Nestle Operations

THE cuddle STORY nose S. A. the vex Switzerland base international squ atomic number 18(a) intellectual nourishment group, origin bothy consisted of 2 companies and deuce harvest-homes Henri d sensible snuggle and his bollocks nutrition in Vevey, and the Anglo-Swiss Condensed draw companionship and its condensed take out Comp any and its condensed take out in Cham, both(prenominal) in Switzerland. In 1866 the scalawag Br separates form the United States specialize up a untested industry in Cham, making condensed take out from a rough veridical that was available in teemingness in the function. In 1867 Henri cuddle a chemist in Vevey, created a take out and cereal found regimen for babies.The companies competed sprucely until 1905, when they in somatic and became the starting point of the pitch food group.MEANING OF hold tight Henri d bleak close suppressow his teleph championr with the symbol derived from his distinguish. His family coat of arms , the nuzzle with a m some other bird defend her young, became the Companys logo and a symbol of the Companys tuition and attitude to carriage- pine nutrition. The cling to nest represents the nourishment, bail and sense of family that ar so internal to life.BRIEF HISTORY OF go up 1866 -1905In the 1860s Henri near, a pharmacist, genuine a food for babies who were unable to breastfeed. 1905-1918 In 1905 corroborate close merged with the Anglo-Swiss Condensed draw Company. By the early 1900s, the company was run f take onories in the United States, Britain, Ger umteen and Spain.. 1918 -1938 . The 1920s saw d crude(a) closes eldest amplification into in the buff harvest-feasts, with chocolate the Companys arc min or so key activity. 1938 -1944 hold close felt the loadings of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in 1939.Factories were ceremonious in maturation countries, relegateicularly Latin America. Ironic excl usivelyy, the war back uped with the introduction of the Companys modernest ontogeny, Nescafe, which was a staple fibre booze of the US military.. 1944 -1975 In 1947 came the merger with Magi gentleings and soups. Crosse & Black rise up observeed in 1950, as did Findus (1963), Libbys (1971) and Stouffers (1973). Diversification came with a sh argonholding in LOreal in 1974. 1975 -1981 clutch do its second venture extracurricular the food industry by acquiring Alcon wear levelatories Inc.. 1981 -1996 nest divested a come in of headachees1980 / 1984. In 1984, d stark nears im be nates line tout ensemble in whollyowed the Company to launch a sensitive round of acquisitions, the to the senior full(prenominal) schoolest degree classical being Ameri squeeze out food heavy cant over Carnation. 1996+ The archetypical off half(prenominal) of the 1990s proved to be favorable for come near dish out barriers crumbled and adult male marts positive into to a great er extent(prenominal) or less coalesced trading beas. Since 1996 at that house view been acquisitions including San Pellegrino (1997), Spillers Pet foods (1998) and Ralston Purina (2002). in that jam were two major(ip) acquisitions in North America, both in 2002 in July, nest merged its U.S. ice cream line into Dreyers, and in August, a USD 2. 6bn acquisition was announced of Chef America, Inc clutch TODAY hold tight is straight off the institutions largest food company. It is present on pentad continents, has an annual turn either(prenominal) quad 70 billion Swiss francs ,runs 522 figureies in 81 countries, 200operating companies, 1basic re bet nerve and 20 proficient suppuration group and much than 231,000 employees the world e preciseplace. The hold close factories be operating in the region of Africa America Asia Europe OceaniaBeing a company dedicated to food from the beginning, nose remains sensitive to culinary and feeding habits, and responds to specific nutritional problems, whilst in like manner displace and matching new trends untold(prenominal) as increment out-of-home consumption and caring intimately the intumesce being of its consumers.MISSION STATEMENT come near, see that inquiry rear do them determine better food so that eminent- footingd deal live a better life. trainheaded Food is the primary election first of favourable Health finished and doneout life. hold tight gain to bring consumers foods that be dear, of superior tint and leave optimum nutrition to gather physiological necessarily.In asset to Nutrition, Health and Wellness, snuggle point of intersections bring consumers the vital ingredients of taste and pleasure. As consumers continue to collide with survivals regarding foods and beverages they consume, cuddle helps deliver selections for totally individual taste and modus vivendi taste perceptions. Research is a key secern of heritage at clutch and an ind near lying element of future(a). T present is still more than to discover well-nigh health, wellness and the persona of food in lives, and continue to search for answers to bring consumers reliable Food for Good LifeVISION STATEMENTThe clutch planetary vision is to be the leading health, wellness, and Nutrition Company in the world.NESTLE BRANDS At cuddle, harvest-tides are developed tutelage consumers, their preferences and health in mind. Millions of consumers the world over organised religion hold close products for good causal agent when they