SUPPLY CHAIN AND ORGANIZATIONAL PERFORMANCE

Effectiveness of Supply Chain on Organizational Performance with Case Study of Nestle Nigeria plc



Table of Contents

Introduction3

Background4

Purpose -6

Design/methodology/approach -6

Findings -6

Practical implications -7

Originality/value -7

CHAPTER II8

Sustainability in supply chains - literature review8

Corporate social responsibility - literature review11

CSR in global supply chains12

CSR practices at Nestle16

Introducing a code of conduct.

Implementing the code of conduct.

Educating and encouraging the actors involved.

Contingency factors related to CSR practices in supply chains

Collaboration is essential

Selection of the supply chains24

CHAPTER III26

Method26

Research objectives and methodology26

Application of the method at Nestlé28

CHAPTER IV30

Analysis of results30

Capacity planning30

Material ordering31

Inventory management32

Overall business performance32

CHAPTER V34

Conclusions and managerial implications34

Suggestions for future research36

References38

CHAPTER I

Introduction

Nestlé is an international corporation that produces a variety of products including food, beverages, and pharmaceuticals that amount to over 8,000 in all (Tomlinson 2000). The company was founded in 1867 in Vevey, Switzerland and has facilities worldwide. In fact, Nestlé is the world's largest food company with 479 factories and over 200,000 employees worldwide. Nestlé is committed to providing people around the world with the best food and increasing their quality of life. The current CEO of Nestlé, Peter Brabeck, has been with the company since 1968.

The primary corporate objective of the Nestlé Group is to create values for the internal and external market environments that will be sustainable in the long-term. The 'environmental management' responsibility adopted by Nestlé incorporates an integrated approach through the supply chain process for preserving the environment (i.e. minimizing waste products, raw materials produced from sustainable methods, etc.), a focus on the preservation of water resources, and systematic management that describes targets and performance measures for the future.

Supply string of connections administration in Nigeria is expanding strategically significance due to international affray, outsourcing of non-core undertakings to evolving nations, short merchandise life cycle, and time compression in all facets of the provide string of connections (Skjøtt-Larsen et al., 2007). Management vigilance has shifted from affray between companies to affray between provide chains (Christopher, 2005). The capability to set up close and long-run connections with suppliers and other strategic partners has become a vital component in conceiving comparable advantage.

At the identical time, diverse stakeholders, encompassing buyers, shareholders, non-governmental organisations (NGOs), public administration, trade unions, and worldwide organisations, are displaying an expanding concern in ecological and communal matters associated to worldwide business. Concepts such as provide string of connections sustainability (Dyllick and Hockerts, 2002; Koplin et al., 2007), triple base line (Elkington, 1997), ecological administration (Handfield et al., 2005), business greening (Preuss, 2005), green provide (Bowen et al., 2001; Vachon and Klassen, 2006; Sarkis, 2003) and business communal blame (CSR) in provide chains (Pedersen and Andersen, 2006; Maloni and Brown, 2006) are obtaining increasing vigilance in the newspapers, academia and the business world.

An expanding number of businesses, particularly large multinational companies, have applied ecological yearly accounts, sustainability schemes, and voluntary ciphers of conduct. However, regardless of numerous multinational corporations' efforts to apply communal and ecological matters in their provide chains, a gap lives between the desirability of provide string of connections sustainability in idea and the implementation of ...