#! /#r"n #t""t"e



SUPPLY CHAIN



SUPPLY CHAINSTRATEGIES

• Market Saturation Driven-Foue on ener#t"n '"'*rot #r"n t'rou' tron .r#n% #n% /ore/u! #r$et"n#n% %"tr".ut"on6 4'" " t'e tr#te+ o/ ue/u! A.r#n%

u**!"er !"$eNet!e6

• Oerationally A!ile:?onure #et #n% o*er#t"on to re#t /#t to eer"nonuer tren% #!on !"ne o/ *ro%ut #teor+ or

eor#*'" re"on6 ,ot' #ortent #n% 'e!e*reent#t"on #re +te#t"#!!+ #%#*te% to #tu#! !o#!#!e< #n% re*!en"'ent " eeute% u"n o*uter

#"te% or%er"n6



• Fres"ness Oriente#:?onentr#te on e#rn"n # *re"u .+ *ro"%"n t'eonuer "t' *ro%ut t'#t " /re'er t'#n o*et"toro>er"n6 For "nt#ne< # !e#%"n /re' /oo% u**!"eron"%er o!% '#"n r"t"#! to ue "ne te*er#ture "

t'e %o"n#nt /#tor "n 'e!/ !"/e6

• Consu$er Custo$i%er:e # uto"#t"on to .u"!% #n% #"nt#"n !oere!#t"on'"* "t' en% onuer t'rou' %"ret #!e



• &alue 'or Money Fo(use#: 4'" tr#te+ *ut # *r"or"t+ on !o *r"e< .et#!ue /ort'e utoer< .ut "t /oue !e on .r#n% t'#n on%e%"#te% er"e6

• )o!isti(s Oti$i%er:E*'#"e # .#!#ne o/ u**!+ '#"n eQ"en+ #n%e>et"ene6

Hoeer< on!+ o!!#.or#t"on .eteen u!t"*!e tr#%"n *#rtner

"!! +"e!% # +n'ron"e% u**!+ '#"n6 4'" o/ten #""een% onuer #!ue *ro*o"t"on #n% u!t"#te!+ #!ue to e#'tr#%"n *#rtner6



EFFECTS OF SUPPLY CHAIN INTEGRATION

ON MANUFACTURER



EFFECTS OF SUPPLY CHAIN

INTEGRATION ON RETAILERS



TQM IN NESTLE• 4G #*"t#!"e on t'e "no!eent o/ #n#eent<

or$/ore< u**!"er< #n% een utoer< "n or%er to eetor eee% utoer e*et#t"on6

•

Gu#!"t+ "n .u"ne< en"neer"n #n% #nu/#tur"n '# #*r##t" "nter*ret#t"on # t'e non"n/er"or"t+ or u*er"or"t+o/ oet'"n6

• Gu#!"t+ " # *ere*tu#!< on%"t"on#! #n% oe '#t

u.Bet"e #ttr".ute #n% #+ .e un%ertoo% %">erent!+ .+%">erent *eo*!e6 ?onuer #+ /ou on t'e *e"#t"onu#!"t+ o/ # *ro%utOer"e< or 'o "t o*#re too*et"tor "n t'e #r$et*!#e

QUALITY



QUALITYMANAGEMENT

• Su*er"or u#!"t+ " # o*et"t"e #%#nt#e #n% # Bo"nte>ort .+ #!! *#rt"e "n t'e #!ue '#"n " nee%e%6 Su**!"er#re t'ere/ore on"%ere% #n "*ort#nt !"n$ "n t'" '#"n6

•

4o #'"ee Net!C o.Bet"e o/ o>er"n onuer '"'u#!"t+ nutr"t"on#! *ro%ut< Net!e e*et u**!"er tou#r#ntee t'e u#!"t+ o/ t'e #ter"#!Ooo% t'e+ u**!+ ort'e er"e t'e+ *ro"%e6 ='eneer *o".!e< Net!C o#!" to .e #.!e to re!+ on t'e"r u**!"er o*etene #n%#."!"t+ to "*!eent Bo"nt!+ %ene% Gu#!"t+ #n#eent#n% Su**!"er Gu#!"t+ Aur#ne (SGA) *ror#e6



QUALITY ASSURANCEDEPARTMENT

• 4'e %ut"e o/ t'e u#!"t+ %e*#rtent #re to:

• 1)Dee!o*< "t' "n*ut /ro #!! *eron#!< t'e ore #!ue< ""ont#teent< ""on t#teent< #n% u#!"t+ *o!"+ t#teent

• 62)Dee!o* t'e tr#te" !on ter *!#n "t' o#! #n% t'e#nnu#! u#!"t+ "*roeent *ror# "t' o.Bet"e6

• 3)Deter"ne #n% ont"nu#!!+ on"tor t'e ot o/ t'e *ooru#!"t+6

• &)?ont"nu#!!+ %eter"ne t'oe *roBet t'#t "*roe t'e*roe< *#rt"u!#r!+ t'oe t'#t #>et etern#! #n% "ntern#!utoer #t"/#t"on



