NESTLE PRIMARY AND SUPPORTING BUSINESS PROCESSES

Nestle is one of the biggest food manufacturer in Malaysia. It is first found in the year of 1867. The founder of Nestle is Henri Nestle. He was a trained pharmacist who is trying to help the infant to gain nutrition other than breastfed. It has achieve tremendous results till today in providing various of healthy food to the world.

HENRI NESTLE

The basic business processes involved primary and supporting business processes.

1. Primary Business Process

• Inbound Sales Logistics
• Outbound Sales Logistics
• Operations
• Marketing
• Service

2. Supporting Business Process

• Procurement
• Human Resources
• Technology Department
• Firm Infrastructure

For over the centuries, Nestle has expand their business rapidly all over the globe. It is very popular among the consumers as the products has been giving out positive feedback. We will explain regarding their business processes that have made them as one of the biggest and famous food manufacturer in Malaysia and also outside of Malaysia.

PRIMARY BUSINESS PROCESSES OF NESTLE (MALAYSIA)

1. Inbound Sales Logistics

• Receiving, storing and distribution of materials at the warehouse.
• Head Office (HO) is located in Mutiara Damansara.
• Nestle receives some of the stocks which is not available for production in Malaysia at its respective factories for storage and later distribution.
• Manufacturing facilities are available at Petaling Jaya, Shah Alam (Selangor), Chembong (Negeri Sembilan) and Kuching (Sarawak). These are the only available manufacturing ventre if Nestle in Malaysia.
• National distribution centre is at Bukit Raja, Klang (Selangor).
• Factories in Malaysia are available at PetalingJaya, Shah Alam Complex, Batu Tiga (Shah Alam), Chembong (Negeri Sembilan), Kuching (Sarawak), Perak and Klang (Selangor).

2. Outbound Sales Logistics

• Distributing products and services to customers.
• Nestle prefers distributing their products by servicing in land transportation rather than rail train or short sea shipping because the possibilities of their product to deliver in good shape is higher.
• Use big lorries that can load more products to avoid empty runs.
• Send the stock to each Nestle branch around Malaysia.
• Distribution are made with many kind of grocery shops' such as Tesco and Giant.

3. Operations

• Transforming inputs into products or services.
• Nestle have a lot of types of food which includes junior foods, milk, breakfast cereals, hot cereals, creamer, beverages, coffee, culinary products, chilled dairy, ice cream, confectionery & chocolate and many more.
• For each product that they have, it will have its own ingredients and raw materials that they need. For instance, manufacturing of chocolate.
• The input are the raw materials needed such as cocoa, milk and many more.
• The process which will be done by the machine such as whipping of the ingredients then froze the ready made chocolate in chiller.
• Finally, the output are the chocolates that have been packaged in their own brand which is Nestle.

4. Marketing

• Helping customers to buy the products or services of the firm.
• The most important thing to do with food business in Malaysia is that the foods must be based with Halal materials and is approved by higher authorities that it is officially Halal where the Muslims can consume it peacefully.
• All ingredients that contained in the product is all labelled accurately on the container of the food.
• Running a food based business is not an easy task as many advertising need to be done.
• However, Nestle is brilliant in attracting their potential customers and also existing customers.
• Many types of advertisement that is made by Nestle such as through television commercials and flyers that is passed around at the shopping mall and many more.

5. Service

• Post sale support provided to customers such as repairs and maintenance function.
• Nestle provides its official website for the consumers to review its products.
• It is very helpful as all functions and purposes of product is stated clearly and is a satisfactory.
• The website has a very welcoming vision.
• Make people that consume the product feels healthy, happier and prevent from getting diseases because if the good nutrition in their food and beverages products.
• Sugar content in Nestle product have been reduced to 34% and salt level has been reduced to 75%.

SUPPORTING BUSINESS PROCESSES OF NESTLE (MALAYSIA)

1. Procurement

• Buying the resources needed to carry out the entity is the primary activities.
• Finding potential supplier.
• Nestle have a lot of supplier around the world to keep them always available with raw materials needed to manufacture products.

2. Human Resources

• Recruiting and hiring new employees.
• Training, paying salary and employee benefits.
• Nestle is not only good in producing nutritional products, they are good in attracting people to join their company.
• Nestle have given many job opportunities to the public with many different positions.
• Advertising of job in website and newspaper.
• Nestle have also given useful information in the website for the one who is interested to work with them.
• Nestle is also known as one of the companies that took care of their employees' rights and duties.

3. Technology Development

• Activity to improve company's product or services.
• Nestle have a department of 'Research and Development' to make sure that they are always up to requirements of the public.
• It is a costly thing to do for company but it pays back the cost with double profit.
• Having the department of 'Research and Development' helps Nestle a lot in healthy competition aspect.
• Nestle also use solar panels in warehouse as energy consumption.
• Nestle is a very economically friendly company.

4. Firm Infrastructure

Nestle has a very stable infrastructure. It is all planned properly by expertise and high education people who have a lot of experience in the nutrition field. It have its own accountant, lawyers, administrative and other officers to do their significant job that has been assigned. Below are the members in the board of director and is assigned to its own job.

