About Nestle

Nestle international
Ever since Nestlé was established, we have been committed to nurturing people worldwide. Today, as the world's leading Food and Beverages Company, and leaders in health and wellness, we try to cater to all your family's nutritional needs, no matter where in the world you live. Our story begins in 1867, when Henri Nestlé developed a baby formula that saved a child's life and marked the beginning of Nestlé's decades-old commitment to nutrition. In the 140 years since then, we have expanded around the world and developed a range of products designed to suit every taste, need and cultural preference. Our distinctive seal is recognised everywhere as a guarantee of quality and healthfulness. Nutrition, quality and convenience remain the keystones of our products and even as we confront the new century's challenges, we feel it is our duty to adapt to the changing needs of our consumers. Our responsibility does not simply lie in perfecting the products we develop at our R&D centres spanning four continents, but the role our products play in making lives better - both for our consumers and for communities in the countries we serve. Thus, along with old favorites such as KITKAT chocolates and NESCAFÉ, the world's most popular coffee, we keep introducing new, exciting options worldwide. Understanding that people in every country have different tastes and needs, we have developed a range of food and lifestyle products. In India consumers enjoy healthy and convenient MAGGI Noodles Atta Noodles, in Pakistan you can find NESTLÉ Raita and in China, flavoured water is strengthened with Prebio1; dietary fibre and traditional Chinese ingredients such as Aloe Vera and Chrysanthemum. Our popularity has come not just from acquisition and corporate expansion, but also from a care for the ever-evolving needs of customers at every point in their lives.

Nestle Pakistan
Nestlé has been serving Pakistani consumers since 1988, when our parent company, the Switzerland-based Nestlé SA, first acquired a share in Milkpack Ltd. Today we are fully integrated in Pakistani life, and are recognized as producers of safe, nutritious and tasty food, and leaders in developing and uplifting the communities in which we operate. We at Nestlé Pakistan ensure that our products are made available to consumers wherever in the country they might be. Convenience is at the heart of the Nestlé philosophy, and our aim is to bring products to people's doorsteps In line with our parent company's global philosophy, we are proud of our commitment to excellence in product safety, quality, and value. Our products cater to human needs, and we are active in the communities we serve. From spreading awareness about nutrition and wellness to digging wells in the Thar desert and succouring earthquake victims, we are committed to serving our country and its people. The consumer's voice is key to Nestlé Pakistan's vision and working. Whether you live in the remotest village or the metropolis of Karachi, our consumer services team stands ready to listen to your concerns and provide answers about our products and guidance on matters of health and wellness

Mission statement
We are above all, a human company providing a response to individual human needs throughout the world.

Making our customers winners by constantly exceeding their expectation.

Strategy-Nestlé Roadmap to Good Food, Good Life
Nestlé s objectives are to be recognized as the world leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry. We believe that leadership is not just about size; it is also about behaviour. Trust, too, is about behaviour; and we recognise that trust is earned only over a long period of time by consistently delivering on our promises. These objectives and behaviours are encapsulated in the simple phrase, Good Food, Good Life , a phrase that sums up our corporate ambition. Nestle is intended to create alignment for our people behind a cohesive set of strategic priorities that will accelerate the achievement of our objectives. These objectives demand from our people a blend of long-term inspiration needed to build for the future and short-term entrepreneurial actions, delivering the necessary level of performance.

Nestlé must excel at each of these four inter-related core competences. Health and Wellness agenda. They drive product development. brand portfolio Unmatched R&D There are inherent links between great products and capability Unmatched geographic strong R&D. interactive relationships with consumers and other stakeholders and differentiation from our competitors. Good Food. If we excel in these areas we will be consumercentric. values and attitude Growth drivers These four areas provide particularly exciting prospects for growth. between the broadest geographic presence and an entrepreneurial spirit. however Consumer communication Operational efficiency. culture. renewal and quality. which seeks to offer consumers products with the best nutritional profile in their categories Operational pillars Innovation &Renovation Wherever. operational performance. between great people and presence strong values. Everything we do is driven by our Nutrition. Unmatched product and built up over decades.Competitive advantages True competitive advantage comes from a combination of hard-to-copy advantages throughout the value chain. Health and Wellness Emerging markets and PPP Out-of-home leadership Premiumisation . we will accelerate our performance in all key areas. They are applicable across all our categories and around the world. People. Good Life. Nutrition.