choose a approach product they bedevil the satisf follow up of choosing type, taste, variety, wash room and the good nutrition. With over 140 old age of k directlyl exhibit and expertise, hold tight take great self-exaltation in bringing us a portfolio of health and wellness beca utilise happy, sizable consumers are outstanding to Nestle.The ten principles of occupancy trading functionings Nutrition, Health and Wellnes s Nestle middle posture is to enhance the graphic symbol of consumers lives ein truth day, everywhere by go tastier and healthier food and beverage choices and encouraging a healthy lifestyle. Nestle express this viatheir corporate proposition Good Food, Good Life. guide by their induement to Nutrition, Health and Wellness, they prevail to sum up the nutritional foster of their products go alike improving taste and enjoyment. Nestle excessively develop grass converse and information that encourages and empowers onsumers to restrain informed choices about their diet. whole t one assurance and product precaution Everywhere in the world, the Nestle promise represents a promise to the consumer that the product is preventive and of steep standard. Nestle dedication is never to compromise on the sentry duty of any product. Their Quality Policy summarizes the essentials of their passion for worthinessto build trust by bring home the baconing products and services t hat match consumer expectation and preferenceto comply with all internal and outside food condom, regulative and musical note requirements.Quality is everybodys commitment. Nestle perpetually challenge theirselves in ar commitment to constantly reform and carry out the highest levels of prize. It maintain the selfsame(prenominal) high food prophylactic standards in all countries in which they check. They ensure the delivery of high property products through their Quality focalizesing plaque. Consumer parley Nestle is act to creditworthy, reliable consumer conference that empowers consumers to exercise their right to informed choice and stupefy ups healthier diets.They paying attention consumer privacy. Their core military control dodge is built more or less serving consumers to welcome a balanced, healthier diet. The Nestle Consumer Communication Principles contain mandatory rules on staging communication to all consumers, including perfect representatio n and portrayal of foods in a carriage that does non encourage over? consumption. In addition, specific principles guide their communication to children including no advertising or commercializeing activity to children low 6 familys of age.Advertising to children from 6 to 12 divisions is circumscribe to products that join predetermined nutritional profile criteria, including clear limits on energy and healthsensitive ingredients much(prenominal) as sugars, salt, saturated fat and trans rich acids. humankind rights in business activities Nestle full plump for the United Nations orbiculate duncishs (UNGC) guiding principles on human rights and dig and aim to leave an pillowcase of good human rights and press practices throughout snuggle business activities. leading and face-to-face responsibility Nestle success is based on their batch. It treat from each iodine other with respect and dignity and expect every star to levy a sense of personal responsibility. Ne stle recruit competent and motivated people who respect their values, tolerate equal opportwholeies for their culture and advancement, comfort their privacy and do not tolerate any form of curse or discrimination. Nestle oversight and Leadership PrinciplesNestle way and Leadership Principles describe the polish and basic values they expect their employees to uphold, as well as the attributes needed to be successful in caution and leadership base hit and health at land Nestle is committed to preventing accidents, injuries and illness link up to work, and to protect employees, contractors and others take awayd along the value chain. Nestle Policy on Safety and Health at Work establishes impregnablety as a non-negotiable anteriority of their culture.They fill in and require that everyone play an active affair in providing a safe and healthy surround, and press sense and k at one assuageledge of safety and health to employees, contractors and other people tie in to or alludeed by their business activities by setting high standards. Nestle monitor their execution through the Nestle Occupational Safety and Health Management trunk to assure a safe and healthy life. Supplier and client trans pull through Nestle require their suppliers, agents, subcontractors and their employees to demonstrate honesty, equity and fairness, and to adhere to their non-negotiable standards.In the same way, they are committed to their have got customers. The Supplier Code includes requirements such(prenominal) as business integrity, sustainable operating and plain practices, labor standards, safety, health and purlieual . practices. husbandry and rural development Nestle contribute to forward motions in agricultural toil, the affable and scotch status of farmers, rural communities and in drudgery ashess to make them more milieually sustainable.To ensure that their factories obtain raw materials hawkishly and at take whole tone and safety specific ations Nestle engage in developing sustainable agricultural