Nescafé

Logistics and
Supply
Chain
Team 3
Vuong Nguyen Hanh Nguyen – s3818200
Nghiem Anh Quan – s3818042
Bui Huong Thu – s3749119
Pham Thi Phuong Ngoc – s3821190
Nguyen Quang Chinh – s3823481
Demand and
Supply Planning
 Demand planning: The process of forecasting
future customer demand to make decisions
before actual customer demand become
Definitions known (Kilger & Wagner 2008)
Supply planning: Translation of demands to
optimize capacity constraints and material
availability in distribution, manufacturing, and
procurement operations (Deloitte n.d.)
Why is it important?
Managerial
“A tool that unites different business
plans into one integrated set of
Responsibil plans to balance supply and demand
i Sales & and build bridges between the
business or strategic plan and the
ty operational plans of the firm”
Operation
#1: (Thomé et al. 2012)
s
Planning
Sales & Operation Planning Process
Demand Planning

Responsibilities:
 Align with Sales/Marketing for hte
business plan
 Integrate with the end-to-end
process

Values: Establish the desired levels of

customer service, inventory levels, and
production plans (Nguyen 2020)

M
o
Supply Planning
Responsibilities:
 Work closely with the factory's
planner
 Intensify capacity planning
Values:
 Optimize company's capacity
 Create business solutions

Source: Tran 2020

 Managerial

Responsibility "A paradigm-breaking business

model that takes a holistic approach
Collaborativ #
to supply chain management
2: e among a network of trading
Planning, partners"
Forecasting (Sherman 1998)
&

Replenishm
e
 Collaborative Planning, Fore
casting & Replenishment
Model

(Nguyen 2020)
Value
s
Challenge Stockouts due to COVID-19

Forecasted Consumption Volume (Statista 2020)

Performance
measurement
 Capacity utilization (NestléChính hãng n.d.)
 Customer satisfaction

Brand shares – Coffee Vietnam (Passport 2020)

Reference
Deloitte n.d., Supply Planning, Deloitte, viewed 20 August 2020, <
https://www2.deloitte.com/tr/en/pages/operations/solutions/supply-chain-management-services/supply-chain-planning-and-optimization-services/supply-planning-services.html
#:~:text=Supply%20planning%20is%20the%20entire,capacity%20constraints%20and%20material%20availability.
>.
Kilger, C & Wagner, M 2008, 'Demand Planning', in Stadtler, H & Kilger, C (eds.), Supply Chain Management and Advanced Planning, Springer, Berlin, pp. 133-160.
Krauth, E, Moonen, H, Popova, V & Schut, M 2005, 'Performance Measurement and Control in Logistics Service Providing', ICEIS, vol. 2, pp. 239-247.
Nestlé Chính hãng n.d., Cà phê và trà - Phổ biến, Shopee, viewed 20 August 2020, <https://shopee.vn/shop/108166524/search?page=1&shopCollection=38245433&sortBy=pop>.
Nguyen, H 2020, 'Topic 2 – Demand Management', lecture slides, OMGT2085, RMIT University, viewed 19 August 2020, <
https://rmit.instructure.com/courses/74909/pages/t2-demand-management-lecture-slides?module_item_id=2417312>.
Passport 2020, Brand shares – Coffee Vietnam, country report, Passport, viewed 20 August 2020, Euromonitor Passport Database.
Sherman, R 1998, 'Collaborative planning, forecasting & replenishment (CPFR): Realizing the promise of efficient consumer response through collaborative technology', Journal of
Marketing Theory and Practice, vol. 6, no. 4, pp. 6-9.
Statista 2020, Instant Coffee – Vietnam, Statista, viewed 20 August 2020, <https://www.statista.com/outlook/30010200/127/instant-coffee/vietnam#market-volume>.
Thomé, A, Scavarda, L, Fernandez, N & Scavarda, A 2012, 'Sales and operations planning: A research synthesis', International Journal of Production Economics, vol. 138, no. 1, pp. 1-
13.
Tran, H 2020, Nestle & RMIT University: Supply chain operations, streaming video, RMIT University, Hanoi, viewed 19 August 2020, <
https://au-lti.bbcollab.com/collab/ui/session/playback>.
Vlckova, V & Patak, M 2011, 'Barriers of Demand Planning Implementation', Economics and Management, vol. 16, pp. 1000-1005.
Procurement
 • The process of managing a wide variety of
processes associated with the need for a
business to procure products and services
needed to produce a product (direct) or the
Definition organization (indirect) to manage it.
• Procurement will be involved at the
beginning of any new product development
process
Value created KPIs
Sourcing

• The process of finding and

selecting suppliers that provide
goods or services to ensure cost
effectiveness and value creation.
 1. Sourcing
• 40% input such as packaging and
ingredients (Coffee bean) are
from Vietnamese suppliers.