gerber. s. Coffee: Nescafe. cini minis. in people. extreme. Sports nutrician: power bar. in brands. of shareholders. Chocolates & Confectionery: aero. resource. Drinks: juicy juice. Weight management: jenny craig.pellegrino. coffe mate. of course. nestum. We are investing for the future to ensure the financial and environmental sustainability of our actions and operations: in capacity. for our business partners and. graduates. nescafe3in 1. milo. minor s. of the communities in which we operate and of society as a whole. We call this Creating Shared Value .We are seeking to achieve leadership and earn that trust by satisfying the expectations of consumers. 4. strategies and operations are also creating value for the communities where we operate. hot pockets. milo. for our consumers. 8. 6. Cereals: chocapic. Petcare: alpo. crunch. in R&D. cookie crisp. Nescafe cappuccino. whose daily choices drive our performance. 14. herta. peptamin. We believe that it is only possible to create long. lean cussine. 2. fitness. 10. butter finger. orion. and to do so in a way which will ensure profitable growth year after year and a high level of returns for our shareholders and society at large over the long-term Types of product manufactured Nestle divdes its product in 14 ways: 1. 5. 12. Nescafe classic. nutren junior. magi. nestea. Healthcare nutrition: boost. in capabilities. Poland spring. 13. Icecream: dreyers. perrier. baneful. Baby food: cerelac. kitkat. Food service: chef. Dairy: carnation. natures. movenpick. in technologies. nido. chef mate. 3. lean cuisine. haagen dazz. cat chow. stouffer s. 11. . Culinary. Nescafe decaff. chilled & frozen food: buitoni. bakers complete. Our aim is to meet today s needs without compromising the ability of future generations to meet their needs. Maggie. 9. dog chow. 7.term sustainable value for our shareholders if our behaviour. Bottle water: pure life. nesquik.

. Sheikhupura (factory) Nestle is a customer and profit oriented organization rather than system and strategy oriented. Karachi 4. Faisalabad 5. Islamabad 3. Lahore 2.Branches in Pakistan Nestle has branches in the following major cities: 1. The mechanics of generating profits are low cost production and high price sales.

These stall activities remain active for around 4-5 days. . advertising and tools used for generating demand. These stalls are conducted in different places so the more people become aware of the importance of products that ensure quality. Thus.Departments Nestle has different divisions. It provides a linkage to both departments by connecting them in case of any demand from other department 2. There are four departments in the nestle confectionary that are as follows: 1. After a stall activity finishes. the person who conducted the stall activity has to report to their seniors about the response they received from the public and the number of new customers they have been able to attract during their stall activity. CCST department: is a supporting department for both sales and marketing departments. The marketing department is also responsible for arranging stalls and functions for the promotional and official reasons respectively. Marketing department: is responsible for all sort of activities including the promotion. in a month 4-5 stalls are managed.

Every day. The area manager administer these territories. This helps in creating competiton among the territories. Also the monsoon season affects the sales of candies and chocolates. There are three people who go for the sales. cantt. the nestle delivery van drop confectionary products. each covering a specified area of Lahore on daily basis. The sales target varies with the season. Sales department: is responsible for carrying out the sales of nestle confectionary covering the whole of Lahore. . johar town. y Gulberg. keeping the system updated. there are some territories that has been assigned some areas of Lahore. cavalary. the area sales manager are assigned with the targets by the upper management. y Defense y Model town. upper mall. Monthly. To conduct the sales efficiently and effectively. all the distributions submit in their reports to the sales and distribution manager that contains the percentage of the target achieved including the quantity sold by each route. They are: y Driver y DSR y Loader For carrying out the trasactions easily. rehmanpur and thokar niaz baig. Like some territories covers these areas respectively. garden town. the sale for confectionary products are more as compared to summers. township. the target for the sales of the confectionary is set and all the distributions have to achieve that target by the end of the month that helps in increasing the productivity. The hand book keeps records of the data of the retailer. For example in winters. the DSR provided with the handbook.3. These four terrioties are further covered with a total of 20 routes. When it is the end of the month. y Interior Lahore. At the start of the month. All this data is stored in the system thus.

