The Supply Chain Case Study: Nestle

*Nestle case study1

Question1:

Supply chain is the steps and activities that are required to bring an item from its crude state to the completed merchandise sold to the customer.

• Growers (Coffee makers): they can sell it to the manufacturers or to the government agencies. In other cases, they might supply it to other suppliers. Nestle one of the companies that buy the coffee directly from the farmers (coffee growers).

• Intermediaries: are who involves in the primary processing, transportation...etc.

• Government agencies.

• Exporters: they purchase form the government agencies usually.

• Suppliers

• Manufacturers.

They are involved in the supply chain.

Question2:

Fair trade is trade between companies in developed countries and producers in developing countries in which fair prices are paid to the producers. The organization offers a reasonable cost to the ranchers, thus guarantees consistent supplies of ensured quality for its own particular processing plants. Higher quality orders a higher cost - a premium that Nestlé is cheerful to pay, since great quality crude materials are vital to its business.

Question3:

First, Nestle purchase their coffee direct from ranchers to remove the go-betweens and ensure a base cost for agriculturists.

After that, the coffee developing industry is work escalated and an expected 60 million individuals acquire all or some portion of their living.

The next step, Nestle guarantees that coffee ranchers can get more than the