EFQM Business Excellence Model Analysis for an Organization in the Food

Industry
In this analysis, I will apply the EFQM Business Excellence Model to Nestlé, a
multinational food and beverage company. I will focus on Criteria 3, 4, and 5 and
discuss Nestlé's engagement with stakeholders, its creation of sustainable value, and its
approach to driving performance and transformation.

Engaging Stakeholders
Nestlé has successfully built sustainable relationships with partners and suppliers. The
company recognizes the importance of its supply chain in delivering its products.
Explanation:
It maintains close collaboration with a global network of suppliers, often for decades,
ensuring quality, reliability, and sustainable sourcing of raw materials. Nestlé actively
engages with its suppliers to promote ethical practices, reduce environmental impact,
and support local communities. This includes initiatives like the Nestlé Cocoa Plan,
which aims to source cocoa sustainably and improve the livelihoods of cocoa farmers.
Creating Sustainable Value
Nestlé is committed to delivering sustainable value to its stakeholders. This includes
providing high-quality, safe, and nutritious products to consumers.
Explanation:
Key processes to achieve this value include rigorous quality control, continuous product
innovation, and adherence to strict food safety standards. Nestlé's focus on research
and development is evident through its investment in creating healthier and more
sustainable food options. The company also places an emphasis on environmental
sustainability, with targets to reduce greenhouse gas emissions, improve water use
efficiency, and eliminate waste.

Driving Performance & Transformation

Nestlé constantly focuses on developing new products and harnessing technology for
innovation.
Explanation:
For example, the company uses advanced food science and technology to create
products that cater to changing consumer preferences. Nestlé invests in R&D centers
globally to drive innovation, such as the Nestlé Research Center. Moreover, the
company embraces technology in its supply chain management, using data analytics
and automation to optimize production processes, reduce waste, and improve
efficiency.

Recommendation for Operations and Supply Chain Strategy using RADAR

Framework
RADAR Element: Strategy

Strategy: Implement a Sustainable and Transparent Supply Chain Management System

Result: A transparent and sustainable supply chain that improves supplier relations,
ensures ethical sourcing, and reduces environmental impact.

Approach:
• Supplier Collaboration: Establish closer partnerships with suppliers, fostering
transparency and ethical practices. This will involve continuous dialogue and shared
goals for sustainability.
• Transparency: Implement blockchain or similar technology to provide consumers
with real-time information about the origin and journey of products in the supply chain.
• Environmental Sustainability: Develop and implement sustainable packaging and
transportation solutions to minimize environmental impact.
Deployment:
1. Supplier Engagement Program: Nestlé will initiate a comprehensive supplier
engagement program, focusing on collaboration, ethical practices, and environmental
sustainability.
2. Technology Integration: Invest in blockchain or similar technologies to track
product origins and progress through the supply chain.
3. Sustainability Initiatives: Launch initiatives to reduce the environmental footprint
of the supply chain, including sustainable packaging and efficient transportation
methods.
Assessment & Refinement:
• Regular Audits and Evaluation: Nestlé will conduct regular audits and
assessments of supplier practices and sustainability initiatives.
• Customer Feedback: Gather customer feedback on the transparency of the
supply chain through technology.
• Continuous Improvement: Nestlé should be open to refining its supply chain
management system based on the outcomes of audits, customer feedback, and
emerging best practices in sustainability.
Learning from Others:
Nestlé can learn from other industry leaders, such as Unilever, which has successfully
implemented sustainable supply chain management. Additionally, Nestlé should
collaborate with industry associations and environmental organizations to ensure
alignment with global best practices.

Conclusion
Nestlé, as an industry leader in the food and beverage sector, has established itself as
a company committed to stakeholder engagement, sustainable value creation, and
driving performance and transformation.
Explanation:
The recommended supply chain management strategy aligns with these principles and
can further enhance Nestlé's commitment to business excellence, making it more
transparent, ethical, and sustainable.

References:
1. Nestlé. (2022). Creating Shared Value.
2. Nestlé. (2022). Nestlé Cocoa Plan.
3. Nestlé. (2022). Research & Development.
4. Unilever. (2022). Sustainable Sourcing.
5. IBM. (2022). Blockch
Summary:
Nestlé, a leading food and beverage company, has demonstrated excellence in
stakeholder engagement, sustainable value creation, and innovation. It has built strong
relationships with partners and suppliers, maintains ethical practices, and supports local
communities. Nestlé also prioritizes quality control, product innovation, and
sustainability, with a focus on reducing its environmental impact.
To further enhance its business excellence, Nestlé is recommended to implement a
Sustainable and Transparent Supply Chain Management System. This strategy aims to
create a transparent and sustainable supply chain, improving supplier relations,
ensuring ethical sourcing, and reducing environmental impact. The approach involves
closer supplier collaboration, technology integration for transparency, and initiatives for
environmental sustainability.
The deployment includes a supplier engagement program, technology integration for
transparency, and sustainability initiatives. The assessment and refinement process
involves regular audits, customer feedback, and continuous improvement, with
opportunities for learning from industry leaders and collaborations.
Explanation:
Nestlé's strengths lie in its ethical supplier relationships and commitment to delivering
quality products while minimizing environmental impact. The recommended strategy
focuses on supply chain management, an area crucial for Nestlé's sustainability and
ethical practices.
The strategy addresses the need for transparency and sustainability in the supply chain.
By collaborating more closely with suppliers and implementing technologies like
blockchain, Nestlé can provide real-time information about its products' origins and
journeys. This enhances transparency, instills consumer trust, and ensures ethical
sourcing.
The deployment of the strategy involves concrete steps such as the creation of a
supplier engagement program, the integration of technology for transparency, and the
initiation of sustainability initiatives. These actions align with Nestlé's existing
commitment to sustainability and innovation.
The assessment and refinement phase ensures that the strategy stays on track.
Regular audits and customer feedback allow Nestlé to assess the effectiveness of the
supply chain management system. Continuous improvement ensures that the company
remains at the forefront of sustainable practices. Learning from industry leaders and
collaborations further enhances Nestlé's ability to adapt and excel in a dynamic market.
In conclusion, Nestlé's commitment to excellence is further solidified by implementing a
sustainable and transparent supply chain management system. This strategy aligns with
Nestlé's existing strengths and values, positioning the company for long-term success in
the food industry.