y Ware housing:  Procure a warehouse as per nestle standard.  Provide in time reports to nestle management.  Daily supervison of DSR performance.  Make claims as per company guidelines and verify data. y General:  Adhere and act on allpolicies/decisions by nestle management.  Attending all delivery related complaints in time.QSM etc)  Maintain a clean environment.  Ensuring delivery on special request forwarded by customer services.4.  Ensure all nestle quality standards(fifo. some internally hired or external sources are acting as a distributor for nestle in Lahore. nqs. .  Ensure efficient operations. y Customer service  Delivery at customer premises on schedule day and routing time.  Supervise DSR orientation and training.  Close liaison with sales management for target achievement. y Delivery team:  Short listening of DSR s for hiring.  Installation of hood on distribution vechicles  Paint of hood and its maintenance. y Accounting:  Maintain audit accounts of the business.  Ensure DSR s working as per company direction.  Minimizing store loses. The distributor has various responsibilities or duties that asr as follows:  Eleet management: Procurement of vechicles.  Maintenance of vechicle in good condition. Distributor: for carrying out daily working.

Organizational flow chart National Sales Manager Zonal Sales Manager Regional Sales Manager Customer Service Manager Area Manager System Support Executive Event Management Customer Service Officer Territory Incharge System support officers Sales Associates Event Management officer Loader Chiller Technician DSR Loader .

represents the Group s management structure. The Group's pharmaceuticals activities are also managed on a worldwide basis and are presented separately from Food and Beverages. WATERS. There are 7 primary segments.by management responsibility and geographic area (Zones. Nestlé Nutrition and Other Food and Beverages (includes Nestlé Professional). The content of this section relates to figures published in nestles 2009 Management Report and Financial Statements. . ZONES. Waters & Other) . NUTRITION The operating segment format . Oceania and Africa) Nestlé Waters Nestlé Nutrition Other Food and Beverages Pharmacy The Group manages its Food and Beverages business through three geographic Zones and globally for Nestlé Waters.Financial overview Nestlé Group reports its Sales and Results both by Management Responsibility and Geographic Area as well as by Product Groups. y y y y y y y Zone Europe Zone Americas Zone AOA (Asia.

is divided into six product groups (segments).by product group . Nutrition and Ice Cream Prepared dishes and cooking aids Confectionery PetCare Pharmaceutical products .PRODUCT GROUPS The products segment format . which are: y y y y y y Beverages Milk products.

Systems and methods. we try to take the mentality and customs of individual countries into account. windy rhetoric and hypocritical remarks An emphasis on practical experience and on the setting of good examples. . convenience. A strong orientation toward human beings. if not the decisive.Nestle Insight: Business Principles Guidelines At Nestle. Principles People first Employees. should remain managerial and operational aids but should not become ends in themselves. but there are some general guidelines that we apply everywhere. realistic approach to doing business An open-minded approach to the world A minimal number of systems and written guidelines A personal style of management An atmosphere of mutual trust An avoidance of showing off. variety and price -. while necessary and valuable in running a complex organization. Those include: y y y y y y y y A positive attitude toward work A pragmatic. employees and executives is a decisive. Quality products Our focus is on products.products that can stand their ground even in the face of fierce competition. It is a question of priorities. people and products are more important at Nestle than systems. The ultimate justification for a company is its ability to offer products that are appealing because of their quality. component of long-term success.

