Nestle is the world's largest food and beverage company, founded in Switzerland in 1866. It has grown significantly through mergers and acquisitions, including a 1905 merger with Anglo-Swiss Condensed Milk that added chocolate to its product line. Nestle employs over 280,000 people worldwide and uses vertical and horizontal integration in its supply chain management.

1. AASIF ALI
PRESENTED BY
L-584
PRESENTED TO
SIR SAMIULLAH
TOPIC
SUPPLY CHAIN MANAGEMENT OF
NESTLE

2.  The word nestle is a Swiss German word
which means nest
 It is world largest and leading food ,
nutrition , health and wellness company.
 Founded and headquarterd in Vevey,
Switzerland
•
INTRODUCTION OF NESTLE

3. •
 Nestle originated in a 1905 merger of the Anglo-Swiss Milk
Company which was founded by Henri Nestle in 1866
 Company grew significantly during the WWI and WWII
 Operates in 86 countries
 Employees 283,000 individuals.
INTRODUCTION OF NESTLE CONT

4. NESTLE FOUNDER (HENRI NESTLÉ)

5.  Revenue 107.6 billion
 Operating Income 15.7 billion
 Profit 10.43 billion
 Total Assets 110.9 billion
 Total Equity 53.63 billion
KEY FIGURES OF NESTLE

6.  vertical integration
SUPPLY CHAIN MANAGEMENT
 Horizontal integration

7. WHAT IS VERTICAL
INTEGRATION?
Vertical Integration is an approach for
increasing or decreasing the level of
control which a firm has over its inputs
and distribution of outputs.

8. There are two sorts of vertical
integration: backward integration and
forward integration.
A firm’s control of its inputs or supplies is known
as:
backward integration.
A firm’s control of its distribution is known as:
forward integration

10. Nestlé demonstrates a unique and vertically
integrated view on developing ethical, nutrition-rich
products that competitors find difficult to match.
In 2002 Nestle decided to develop a vertical
supply chain and revenues with selected
suppliers. The reason behind vertical
integration was scarcity of natural
resources. For example coffee suppliers and
farmers’ activities decre...
VERTICAL SUPPLY CHAIN INTEGRATION IN NESTLE

11. PRODUCTS OF NESTLE
Selected
product

12. SUPPLY CHAIN OF NESTLE MILKPAK
Farmers milk bufflo
Milk reception and cooling centre
Milk poured in aluminium churns
Towards village centre

13. Nestle distributors
Nestle retailers
Nestle milk pak customers
Towards nestle factory

14. ADVERTISEMENT OF NESTLE MILKPAK

15. HORIZONTAL INTEGRATION
Horizontal integration is the
process of acquiring or merging
with competitors, leading to
industry consolidation.

16. To expand a business to another
geographic location, extra cost such as
import duties, logistics and other
packaging requirements will weigh down
a products launch in the targeted region.
HORIZONTAL INTEGRATION

17. Horizontal integration is a strategy where
a company acquires, mergers or takes over
another company in the same industry value
chain

18. merging with a known food processing
industry Anglo-Swiss Condensed Milk
also a food business.
HORIZONTAL INTEGRATION OF NESTLE

19. ANGLO SWISS MERGER
The merger provided the company
with more resources and capital to
expand their products and later
added Chocolate to their brand in
1905

20. Nestle continued the chain of growth towards the
horizontal integration direction and acquired
several businesses example, canned and
frozen food, bottled water and pet foods.
EXAMPLES

21. NESTLE ACQUIRE PURINA PET FOOD COMPANY
Nestlé Purina has signed an
agreement to acquire Merrick Pet
Care, one of the fastest-growing
natural and organic pet food
companies in the US in july 2015.

22. NESTLE PET FOOD