Nestle - Creating Shared Value in the Supply Chain - Case Study Example

Download file to see previous pages This paper outlines ways through which nestle creates shared value within the supply chain relating to the cocoa production. It also outlines the importance of applying corporate social responsibility principle in a business activity. The paper also outlines some of the key players in Nestle Cocoa supply chain and the factors that drive the Nestle supply chain. Finally, paper discusses the ways Nestle creates value and the challenges that come with that process. The Nestle Cocoa Plan Nestle has implemented this through creating greater values for the societies. This includes improvements of water, nutrition and rural development. The supply chain activity that is specified includes transforming the raw materials and other natural resources into finished goods consumed by the end consumers. The processes involved are linked to consumers, human rights and labor practices, employees, suppliers and customers and the environment. The consumers are the larger group that consumes the products manufactured by Nestle. Every stage in the supply chain process adds value to the end product (Nestle Case Study). The major key players in this supply chain are farmers, cooperatives, processors or manufacturers, retailers and consumers. The cocoa farmers are tasked with the job of growing the crops that produce cocoa. The cooperatives represent the institutions that manage the sale of the crops by the farmers. They act like unions of farmers who form them to control the market for the crops. Nestle fall under the stage of manufacturers or processors. These are tasked with the production of products which are the end products from the raw materials. Nestle for instance manufactures chocolate and their equivalent from these raw materials. The retailers represent those channels that receive orders from nestle. These channels distribute the products to the end users or rather the consumers. The consumers, who are the last players in the supply chain represents the individuals who purchase the end products (Nestle Case Study). The chart above represents the process of activities that are involved in the supply chain of the Cocoa plan. In order to coordinate the raw materials that Nestle uses to manufacture the end products, it has to coordinate the way farmers are handled in terms of the market and wages (Nestle Case Study). Factors Driving the Cocoa Supply Chain Shared value that is created by Nestle is based on a number of factors that majorly can be categorized under the corporate social responsibility. Nestle carries out its business based on the international laws and codes that define the conduct and the company business principles, as well as, compliance to environment sustainability regulations. The company, however, under the creating shared platform came up with other factors that would drive the supply chain. The principles that are set by international organizations such as the United Nations help in guiding the company in its value creation in the supply chain through its approach in the corporate social responsibility. An example of this according to the Nestle case study is the principles that incorporate the UN Global Principles. This relates to the Human rights, labor, corruption and environment (Nestle Case Study). The company, for instance, has helped the farmers to eliminate ...Download file to see next pagesRead More