Report on Nestle Pakistan

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Table of Contents

Executive Summary2
Nestle Pakistan Ltd. History3
Introduction to Nestlé’s Supply Chain8
Partnership with Suppliers10
Milk Processing13
Packaging Materials14
Out-Bound Logistics14
Cross Dock/Nestle Ware House15
Objective of Docks/ Nestle Warehouse16
Demand and Supply Planning (D&SP) Department17
Current Situation (SC Mapping)18
Current Process Flow22
Process Mapping With Improvements24
Globe Software26
Migration to an ERP26
Information system and Purchasing26

Executive Summary

Nestlé is today world's leading nutrition, health and wellness company. Sales for 2009 were CHF 108 bn. employing around 280,000 people and have factories or operations in almost every country in the world. The Company's strategy is guided by several fundamental principles. Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. This report discusses the supply chain process of Nestle and introduction of its products. It contains supply chain vision and mission. How it manufactures, processes and supplies its products. The report includes Nestle current situation portraying through the supply chain mapping and how final product reaches to the end customer, which channel partners are involved and which is adding how much value process and also there is the current and improved process flow of a specific department i.e Milking & Collection department. This report also discusses the supply chain problem identification in Nestle and some recommendations for that. The channel partners and their role in the supply chain, who is the end customer and the procedures performed to deliver the quality milk to the end customer at best possible price.


In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was being sold in much of Europe.

In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s; the company was operating factories in the United States, Britain, Germany and Spain. The 1920s saw Nestlé's first expansion into new products, with chocolate the Company's second most important activity. The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L’Oreal in 1974. The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. There were two major acquisitions in North America, both in 2002: in July, Nestlé merged its U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc.

Nestle Pakistan Ltd. History

As a consequence of joint venture arrangement between Nestle S.A. of Switzerland and Milkpak Ltd. in 1988, the existing production facility of Milkpak in Sheikhupura became a part of Nestle Milkpak. The Milkpak Sheikhupura factory commenced operations in 1981 as a producer of UHT milk....
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