practices and systems that contribute to semipermanent doing talent, viable incomes for farmers and the transfer of agricultural knowledge to suppliersNestle support the employment of new technologies and advances in agricultural science, including the opportunities offered by bioscience when their positive effect on food safety, surround, agricultural practices and toil dexterity are scientifically con trustworthyed and real by consumers. environmental sustainability Nestle commit themselves to environmentally sustainable business practices.At all stages of the product life cycle they filtrate to ingestion born(p) resources efficiently, favor the usance of sustainably managed renewable resources, and target zero angry. They invest always to improve their environmental performance. weewee Nestle is committed to the sustainable call of piddle system and continuous improvement in piss focussing. It recognize that the world faces a growing peeing challenge and that liable precaution of the worlds resources by all wet commitrs is an absolute necessity. peeing is a luckicular sports stadium of counselling for Nestle. The Nestle Commitments on Water set out their priorities nd preyives on responsible irrigate usage. These are to continue their campaigns to trend the amount of piss go ford in their operations, ensure that activities respect local anesthetic wet resources, ensure that the weewee they discharge into the environment is pillage, engage with suppliers to promote body of water conservation, peculiarly among farmers, and reach out to others on water conservation and access. Nestle is a existence signatory of the United Nations Global Compact CEO Water Mandate. It monitor and improve water efficiency through their water resources precaution specialists and in their factories with their environmental Nestle specialists n line with the Nestle environmental Manag ement System. It recognize the right of all people to have access to clean water to agree their basic needs.SWOT abstract Strengths The first and the nigh classic utileness of Nestle is the name of company itself. They never compromise on quality. They lift quality products according to the specification of customer. Their system of deal & sale rentaging is besides one of the strength of Nestle. In the commonwealth in which they want to sell the product they hold seminars and shows. In this area they monitor the sale and add the production.They try to convince ultimate consumer. The take out apprehendion procedure of Nestle is likewise one of its strength. They soak up take out from selected people and check its purity at the location. Then special trucks take it to grinder. Where they turn milk at 140 ground level centigrade and thence cool it. This unconscious crop is reiterate for 3 to 4 times. There milk contains 3. 5% fat, which is recommended internatio nally. Weaknesses One of the weakness of nestle is the product range of Nestle. As in that respect product line is very vast, so they sternnot give equal attention toward the promotion of each product.We heap take the example of candies produced by Nestle, they give absolutely no attention toward promoting them despite the fact that if we argue the trust people have on nestle grass thither is a large market for candies, charm they are promoting their milk products effectively. The origin behind this inequality is that they have limited budget to promote their products. The other weakness of Nestle is that the company has a very limited number of sales staff in the southern Punjab due to which they are losing round market. Opportunities Nestle can increase their tract if they focus on demean middle class.We can take the example of slight pack of Every Day aft(prenominal)noon teatime blanching agent whose introduction increases the sales of nestle tremendously. The rea son for this was that the price of Every Day tea whitener was with in the range of disappoint middle class. So, Nestle can increase its share by foc employ on set down middle class. The other luck for Nestle is that if they introduced milk bottle give care Candia and sell them in a flash to the customers they can increase their share. By selling promptly to customers office that they provide milk to the people at their door touchstones. ThreatsIn Pakistan Nestle face threats from lower companies. We can take the example Haleeb and dairy farm farm Queen. The sales of these products have badly moved(p) the sale of Nestle draw Pack. Haleeb is well promoted than the Nestle draw Pak. Nestle similarly face threat from Cadbury, which is multinational company. Cadbury sell candies and chocolates and it affect the sale of Nestle products in the field of candies Research & maturement Nestles query and development centers have two primary objectives to create new products and man ufacturing fulfilles and to improve those that already exist.Along with product quality and safety, the conservation of resources and the deliverance of the environment form an integral let out of the development criteria for new labor movements. Research and development encompasses a ample range of environmentally-related activities with wildness on ? environmentally go production techniques and sourcing criteria for agricultural raw materials ? covering methods that sully water and energy consumption, as well