Nestlé Company

"Good Food, Good Life"

Since 1950s
Introduction
 Nestlé, the biggest food producer in the world, was established in the 1950s

 Its a global food that produce and distribute with over 2000 brands, products
including coffee, baby food, medical food, and pet food.

 Nestle's business plan takes care of innovation and transformation in production

while maintaining a balance between local manufacturing lines and activities.

 The company constantly innovates to meet consumer needs, focusing on

financial growth through innovation, efficiency, and resource allocation,
ensuring sustainable success.

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What is the order management and it’s
operations
 The Order Fulfillment Manager manages the Business Service team,
overseeing stock allocation to optimize service and customer satisfaction,
based on business rules

 The individual participates in Operational Demand & Supply Review to

optimize stock allocations and understand potential out-of-stock risks. They
guide the team in executing these strategies, providing input to Analysts.
They also understand customer and business impacting order fulfillment
processes.

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Some benefits in the order management
 Improved accuracy and efficiency: Manual stock updates on multiple
marketplaces can be stressful and have human error. An OMS automates this
process, reducing errors, ensuring faster inventory updates, quicker order
turnarounds.

 See all your marketplaces at once: A dashboard simplifies tracking of

marketplace for retailers, ensuring full control and avoidance of missed
orders.

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Warehousing management

 Nestlé contracted with Insight Group for the

distribution of a new frozen product, making use of
their experience with Dreyer's ice cream. Over four
years, the company implemented a DC Expert
technology, linked to their ERP system, to ensure
accurate orders and timely deliveries.

 Stock levels affect everyone by ensuring product

movement from manufacturers to distribution centers,
preventing overstock and overtime, and preventing
production from being halted due to insufficient
product orders.

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From benefits of warehouse management
 Reduces operating costs:
A warehouse management system can help businesses reduce operating
expenses, inventory costs, and waste by providing better inventory visibility,
reducing just-in-time inventory, and implementing a first-in, first-out rule for
perishables, ultimately reducing waste and saving money.

 Improves demand forecasts :

A warehouse management system enhances a company's demand forecasts by
providing better inventory visibility, using current material movement and
historical trends, thereby ensuring optimal inventory levels.

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Material handling management
 Material handling management involves the efficient movement, security,
storage, and management of goods and materials in production, warehousing,
distribution, using automated, semi-automated, and manual tools.

It’s necessary for:

 Forecasting
Production planning
Flow and process management
Inventory management and control
Customer delivery

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Advantage of material handling
 Increase productivity and efficiency:
using material handling equipment can also help to reduce labor costs by reducing
the need for manual labor. By using equipment to move, store, and control
materials.

 Reduce the cost of the raw materials:

by being able to choose bulk instead of bags and save the packaging cost incidence.

 Prevents Workplace Accidents:

by using material handling equipment as pallets and forklift

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Customer service

 Definition of customer service: Customer service can be defined as a very

high priority in the logistics industry The key to successful logistics customer
service lies in communication and on-time, damage-free delivery Efficient
customer service in logistics ensures that the entire logistics chain operates in
the best possible way.

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Customer service goals

 customer services goals: Nestlé company has always strived to improve the
lives of its customer by providing health and nutritious solutions during the
entire period of their lives. Nestle helps customers by caring for them and
their families. The company's goal is to support people in leading healthier
lives. The company's core values have been formed on respect: Respect for
the customers, for the future generation, for the environment and the culture
and global diversity

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The impact of customer service
in Nestlé company:

 You can retain your customers by offering

personalized experiences, convenience,
and considerate customer service. This
is illustrated by the fact that 89% of
customers are more likely to complete
an additional purchase following a good
customer service experience.

