outsourcing at nestle

8/16/2019 Outsourcing at Nestle

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OUTSOURCING AT NESTLE

People Functions Material Services Technology

1 All Labor

Class

Logistics Tetra

Pack

Janitorial

Services

Computer

Aided

Designs

2 Trainers Suppliers Plastics Pallet

Management

Team

Ecodex

3Delivery oys!"estle

#aters

Distributor s Cocoa $arms %T System

4 Suppliers Packaging &a' Milk Dairy $arms Enterprise

&ecourse

Planning

5 C(e)s Pallets

6 Laboratory

Assistants

$ruits

7 Doctors *e(icles

8 &esearc(ers Packaging

Material

9 Psyc(ologist

s

10 Designers

11 "utritionists


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OUTSOURCING OF PEOPLE

All Labor Class

In our Interview, manager told us that Nestle has

330,000 employees and among them all factory

workers are completely outsourced

All these tasks are performed by workers who are

outsourced

Nestle outsource them to save its labor cost and paid them their daily wages

Delivery boys-nestle waters

One of the product divisions of Nestle “ure !ife" initiated a home and office delivery system

of its #$ ml water bottle and for delivery purpose% it outsourced #0 delivery boys or more as

per need&

Suliers

In Nutrition

Division

In Nestle Waters In Confectionary In Nestle

Professionals

Dairy Far!ers Plasti" Suliers Co"oa suliers Far!ers w#o

rovi$e %e&etables '

(ruits


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S#e#er$s Raw C#o"olate

suliers

C#e!i"al Suliers

Gra)iers

Poultry Far!ers

Tetra Pa"* Suliers

Outsour"in& o( Trainers

Nestle sometime outsource trainers for some specific type of trainings for a limited time

period

A$ult +ase$ E$u"ation Trainin&

'his program was actually initiated in in (outh Africa, under the apartheid regime% many

people were seriously deprived of elementary education& 'hese include a significant percentage

of the older employees at Nestl) factories today& A special remedial program had been designed and put in place for them* A+', Adult +ased

ducation 'raining& A$ult +ase$ E$u"ation Trainin& ,A+ET #as been in oeration (or al!ost t#ree years&

It is a team-based program teaching four levels of math, reading and writing, and success is

recogni.ed with a National /iploma& As a result, it involves a two-hour session twice a week % one hour is donated by Nestl) from

the working day, the other is in the employees time in which an outsourced teacher or

instructor taught them&

Driver Sa(ety Trainin& Pro&ra!


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In the year 1002 Nestle established the first drivers training institute near (heikhupura with the

obective of safety and well-being of the communities it operates in&

Nestle outsour"e$ $rivin& trainers (ro! National .iway an$ /otorway Poli"e ,N.'/P

an$

'he lack of proper knowledge and the absence of safe driving practices and procedures

'he training facility allows participants to ac4uire speciali.ed driving practices and curb

accident rates on the roads&

/ore t#an 011 $rivers (ro! t#e Co!any were traine$ at t#e institute $urin& 2134&

Far!ers Trainin& Pro&ra!

In the year, 1000 Nestle established two dairy farmer training and demonstration farms (arsab.

and (ukheki and outsourced almost #03 e5perienced farmers to train young ones Traine$ over 56711 (ar!ers an$2111 stu$ents

International Trainin& Pro&ra!

Nestl)s success in growing local companies in each country has been highly influenced by the

functioning of its International 'raining 6entre 7ive 7eine, located near their companys

corporate head4uarters in (wit.erland& 8or over 30 years, the Rive-Reine International Training Centre has brought together

managers from around the world to learn from senior Nestl) managers and (ro! #ily s*ille$

ro(essionals an$ su""ess(ul entrereneurs w#o are outsour"e$ to sen$ t#eir ti!e alon&

wit# Nestle !ana&ers an$ rovi$e t#e! wit# valuable insits

Ot#er S"#ools Outsour"e$ (or Trainin&

I/D6 t#e International Institute (or /ana&e!ent Develo!ent in Lausanne8

Other schools are also regularly used, such as INSEAD in Fran"e an$

.arvar$ or 9#arton in the United States as well as local business schools for employees who

are going to remain in the country concerned&

Out sour"in& o( C#e(s

8or some specific functions like a recently held competition 6ook for 9om, Nestle outsourced

some well-known chefs of food industry who provided valuable insights and methods to

enhance 4uality of its products

Laboratory assistants


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/istributors and maor participants of outbound logistics whom Nestle outsources

eople who distribute Nestle products to all over akistan are outsourced

Pa"*a&in&

>hen Nestle finali.es its packaging designs, the products along with selected design is

transferred to an outsourced packaging company who them performs final tasks of

implementing that design into original product packaging&

UTSURCIN! F S"R#IC"S

Janitorial Services

At "estle. /anitorial services in all 0 )actories and in all "estle o))ices in

Pakistan are being outsourced1 T(ey provide services o)

