Supply chain of nestle

Topics: Milk, Supply chain management, Supply chain Pages: 11 (7108 words) Published: October 14, 2014
1. INTRODUCTION OF SUPPLY CHAIN The movement of materials as they flow from their source to the end customer. Supply Chain includes purchasing, manufacturing, warehousing, transportation ,customer service ,demand planning , supply planning and Supply Chain management. It is made up of the people, activities, information and resources involved in moving a product from its supplier to customer. Although this Supply Chain definition sounds very simple, effective management of a Supply Chain can be a real challenge. EXAMPLE OF A SUPPLY CHAIN: Raw materials Manufacturer Distribution Center Customer A typical Supply Chain flow of goods is shown above. In some models, the product is shipped from the Manufacturer to the Distribution Center as soon as it is manufactured. In other models, such as a Hub & Spoke model, the product is held at the manufacturer once produced. It is then sent out to the Distribution Center only when it is needed. OBJECTIVES OF SUPPLY CHAIN MANAGEMENT: The fundamental objective is to "add value". That brings us to the example of the fish fingers. During the Supply Chain Management '98 conference in the United Kingdom this fall, a participant in a supply chain management seminar said that total time from fishing dock through manufacturing, distribution, and final sale of frozen fish fingers for his European grocery- products company was 150 days. Manufacturing took a mere 43 minutes. That suggests an enormous target for supply chain managers. During all that time, company capital is-- almost literally in this case--frozen. What is true for fish fingers is true of most products. Examine any extended supply chain, and it is likely to be a long one. James Morehouse, a vice president of consulting firm A.T. Kearney, reports that the total cycle time for corn flakes, for example, is close to a year and that the cycle times in the pharmaceutical industry average 465 days. In fact, Morehouse argues that if the supply chain, of what he calls an "extended enterprise," is encompassing everything from initial supplier to final customer fulfilment, could be cut to 30 days, that would provide not only more inventory turns, but fresher product, an ability to customise better, and improved customer responsiveness. "All that add value," he says. And it provides a clear competitive advantage. 2. Supply Chain Management becomes a tool to help accomplish corporate strategic objectives:  ß reducing working capital,  ß taking assets off the balance sheet,  ß accelerating cash-to-cash cycles,  ß increasing inventory turns, and so on. SUPPLY CHAIN BENEFITS: Experience shows that the benefits of a well designed and implemented Supply Chain Management strategy is substantial. Successfully implemented projects have provided benefits such as:  Reduction of Transportation, Warehousing, and Distribution Costs  Lean Processing from Supplier to customers  Reduced Direct and Indirect Labor Costs  Optimized Stock Levels  Increased Material Flow Velocity  Accurate Job Costing and Scheduling  Streamlined Purchasing Control  Increased Decision Making Speed and Responsiveness to Demand Change  Increased Customer Service  Increased Inventory Availability, Customer Order Fill Rates, Accuracies and services  Reduced Operations Support Costs  Reduced Inventory Carrying Costs  Improved Productivity of Procurement Operations  Improved Quality of Products and Services INTRODUCTION OF SUPPLY CHAIN OF MILK IN PAKISTAN 3. Milk is the most perishable and fast moving customer good. The very first and initial requirement or feed for any human being is milk. Milk is complete diet as it contains every nutrient except iron. Fortunately Pakistan is the fourth largest producer of milk in the entire world and its annual production is surprisingly 45 billion liters which is very high. But unfortunately only 27 billion liter of milk is available for human consumption. Therefore most of the milk is lost and Pakistan cannot fulfill its demand....

Bibliography: To collection information we have considered following source in order to gather authentic data: Logistics and Supply Chain Management : Strategies for Reducing Cost and Improving Service (Financial Times Management) -- Christopher Martin; Introduction to Supply Chain Management -- Robert B. Handfield, Ernest L. Jr. Nichols  Books concerned: Nestle management report 2005 Nestle management report 2006 SEMIDA report 2005 for milk production and distribution Economic survey of Pakistan 2006  Personnel concerned:
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