The Nestle road map is intended the create alignment for workers behind the unified set of strategic priorities that will hasten the achievement of company objectives. These objective demands from workers a mixture of long-term motivation needed to build for the future and short-term business actions, delivering the necessary level of performance. The Nestle model is securing the progress today and ensuring success in future:
Achieving simplicity;
Investment of growth;
Scale benefits;
Driving performance
The Nestle road map includes three main parts:
Competitive advantages
Growth drivers
Operational pillars
(Hemingway 2002)
All these may define with one clear and simple chart:
(Nestle 2012)
Nestle has its own company in many countries. The head office in Switzerland works very closely with them, and sets the overall strategy the overall strategy, which is managed through the strategic business units and management. Geographically, Nestle three zones (Europe; the Americas; Asia; Oceania; Africa and the Middle East) work closely with the local markets. Their primary role is that enablers, acting as the voice of the headquarters. All units and zones share Nestle vision so that everyone around the world understands the direction to take and how to get there with common tools, common values and strategic.
This ensure that people in a the world know how to act, and that there is a very strong frameworks of clear references and value for fast and efficient decision-making.
PROBLEMS AND CHALLENGES IDENTIFICATION
Nestle produces hundreds of products, has a global network of suppliers, and multiple selling channel and distribution. Therefore, to respond and predict in this rapidly changing in market demand condition is very difficult. When predicting a market demand, Nestle will need information to discover shifts in demand early so they could adjust for trends and send the right messages to the suppliers, shippers, and distribution centers before they are deluge with unwanted or defective goods or shortages. (Manhattan Associates. 2010)
However, every company has its weakest links, so is Nestle. The weakest links are matters they are unable to control (Labs. 2010). Firstly, the most usual problem is the sources of supply of raw materials. This is due to an unexpected and sudden increase in demand, which will cause extreme supply shortages for merchandises that will result in major price increases. For example, bad natural disaster and bad weather have always been an issue affecting incoming raw materials. Secondly, the mistakenness of orders received in record. No company can ever achieve the requirement of zero imperfections especially in foods and beverages industry. For example, when the purchasing department of Nestle ordered 15,000 of mixed yoghurt from its dealer, but what the retailer received was only 12,000 of them, or on another case they might receive lacking records. Another example is, when Nestle tells its dealer that they needed extra orders of a particular product to be shipped right away because of unpredicted increase in demand, but in fact, the supplier may already has orders from other customers. This usually happen during special occasion. (Mashabale2012)
Hence, in order to solve these problems, it is critical for Nestle to engage with multiple dealers or suppliers in that specific region, so they could purchase inventories from multiple dealers, which will definitely reduction the risk of shortage due to incontrollable situation. Besides, Nestle should also base on their purchase and demand planning on last couple of years of sales to estimate current year
