Nestle Supply Chain Case Study Essay

2338 Words Apr 26th, 2014 10 Pages
Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material …show more content…
Collaboration with competitors has been beneficial for Nestle. As it gives the company a competitive advantage through an extension of collective market leverage. Nestlé’s collaboration with its suppliers has proven effective as well, giving the company the capacity to depend on a more consistent supply of quality raw materials (Goldberg, 2012, para 12). Nestlé’s collaborative ventures in joint research and development programs has given the company substantial cost savings, the ability to acquire more technically competent solutions, and open an accelerated route to the global market.
Nestle has set the tone, and established a new level of awareness and standards for itself and its competitors (Goldberg, 2012, para. 23). These standards are being used globally within the food and beverage industry and has provided an example to competitors on how to source and interact with farmers, traders, and primary processes. Nestle has proven to be a pioneer within the global food system; and has created an unprecedented value for sustainable agriculture and shared value throughout its supply chain.
Over the past several years, food security and economic crises have highlighted both the urgent need and the potential for developing sustainable agricultural systems (World Economic Forum, New Vision for Agriculture: A global Initiative of the World Economic Forum, para. 4

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