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Topic: Nestle Pakistan
Course Title: supply chain management
Submitted to: Dr
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CONTENTS
ACKNOWLEDGMENT

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EXECUTIVE SUMMARY

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INTRODUCTION
• PORTFOLIO
• MISSION & VISION STATEMENT

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IMPORTANCE OF SUPPLY CHAIN MANAGEMENT
FOR NESTLE PAKISTAN:

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ORGANIZATIONAL STRUCTURE FOCUSING ON
SUPPLY CHAIN:

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ADVANTAGES OF NESTLE MATRIX
ORGANIZATION STRUCTURE

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 STRATEGY OF NESTLE:

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 SUPPLY CHAIN MANAGEMENT PROCESS:

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RECOMMENDATION

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ACKNOWLEDGMENT

We would like to thank ALLAH ALMIGHTY, who blessed us with knowledge, understanding
and ability to complete our work
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They really deserve our appreciation
and thankfulness
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AMMIR RASHID for his support and
guidance throughout the course
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Completion of this report
wouldn’t be possible without the help and support of all the group members
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Executive summary
About us!
Unlocking the power of food to enhance quality of life for everyone, today and for generations to
come
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We are the Good food, Good life company
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As a
socially responsible corporate, we always focus on environment friendly operations, ethical
business practices and our responsibility towards the communities
...

The company’s strategy is guided by Nestlé’s Corporate Business Principles which are in line
with internationally accepted best practices and ethical performance culture
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Long-term potential is never sacrificed for short-term performance
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INTRODUCTION:
Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with key focus on
Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to
serve the consumers
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Ever since 1867, when Henri Nestlé invented the first infant food, nutrition has been in
our DNA
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Nestlé Pakistan operates in many ways but people, products and brands are the main flag bearers
of the Company’s image, and we continue to enhance the quality of life of Pakistanis
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Throughout the long term, Nestlé has made north of 10,000 immediate and roundabout positions
in Pakistan
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And 4063 employees We empower better and more joyful lives through our brands, drawing on
north of 150 years of passion for nutrition to bring individuals more delicious and better
decisions
...
2% contrasted with a similar period last year because
of volume increment coming about because of progressive unwinding of the COVID-19 related
limitations and improvement in net profit with estimating the executives
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Furthermore, lower supporting
expenses for the period has contributed towards progress in net benefit
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Our long-term strategy is
based on respect for the future
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EXPLORE OUR PRODUCT CATEGORIES:
Dairy

Coffee

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NESTLÉ PURE LIFE

NESTLÉ FRUITA VITALS

INFANT NUTRITION

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BREAKFAST CEREALS

NESTLE PROFESSIONAL

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OUR MISSION STATEMENT:
Nestlé is the world's driving sustenance, wellbeing and health organization
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OUR VISION AND VALUES:
To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved
shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier
selling preferred products
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To achieve this, we collaborate with the commercial teams to develop
the demand forecast, and with our suppliers around the world to ensure responsibly sourced
materials
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Once produced, supply chain professionals at Nestle play a critical role in ensuring
quality products reach our customers and consumers
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In alignment with operations, we balance inventory levels to establish the right supply of our
products
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We are an aligned,
agile, and adaptable organization that is committed to delivering results, not only within supply
chain, but also in support of overall business priorities
...

Whether you join us in Demand and supply planning, Procurement, Physical logistics or
Customer service, you’ll help us gain a real economical edge by bringing us closer to our
customers and making sure our products are available at the right time in the best condition
...
Procurement professionals at Nestle, ensure responsibly sourced supply, and
create value
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The hubs also support markets with managing local spend
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Their distribution network makes sure that every product is distributed in
the required areas at the required time and the demand and supply does not have any gap
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This strategy has saved the organization on
financial side moreover they have been able to provide the product to the market at demand
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This just in time management has also saved the organization the inventory
management cost of the raw material and they are able to maintain a very low level of the
inventory
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It is the largest food company in the world
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29 of Nestlé’s brands have annual sales of over 1
billion CHF (about US$ 1
...
Nestle has around 450 factories in 86 countries, and employs
around 328,000 people all around the world
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Such relations might include managers to sub-workers, directors to managing
directors, chief executive officer to various departments, and so forth
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Nestle Company is a decentralized organization that is organized according to the matrix
structure
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Although it still makes major strategy decisions at
the headquarter level, daily operations are left up to subordinate branches to derive and perform
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The organization's administration structure attempts to embrace the idea of Supply Chain
Management by rethinking a portion of its exercises while utilizing a huge labor force (north of
270,000) including leaders, chiefs, and line/creation laborers to guarantee the activities of the
Supply Chain run as expected
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It is in this view that items like Nescafe, Kit kat treat, Perrier shining water, and Buitoni
spaghetti have turned into the absolute top-rated items in the worldwide market
...
Additionally, running
of movements of every kind from the hour of obtaining natural substance to the time the
completed items arrive at the purchaser is monotonous and may likewise influence the utility of
the merchandise to the shopper - having the perfect item at the ideal time and the perfect
locations
...


