2. According to (Puranik, 2015) suppliers are
individuals or firms that provides resources
required by a company to conduct and
maintain it’s operations in order to produce
an ever lasting range of goods and service in
which organizations specializes.
Suppliers provide the raw material resources,
and labors to the company in order to
produce goods and services.
3. Nestle has an extensive network of suppliers
like packaging suppliers, labor supplier,
vendors that over looks after it’s machinery
and finally the specialized people like
engineers and the policy makers the help to
run the business most efficiently at a
minimum cost.
Nestle suppliers can be divide into two parts:
1. Labor suppliers
2. Material suppliers
4. 1. Labor Suppliers:- They deal with the
quantity of labor which is required at the
optimum level in order to prevent the loss
of labor which again can lead building of
inventory as a cost for the company
2. Material supplier:- They handle all the
material required by the firm in order to
manufacture the finished product for sale.
5. According to (Anwar et al.,2014) nearly 52% of
nestle raw materials expenditure goes toward the
procurement of the three key commodities: milk,
coffee, and coco.
Nestle also source a wide variety of the
commodities, such as, fruit, vegetable, and
cereals.
Ingredients are often sourced through trade like:
Nestle USA
Moga factory in India
Milk factory in Hulunbuir (city in china)
6. Nestlé collaborates with India suppliers to source more raw
materials locally.
The team’s objectives were to achieve cost savings by relying
less on imports, overcoming quality and food safety issues, and
creating a wider, more flexible supply base.
After this the team has managed to:
1. Secure local sources for 12 previously imported raw materials
2. Develop over 70 new Indian suppliers able to meet Nestlé’s specifications
3. Speed up the building of infrastructure and access to better technology for
suppliers
7. 1). Which statement best describe suppliers?
A. Providing raw material and labor to the
company to produce good/service
B. A supplier is a entity that supplies all
materials
C. A kind of manufacture or distributor that
like to provide raw materials.
8. What are the two part that Nestle can divide
in to?
A. Packaging supplier and labor suppliers
B. Vendor supplier and packaging supplier
C. Labor and material producers
D. Goods and service producers
9. Anwar,et al,. (2014). MKT-
Assignment:microenvironment factor. Retrieved
from https://prezi.com/9bzy9vj8qygn/mkt-
assignment/
Nestle.,(n.d.). Our raw material. Retrieved from
https://www.nestle.com/csv/raw-materials
Puranik,Anagha.,(2015). Nestle.Retrieved
Fromhttps://www.scribd.com/document/2425051
22/Nestle