• Managing Director - Peter R. Vogt
• Executive Director (Finance & Control) - Marc Seiler
• NCE Market Champion, MYSG Region - Chew Soi Ping
• Executive Director (Coffee & Beverages) - Donald Howat
• Executive Director (Supply Chain) - Patrick Hartless
• Executive Director (Technical & Production - Adnan Pawanteh
• Executive Director (Sales) - Victor Seah
• Executive Director (Human Resource & Group  Corporate Affairs) - Zainun Nur Abd. Rauf
• Executive Director (Nestle Professional) - Yap Yin Kee
• Executive Director (Milks) - Ho Hou Chieh

In conclusion, Nestle is a very systematic company that practice the primary and supporting business processes. :) 

UBS SKILLS THAT I HAVE LEARNED UNTIL TODAY (04.12.2012)

First of all, we have to install the Sage UBS system into our computer or laptop. It is a very simple installation system. Just follow the instructions given in the Sage UBS's work book according to the edition or version that you have bought.

Below are the steps and skills that we have learned so far. It is attached together with pictures of examples.

1. Once the installation is completed, enter the UBS system. The first thing that will appear on the screen is that the selection of company. We have to create new company or select your previous company date. It is better to make new company for beginners.

• Click the 'Add' button and then enter the company's name including the directory.
• After entering the company's name, click 'Save' and then 'Cancel'.
• Your company's name will then be saved like the example below. Click on the company that you have create earlier and press 'Select'.

2. The log in to UBS accounting screen will appear as shown below.

• Select the user as Admin and enter the password accordingly.
• Do not forget to change the date of your business.
• Once everything is filled in, press 'Sign In'. 

3. The main menu screen will appear once you have successfully logged in as shown below.

4. Update your company's profile by pressing on 'Housekeeping' then 'Setup' and finally 'General Setup' as shown below. Once everything is finalized, press 'Ok' as shown below.

5. Press on the 'General' which is numbered as '1' on the top screen to filled in the general ledger with its own number of account, account type and special account type.

• Press 'Add' to create your chart of account. Fill in the details that is needed and finally save it like the example shown below.

6. After entering all chart of accounts, you will need to check the accounts that is entered earlier is correct or not by pressing on the 'General' which is numbered as '3'. A screen will appear as shown below.

• If the chart is wrong, you can just double click on the one that is wrong to edit it and finally save it.

7. The next step is to create batches for the business which is to press on the 'Transactions' and select option number '2' which is 'Organise Batches'.

• Press 'Add' and fill in your batches until it is complete as shown below.
• Press 'Exit' once everything is done. It will be automatically saved and if you want to edit it, you will just go to the same option like the one in the first place in organizing batches.

8. The next skill is to back up the file that you have created. Press on 'File' on top of the screen and select 'Backup and Restore'. Choose 'Backup' only as you only want to back up the file.

• Select on which disk drives which is C or D to save the file of your back up as shown below.

9. Close the UBS system and check on your 'My Computer' to see the back up files that is saved earlier.

• Rename your file and save it again as shown below.

10. Enter the UBS system again and go to 'Housekeeping' to update the company's profile.

• After that, stay on the 'Housekeeping' option and press 'Clear Files/Generate Sample Chart' to delete the previous information that is set earlier.
• Select the option of clearing both chart of account and transactions as shown below.

11. Re-enter new chart of accounts like the one that is shown in step number 5. Below are the example of how to edit the chart of account.

• Press 'Save' once everything is edited and confirm.

12. Re-enter new batches like the one that is instructed in step number 7. Below are the example.

13. Enter business transactions by pressing 'Transactions' and choose 'Transaction Files Maintenance'.

• Add transactions for example Debit Bank and Credit Capital for RM 50,000 respectively. Below are the examples of transaction made.
• Enter all necessary transactions and finally exit.

14. Repeat step number 8 to back up the file so the transactions are all saved.

All in all, these are the skills that we have learned so far (04.12.2012). :)

My 1st Blog Post Regarding Accounting Information System (DAC0163) Mini Blogging Project

Our very first opinion regarding accounting information system is that it is another kind of account subjects where we have to do a lot of calculation and formulas that we have to memorize. However, as time past by, it is indeed a very interesting subject.

By definition itself, accounting information system is a collection of resources designed to transform data into information. An intersection of accounting and information system is also what accounting information system is referred to. There are three main things in accounting information system which are system, data and information.

• System is a set of interrelated component that interact to achieve goal and encourages interaction.
• Data is facts that are collected, recorded, stored and processed by information or system. It is not considered as an important material as it have no meanings to the system.
• Information are data that have been organised and processed to provide meaning to a user. The better information gained, the better decision can be made.

Accounting information system have three main components which are inputs, processes and outputs.

1. Inputs are the data or information from internal or external resources.
2. Processes is when the information being sort, organised and calculated.
3. Outputs are information for internal or external use for decision making.

The video above is the examples of system which includes the input, process and output. It is a very good examples and can be understand easily.

We learned a lot of new skills from the subject itself. What makes it interesting is that it involves practical studies where we have lab classes. It is not a class full of theory which tend to make students feels sleepy and does not pay attention to what the lecturers are teaching. It is a great exposure of learning the system which might be used in some accounting field business.