1
THE NESTLE STORY
Nestle S.A. the present Switzerland based international food
group, originally consisted of two companies and two products:
Henri Nestle and his baby food in Vevey, and the Anglo-Swiss
Condensed Milk company and its condensed Milk Company and
its condensed milk in Cham, both in Switzerland. In 1866 the
Page Brothers form the United States set up a new industry in
Cham, making condensed milk from a raw material that was
available in abundance in the region. In 1867 Henri Nestle a
chemist in Vevey, created a milk and cereal based food for
babies. The companies competed vigorously until 1905, when
they merged and became the starting point of the present food
group.
DYNAMIC EXPANSION
The history of Nestle include the development of many different
products as well as acquisitions, mergers and the purchasing of
shares in companies, mainly abroad, over the course of the tears,
this enabled it to broaden its range of products and diversify its
operations, while at the same time strengthening the economic
foundations of the company. Amongst the most important
acquisitions were Carnation in Los Angeles (milk products and pet
foods) and more recently Rowntree Mackintosh in York (chocolate
and confectionery), Buitoni in Perugia (pasa) as well as Perrier in
France (mineral water).
Nestle which does 98% of its business outside Switzerland, also
has interests in non-food sectors, in cosmetics (a large share
holding in LOreal) and ophthalmic products (acquisition of Alcon
laboratories Inc.) while continuing to give priority to food
products.
NESTLE TODAY
Nestle is now the worlds largest food company. It is present on
five continents, has an annual turnover 70 billion Swiss francs,
runs 522 factories in 81 countries, 200operating companies, 1
basic research center and 20 technological development group
and more than 231,000 employees the world over.
5757082-95
Fax:
5711820
Factories
There are two factories of Nestle Milkpak Ltd. For dairy products.
Sheikhupura:
29th km, Lahore - Sheikhupura Road,
Sheikhupura, Punjab, Pakistan.
Kabirwala:
Khanewal Kabirwala Road, Kabirwala
District Khanewal, Punjab, Pakistan.
There are two plants for Mineral Water situated in:
Islamabad :
Karachi:
REGIONAL OFFICES
Company has ten regional sales offices in following cities of
Pakistan:
Karachi
Hyderabad
Sukkhar
HR Division
Personnel Department
Marketing Division
Customer Relation Department
Distribution Department
Research & Development
Department
Finance Division
Treasury Department
Accounts Department
Products
Product Name
1981
UHT Milk
1983
Butter
1986
1990
Nido
Cerelac
1991
Nestum
Lectogen
1992
1994
Milo
Neslac
1995
Millo RTD
Nescafe 3 in 1
1996
Nestle Wheat
1998
Toffo
Soothers
Nestle Pure Life
1999
Maggi Sauces
Fruit Drops
Butter Skotch
2001
Mission
Wherever you live, only Nestle can provide the best and most
relevant food and beverage products to meet your needs
throughout your day, throughout your life. The Nestle Network
icon will take you on the journey of discovery through our world
of food.
systems
and
technologies
COMPETITIVE PRIORITIES
Following are the competitive priorities of NM.
i.
Consistent quality
ii.
Development speed
iii.
Volume flexibility
QUALITY
Quality is the cone competitive priority of NM. They take quality
in two ways. High performance design and consistent quality.
CONSISTENT QUALITY
NM pays special attention for maintaining consistent quality. They
have special sort of equipments and process which facilitates in
maintaining a consistent quality. So the each and every unit of its
product equally satisfies its customers.
DEVELOPMENT SPEED
As for as develop speed is concerned NM is the industry leader
not only in Pakistan but all over the world. They have a team of
very innovative people which consistently focus on the
development of new products and to improve the already existing
products.
VOLUME FLEXIBILITY
Volume flexibility is one of the competitive priority of NM. When
the availability of Milk is high in winter season they increase their
production as the milk cannot be stored for longer period of time.
In season when there is shortage of milk their production rates
PRODUCTION PROCESS
Milk Collection & Reception
Cooling
Spray Drying
Storing
Evaporation
Standardization
Pasteurization
Packing
De-Creaming
2273
Sub centers
583
Main Centers
23
B.
C.
D.
C, there is no
Trollers are not preferred to stay more than 1.75 Hrs. in factory so
that they can in time collect milk for next day.
STORING OF MILK
Milk is stored in storage tanks called Silos. The capacity to store
milk is 596 tons.
There are 5 Silos of100 tons each,
2 Silos of 10 tons each,
1 Silo of 70 tons.
Milk can be stored for 36 Hours in Silos.
STANDARDIZATION
All the animals have different composition of fats in their milk in
different seasons. Standardize milk according to the recipe milk is
given temperature of 72 oC for 15 seconds to reduce bacterias in
milk, this process in called thermization life of milk is increased
by this process and in standardization composition of fats and
SNF are standardized.
DECREAMING
In this process dirt particles, SNF and cream is separated, milk is
given temp of 60 oC and 60,000 rpm in de-creamer. So that dirt
particles cream can be separated. Cream is send to butter
section. Dirt is drained after 30 seconds milk is send for further
processes.
Forward Placement
ii.
Backward placement.
FORWARD PLACEMENT
In forward placement finished goods are stored closer to
customer .NM use forward placement as they use to keep the
stock of finished goods in their regional offices and distribution
centers. From the distribution centers the goods are further sent
to the retailers.
BACKWARD PLACEMENT
In backward placement finished goods are stored at the
manufacturing plant where they keep goods stocked. So in this
way they use backward placement also. So for inventory
placement NM uses a mix of forward placement and backward
placement in order to provide goods to the market on time.
Distribution Center
Retailers
Customers
PRODUCTION PLAN
A manufacturing firm aggregate plan is called as the production
plan which generally focuses on inventory holdings and
production rates.
NM has its production plan which is generally developed by the
planning department.
the quality of fat is less than required 6% then price will be paid
less proportionately.
Percentage of FAT in Various Kinds of Milk.
Buffalo
6% Fat
Cow
3.5%
Goat
3%
Sheep
6%
Human
3.5%