NESCAF

É - Group 2 -
Đào Ánh Dương
Nguyễn Thị Hoàng Anh
Lê Phương Anh (15.08)
Lê Phương Anh (20.08)
Phạm Phương Anh
 OUTLINE
1. Introduction

2. Nescafé’s Supply Chain

3. Nescafé’s Supply Chain ​Management

Strategy

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 1. Introduction
- Nestlé S.A. is headquartered in Vevey, Switzerland.

- In Vietnam, Nestlé opened its first business office in

Saigon in 1912

- Nestlé’s products in Vietnam include KitKat, MAGGI

products, MOM&me milk, NESTEA Lemon Tea, LaVie
mineral water,…

- Nestlé's products include instant coffee, canned coffee

and machine coffee.

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2. Nescafé’s Supply Chain
a. Nescafé’s Supply Chain

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b. Nescafé’s Supply Chain components
- Raw materials: The farmers grow coffee, do the drying and peeling work.
- Supplier: 2 forms of purchasing coffee:
• Through private businesses, traders
• Buying directly from farmers.
- Manufacturer:
• Coffee roasting factories
• Coffee processing factories
- Distributors:
• Traditional form: delivery to distributors, retail supermarkets, retailers, and then to consumers.
• Modern forms: Open distribution channel, or their own supermarket system
- Retailers: Large supermarkets, hotels, grocery stores….
- Consumer: Individual customers
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c. Potentials:
- There are favourable conditions to grow coffee.
- There are effective care measures to stimulate the growth of
coffee trees.
- Test many new coffee beans, more delicious, higher yield.
- Human resources are available, industrious, hard-working...
d. Challenges:
- Coffee is still mainly produced raw.
- Highest productivity in the world but poor quality compared
to international.
- The situation of coffee trading has not been well controlled.

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3. Nescafé’s Supply Chain ​
Management Strategy
 Distribution strategy:
Low-cost strategy: Nescafé Plan project
- Built a tight distribution network with - Further optimize the Group's coffee supply chain
distributors and retailers
- Increasing direct purchasing and distribution
- For retailers: increase discounts for large
purchasing power - Support coffee farmers
 Nescafé has supplied very well for domestic
demand

Nescafé Plan project:

- 8/2011: build a coffee factory -> created 200 new jobs and reduces energy, water use.
- 9/2012: shorten the supply chain by get closer to farmers
-> increase their income, improving the quality of coffee beans
- 3/2016: build a new factory in Hung Yen -> transporting, marketing, and supplying to the Northern and Central provinces.
- From 2016 to now: + developed sustainably, creating a playground to share knowledge.
+ uses advanced automation techniques -> minimize distribution costs, maintaining the highest product
quality.
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 Objectives of strategy
- Create prestige and increase brand value through activities to support farmers and the
environment.
- Shortening the supply chain, more proactive in managing stable supply in the
competitive situation
- Purchase input materials at a more favorable price
- Higher quality output products at lower prices
- Provide a competitive advantage
- Satisfy customer needs.

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Impact of strategy on Vietnam's supply chain:
- Suppliers, suppliers (coffee farmers):
+ Supported with modern planting techniques
+ Helps save water for irrigation and soil
+ Increased coffee production
+ Protect the environment, reduce the number of
pesticides
+ People have stable and growing income
- Producer:
+ Have a good and stable quality supply
+ Expanding scale, developing production
- Distributor:
+ Convenient transportation, marketing, and
supply of coffee to the Northern and Central
provinces
+ Better preservation technology and more
rational distribution of goods
- Customer:
+ Good quality products, affordable price
+ Easier access to products
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Thank You
for
listening !

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