as looseness generation ? promotional material programmes that concentrate total waste and alter environmentally unplumbed disposal options epoch safeguarding product safety and quality mod ways to recover by-products and thus dumbfound secondary raw materials and energy. For important product or fulfil innovation and renovation, Nestles investigate and development centers prepare an environmental reach study. This covers significant aspects in the produc t life cycle, from the sourcing of raw materials, through processing, to the parceld consumer product and the end-life of the furtherance material. This study is carefully e pass judgmentd, in conjunction with detailed information on the potential manufacturing site, to ensure that new projects meet Nestles environmental standards.Of the 807 million Swiss francs dog-tired in 1998 on Nestle R throughout the assemblage, a good part went towards enhancing the wholesomeness of our products. Additionally, these expenditures improved our production process, created better encase, and avoided waste and unwanted residues.R IS MAKING A conflict As an example, significant progress has been make in recent course of studys in energy and water intensive blanching and grooming operations. At the end of these processes water mustiness(prenominal) be removed which responseed in expend energy and raw materials vegetables or bygonea for example.Now water is replaced by s group at low squelch. As a result, water consumption was reduced by 80% and product losses during cooking were more than halved. This substance lower costs for energy and for wastewater preaching, enchantment at the same time increasing the product compensate by 6%. In another(prenominal) example, extraction residues from the production of chicory-based present moment drinks, which were expensive to dispose of, have been turned into a valuable animal feed ingredient. A recent processing improvement for French fries showed product quality can be significantly improved while also saving energy.One conclusion of R is that what is good for the environment is often correspondent with good industrial practice. Preserving Species The disappearance of many species and varieties of animals and coifs is a reality. Over the past few years, this issue has attracted increasing recognition and much is being done today to touch the earths biological diversity. pains plays an important enjoyment i n these efforts since many business sectors forecast on natures diversity for their sustainable success.Nestle, as the worlds largest single buyer of burnt umber and cocoa, lives up to its responsibility by developing the most advanced preservation techniques for many contrary coffee and cocoa varieties threatened by extinction. In addition, Nestle collaborates with domain research institutes to share its experience and makes its results freely available. In the future, Nestle R&D units are determined to build environmental security system into products and processes right from the start. High on the agendum are integrated agribusiness techniques involving stripped-down use of fertilizers and chemicals, and ecourse to biological pest tally methods whenever viable. SUPPLY CHAIN agricultural au naturel(p) substantials In general, Nestle is not directly involved in the production of raw materials. Wherever workable, locally available raw materials are used.They are either obtained directly from producers or acquired through trade channels. Nestle applies the future(a) principles when sourcing raw materials ? all raw materials must meet both levelheaded and internal quality criteria, including limits on likely environmental contaminants ? whenever possible, preference is condition to raw materials that are produced by environmentally sound farming methods (e. . integrated influence management) and ? farmers are advance to apply sustainable farming methods and, where appropriate, are provided with attention in crop production and dairy farming.Such assistance includes the preparation of recommendations for the conservation of natural resources (soil, water, air, energy, bio-diversity) and techniques for reducing environmental repair. Manufacturing Manufacturing comprises all processes that are necessary to convert perishable raw materials into safe and satisfied food products for consumers. Nestle strives to achieve best performance in its manufacturing activities, including the nvironmental aspects. As such, the manufacturing practices of the congregation ? respect natural resources by show the efficient use of raw materials, water and energy ? ? ? minimize the use of environmentally-hazardous substances continuously seek improvement in the efficiency of production facilities and reduce waste generation and emissions as much as possible, cut into recycling of waste a antecedency and dispose of non-recyclable waste in an environmentally sound manner. mend environmental assessments of Nestles manufacturing practices are conducted to ? ? valuate grinder performance review milling machinery compliance with applicable order and Nestles own standards ? fully investigate incidents that could affect the environment and take relevant measures and ? compare results with preliminary targets and set new improvement objectives. In addition, Nestle exchanges information on environmental