Nestlé is a multinational Swiss Company operating in Pakistan through its direct subsidiary Nestlé Pakistan. It has a variety of products including confectionery, cereals, dairy products, bottled water, and so on. Operating in 189 countries; today, Nestlé is one of the world’s most leading company. It aims at enhancing quality of life and contributing to a healthier future. This study analyses their Supply Chain Management of bottled water.

1. BY Group 6:
Aisha Arshad
Ayesha Majid
Mahnoor Babar
Zainab Mahmood

2. Introduction
•Nestlé Swiss MNC
• Operating in 189 countries
• Nestlé Pakistan- 1988
• Joint venture with MilkPak
• Nestlé Pakistan leading Food and Beverages Company
• Nestlé Waters
• 1998
• Market Leader in Premium Drinking Water

3. Distribution Network in Supply Chain
• Factors influencing Distribution Network
• Response time
• Product variety
• Product availability in markets
• Customer experience
• Order visibility
• Product or product part Returnability.
• Warehousing & transportation expenses, information management
cost and Facilities costs
• For Nestle the key factors include its customers

4. Distribution Network
Deliver
value to the
customers
on ground
Product
freshness
Easy access
to the
products
Minimal
cost to the
customer
Distribution
Network
Retail Storage with
Consumer Pickup
for regular PET
consumers,
Distributor Storage
with Delivery for
its corporate PET
customers
Manufacturer
Storage with
Direct Delivery to
customers for its
HOD products.

5. Designing Distribution Network at Nestlé
Waters
• Distribution strategy prioritizes
• lead time,
• constant availability in markets,
• product quality and
• premium customer experience
• The key factor is length of distance
• Cost minimization
• Reducing Lead time

6. Network Design

7. Inventory Management
• Process that assures availability of products while reducing
investment costs.
• Two types:
• Physical (tangible materials)
• Logical (database or inventory-tracking software)

8. Factors Affecting Inventory Management
Factors
Forecasting
CostPlanning
Three types: Raw materials,
processing, and inventory
holding.

9. Trends in Inventory Control
• Vendor Managed Inventory (VMI) – Monitoring movement of
inventory through customer database
• Vendor keeps a check on raw materials.
• Replenishes when stock levels falling.

10. Trends in Inventory Control
• Customer Managed Inventory (CMI) - customers of manufacturers can
personally order inventory.
• Keep check on inventory in HOD
• Stock level and quota system set.

11. Inventory Management Control
• SAP designed in a very advanced way – daily physical check.
• Tallying physical and logical inventory emphasized upon.
• Almost everyone using SAP.
• Local software or Excel used before SAP – complicated, time-consuming.

12. Inventory Management Control
• Now better control, traceability, communication and information flows.
• Identification numbers with every palette all known by SAP.
Example:
If 1000 palettes, 50 to be delivered, instead 55 are, difference of 5 occurs.
When the delivery is picked, SAP will give a message “Does not exist”. Hence,
picking not possible.
• Traceability especially important in HOD.