Critical evaluation of the supply chain of Nestlé Bangladesh Limited

Abstract

The leading Nutrition, Health and Wellness (NHW) company in the world, Nestlé S.A. is a global organization with operations in 189 countries of the world. (Nestlé S.A., n.d.) Nestlé Bangladesh Limited is a wholly owned subsidiary of Nestlé S.A. operating commercially since 1994, “enhancing lives with science-based nutrition and health solutions for all stages of life, helping consumers, care for themselves and their families” (Nestlé S.A., 2015) It offers a range of products in the local market either through production or bulk repackaging activities, and the key function which is planning, coordinating, implementing, and evaluating all the crucial operational aspects of this is the Supply Chain function of Nestlé Bangladesh Limited. It is a function spread across the company’s value chain, with three primary departments: i) Demand & Supply Planning; ii) Procurement; and iii) Customer Service & Distribution. Demand & Supply Planning coordinates all the other departments, both within and beyond the supply chain function, and aligns them to the company’s strategic plans, which sets the pathway of translating strategic visions into real business achievements. In a way, it can be deemed as the central focus of supply chain’s work as it coordinates the resources moving through the process, and makes sure it moves in the right direction to reach the operational goals of the company. Procurement deals with the material inflow, or inputs that come into the organization, whereas Customer Service & Distribution deals with the material output, or outflows from the organization, which ultimately reach the final consumers. The report looks into a holistic view of the entire chain, and provides a comparison with a defined “ideal structure” and provides possible recommendations of overcoming existing constraints and shortcomings for the company’s benefit.