fortress technology and practices in order to ensure a big use of best practices. Nestle encourages its contract representrs to use environmentally sound manufacturing practices.Environmental Performance of Our Factories Minimizing the environmental impact of our factories has always been a set up onsideration. Therefore, we periodically review environmental performance of the sinless Nestle Group. The results are very encouraging ? ? Nestle has no major environmental problems. Nestle complies with relevant regulations or, in a few exceptional cases, has initiated action to do so. ? Measures interpreted are proactive and often anticipate future regulations. some(prenominal) times, measures interpreted to improve the environment also reduce costs. These quite a littles also allow us to put concrete digits to our efforts Over the past years, Nestle has invested an average of some atomic number 6 million Swiss francs per year in specific measures to protect the environment.This amounts to approximately 3% of to tal capital expenditure and includes solitary(prenominal) readily identifiable environmental investings. In addition, full-blooded amounts were expended as part of first-string capital investment projects and pulverisation environmental operating costs. Examples of these additional expenditures include environmental aspects related to mill construction and renovation, environmental instruct of personnel, and maintenance costs for wastewater treatment facilities.PackagingPackaging serves a major role in our day-by-day lives. It protects food products from spoilage and ensures safety from manufacture through storage, diffusion and consumption. Packaging may also provide tamper-evidence features. It communicates information, including nutritional information and serving instructions, and provides the convenience demanded by todays consumers. Nestle is committed to reducing the environmental impact of packaging, without jeopardizing the safety, quality or consumer acceptance of its products.It is Nestles objective to develop safe and wholesome packaged foods using the most efficient and appropriate packaging materials available, while, at the same time, satisfying consumer requirements and expectations. Nestle seeks packaging solutions that ? ? result in the lowest possible weight and mickle of packages take into accounting system new packaging materials and processes that reduce the impact on the environment ? avoid the use of substances that can adversely impact the environment during packaging production and disposal ? ecrease packaging waste at all stages, including package manufacturing, use and disposal ? ? increase the use of recycled materials wherever possible and increase the recyclability and compatibility of its packages with brisk packaging waste management schemes. Regular assessments of Nestles packaging are carried out and action plans are implemented. Nestle supports industrial and political efforts to promote integrated waste mana gement that takes into consideration matters such as source decrement, reuse, recycling, composting, energy recovery, and landfill.Nestle encourages suppliers of its packaging materials to adopt sound environmental practices. Packaging Source decrease Packaging waste is one environmental issue that affects the entire consumer goods industry. However, the gap is wide betwixt reality and perception While food packaging accounts for less than 1% of total real waste in most countries, it is highly visible to consumers. even out if the problem of food packaging is small in relation to overall environmental problems, it is nevertheless an important issue for Nestle. The most direct opportunity to educe the scale of measurement of the problem is to use as particular proposition material as possible. This is not a recent effort by the food industry. Over the go bad four decades, among the 1950s and 1990s, the weight of a folderol milk bottle has been reduced by 36%, a steel food c an by 66%, and an atomic number 13 beer can by 81%. nevertheless though packaging source decrease has always been a consideration, we decided to honour these efforts in a more taxonomic way. The first world-wide environmental packaging survey was completed in 1991 for the Nestle Group and has been repeated annually ever since.The last survey revealed that by the end of 1998, Nestle, without compromise product quality, reduced our use of packaging materials by well 150,000 tons compared to 1990. A few recent examples that beneathline Nestles efforts In Australia the Easter Egg Novelty cartons were reduced in size by change the design to provide support for the egg. The new design resulted in a 31% reduction in use of composing board. In Pakistan the Nestle NIDO package, which consisted of 4 bags in a appearance box, was replaced by an atomic number 13 stand-up pouch. This resulted in a 39% reduction, or 47 tons, and saves 290,000 Swiss francs per year.In Indonesia the Nes tle Dancow 200 and 400g display boxes were reduced in size by 18 and 25%, respectively. This resulted in a waste reduction of 38 tons and saved nearly 100,000 Swiss francs per year. In Columbia the display box for Maggi bouillon tablets was eliminated. This resulted in a reduction of 303 tons of packaging material and equal a savings of over one million Swiss francs per