" Uniformity A very important concern at Nestlé has to do with uniformity: how consistent Nestlé s principles. Of course. region. we create strength and flexibility and are able to make decisions that are better attuned to specific situations in a given country. Long-term thinking defuses many of the conflicts and contentions among groups -. not an "outsider. branch or group of products. In general. supplemented by a few satellite subsidiaries abroad. and to what extent they should differ depending on the country.this applies to employment conditions and relations with employees as well as to the conflicts and opposing interests of the trade and the industry. but Nestle does not regard its Swiss headquarters as the center of the universe. our ability to focus on long-term considerations is only possible if the company is successful in the struggle for short-term survival. This minimum is then systematically enforced. Policies and decisions concerning personnel. This policy creates stronger motivation for Nestlé s executives and employees and a greater sense of identification with Nestlé s business. By decentralizing operational responsibility. mentalities and situations. It is not Nestlé s policy to generate most of its sales in Switzerland. Nestle strives to be an "insider" in every country in which it operates.Long-term view Nestle makes clear a distinction between strategy and tactics. This is why Nestle strives to maintain a satisfactory level of profits every year. Nestle tries to limit the uniformity of its policy to a requisite minimum. Decentralization Switzerland is home to Nestlé s Swiss subsidiary. policies. It gives priority to the long-range view. subsidiary. unless there are compelling reasons in a given market that justify deviation from policy. rules of conduct and strategies should be. Decentralization is a basic principle of Nestle. marketing and products are largely determined locally. its international headquarters and the registered office of Nestlé s holding company. . Our policy is to adapt as much as possible to regional circumstances.

For Nestle. not a conglomerate hodgepodge. . research will play an important role in overcoming environmental problems. a larger company has an advantage. regulatory bodies and publicity. but only in the context of a carefully considered corporate marketing policy. Nestle wants to operate only those businesses about which it has some special knowledge and expertise. Nestle is a global company. We regard acquisitions and efforts at diversification as logical ways to supplement our business. it is desirable for a firm to achieve the size best suited to a specific industry or mode of production. simple structures work best and excessively large units should be avoided whenever possible.Diversification Nestle does not want to become either a conglomerate or a portfolio manager. To be competitive internationally and make significant investments in research and technology. health. Concern for the effects of packaging on the environment is forcing us to look for new solutions and to consider their interaction with our biological product -. flexible. this is particularly important in packaging. Research and development Nestle is probably unique in the food industry in having an integrated research and development program that engages in applied and basic research in the fields of human physiology. In addition. competition. it is spread out over many countries and each of Nestle's factories has its own management and responsibility. for a company's power is limited by a host of factors including legislation. especially in the critical area where preventive medicine and food products overlap. nutrition and raw materials. Our research and development program gives us the capacity to create new types of products that we cannot even imagine today.food. as concern for the environment grows. In both respects Nestle has a natural advantage: Although it is a big company. Flexibility and simplicity The public's sense of the power and size of a corporation is often inaccurate. From a strictly organizational point of view. From a business point of view.

adjusted to local conditions. Our response to this situation is to intensify research. The Nestle Policy on the Environment Nestle respects the environment and is committed to environmentally sound business practices throughout the world. the world's population will double.Foresight At present. In order to achieve this. apply. packaging and processes. Malnutrition and poor eating habits are still serious problems in many developing countries. Within the Group. relevant decisions take protection of the environment into account in the following areas: Research and development The Nestle research and development centers have two main tasks: to create new products and manufacturing processes and to improve those that already exist. This commitment is put into practice by considering local legal requirements as a minimum standard. the big picture is all about feeding the world and providing food and nutrition for an ever-growing population. Will it be possible to feed a world with so many inhabitants? At Nestle. the Nestle Group. strive for innovations and improve quality. our internal rules. Research and Development and new investments include an evaluation to ensure environmentally appropriate products. thus taking into account the need to preserve natural resources and save energy. Management and personnel within the Nestle organization worldwide are encouraged to help resolve environmental problems within their own sphere of influence. If these do not exist. Environmental concerns . These centers play a key role in product safety and quality and also have their role in conserving resources and protecting the environment. By 2100. while maintaining its commitment to supply the consumer with products and services of high quality and safety. the world faces daunting questions about its ability to provide enough wholesome food for everyone. will continue to apply a series of general principles.

