THE SUPPLY

CHAIN
MANAGEMENT
OF NESTLÉ
Group Member

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 Supply chain management process
Benefit

REDUCE COST EFFECT BOOST CORPORATION

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HIGHER EFFICIENCY RAISE OUTPUT LOWER TIME DELAY IN
RATE PROCESS
Supply chain management process
framework

CUSTOMER RELATIONSHIP
MANAGEMENT
SUPPLY CHAIN
DEMAND MANAGEMENT CUSTOMER SERVICES
MANAGEMENT PROCESS MANAGEMENT
FRAMEWORK

SUPPLIER RELATIONSHIP
MANAGEMENT
Suppliers and customers
relationship management
Supplier and customer relationship
management system is integrated into the
ERP system, which combine the
functionally of the contact management,
account payable, purchase order and
inventory modules into one easy to easy
data entry system and 360degree inquired
system
Supply chain risk management

Supply chain risk management

is aimed at managing risk in
complex and dynamic supply
and demand networks.
 Nestle
Nestlé has enhanced the
quality of life of individuals
and their families in 191
countries over 150 years. It
has more than 2000 brands they started their first
ranging from global icons to commercial production in
local favorites. Bangladesh

1867 1992 1994 1998

Nestle was separated from
Nestlé Bangladesh was established Transcom Ltd and Nestlé
and started as a joint venture Bangladesh became a 100% owned
between Transcom Limited and subsidiary of Nestlé S.
Nestlé S.A, Switzerland
Vision & Mission

Vision Mission
To bring consumers foods that Make better food so that
are safe, of high quality and people live a better life.
provide optimal nutrition to There slogan is also Good
meet physiological needs. In food, Good life.
addition to Nutrition, Health
and Wellness, Nestlé products
bring consumers the vital
ingredients of taste and
pleasure.
Product profile of Nestle in
Bangladesh

In Dairy item In breakfast cereals item

• Nestlé EVERYDAY •NESTLÉ KOKO KRUNCH
•NESTLÉ KOKO KRUNCH DUO
• NIDO FortiGrow
•NESTLÉ MILO
•NESTLÉ CORN FLAKES
In Food item
• MAGGI NOODLES In beverages item
• MAGGI HEALTHY SOUPS •NESCAFÉ CLASSIC
• MAGGI SHAAD-E- •NESCAFÉ 3 in 1
MAGIC •NESTLÉ COFFEE MATE
Product profile of Nestle in
Bangladesh
 Nestlé Supply Chain
The supply chain function of Nestlé
Bangladesh is divided into three
departments:

1.Demand & Supply Planning

2.Customer Service & Distribution
3.Procurement
 Focuses on the planning of demand and supply of
Nestlé’s products range by properly executing and
utilizing resources, budget and time.
 This section does the National Consensus Demand
Planning and National Supply Planning for each product.
 Nestlé used eighteen months period for forecast.
 To associate their findings with actual production, they do
share their activities with factory supply chain and
production department on weekly basis.
 Monthly Sales Review is check in every month and
meeting organized with sales department for planning
the eighteen months period’s forecasted demand.

Demand & Supply Customer Service

Procurement
Planning & Distribution
 Nestlé divides Bangladesh into 6 regions to sale its
products, known as sales region, and in addition
appoints 109 distributors around the country. These
regions are:

1. Dhaka North
2. Dhaka South
3. Chittagong
4. Bogra
5. Khulna
6. Sylhet

Demand & Supply Customer Service &

Procurement
Planning Distribution
Sales are categorized into three categories

1. Primary sales – products that are sent to

distributors throughout the year.

2. Secondary sales – products sent from distributors

to assigned outlet.

3. Tertiary sales – products sent from outlet to the

target consumers.

Tertiary sales
Secondary sales
Secondary sales
Primary sales
Primary sales

Demand & Supply Customer Service &

Procurement
Planning Distribution
 Procurement professionals at Nestlé ensure
responsibly sourced supply and create value. Located
in hubs in Switzerland, Panama and Malaysia, the
division provides a range of services, including the
management of procurement for specific raw
materials, packaging, indirect materials and other
services. The hubs also support markets with
managing local spend.

Demand & Supply Customer Service

Planning & Distribution Procurement
 Raw Material
To provide the best and safe product they import
raw materials from different countries.

Dairy Items - Argentina, Brazil, China, Colombia,

Dominican Republic, Ecuador, India, Indonesia etc.

Beverages items - Brazil, China, Colombia, El India,

Indonesia, Jamaica, Kenya, Laos, Malawi, Mexico,
Uganda, Vietnam, Zimbabwe etc.

Breakfast cereals items -Argentina, Brazil, France,

Mexico, Russia, UK, and USA.

Spices items -Canada, India, Sri Lanka, and

Vietnam.

