Nestle company supply chains Free Essay Example, 1250 words

Multinationals such as Nestlà © focus on long-term partnership with suppliers so that resources are available at a reasonable cost and whenever required. These long-term contracts minimises various risks on the part of the company as well as for the suppliers. For instance, such kind of supply chain system acts as a hedge against fluctuations in the agricultural market (Handfield Nestlà ©, 2009; 2014b). Supply chain management in product development Nestlà © operates in the food and beverage industry and it is heavily responsible for delivering healthier choices in eatables to its consumers being one of the reputed companies in the sector. Supply chain management is very crucial for product development in the food and beverage industry as in absence of adequate raw material supply and production zone, quality of the products can be compromised as well as the company will have to incur extra cost for production loss (Nestlà ©, 2014c). Nestlà © has a specific raw material collection model where raw material such as dairy products and vegetables are collected in batches and sent to the kitchen zone of the factories. In this section, the raw materials undergo various standardisation tests so that quality is not compromised under any circumstance. We will write a custom essay sample on Nestle company supply chains or any topic specifically for you Only $17.96 $11.86/page