PACKAGING• P#$#"n ere # #Bor ro!e "n Net!e %#"!+ !"e6

• It *rotet /oo% *ro%ut /ro *o"!#e #n% enure #/et+/ro #nu/#ture t'rou' tor#e< %"tr".ut"on #n%onu*t"on6

• P#$#"n #+ #!o *ro"%e t#*ere"%ene /e#ture6 Itoun"#te "n/or#t"on< "n!u%"n nutr"t"on#! "n/or#t"on#n% er"n "ntrut"on< #n% *ro"%e t'e onen"ene%e#n%e% .+ to%#+ onuer6

• Net!C " o"tte% to re%u"n t'e en"ronent#! "*#to/ *#$#"n< "t'out Beo*#r%""n t'e #/et+< u#!"t+ oronuer #e*t#ne o/ "t *ro%ut6



PDSA Cycle:

• Net!e tron!+ re!+ on PDSA +!e /or o!"n eer#! o/"t *ro.!e6 A PDSA +!e " # +te /or ont"nuou!+"*ro"n en"ronent#! #n#eent +te6

• Fo!!o"n t'" +!e< Net!e "!! P!#n (et en"ronent#!*o!""e #n% t#ret /or "te!/ #n% re#te # *!#n to#'"ee t'e)< Do (*ut t'e *!#n "nto *r#t"e)< Stu%+

('e$ t'e reu!t #n% #$e orret"on) #n% At(#$ere""on #n% "*roeent /or t'e net te* "n t'e+!e)6





SUSTAINING COMPETITIVE

ADVANTAGE

• o%"/+"n Po"t"on#! A%#nt#e "n Intern#t"on#!#r$et

•

4'e -ro"n Inter#t"on o/ #r$et• ,u"!%"n #r$et Preene #n% Po"t"on

• Str#te" F!e"."!"t+

• S*ee% o/ Reoure De*!o+ent

ERP



ERPIMPLEMENTATION

• In June 2000< Net!e SA "ne% # u'*u.!""e%ontr#t "t' SAP #n% t're "n #n #%%"t"on#!80 "!!"on /or onu!t"n #n% #"nten#ne to

"nt#!! #n ERP +te /or "t !o.#! enter*r"e6

• 4'e S"ter!#n%.#e% onuer oo% "#nt"nten% to ue t'e SAP +te to 'e!* entr#!"e #

on!oer#te t'#t on 200 o*er#t"no*#n"e #n% u."%"#r"e "n 80 ountr"e"n!u%"n In%"#6

DISTRIBUTION



DISTRIBUTIONSYSTEM

• D"tr".ut"on +te o/ Net!C " one o/ #Bor oure o/ o*et"t"ee%e oer "t e"t"n r"#!6

•D"tr".ut"on o/ *ro%ut /ro t'e /#tor+ to t'e utoer "no!etr#n*ort #n% tor#e6

• Net!C '# "t on %"tr".ut"on netor$ eu"**e% "t' #!!nee#r+ tr#n*ort#t"on /#"!"t"e6 4'e+ tr#n*ort t'e"r *ro%ut #t

#Bor re"on#! #!e oQe< '"' #re "tu#te% #t %">erent "t"e o/In%"#6

• 4'ee #!e oQe (%"tr".ut"on enter) '#e t'e"r on #n "t'#!e *eo*!e 'o e!! #n% tr#n*ort oo% to t'e #!! ret#"!er6



CONT…

• #nu/#turer

•

?#rr"#e #n% For#r%er Aent• D"tr".utor

• ='o!e#!er

• Ret#"!er

•

En% ?utoer



LOGISTICS

• !o"t" o.Bet"e # *ro"%"n #"u utoerer"e #t t'e !e#t ot6

• !o"t" +te #n both #""e utoer er"eand "n""e %"tr".ut"on ot6 #"u utoerer"e "*!"e r#*"% %e!"er+< !#re "nentor"e< Te".!e#ortent< !".er#! return *o!""e< #n% ot'er er"eU#!! o/ '"' r#"e %"tr".ut"on ot6

• In ontr#t< "n"u %"tr".ut"on ot "*!+ !oer%e!"er+< #!!er "nentor"e< #n% !#rer '"**"n !otU'"' re*reent # !oer !ee! o/ oer#!! utoerer"e6

M j L ii F i



Major Logistics Functions

• Or#er Pro(essin!