Settle has understood the significance of consumer loyalty as the hotspot for the upper hand in
light of the progress of Supply Chain Management
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Production network Management permits an organization to draw esteem by
guaranteeing free progression of merchandise, administrations, and data from the producer to the
purchaser, with minimal possibility of harm or waste particularly with regards to short-lived
products or delicate merchandise
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Nestlé's activity the board achievement is custom-made around the idea of advancement and
redesign by which, new item thoughts are ceaselessly being created to take care of the powerful
market while simultaneously improving and reinforcing the current items to suit the inclinations
of the objective market
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For instance, the outcome of the Nescafe brand has been brought into
the world through Nestlé's aversion to the social necessities of the objective market where
various flavours and definitions are being made to suit the inclinations of the neighbourhood
market
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For example, the Nestle Chile SA unit contracted Ryder System Inc for appropriation
and transportation of the executive's administrations, while Nestle USA went into transportation
the board contract with Red Prairie
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ADVANTAGES OF NESTLE MATRIX ORGANIZATION
STRUCTURE
 Nestlé’s organizational structure allows multiple departments to easily communicate and
collaborate on a project
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 Its organizational structure, employees have much more autonomy and input in projects
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This increases employee interaction and promotes a
better sense of teamwork
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Its structure also allows project managers to work
in the areas of their expertise rather than being pulled across multiple projects, boosting
the overall contribution of their talents
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Being exposed to
various job duties and responsibilities can increase employee development and enhance
their professional skills

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SUPPLY CHAIN MANAGEMENT STRATEGY OF
NESTLE:
Supply chain professionals at Nestlé play a critical role in ensuring quality products reach our
customers and consumers
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Nestle's strategy reflects the company's competitive edge in producing shared value, operational
pillars in ensuring a long-term business, and growth needs through the performance of a
worldwide competitive strategy
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4
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It helps us to find out the best
possible blueprint to how to meet
the end requirement
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 PROCUREMENT:
Nestle Pakistan has a wide range of merchandise from nutrition to liquids
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All parties in the chain must have a thorough understanding of how
their individual sports interact with one another and impact the overall performance of the supply
chain
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Here are just some of the steps we
take to ensure that the Nestlé products you buy are safe to consume
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To
ensure that they select safe, high-quality raw materials, they implement stringent procurement
and auditing procedures
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they will reject them if they do not comply
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 PACKAGING AND TRANSPORTATION:
When products are released from the factory, we make sure they reach their destination in
optimum condition
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Packaging is critical in ensuring that our products reach consumers in good condition
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We ensure that best-before and use-by dates are
accurate so that customers know when a product is past its prime and no longer safe to consume
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 DISTRIBUTION CHANNEL:
Nestle company distributor are recruited from different areas
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The supply the product to the customer by order booking or on
the spot selling
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It means that nestle has a chain of intermediaries
through them a product moves from the additional step as like, from manufacturing business via
distributor to wholesaler to retailer and them to the last ultimate consumer
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Nestle products were held in
various warehouses as they moved from upstream to downstream through the producer, exporter,
distributor, and retailer
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It is located near to the plant to reduce the transportation cost
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In order to retain
preserved milk in its fresh condition, the temperature in the Nestle warehouse should not be
raised above 38 degrees Celsius
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WEAKNESS THAT CAN BE IMPROVED:
The target market of Nestle products is upper middle and high class because lower middle and
poor class cannot afford to buy Nestle products due to its premium price compared to other
companies like Shezan etc
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The target market is only for
the higher class, there are operations complexity, scandals like child labor, horse meat, etc
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Nestle company has expanded internationally, helped countries’ economies grow,
be environmentally conscious and create joint ventures with other companies in which enhanced
Nestlé’s and these companies’ performance positively
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They should’ve expected that dealing with such
activities might result in leakage and that they should’ve taken precautions before head
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Since the company started out to serve infants in need for nutrition, Nestle should
enhance and find way to enrich their product with substances and vitamins that will
provide children their daily needs of calcium and even mothers
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Especially now when children
suffer diabetes amongst other things, they need more care than before
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However, they shouldn’t venture their business with companies that
can’t sustain the pressure of the market and in which waver under the scrutiny of
competitors
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References

https://www
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pk/aboutus
https://www
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pk/
https://transectscience

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