Handling of raw materials The Nestle Group is in principle not directly involved in primary production of raw materials and other food ingredients. The Nestle development centers prepare environmental impact studies for new products and manufacturing processes. These cover all aspects. The Nestle Research Center provides the scientific support needed to prevent and solve environmental problems arising in the development groups as well as manufacturing. most appropriate and safe use of agro-chemicals use the least energy. In general we use locally available raw materials and purchase them either directly from producers or through existing trade channels. In those cases where the required agricultural raw materials are not available locally. to the final packed product.are an integral part of any development process to ensure that our future commercial operations meet the desired criteria. These analyses provide additional elements for use in deciding whether to commercialize a new product. from raw materials. we encourage local production and provide assistance for cultivation and dairy farm management. Whenever possible we give preference to those goods for which environmental aspects have been taken into consideration. In addition. . but the natural production conditions exist. studies are carried out to find new ways of using industrial residues to create value added by products. We support plant growing and livestock husbandry methods which: y y y preserve and improve natural soil productivity and economize and protect water resources allow the lowest. Raw materials have to meet clearly established quality criteria and are checked for possible contaminants including environmental contaminants. or to introduce a new or modified process. Our purchasing specifications comply not only with legal requirements but go further to ensure highest safety and wholesomeness of our products. This will reduce total emissions and effluents. through processing.

Marketing and distribution Marketing is based on the principle of satisfying consumer needs. Our aim is to minimize wastage in communication. The manufacturing activities of the Nestle Group: y y y respect natural resources by efficient use of raw materials and energy minimize waste generation and emissions ensure environmentally safe disposal of all waste which cannot be recycled. . Environmental product claims in advertising. with the aim to make them safe and convenient for the consumers.Packaging Manufacturing comprises all unit operations necessary to transform perishable raw materials into finished products. This applies also for copackers. publicity and promotional material. Information on developments in environmental protection technology and practices is disseminated as required to ensure that all plants are using the most effective environmental practices for their type of processing. This is the foundation also for the environmental marketing approach of Nestle. as well as results achieved in comparison with targets for improvement full investigation of incidents which may affect the environment. company environmental standards. based on solid scientific evidence and used in a serious and reasonable manner. promotional material and on packaging are in accordance with legal requirements. These assessments include: y y y y evaluation of individual plant performance with regard to operations which have an impact on the environment definition of targets for improvement review of plant compliance with local government regulations. in particular through more precise targeting of marketing activities. Regular assessments of processing practices are carried out.

etc. Information. industry. In distribution. communication and education Nestle's policy is designed to provide correct and coherent information on the activities of the Group. leaflets. in store promotions.Consumer promotions and merchandising material such as consumer offers. This applies also to environmental . applicable and enforceable. printed matter. government representatives. rational. In doing so. we cooperate with legislators through local industry associations in order to promote laws and regulations in the field of environment which are reasonable. We oppose unjustified bans and any other discriminatory measures. We also apply this policy to environment related matters. Activities related to the environment benefit from the same treatment and their communication is secured through all currently available means inside and outside the Group. take environmental aspects into account. display material. We favor the harmonization of food regulations in order to remove existing trade barriers and to avoid the creation of new ones. energy efficient and pollution controlled methods are encouraged wherever possible. It is furthermore Nestle's duty to create awareness. the scientific world and consumer associations. This means due consideration of environmental impact in selecting both materials and printing methods. to train and motivate employees on their personal responsibility with regard to the protection of the environment. We participate in discussions on food legislation and regulations between international organizations. Legislation and regulations It is the policy of the Nestle Group to strictly comply with all laws and regulations relevant to our activities. realistic.

we can contribute to valuable discussions and be recognized as an active partner in helping authorities to formulate comprehensive strategies in the field of the environment. We favor the exchange of information. . of experience and of knowledge between the various interested parties.issues. All the elements of The Nestle Policy on the Environment are part of the technical assistance process which provides for a permanent transfer of knowhow and technology from the Central Service Company (NESTEC) to all Nestle subsidiaries in the world. Thanks to all these synergies.

