Nestle: Milk Pack Project Procurement Process Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Nestle: Milk Pack Project Procurement Process Case Solution

INTRODUCTION OF COMPANY

Nestlé was formed in 1905 by the merger of Anglo-Swiss Milk Company, which was established in 1866 by the brothers George Page, Charles Page.Moreover,Farine Lactee Henri Nestle was founded in 1866 by Henri Nestle. Nestlé in Pakistan is working since 1988 under a joint venture with Milk Pak ltd and it took over the management in 1992.Nestle is one of the largest food and beverages companies in Pakistan. The company focuses on providing healthy, nutritional foods to the customers. It serves its products at every region of Pakistan as well as reaching to almost every location throughout Pakistan to serve the customers. Due to its quality products,the customers mostly focus on its nutrition food product as the companies believes that the selection of products directly affects its heath and quality of life. By comparing Nestle with other brands, the customer retention rate for Nestle’s products is higher than the other brands.

The main objective of Nestle is to enhance the quality of life of Pakistanis as well as to offer healthy and hygienic food products to customers, which protect the health of customers and sacrifice with the health of customers. The product, brand and people are the primary flag bearers of the company’s image as well as the company emphasizes on enhancing the quality food services for customers. Moreover, the philosophy of Nestle is based on the need and requirement of the customers. As a social responsible corporate, the company focuses on friendly environment operations, ethical business operations and its accountability towards the industry communities.

The main objective of the corporation is to become the leading health, nutrition and food beverage company all over Pakistan that provides take holder assessment through productivity, long term growth, while playing an important and accountable role in the economic, environmental and social sectors of Pakistan. Along with this, it aims to meet the nutrition needs of customers of all ages through an inventive assortment of branded foods and beverage products of the highest quality.

Nestle Milk Pak had started its operations in 1981 and produced its first product UHT milk. In1998, it further prolonged its manufacturing process in Pakistan and started producing butter, cream, Desi ghee, Maggie, cerelac product for the customers under the brand name of Milk Pak. The branches of Nestle are located in major cities of Pakistan such as Lahore, Islamabad, Faisalabad, Sheikhupura and Karachi Moreover, its headquartered is located in Lahore and the company operates four production facilities. Two of its factories which are in Sheikhupura and Kabirwala are multi-product factories. One factory is in Islamabad and one is in Karachi and both produce bottled water.

DEFINITION OF PROCUREMENT

Procurement is the process of obtaining or purchasing of goods and services from the outside sources. The method of procurement involves preparation and dispensation a demand as well as the endorsement of costs and cash receipts. It further includes the purchasing planning, specification development, value analysis, financing, price negotiation, supply control administration, selection of suppliers and analysis, stock control stores, disposable and other related functions.

PMBOK’S 4 PROCESSES OF PROJECT PROCUREMENT

The procurement process is the part of the company’s strategy as it shows the ability of the company to purchase material which determined that whether the operations of the company are going well or not. Moreover, the company would not be surviving in the market if its value of procurement is higher than its profits which it makes on selling the actual products. The procurement process model focuses on preserving, establishing and closing association with the contractors of goods and services for the venture. This process is based on the legal contract documents, which is signed between the buyer and sellers.

The PMBOKS process includes the following four processes: (1) Plan procurement (Planning) (2) Conduct procurement (Executing)(3) Administer procurement (Monitoring and Controlling) (4) Close procurement (Closing)..................

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