NESCAFE • 60% of the material are imported

from the foreign nations.
 N e s t l e regularly evaluate and supervise
the process of execute the
contract, delivery time and ensure the
product’s requirement.
Why sourcing is important
Risk management

• Recognize that uncertainty in evaluating the

work statement issuing with the contracts
can add to the price of a service by a supplier
due to vague or complex requirements
through hold backs or contingency accounts.
• Consider risk as a factor in choosing between
alternative courses of action, often seeking
the alternative with the least amount of risk.
Risk
management
• 5 steps
1. Identify
2.Assess
3. Prioritized
4.Mitigate
5. Control
Why risk management is important
References
• Dang, T, 2011, "Mot so giai phap nham nang cao nang luc canh tranh cura cong ty TNHH Nestle
Viet Nam den nam 2015", Dissertation, Lac Hong University
• Das, S and Abdel-Malek, L, 2003, "Modelling the Flexibility of Order Quantities and Lead-times
in Supply Chains., International journal of production economics, Vol.85 (2), p.171-181.
• Precoro, 2019, "Importance of Risk Management in Procurement", Precoro, 16 may, viewed 18
August 2020,
<https://precoro.com/blog/importance-of-risk-management-in-procurement/>
• RMIT University 2014, 'Topic 3 – Procurement – Sourcing & Buying',
December, unpublished paper presented to RMIT University, December 2014.
• Tran, H 2020, Nestle & RMIT University: Supply chain operations, streaming video, RMIT
University, Hanoi, viewed 18 August 2020,
<https://au-lti.bbcollab.com/collab/ui/session/playback>.
CUSTOMER
SERVICE
Figure 1: Nescafe Channel Map (Reprduced from Nguyen
 Definition

• Customer service is the direct one-on-

one interaction between a consumer making a
purchase and a representative of the compan
y that is selling it (Grant 2020).
• Customer service needs to
be put into perspective as including
anything that touches the customer (Rmit
2020).
• as a philosophy
• as a set of performance measures
• as an activity

Pham Thi Phuong Ngoc -

 Why is costumer
service important?

•Have a big impact on your bottom

line: attract and retain loyal customers
(Salesforce n.d)
•Make or break your reputation (Salesforce
n.d)
•Support is an integral part of the product
experience (Salesforce n.d)
•According to Harvard Business Review,
prompt and personal customer service does
indeed pay off — customers remember good
and bad customer service experiences, and (Adapted from Salesforce n.d)
they’re willing to reward companies that
treat them well (Forbes 2018).

Pham Thi Phuong Ngoc -

s3821192
 (Adapted from Tran 2020)

Order and Customer Relationship Management

Managerial
Nestle has two hubs : India & Philippines (Customer
Facing Supply Chain)

Responsibi
 Logistics
values

Pham Thi Phuong Ngoc - (Resourced from Tran 2020)

 • Unexpected travel cancellations
• Bill payment extensions
•Disputes over insurance coverage
(Dixon, McKenna, O 2020).

Challenge Increased the level of customer

emotion and anxiety in service calls
(Dixon, McKenna, O 2020).

Be honest and collaborate closely

with internal and external
parties.

Pham Thi Phuong Ngoc -

 Due to covid 19
Difficult interactions ( employees +
Working from consumers)

home had only a 6% chance of

resulting in a cross-sell or up-sell
(Dixon, McKenna, O 2020).

Use collaboration tools such as

technical apps: keep track
with all the activities

Pham Thi Phuong Ngoc -

s3821192
 Pham Thi Phuong Ngoc -
s3821192

KPIs
Customer Satisfaction Score
(CSAT) Net Promoter Score (NPS)
 References
• Customer Guru 2020, 'NESTLE NET PROMOTER SCORE 2020
BENCHMARKS', NETPROMOTERSCORE, CUSTOMER.GURU, VIEWED 18 AUGUST 2020, <
HTTPS://CUSTOMER.GURU/NET-PROMOTER-SCORE/NESTLE> .
• Dixon, M, McKenna, T & O,G 2020, 'Supporting Customer Service Through the Coronavirus Crisis',
Harvard Busniess Review, viewed 18 August 2020, <
https://hbr.org/2020/04/supporting-customer-service-through-the-coronavirus-crisis>.
• Forbes 2018,'How Important Is Customer Service To Success In Business?', Forbes, viewed 18 August 20
20, <
https://www.forbes.com/sites/quora/2018/12/18/how-important-is-customer-service-to-success-in-busi
ness/#69fcdb4719c0
>.
• Grant, M 2020, 'Customer Service', Business Report, Investopedia, viewed 18 August 2020,
< https://www.investopedia.com/terms/c/customer-service.asp>.
• MarketIntello 2017,'Khảo sát thị trường sản phẩm cà phê Việt Nam', Slideshare, vie<wed 18 August 20
20, <https://www.slideshare.net/marketintello/kho-st-th-trng-sn-phm-c-ph-vit-nam>.
• Nguyen, H 2020, 'Topic 2 – Demand Management', lecture slides, OMGT2085, RMIT University, viewed
18 August 2020, <
https://rmit.instructure.com/courses/74909/pages/t2-demand-management-lecture-slides?module_ite
m_id=2417312
>.
Warehouse
Definition

