Supply Chain Management Of Nescafe - Free Sample

Question: Discuss about theSupply Chain Management of Nescafe. Answer: Nescafe is a brand of coffee owned and marketed by Nestle, the world largest manufacturer and marketer of food products. The Nescafe is consumed all over the world in several forms like latte, Cappuccino, classic and instant coffee. The brand is the top coffee brand in the world and is managed very strategically by its owner, Nestle. The company manages its supply chain, inventory management and other processes to ensure its deep market penetration. Nescafe is the world most sought after coffee brand owned by the world largest manufacturer and marketer to food products, Nestle. The world coffee demand is rising with demands plummeting in the countries like the United States and China. The owner of Nescafe, Nestle forecasts a good rise in demand for the coffee brand. The revenue Nestle earns from sale of Nescafe rose by 6.3 percent due to marketing. The prices for the raw materials for Nescafe namely coffee, milk and palm oil have fallen which will reduce the price of beverage. Thus, the demand forecast of Nescafe shows a bright future and Nestle can expect to see a rise in its demand (Gretler, 2017). Nescafe is owned by Nestle which manages suitable supply chain to source raw materials all over the world. The supply chain of Nescafe consists of distribution centres, wholesalers and retailers. Nestle sources the basic raw materials, coffee, milk and palm oil from farmers all across the world. The supply chain of Nescafe is sustainable, environment friendly and contributes to the development of farmers of Brazil and many other regions. Nescafe is the top coffee brand in the world and Nestle, executes its production management after its own high standards. The company while producing Nescafe ensures compliance with all the laws, high quality, cost effectiveness and sustainability throughout the production process. The company also looks forward to reduce energy consumption and emission of carbon dioxide by setting by modern factories in several places like Italy and Brazil (Manufacturing, 2017). Nescafe uses SAP (System Application and products) and its own inventory control software to regulate and control its inventories. The softwares allow management and control of inventories by the area managers, sales officers and all the other people holding responsible posts. The company controls its inventories and warehouses using its advanced systems to ensure minimum wastage of inventories. The company through its high class warehouse management monitors storing of Nescafe in warehouses situated all round the world. This ensures timely supply of Nescafe to the markets at affordable prices (Fichtinger et al., 2015). The efficient management of warehouse and inventory has led to operate sustainably and reduce wastage. This also ensures timely supply of Nescafe in various variants in cafes, shops and other sales centres which allow the company to cater to a huge customer base. The efficient network of warehouses allows Nestle to manage supply chain planning and performance within minimum time. The company manages the orders electronically which allows it to exercise total control of the inventories and orders. The company responds to orders within very short time and ensures timely supply of Nescafe to the retailers and wholesalers. The orders for Nescafe are met mostly in bulks and in the required size of packages like boxes, jars and so on. Nescafe is owned by Nestle and comes under the purview of Nestl Environmental Management System (NEMS) which aims to achieving sustainable operations. The company has made it mandatory for the suppliers to follow its NEMS policies to work with it. The company is setting up new factories in places like Italy and Brazil which are capable of managing waste and cut down energy consumption. It can be evaluated that Nestle controls the supply chain and inventories of Nescafe efficiently and sustainably. The strong handed and sustainable control of the company over all the areas spanning from manufacturing to selling has lent Nescafe its high market position. References: Gretler, M. (2017). Nestle Sales Beat Estimates on Coffee as Competition Heats Up. Bloomberg.com. Retrieved 22 April 2017, from https://www.bloomberg.com/news/articles/2016-04-14/nestle-revenue-beats-estimates-on-nescafe-nespresso-coffee Fichtinger, J., Ries, J. M., Grosse, E. H., Baker, P. (2015). Assessing the environmental impact of integrated inventory and warehouse management.International Journal of Production Economics,170, 717-729. Manufacturing. (2017). nestle.com. Retrieved 22 April 2017, from https://www.nestle.com/csv/environmental-sustainability/product-life-cycle/manufacturing