In certain circumstances. the Vendor will cooperate with Nestlé to facilitate a visit or audits of his own suppliers. location. in the Vendor's premises. shall be authorized to perform audits at the Vendor s. line and environment control records. processing. vendor's or outsourced laboratory and the reliability of analytical results.Nestlé AUDITS Nestlé. CHANGES IN MATERIAL CHARACTERISTICS The Vendor must contact Nestlé and get a written agreement for delivery to Nestlé in case the material characteristics deviate from the agreed specifications. authentic and produced without adulteration. Nestlé shall be authorized to consult the HACCP study files. Nestlé reserves the right to share internally the outcome of the audits carried out at vendor facilities. reliability. Nestlé reserves the right to audit the Vendor s suppliers to check that the materials they provide meet requirements specified in the Purchasing contract. composition. However. specification or other conditions can impact the material quality and the food safety parameters. The Vendor must meet the requirements for the technical characteristics of the material as described in the specification issued by Nestlé. compliance with local regulations. The Vendor is expected to recommend improvements or a permanent material specification change in cases where change in design. The person shall be granted unrestricted access to premises concerning the manufacture or handling of the materials under consideration and commit to confidentiality. The specification is to be read in conjunction with the document "MRES". including material. The Vendor shall evaluate his own suppliers to ensure that they fulfill the relevant hygiene practices. quality monitoring plans and all quality records relevant to the material sold to Nestlé. The audit may include checking the required hygienic practices and the quality and food safety system efficiency. which gives further requirements that are largely specific to the country of destination or common to a whole group of materials. or any person entrusted by Nestlé. . GENERAL REQUIREMENTS FOR MATERIALS The materials sold to Nestlé must be fit for human consumption.

They confirm that a specific delivery has the agreed analytical values. Packaging materials must be verified for the absence of hidden ingredients.Religious Certification: Issued by the relevant religious authorities/organization.or Kosher sensitive products or ingredients. the Vendor must comply with the defined dietary requirements (such as religious requirements for Halal or Kosher foods).RELIGIOUS REQUIREMENTS Where required. the following certificate types are requested by Nestlé: . .Certificate of Export: usually issued by the government. For certification of Halal. The supplier must also ensure that the certification is done according to the requirements of Halal / Kosher. it can also be the vendor) and states the origin of the material. CERTIFICATE REQUIREMENTS The Vendor must be able to provide certificates based on Nestlé requirements.g. The tests are typically related to the quality and/or performance of the material. It typically states that the manufacturing facility is regulated and inspected by a food authority (e. It allows goods to be exported (generally required by the importing country). This is typically related to Kosher and Halal. . . the Vendor must engage a credible Halal / Kosher body. .Certificate of Compliance (packaging materials only): It typically states that the material complies with all relevant local regulatory requirements of the country(ies) where the Nestlé finished product will be sold.Certificate of Origin/Source: This is generally issued by the government (in some cases. .Certificate of Analysis: Analytical results of the testing that is carried out on the material batch/lot before delivery to Nestlé. Typically. FDA). it states that the raw material is manufactured under the given conditions defined by the religious authorities/organization.

The Vendor is expected to comply with these requirements. In addition. The Vendor must communicate the necessary information for storage conditions to Nestlé. free from infestation. PACKAGING . the Vendor must comply with any additional requirements for packaging and/or labeling as specified in the Nestlé purchasing specifications and in MRES. The packaging must conform to the relevant legal requirements for materials in contact with food. shelf life and expiry date.. clean and sound containers with no loose or detachable closures or other potential foreign matter hazards. . All packaging materials used for the storage of foodstuffs must be free from taint or our and must not taint the materials that they contain. The material must be adequately protected against water or other damages during the storage period.STORAGE . Each packaging unit must be permanently and legibly identified in compliance with agreed Nestlé requirements.SHELF LIFE Nestlé has the following general requirements for the packaging of the delivered material(s): The material must be packed in suitable. and maintained at a temperature and humidity appropriate for the material.Other locally or regionally applicable certificates such as MSDS (Material Safety data Sheet). In case specific storage or handling conditions apply. The minimum requirements from a quality and food safety perspective include material description or trade name. they should be included as well. producer and / or distributor. content and frequency of certificate issuance is specified in the MRES document. batch or lot number. The type. Declaration On Genetically Modified Organisms (GMO) can be requested. All storage locations used by the Vendor must be clean.

