Nestle's foundation was built in 1867 on humanitarian needs and social responsibility when Henri Nestle, a trained pharmacist, developed a healthy and economical alternative source of infant nutrition to save the life of a infant who couls not be breastfed. Milo, Nescafe, Nestea, Wonka are some of products under Nestle.

Strategy and Planning

1) Global Context

        As the world's leading nutrition, health and wellness company, Nestle has a responsibility to provide consumers with high-quality, nutritious products, regardless of where we sell them and the price point at which we sell them. Therefore, we have developed a specific business model called "Populary Positioned Products" (PPPs) which focuses on the specific needs of around 3 billion lower-income consumers worldwide. PPPs offer these consumers the opportunity to consume high-quality foods products that provide nutritional value at an affordable cost and appropriate format. PPPs are defines as one of Nestle's main growth drivers for the years to come.

2) Key Facts

• PPPs are afforably priced, nutritionally enhanced, appropriately formatted and easily accessible for emergency consumers.
• In 2009, PPPs accounted for around 8% of Nestle's annual sales, which equates to USD 8 billion.
• With 12.7% organic growth in 2009, PPPs grew substantially faster than the rest of the Nestle's group.
• Nestle's PPPs range stretches from culinary products to beveranges, dairy and confectionery and entails 3950 differents products overall.
• Nestle produces PPP versions of major global brands including Maggi, Milo & Nescafe.
• The PPP strategy relies on local sourcing, local manufacture & local distribution to minimize cost

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4) Inventory Management and Warehousing

        According to supply chain standard, the new faciity in the southern part of the country accomplished two key- roles fr Nestle'. For one, it makes it easier for the company to store the beans grown in the region. Bloomberg reported that Vietnam is one of the top coffee growing countries in the world, and more robusta coffee beans come from there than anywhere else.
     
       In addition, the warehouse will allow Nestle to target Vietnam's growing coffee drinking population. Historically, the places responsible for growing most of the world's coffee were not also the biggest coffee consumers. According to the U.S. Department of Agriculture, while locations such as Brazil, Columbia and Indonesia grow coffee, it is consumed primarily in Europe and the United States. However, coffee culture is spreading in Vietnam and the new warehouse will make it easier for Nestle to quickly and cheaply supply this    
market with coffee beans.


5) Transportation

        Delivering high- quality products efficiently from the factory to the customer is a vital part of their business. They travel the equivalent of 260 times around the world everyday, transporting more than 135,000 tonnes of products to customers from some 1,600 warehouses.


6) Information Technology

        In the past various units m the company have used a wide range of type of proprietary and open systems from different vendors. In the early 1990s it decided to move toward a set of standards that support a distributed client-server system The standards include UNIX systems from IBM. Digital and HP, Oracle's Version 7 relational DBMS, the German firm SAP's integrated material, distribution, and accounting applications, Powersoft's Power Builder application development system, and Ernst and Young's Navigator CASE product. At one point headquarters tried to suggest a single PC vendors but the outery from the business units was so great that there is now a list of recommended PC's.