Case Study: Cost And Outsourcing

1750 Words7 Pages
Cost and Outsourcing Introduction
This paper reviews the Chapters 8 to 11 of Robert’s (2016) book - Supply Chain Financial Management: Best Practices, Tools, and Applications for Improved Performance - and the concepts therein aid in presenting below a case study of the world’s largest food company – Nestlé’s Supply Chain and its innovative cost savings in spite of volatile commodity costs.

Cost Management Workshops
Cost Management Workshops involve any methodology in which supply chain partners come together with the primary purpose of improving costs; achieving continuous cost reductions while managing risks and ensuring longevity and globally expansion are perpetual challenges for multinational firms (Trent, 2016). Here, several elements
…show more content…
In 2012, Nestlé’s raw material bill would rise by as much as $3 Billion; the IMF pointed at historically lower agricultural outputs as the main reason behind the food price increases; Nestlé’s tasks, now involve squeezing costs out of operations, raising prices, launching more upscale higher-margin products that use fewer raw materials (Mulier,…show more content…
Concepts such as strategic pricing, theoretical best pricing, trade-off analysis and strategic, tactical and operational planning in early collaboration with supplier partners, highlight the importance and financial impacts of Supply Chain Cost Analysis for firms that need to be sustainable despite global economic downturns.
Also, under review was the agenda of a typical internal workshop on Cost Management; the key issues, challenges and risks for achieving the theoretical best price for the customer were discussed; the importance of a consistent brand image, the advantages of different levels of customer service, premium packaging utilizing existing brand visibility and the cost tradeoffs therein were

More about Case Study: Cost And Outsourcing

Open Document