A study of import process of Nestlé Bangladesh

Abstract

Nestlé is World‟s largest health, nutrition and wellness company founded by the Henri Nestlé. Nestlé Bangladesh Limited started its commercial operation in 1994. Nestlé Bangladesh established its factory in Sreepur 55 km north of Dhaka. The factory produces the instant noodles and cereals and repacks milks, soups, beverages and infant nutrition products. This company is continuously growing through the policy of constant innovation, concentrating on its core competencies and its commitment to high quality food to the people of Bangladesh. To ensure high quality product Nestlé Bangladesh import most of their raw materials , the also use local raw materials as well but compare to imported raw materials it is low. The whole import procedure of raw material is done by Supply chain and Treasury Department. Supply chain place their requirement of raw material to respective suppliers through purchase order. Once the order is confirmed they request treasury department to open up a Letter of Credit or CAD (Cash against Documents), L/C is the most popular international trade payment method in Bangladesh as well as in Nestlé Bangladesh, which covers the issues like potential risk that the parties in international trade namely the importers and exporters wish to face or share between them. There are different parties involved in opening a Letter of credit and it also requires authorized papers to submit to their Authorized LC opening bank and they will facilitate NBL and give guarantee to the respective suppliers about the payment procedure. Once NBL opened the LC supplier get to know through their bank and they shipped the goods to the destined location. In this paper the whole procedure of LC opening to retirement is briefly explained