• +lind cleaning

• 6arpet care

• 6lean room services

• 6omputer room cleaning

• 6onstruction clean up

• /ocument disposal

• ?ard surface floor care

• Inventory control

• !ight industrial

• 9atting programs

• ressure washing

• roduction line support


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• 9edical waste disposal

• mergency services

•

scalator cleaning

• 8ood service sanitation

• @eneral maintenance

• @reen cleaning

• 7ecycling services

• 7estroom sanitation

•

(pecial event services

• (upply management

• pholstery cleaning

• >indow cleaning

$allet %anagement Teams

Nestl& has seen its 'roduct demand increase several-(old over the 'ast decade) Su''orting this e*ce'tional growth is a + ear relationshi' with a com'an Common

wealth handling e.ui'ment 'ool /C0"$1, 'roviding wooden 'allets to trans'ort and store

the man Nestl& 'roduct lines)

8rom its early days, Nestl) factories ran its own pallet pool to move and store products in-

house as well as to distribute products to dealers and retailers&

In #$$B, Nestl) was rapidly e5panding and

decided to outsource its pallet management to

6?, the worldCs leading e5perts in pallet

pooling&

+,TS+,&C%"- +$

TEC2"+L+-3

"estle outsource some o) its so)t 'ares

)rom SAP

(A is a @erman

multinational software

corporation that makes

enterprise software to

manage business

operations and

http://www.abm.com/pages/green-cleaning-sustainability-commitment.aspxhttp://www.abm.com/pages/onepass-cleaning.aspxhttp://www.abm.com/pages/onepass-cleaning.aspxhttp://www.abm.com/pages/green-cleaning-sustainability-commitment.aspx


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customer relations& (A is head4uartered in >alldorf @ermany, with regional offices in #30

countries&

Enterrise Resour"e Plannin&

So(tware (or suliers to view its ro$u"tion in(or!ation an$ ensure it "an !eet (lu"tuations

in $e!an$ (or its ro$u"ts8

E"o$e: by Selerant Co!any

Enterrise Resour"e Plannin&

EPR is a management information system D9I(E

that integrate and automate many of the business

practices

Attempts to integrate all departments and functions into one computer system

A system that standardi.e and coordinate Information systems

Ecodex

A new web-based tool installed by Nestle for the life cycle assessment of its products&

code5 was created e5perts of an information technology company called (elerant&

'he tool uses information specific to the food and beverage industry to provide rapid and

accurate data that allows our product development teams to assess sustainability performance

across multiple product lines&

http://www.selerant.com/main/en-us/solutions/ecodex.aspxhttp://www.selerant.com/main/en-us/solutions/ecodex.aspxhttp://www.selerant.com/main/en-us/solutions/ecodex.aspx


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Importantly, it presents comple5 results in a simple, user-friendly format, so you dont have to

be a life cycle assessment e5pert to use it&

2ene(its o( utsourcing to Nestle

T#is business ro"ess outsour"in& "ontra"ts allows Nestle to !eet t#eir "ororate "ost

savin&s &oals (or ea"# "ountry6 w#ile re!ainin& (o"use$ on "ore ob;e"tives an$

"o!eten"ies6<

Costs that Nestle has to bear (or outsourcing

• 6urrently Nestle has a risk of losing sensitive data and the loss of confidentiality

because many of its soft wares has been outsourced

• !osing management control of business functions mean that you may no longer be able

to control operations and deliverables of activities that you outsource

/a;or Proble! =Tetra Pa"* Outsour"in&

T#ere is a belie( a!on& eole t#at tetra a"* in not sa(e (or #ealt#


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'he milk is packed between five to si5 layers of cardboard, polythene and aluminum

sheets& 'his is done to preserve the milk for a longer period of time& 'he shelf life of milk in

'etra ak is si5 to eight months and can be kept at room temperature without curdling&

It doesnt curdle or get contaminated because it is kept away from light and bacteria&

?owever, this is not healthy& 'etra ak packing has been found to release chemicals in

to milk such as urea& And of course it is also simply not fresh&

outsourcing at nestle

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