Supply Chain Management at Nestle India

ISSN:2336-2693 | E-ISSN:2336-4890
Nestle’s Company Overview- Nestle now employs 2,73,000 people and has business in 191
nations. It has a global sales network and 344 production and processing facilities spread over
77 nations, Nestle now has 9 manufacturing facilities in India.
Supply Chain Management (SCM) is emphasised as a critical strategic function in
manufacturing firms. In today's cutthroat corporate environment, effective SCM is vital for
survival. Nestle, an example of effective SCM uses vendor management and information
technology to uphold positive relationships and prospects for the future. This research focuses
on Nestle's activities in India, where regional milk suppliers provide difficulties because of their
lack of resources and literacy for extensive operations.

Summary-
Nestle’s success over the decades, can be attributed to its exceptional vendor management &
an efficient distribution systems. The distribution network is a key component of the Indian
market, and Nestle has successfully and efficiently managed it by preserving great ties with its
channel and logistical partners. This not only smoothens the entire process of integration but
also results in a high level of productivity. There are no communication gaps between Nestle’s
production facilities and distribution network. Nestle emphasises vendor management heavily
and uses the just-in-time (JIT) method for sourcing raw materials. With this strategy, the
departments of production and support are coordinated with suppliers and procurement. The JIT
method ensures prompt access to both completed items for distribution and raw resources for
manufacture.
Efficient Use of Information Technology in SCM by Nestle-
Nestle's supply chain employs advanced IT to seamlessly manage processes from raw material
procurement to final goods distribution, enhancing efficiency. The company also uses a range of
technologies to manage its supply chain, including advanced analytics, machine learning, and
automation tools. These technologies help Nestle to optimize its operations, reduce costs, and
improve efficiency. Nestle utilizes ERP (Enterprise Resource Planning) systems to integrate and
manage various aspects of its operations, such as procurement, manufacturing, distribution,
and financial processes. These systems enable real-time data sharing, streamlined
communication, and efficient resource allocation across the organization, enhancing overall
productivity and decision-making. It also helps in Financial management & service & operation
management. Nestle depends on a vendor group for the timely delivery of raw materials like
milk. Vendor interaction with all departments is essential for just-in-time management
implementation and is made possible by information technology. Vendors are informed about
supply chain management using technology by Nestle.

Conclusion-
Nestle International set up Nestle Global Services India last year to enable Nestlé’s growth by
facilitating direct access to technology skills in business solutions, digital, data analytics and
artificial intelligence, adding that it would also support the implementation and operations of IT
solutions and platforms. This shows the company’s vision integration of IT tools and applications
in procurement of raw materials from rural vendors who are supposedly illiterate. Nestle can
integrate IT into rural India's vendors by providing training and resources for digital tools,
offering simplified software for orders and communication, ensuring accessibility through mobile
devices, and establishing local support centers. This would enhance efficiency and connectivity
for supply chain operations.