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For perishable products such as milk and vegetables, Nestlé has direct procurement process with specific requirement so that the excess is not wasted. Nestlé invest sufficiently in sustainable agriculture in collaboration with its direct suppliers so that high quality food products are delivered. Multinationals such as Nestlé focus on long term partnership with suppliers so that resources are available at a reasonable cost and whenever required. These long term contracts minimizes various risks on the part of the company as well as for the suppliers.
For instance, such kind of supply chain system acts as a hedge against fluctuations in the agricultural market (Handfield& Nichols, 1999; Nestlé, 2009; 2014b). Nestle company has been going through some publicity issues in the past. There were a lot of cases where children died as a result of taking products from the nestle company. This led to massive protests by the people against their products. Nestle was accused of aggressively marketing their breast milk substitutes and dressing their sales ladies as nurses.
The deaths reported were as a result of the increasing deaths of infants. For the infant formula milk, the powder has to mixed with water which in most poor countries is usually contaminated and unhygienic and therefore leading to the death of the children. Another issue was that even when the parents knew the hygienic standards that they had to have, they do not have the means to sterilise the equipment that they used and therefore having no choice but to use the contaminated water. The women in the poor countries sometimes could not afford the formula and thus would end up using less than the required amount of formula and mix it with more water so that a can would last for longer.
This means that the infants got less nutrients than they required. Basically, children who are fed on breast milk are more protected than children who are fed on formula and thus have better health compared to the
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