•

Ware"ousin!• *nventory

• Transortation

INTEGRATED



INTEGRATED

LOGISTICS• Cross-Fun(tional Tea$+ork *nsi#e t"e

Co$any• Buil#in! C"annel Partners"i

• T"ir# arty lo!isti(s



CRM IN NESTLE• At Net!C< Net!e o"tte% to o>er"n onuer '"'

u#!"t+ /oo% *ro%ut t'#t #re #/e< t#t+ #n% #>or%#.!e6 4'e Net!C Se#! o/ -u#r#ntee " # +.o! o/ t'"o"tent6

• Net!e #!o .e!"ee "n #"nt#"n"n reu!#r ont#t "t'Net!e onuer6 4'" #**!"e .ot' to 'o net!e *reentNet!e *ro%ut #n% to 'o Net!e #%%re Net!eonuer uet"on #n% onern6

• Net!e '# # re!#t"on'"* *#ne! "t' # t# !"ne 4AK 4@NES4E

PERFORMANCE



PERFORMANCEMEASUREMENT

PERFORMANCE



PERFORMANCEEVALUATION

4o r"ter"# #re o/ eu#! "*ort#ne:

• 4'e e#ureent o/ t'e eQ"en+ o/ u**!"er

• 4'e e#!u#t"on o/ t'e e>et"ene o/ Pur'#"n6



BENCHMARKING

4'e one*t o/ .en'#r$"n 'ou!%: ,e een # #

ont"nuou *roe o/ e#!u#t"on

• Enure t'#t reu!t #re u#nt"#.!e #n% #t"on#.!e

• ,e u**orte% .+ # %"ret #n#eent o"tent



BEST PRACTICES

• Pur'#"n *r#t"e ut .e o%"e%< "*roe% or#%#*te%< o # to *ro%ue t'e "ntern#! '#ne t'#t "!!

reu!t "n "nre#e% eQ"en+ #n% e>et"ene6

• ,+ /o!!o"n or o*+"n .et *r#t"e ##"!#.!e #n%or$"n "t' u**!"er< Pur'#"n #n *ro#t"e!+ ee$'#ne #n% re#!"e t'e %e"re% .re#$t'rou'



• EFFI?IEN?IES

• EQ"en"e #re #!o t'e eeut"on o/ *e" *ror#"*!eente% t'rou' .en'#r$"n6 For e#*!e t'e ueo/ <eReu""t"on"n (?#t#!oue)< eSu**!+ ?'#"n #n% #reoen%e% "n or%er to .r"n eono" .enet #n%eQ"en+6

• EFFE?4IVENESS

• Pur'#"n e>et"ene " e#ure% .+ t'e /unt"on

#."!"t+ to %o "t r"'t rt t"e #n% #'"e"n #"u#!ue "t'"n t'e *#r#eter o/ t'e tot#! ot o/ oner'"*one*t6



• ?@S4 SAVIN- IN4IA4IVES

• A ro/unt"on#! #**ro#' #n% ont"nuou "*roeent "n

#re# u' # u#!"t+< er"e< !o"t"< et< ut ener#teot #"n "n"t"#t"e 'ere *ur'#"n ontr".ut"on "!! .e%ene%< t#rete% #n% on"tore%6



FUTURE OF SCM• 4HE -REENIN- @F SPPY ?HAIN

• 4'e Net!C En"ronent#! #n#eent S+te (NES) I#n#eent #n eent"#! or*or#te #n#eent too! t'#tono!"%#te #!! or#n"#t"on#! #n% te'n"#! e#uret#$en .+ t'e -rou* to #'"ee en"ronent#!!+ oun%

.u"ne *r#t"e6

• 4'e NES o.Bet"e "n!u%e t'e /o!!o"n:

• 4o enure t'e ont"nuou "*roeent o/ Net!C

en"ronent#! *er/or#ne< /or e#*!e t'rou' t'eoner#t"on o/ n#tur#! Net!e #n% t'e "n""#t"on o/#te6



• Intr#net Pur'#"n

4'e Pur'#"n Intr#net " # Net!e e.#e% oun"#t"ontoo! ue% "ntern#!!+ "t'"n t'e Net!C *ur'#"n oun"t+ to'#re "n/or#t"on #.out #r$et *r"e< u**!"er "n/or#t"on<or#n"#t"on< en% "n/or#t"on< te*!#te #n% .et *r#t"e6

It " reu!#r!+ u*%#te% #n% ont"nu#!!+ eo!e to eet t'enee% o/ Net!C6

•

EProureentNet!C *roote t'e ue o/ e!etron" too! to o*t""e t'e#!ue '#"n to Net!e ot< re#te eQ"en"e< %r"e Pro%ut##"!#."!"t+ #n% en'#ne utoer6



W 4o #'"ee o*#t"."!"t+ "t' "ntern#t"on#! o!unt#r+t#n%#r% on en"ronent#! #n#eent +te< u' #IS@ 1&001 #n% t'e Euro*e#n n"on Eo#n#eent #n%

Au%"t S'ee6

W4o .u"!% utu#! trut "t' onuer< oernent#!#ut'or"t"e #n% .u"ne *#rtner6 4'e Net!C En"ronent#!#n#eent S+te " .e"n "*!eente% t'rou'out

Net!C ent"re o*er#t"on6



CONCLUSIONS• Net!e u**!+ '#"n " #n "nter#! *#rt o/ "t #**ro#' to t'e #r$et "t

ere6

• 4'e u**!+ '#"n nee% to re*on% to #r$et reu"reent #n% %o o "n ##+ t'#t u**ort t'e Net!e .u"ne tr#te+6

• 4'e .u"ne tr#te+ o/ Net!e t#rt "t' t'e nee% o/ t'e utoer t'#tt'e Net!e ere6

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Documents

86355121 Supply Chain Management of Nestle