the Vendor shall remain entirely responsible for the provision of the materials to Nestlé. If the Vendor is not the manufacturer of the material (example: trade materials). . In the case of a subcontracting or trade contract.The physical logistics will not cause damages to the material.DELIVERY The Vendor must ensure that.The material will not suffer undue quality deterioration while being traded. The Vendor shall ship the minimum number possible of batches of the same material per purchase order. ALTERNATIVE SITES. then the Vendor shall ensure that the principles outlined in this document are applied and allow Nestlé to check their application at the manufacturer's premises. A formal agreement (contract) is mandatory between Nestlé and transport companies. SUB-CONTRACTING The Vendor must inform Nestlé of the eventuality of producing the materials in one or more alternative sites. Therefore. and shall protect against deterioration. Subcontracted transport companies cannot be used without prior Nestlé authorization. comply with the Nestlé minimum remaining shelf life requirements at the time of delivery to Nestlé. where required. before the delivery with a reference to the specific purchase order. TRANSPORT . Tankers used must be designated for food use only. The Vendor must follow the first expiry-first out (FEFO) principle.The Vendor must communicate to Nestlé the guaranteed shelf life of the delivered materials and. should accompany every delivery. The information should be sent in electronic format whenever possible. during shipment: . The number of containers. the Vendor shall make sure that the subcontractor meets all the . These alternative sites must also be approved by Nestlé before the materials can be sourced from them. including information on the individual shipping units. Tanker cleaning locations can be subject to assessment where required. Cleaning procedures and details of the type or nature of other foods carried by the tankers must be provided as requested. be clean in order to prevent possible contamination. The Vendor cannot subcontract all or part of the material production to a third party without Nestlé's prior agreement. The carrier selected for delivery of the materials shall be suitable for food use.

Changes to the status of the systems impacting the material and related services delivered to Nestlé. Nestlé reserves the right to request the complete report. have a clearly defined quality function within its organization. III. Nestlé-accepted standards and when issued by Nestlé-accepted Certification Bodies. in the country of sale of the Nestlé finished products. The Vendor shall allow Nestlé to audit/visit the subcontractor's plant. third party and/or regulatory approvals that are either gained or withdrawn must all be communicated to Nestlé. including extensions or reductions in the scope of approval. Compliance with quality system certification standards is accepted by Nestlé in case it is for industry-recognized. .requirements as laid out in the present document and in the purchasing contract. where required. The Quality and food safety systems must comply with the provisions of the local legislation and/or with Nestlé requirements. REGULATORY COMPLIANCE The Vendor must have adequate tools and procedures must be in place for ensuring full compliance with regulations and consumer expectations of materials delivered to Nestlé in the country of manufacture and. In case materials other than for human consumption are manufactured. filled or packed on the vendor's site. properly train all personnel who might affect material quality/food safety in their functions. For purposes of assessment and approval. QUALITY AND FOOD SAFETY SYSTEM QUALITY AND FOOD SAFETY MANAGEMENT SYSTEM The Vendor is must: establish and maintain a documented quality and food safety management system that covers the manufacture and supply of the material(s) under consideration. the human / not human activities must be strictly separated (either by physical or by cleaning means). II.

QUALITY ASSURANCE Vendors must apply consistent and appropriate quality checks on their materials to ensure their conformity with the requirements as described in the material Purchasing Specification and Material Requirements. or other methods as defined by Nestlé. Responsibilities for the release decision must lie with dedicated and adequately trained personnel. The Vendor shall validate his control methods in relation to the official methods (international reference or equivalent). . The release decision must be documented for each lot / batch of the respective material. As outlined in the Nestlé specification. for the material(s) under consideration. The records related to these controls must be kept and made available to Nestlé upon request. previous surveillance results. It must include a procedure for the appropriate handling of potentially unsafe materials to ensure that they are not released until they have been evaluated. Where requested and agreed. HACCP (raw materials only) Nestlé expects that. work in process (where applicable) and finished materials. a Certificate of analysis (COA) must be provided before or at each delivery for every batch included in the delivery. the material characteristics may be subject to inspections to allow the release of each batch. rework. The Vendor must establish a control plan (including a sampling plan) in order to ensure conformity with the defined material characteristics. the Vendor has a system in place for identification as described in the ISO22000 standard or an equivalent thereof. trend analysis and/or new conditions.The reference for the food safety system detailed requirements is the Nestlé Food Safety Management System. The plan must be updated annually according to new issues/priorities that shall include regulatory developments (issued and pending). RELEASE The Vendor must have a documented release system in place for the active release of incoming materials.