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Demand forecasting

 Definition of demand forecasting:

In logistics helps
predict unpredictable and unknown factors that can impact customer
expectations, such as changes in weather conditions, changes in fuel costs,
and costs associated with last-mile delivery. . Forecasting helps businesses
optimize inventory and plan logistics strategies efficiently

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Benefits of Demand forecasting

 Monitoring the weather and news to find out problems that can cause
disruptions in the chain. Creating multiple logistics models to estimate the
most profitable transportation modes (road, ocean, rails, air) for a shipment.
Keeping an eye out for seasonal demand fluctuations to increase/decrease
routes and the number of trucks

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Transportation management

 Definition :It’s a process that involved in the production, storage, inventory,

delivery, and distribution of specific goods or services. it is considered as an
integral element of the whole supply chain and it involves proactive
procedures to safely and efficiently move products from the manufacturers,
to the sellers, and up to the end users or the consumers.

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Importance of transportation

 Increases efficiency – Just like any other business practice that aims to
simplify processes, optimizing transportation and logistics increases
operational efficiency. Actively tracking the movement of products helps spot
errors and discrepancies in the supply which in turn enables businesses to
address them proactively.

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Facility location decision

 Definition of Facility location decision The facility location decision refers to

the process of selecting the optimal location for a business or organization's
facilities, such as manufacturing plants, distribution centers, retail stores, or
offices.

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Inventory management

 Effective inventory management offers several advantages for businesses.

Here are some key advantages:
 Cost control
 Efficient Operations
 Customer Satisfaction
 Demand Planning
 Cost Savings
 Improved Cash Flow
 Supplier Relationships
 Risk Mitigation

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Procurement management

 Definition is the process of planning, sourcing, negotiating, and acquiring

goods, services, or works from external suppliers to meet the needs of an
organization Here are some key aspects and strategies related to
procurement management

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Procurement management

 Here are some key aspects and strategies related to procurement

management:
• Procurement Planning
• Supplier Selection
• Negotiation
• Contract Management
• supplier Relationship Management
• Risk Management
• Technology and Automation

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International logistics
 is the process of planning and managing the flow of goods and products in
your company's supply chain from acquisition to customer purchase, where
part of the process involves crossing at least one international border.
 Goals of International logistics
Increasing transportation cost· Achieving product efficiency at higher level·
Changing perspectives of inventory management

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Advantages of international Logistics:

 Competitive pricing It goes without saying that some of the world`s biggest
eCommerce businesses have been relying on global logistics and supply chains
for many years. If your competitors are sourcing products from overseas at a
cheaper cost than you, there is only so much you can do to win over price-
focused customers.

 Fulfil larger scale orders.

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What is packaging in logistics?

 Packaging logistics refers to a coordinated system of preparing goods for safe,

secure, efficient and effective handling, transport, distribution, storage,
retailing, consumption and recovery, reuse or disposal, and maximizing
consumer value, sales, and profit.

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the importance of the
packaging system
the importance of the packaging
system and its different functions has
been increasing. Traditionally, the
packaging is intended as a means of
protecting and preserving, handling,
transport, and storage of products.
Other packaging functions like sales
promotion, customer attention, and
brand communication have
consistently grown in importance.

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Objectives Of Packaging In Logistics
 Provides Protection The basic objective of packaging for industrial goods such
as components and machinery is to protect the product while in transit. But
packaging for consumer goods has a broader aim. Products that are damaged
during transit might cause major problems. It will cost you the amount of the
damaged product plus shipping costs, with the possibility of sending
replacements as well. As a result, you will incur an additional cost. Good
logistics packaging keeps items safe and guarantees that they reach their
destination in great condition and without damage.

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Reverse logistics
Reverse logistics is the set of
activities that is conducted after
the sale of a product to recapture
value and end the product`s
lifecycle. It typically involves
returning a product to the
manufacturer or distributor or
forwarding it on for servicing,
refurbishment or recycling. Reverse
logistics is sometimes called
aftermarket supply chain,
aftermarket logistics

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Importance of Reverse Logistics
 Importance of Reverse Logistics to Your Business Reverse logistics is crucial for
businesses as it enhances customer satisfaction through effective returns
management, reduces waste and costs by recycling and reusing materials, and
improves brand reputation by demonstrating environmental responsibility

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