•Warehousing, i.e., the intermediate

storage of goods in between two successive
stages of a supply chain (
Bartholdi & Hackman, 2016)

•Basic functions: receiving, storage,

order picking, and shipping (
Gu, Goetschalckx, & Ginnis, 2007),

-> Essential elements of SCM

Responsibilities Values

Reduce order cycle time

Inventory management
Consistency of order
Fosso, Takeoka
Order fulfillment cycle time/ lead time

Assuring no stock-out
situation
Problems: Solution:
•Deploying omni-channel solutions
•Running warehouses for inside distribution centers
both ecommerce and retail -> Cope up with retail and ecommerce
demand volatility
•Taking advantage of
automation •Automation to fill the gaps of manual
labor.
 1. Inteligent Logistic
Innovation: (Jia, Hiuhiu, Xiuzhi 2018)
- Abnormal return rate on
the event day is 0.625%
(0.325%) -> increase stock Figure 2. Intelligent warehouse
value, benefited our management system (Jia et al 2018)
customers (stakeholders).

• Easy track & chase

• Increase transactions’
assurance.

2. Block Chain
(Bernard 2018)
KPI

Cycle time KPI for put away cycle time

Utilization KPI for storage (% location and cube occupied)

References
:
• Jia M, Huihui X & Xiuzhi Z 2018, 'Design of Intelligent Warehouse Management System', Wireless Personal
Communications, vol 102, pages1355–1367(2018)
• Liu, Weihua, Wang, Siyu, Lin, Yong, Xie, Dong, and Zhang, Jiahui 2020. "Effect of Intelligent Logistics Policy
on Shareholder Value: Evidence from Chinese Logistics Companies." Transportation Research. Part E,
Logistics and Transportation Review 137
• Faber, N, De Koster, M.B.M, and Smidts, A 2013, "Organizing Warehouse Management." International
Journal of Operations & Production Management 33.9 : 1230-256.
• Fosso Wamba, Samuel, and Takeoka Chatfield, Akemi 2011, "The Impact of RFID Technology on Warehouse
Process Innovation: A Pilot Project in the TPL Industry." Information Systems Frontiers 13.5 : 693-706.
• Boysen, Nils, De Koster, René, and Weidinger, Felix 2019, "Warehousing in the E-commerce Era: A
Survey." European Journal of Operational Research 277.2: 396-411.
• Newstex Finance & Accounting 2019,"Benzinga: Working Out Warehousing Challenges To Face Demand
Volatility And Fast Delivery Expectations." Newstex Finance & Accounting Blogs (2019) Blog post, viewed
August 20, 2020
• Bernard, M 2018,'How Blockchain Will Transform The Supply Chain And Logistics Industry', Forbes, March
23, viewed August 20, 2020, <
https://www.forbes.com/sites/bernardmarr/2018/03/23/how-blockchain-will-transform-the-supply-chain-a
nd-logistics-industry/#1746e68e5fec
>.
Intermarket Supply
Bui HUong Thu - s3749119
Definition
• Intermarket: relating to two or more financial
markets (Cambridge Dictionary n.d)
• Supply: an economic term that refers to the
amount of a given product or service that
suppliers are willing to offer to consumers at a
given price level at a given period (My
accounting course n.d)

=> Intermarket Supply : the process of

international exchanging/ selling/distributing
appropriate volumes of finished goods among
different markets in the world.
Why is it
important?
 Intermarket Supply
Roles
• Export
- Export business owner with sale & growth target
- Marketing activities
- Fulfill capacity of factories
- Accelerate power of supply chain

• Import
- Service provider
- Project coordinator with affiliate
- Leverage business network with affiliate to
widen NVN’s product protfolio

=> manage and optimize the supply flows from export partners, recognizing relevant constraints to meet
customer demand in all nodes of the network, at appropriate costs and levels of inventory (wizbii n.d)
Managerial responsibilities
Project management: Project execution:
• Lead import project and export project • Co-ordinate and follow up with stakeholders to align
• Maintain good rapport and communication with project
• Negotiate and manage the agreement
areas • Risk management by evaluate risks and offer
solutions
• Ensure sucessful Trial shipment
• Maintain Customers, vendor, and stock code in SAP

Customer service: New product development with Business mindset:

• Handle customer complaint • Cooperating with relevant divisions to maximize the
• Achieve targeted Customer Service Levels utilization of production capacity
• Work as Affiliates Marketing
Value
s