The intellectual property rights for this document. EMERGENCY PREPAREDNESS The Vendor must have a documented business continuity / disaster recovery plan addressing both recovery of production capacity. Where requested by Nestlé. to accept Nestlé s proposed corrective action plan. the Vendor agrees to initiate corrective action in case of unsatisfactory results. define a contact person that will be in charge of resolving non-conforming material issues and communication with Nestlé. . In case a fault is found with the material. In case of rejection of delivered materials or of unreleased production at the Vendor's site. the Vendor agrees to handle such materials in such a way that they will not be delivered a second time. either to the original Nestlé site or to another one. Clearly defined responsibilities must be in place within the Vendor organization and contact person(s) for issues and emergencies communicated to Nestlé. where agreed. Nestlé will destroy the non-conforming or rejected goods. the Vendor agrees that his own laboratory. or the external laboratory providing services to the Vendor. Nestlé reserves the right to reject upon reception or during use any material that does not conform with the requirements in the relevant documents and to return or destroy it at the risk and expense of the vendor. product recall / withdrawal. LABORATORIES Vendor laboratories carrying out analyses must comply with local regulatory requirements or requirements defined by local authorities for this purpose.HANDLING OF NON-CONFORMITY Vendor must: have a documented procedure in place for handling non-conforming materials. Nestlé also expects the Vendor to conduct a root cause analysis in order to define a corrective action plan to prevent the problem from reoccurring or. BUSINESS CONTINUITY PLAN. will participate in laboratory proficiency tests organized by Nestlé. In certain cases. and continuity of service. Furthermore.

management of purchased materials (vendor approval.traceability and recall procedures ALLERGENS (raw materials only) The Vendor must have a procedure in place to evaluate the allergen crosscontact risks and implement control procedures throughout the process.personnel hygiene and employee facilities . OPERATIONAL QUALITY GOOD MANUFACTURING PRACTICES.training and education .equipment suitability. bio-vigilance and bioterrorism .construction and layout of buildings. control of incoming materials) .warehousing (handling. water. cleaning and maintenance . premises . in compliance with applicable regulations. storage and delivery.IV. storage and transport operations. zoning . PREREQUISITE PROGRAMS.waste disposal .calibration .measures for the prevention of cross-contamination. material approval for use. PREREQUISITES The Vendor's pre-requisite programs must cover the following elements. energy) . GOOD MANUFACTURING PRACTICES.utilities (air. transport) . industry standards and Nestlé-specific requirements for the material(s) under consideration: .cleaning and sanitation .food defense.rework . .pest control .

processes or product portfolio which impacts the allergen information provided. all the locations where the material was stored.The Vendor will be asked to complete the Nestlé Major Allergen Declaration form. release criteria and monitoring activities for the material(s) under consideration. the country of sale of the material(s) under consideration CALIBRATION The Vendor must have a calibration and verification procedure for all equipment and instruments used in the production process that were identified as critical for elimination or reduction of key food safety hazards. the company that was responsible for the transport. the origin of the ingredients used In addition. If the legislation of the country of destination requires a longer period. where required. the Vendor must be able to identify: the method and date of transport. The Vendor must conduct regular traceability exercises. the Vendor will be required to work with Nestlé on appropriate control measures. this will prevail. and must inform Nestlé each time there is a change in his raw materials. . TRACEABILITY AND RECALL PROCEDURES. The information must be made available for every batch of the material(s) delivered to Nestlé within 4 hours of the request and must be kept on file for a minimum of 5 years. the results of quality controls performed. with the dates of storage. The Vendor must have a system in place covering all steps involved in the production of the material(s) under consideration to be able to trace: the manufacturing and processing records. NET CONTENT The Vendor must have a net content control system in place that is compliant with regulations of the country of manufacture and. In certain cases.

including information about the origin and manufacturing location of the ingredients used for producing the materials supplied to Nestlé. or of any other materials that could compromise the quality and food safety of the materials supplied to Nestlé.MANAGEMENT OF PURCHASED MATERIALS The Vendor must have a process in place ensuring full approval of its vendors. . An incoming materials control system must be defined and executed.

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