Demand & Supply Customer Service

Planning & Distribution Procurement
Packaging Material
For packaging, seven distinct categories are used

1. Flexi laminate – for noodles packs

2. Case Corrugated – for shipping carton
3. Solid Board – for Cereals, Nido
4. Metal tin – for Nido
5. Rigid Plastic – for spoon given in Nido
6. Adhesive – for gluing
7. Flexible accessories – for tapes.

Demand & Supply Customer Service

Planning & Distribution Procurement
Service & Indirect Material
The functions of supply chain are spread in 10
specific categories. They are:

• Advertising:
• Marketing & Sales:
• Point of Sales Assets (POS)
• Utilities, Environment & Facility Management
• Fixed Assets, Equipment. & MRO
• Administration & HR Services
• Other Professional Services
• Contract Manufacturing
• Logistics
• IS/IT & Telecommunication

Demand & Supply Customer Service

Planning & Distribution Procurement
The key flows in Supply Chain

1 Money flow 3 Return flow

Product flow 2 Information flow 4

Process Strategy

Batch Moderate
Moderate
Processing
volume variety
strategy
Process Strategy
Process of Corn Flakes
Facility Layout
• Process Layout
• Different Section
Product Strategy

Collect raw
materials

Assemble to
order

Standardized
products
Why Nestle Use Critical Path?
• Shortened Timelines
• Improved Resource Management
• Better Planning
• Versiondog Software
ERP USE in Nestle
Is Nestle using SAP?

• In 2017, it had implemented

• SAP’s Success Factors of Continuous Performance Management (CPM). But
now they are using SAS. Nestlé was primarily using SAP APO’s underlying
forecasting techniques.
• SAS enhances this, and thus complements SAP APO perfectly.
Open Source Operating System

• Nestle is using WAF -

Web Application
Firewall Vulture Open
Source Reverse 1

2 3

• Proxy / Web Application

• It is based on Apache2
Firewall is an open source
mod_perl and mod security.
project released under GPLv3
Vulture interfaces between
license. This is a reverse-proxy
web applications and the
offering features Web SSO and
Internet to
application firewall.
 Quality Control Management

• Hazard Analysis and

Critical Control Points
• Good Manufacturing Practices:
They apply internationally
recognized Good Manufacturing • Consumer Use: Theirr
Practices (GMP) to ensure quality products carry information to
and food safety. ensure that they are used
safely with the highest level of
quality for the consumer.

• Quality by design:Nestlé’s
R&D network applies in this
"Quality by design" to all of • Consumer services: Their
theirr products. worldwide consumer services
organization ensures that we can
immediately respond to any
consumer inquiry, question or
concern.
 Quality Assurance

• Plan: Establish • Check: Monitor and

objectives and evaluate the implemented
processes required to process by testing the
deliver the desired results against the
results. • predetermined objectives
• Do: Implement the • Act: Apply actions
process developed. necessary for improvement
if the results require
changes.
Quality Improvement

• FADE
• PDSA
• Six Sigma (DMAIC)
• CQI: Continuous Quality Improvement
• TQM: Total Quality Management
• FADE
FADE QI Model
Focus: Define and verify the process to be improved
• Analyze: Collect and analyze data to establish baselines, identify
root causes and point toward plssible solutions.
• Develop: Based on the data, develop action plans for
improvement, including implementation,communication, and
measuring/monitoring.
• Execute: Implement the action plans, on a pilot basis as
indicated.
• Evaluate: Install an ongoing measuring/monitoring (process
control) system to ensure success.
Six Sigma
• Six sigma refers to the statistical evaluation showed that the rate of 3.4 errors
per million products.
• To complete the process of improvement, there are two model used in Six
Sigma: DMAIC and DMADV.
• DMAIC (define measure, analyze, improve, control) also pronounced, as
“duh-may-ick” is an improvement system by minimize the defect in quality of
product process and service and looking for incremental improvement.
• DMADV (define measure, analyze, design, verify) also pronounced, as “duh-
mad-vee” is an improvement system used to develop new processor products
at Six Sigma quality levels.
Total Quality Management
(TQM)
• IN total quality management, the customer determines the quality of output.
The output with the high quality will meet the requirement and expectation
of customer. From managing outcomes to managing and improving processes
there are shifting in focus: from what to do to how to do the processes better.
Material Information
They have 14 key raw materials and they are: coffee, cocoa,
dairy,palm oil, pulp and paper,soya,sugar,cereals and grains,
hazelnuts,vanilla,meat, poultry and egges, fish and
seafood,vagetables,spices
Recommendation & conclusion
They should increase their product quality because their main strength is their
products. They Can improve the marketing strategies. So that they can capture
market and improve their sales.

Recommendation Conclusion
Recommendation & conclusion
Nestlé Bangladesh always shares the view of growing together where it
supports not only its internal members but also the external ones to flourish
with good growth degrees. In Nestle Bangladesh, every employee and staff is
Considered a part of the Nestle family where they work as a team sharing the
similar objective of ensuring continuous excellence.

Recommendation Conclusion