Porter S Value Chain Model of Nestle

Nestlé
Good food, Good Life

About Nestlé
 Established by Hennri Nestlé in 1866.
 World’s largest food & beverage company with the
sales(2018) of $92.17 billion.
 Nestlé has 447 factories, operates in 189 countries
and employees around 3,39,000+ people around the
world.
 29 of Nestlé's brands have annual sales of over $1.1
billion.
Brands
 Milk Products & Nutrition
 Beverages
 Prepared Dishes and Cooking Aids
 Chocolates and Confectionery
 Vending and Food Services
Inbound Logistics
 It is important to develop strong relationships with
suppliers as their support is necessary to receive, store
and distribute the product.
Inbound logistics requires a company to focus on every
aspect of transformation from raw material to finished
products.
 Some examples of inbound logistics are retrieving raw
material, storing the inputs and internally distributing
the raw material and components to start production.
Operations
 The importance of operational activities raises when
raw material arrives, and we are ready to process the
raw material into the end product and launch it in the
market.
 Some examples of operational activities are machining,
packing, assembling and testing.
It includes both manufacturing and service
operations.
The increased productivity can help us to achieve
consistent economic growth, increase profitability and
set a powerful basis for competitive advantage.
Outbound Logistics
 Outbound logistics include the activities that delivers
the product to the customers by passing by different
intermediaries.
 Some outbound logistics activities are material order
processing, handling, warehousing, scheduling, trans-
porting and delivering to the destination.
 We pay specific importance to its outbound value
chain activities when its offered products are
destructible and require quick delivery to the end
customer.
Marketing and Sales
 As the function driving our brand-building efforts,
Marketing is right at the heart of what we do. Indeed,
“Brand Building the Nestle Way” is a specific process
that sets our marketing function apart in the industry
from both a commercial and a career point of view.
 We handle category and shopper management,
customer relationships, route to market strategies, field
sales activities and our customer facing supply chains.
 All of these areas are focused on delighting our
customers and making sure our products are where
they want them and when they want them.
Service
 Through science-based nutrition products and
services, Nestle helps enhance the quality of people’s
lives by supporting health and providing care for
consumers with special needs.
 We continue to help people lead fuller, happier lives
by developing and delivering innovative, effective,
scientifically proven nutrition products with
functional benefits, designed to help infants grow and
develop into healthy, robust(strengthen) adults; to
promote peak mental and physical performance and to
address weight problems.
Firm Infrastructure
 Nestle Research Centre (NRC)
At the heart of scientific research in Nestle lies the NRC, the world’s
largest private food nutrition research institute.
 Nestle R&D Network
The NRC doesn’t work alone, it’s the part of Nestle R&D Network,
compromised of over 5000 people, which transforms science and
technology into products, business and systems.
 External Partnership
In addition to the Nestle international R&D Network, NRC
collaborates with a wide-reaching network of external partners such
as universities, private research institute, hospitals and start-up
companies.
Human Resource Management
We can analyses human resource management by evaluating
different HR aspects including recruiting, selecting, training,
rewarding, performance management and other personal
management activities.
The effective HR management can allow Nestle to reduce
competitive pressure based on motivation, commitment and
skills of its workforce.
The company can also achieve its cost minimization objectives
by analyzing hiring and training costs with their relative
return.
The heavy dependence of our employees talent will increase
the importance of this value chain support activity.
Technology Development
In a modern, technological advanced era, almost all value
chain activities depend on technological support.
The technological integration in production, distribution,
marketing and human resource activities requires Nestle to
realize the importance of technology development.
 It can be divided into product and process technological
development activities.
Some examples are automation software, technology-
supported customer service, product design research and data
analytics.
The research and development department of Nestle is
classified in this category.
Procurement
 The procurement in value chain denotes the processes involved in
purchasing the inputs that may range from equipment, machinery,
raw material, supplies, and other items necessary for producing the
finished product.
Due to its link up with multiple value chain activities, We carefully
consider its procurement activities to optimize the inbound,
operational and outbound processes.
As mentioned above, the application depends on understanding
the importance of all activities.
After understanding the relative importance of identified value
chain activities, We highlight areas where value can be added, cost
efficiency can be achieved, differentiation basis can be set, or
processes can be optimized.

Porter S Value Chain Model of Nestle

Uploaded by

Copyright:

Available Formats

Porter S Value Chain Model of Nestle

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Porter S Value Chain Model of Nestle

Uploaded by

Copyright:

Available Formats

Nestlé

Good food, Good Life

You might also like