Nestle Project 3

TOTAL QUALITY MANAGEMENT
Project -3
Creating Shared Value in the supply chain-Nestle

Group Members
Mir Sarmad Khero
Bilal Ahmed Memon
Prem Chand

INTRODUCTION
Nestl promise of quality, taste, nutrition and
convenience.
Today, Nestl is the world's largest Food and Beverages
Company, and a global leader in health, nutrition and
wellness.
The headquartered in Vevey, Switzerland.
Today Nestle have 461 factories dotted around the globe,
employing over 330,000 people in 83 countries. in 2013
its global sales reached up to CHF 92 billion.
Joint venture Nestle and Milkpak Ltd. in 1988

MISSION STATEMENT
Nestls mission is to provide the best food to people
throughout the world.

The case study demonstrates how nestle is creating
shared value by improving the standard of living of
its primary goods suppliers (cocoa farmers) and
creating a collaborative environment which in turns
helps it build healthy long term partnership with
external stakeholders (suppliers,customers and
communities).

Nestle Cocoa Supply Chain

BUILDING PARTERSHIPS
Results
These efforts show the benefits of corporate social
responsibility and shared value for the company and
its internal, external stakeholders.

The long term relationships with suppliers have
improved the quality and output of cocoa and have
supported the local communities as well.
ANALYSIS
The case depicts the proactive approach of nestle for
sustaining the quality and required quantity of its raw
material (cocoa) for the future.

Nestle predicted that the workforce of producing cocoa is
getting older and the younger generation is losing interest
in the homeland because of lack of employment
opportunities .

What nestle did, it initiated its CSR program ( the cocoa
plan) to built healthy relationships with its stakeholders
and thinking for the betterment of the supplier and the
community.
BENEFITS
The investment in plant research helped in producing
higher yield for the product, helping the company to fulfill
its requirements and the farmers to sustain higher income

Training to farmers helped the incoming stock to be of
high quality and for farmers it produced more income

Improving social conditions e.g building schools helped
to keep the upcoming workforce in town

The fair trade labels helped with the compliance of
international laws and for those certifications the farmers
were paid a premium for their production.

ANALYSIS CONCLUSION..

The outcome of the program, a healthy long-term
relationship with the stake holders benefited the
company as well as the well being of the suppliers and
the society.

It built positive image of nestle in the communities
and kept the company in business for future.

Tools and technique of TQM
apply in this case
Nestl has a series of corporate business principles it is Reflects the S.O.Ps
of the company.
Quality culture, that emphasis on the customer oriented, proactive approach, for
long term decision making, believe in prevention rather than cure (win-win).
CSR, evidence the Process improvement that includes a safer manufacturing
process, providing the quality to its stake holders.
The communication with the stack-holders, feedbacks (complains and
suggestions) as opportunity to continuous improvement.
Supply Chain partnership, nestle follows Ishikawas fourteen i.e. Long term
commitment, Trust , Shared vision , Joint performance of business activity and Win-
win situation
Treat suppliers as their partners
Conclusion

Creating shared value is wider, long term and proactive approach.
It has enabled Nestle to support local communities as well as improving both
quality and output of cocoa.
Nestle provides training to farmers to encourage desirable production,
protect the supply chain and quality of raw material for long term.
Practices promote the confidence and positive image of all stakeholders
related to industry
Win-win situation !!!
Recommendation
Flexible working condition for formers.
Keep the effort boost up the stakeholders confidence.
Increase formers loyalty due to effective training and shared value
Increase supplier network among different agricultural
country to avoid future risk.

Nestle Project 3

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TOTAL QUALITY MANAGEMENT

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