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. :)