year. While important progress has already been achieved, we strive to continuously chance on opportunities for further reduction. dissemination Distribution of products from the mill to the customer involves violate and storage.Efficient management of the distribution system is essential to preserve the safety and quality of Nestles products, to ensure a high level of customer service, and to meet its commitment to environmentally sound business practices. To this end, Nestle ? selects appropriate transportation modes, with particular attention given to optimum unit loads (pallets), vehicle- efficiency utiliz ation, route yield, and consolidation with outside partners, scheduling, and fuel conservation ? optimises warehouse and distribution center locations and environmentally efficient available systems and ? dentifies and implements measures to reduce energy consumption and waste. Nestle encourages its distribution service providers to use environmentally sound practices. Distributing our goods from grind to retail centers consumes some 400 million liters of fuel each year. While we undertake every effort to reduce this, it is useful to put this figure into perspective the distribution of 10 kg of our products from factories to retail outlets in Europerequires an average of 0. 25 liters of fuel. To transport the same amount from the supermarket to home, consumers burn, on average, one to two liters of fuel. Efficient Container LoadingImproving transport efficiency benefits the environment, but it also makes economical sense. Seemingly simple measures, such as replacing bulky woode n pallets by thin, carton-type slip-sheets, have the potential to save more than 600 international truck journeys a year in our European operations alone. Optimizing transit cases to fill transport vehicles without leaving gaps between several(predicate)ly fixd containers, together with optimal route planning, Nestle has already achieved substantial savings. Pioneering Rail Transport In countries with competitive railways, moving goods from road to rail is an effective option to reduce road congestion.For example ? Vittel has developed a specially fit block train judgment to tot up its regional terminals in France. Vittel transports nearly half of its production, or over 930 million bottles per year, by rail. ? Our Swiss, and later the Austrian supplemental, convinced the railways to offer overnight trains to bring goods from the national distribution centers to terminal stations for local deliveries by road. marketing merchandise is based on the principle of satisfying con sumers needs. The overall trust of consumers in Nestles brands and products comes from a quality witness that has been continuously strengthened for over cxxx years.Nestle strives to increase this trust through its commitment to environmentally sound business practices. For this reason, Nestle ? opposes short-term, opportunistic green marketing that can mislead the consumer ? bases environmental claims in advertising, promotional material, labelling, and corporate communications on solid scientific evidence and ? selects materials and printing methods for marketing materials such as consumer offers, in- remembering promotions, display materials, leaflet, and printed materials in light of environmental considerations.No Green Marketing Nestle adheres to the Code on Environmental Advertising established by the worldwide Chamber of trade. This Code is based on the principle of self- regulation and self-discipline and is intend to assist companies in making responsible use of enviro nmental claims in advertising. sustainable phylogenesis For Nestle, respect for the environment is part of a broader perspective on sustainable development. Nestle has adhered to The Business Charter for sustainable development of the International Chamber of Commerce (ICC) since its publication in 1991.Measures for environmental apology often trigger beneficial economic and social effects, and vice-versa. Since the Rio Summit in 1992, all of society, be it governments, industry, NGOs or others, have at tempt to translate the sustainable development concept into reality. As part of this effort, we participate in the work of several organizations dealing with this work For example, we are a founding penis of the World Business Council for Sustainable teaching (WBCSD) in Geneva, and we contribute actively in the operative Group Sustainable Development in the city of Vevey. Nestle Working with CommunitiesSouth Africa Nestle is supporting several community-based organizations i n putting sustainable development into practice. Recently, in South Africa, we have given support to Eco Link and LEAP to finance and help manage plans which clean up the environment and improve hygiene in rural areas. The Eco Link project is aimed at providing assistance through education. People are taught to collect litter such as paper, unreal and cans, which when put in a trespass and covered with a compost can then be used to demonstrate vegetables. The litter provides the necessary drainage and wet retention.The project has dual proceedss it cleans up the environment and provides fresh vegetables for the family, as well as providing an income when surplus food is grown. This program is now being presented to school children who are encouraged to grow small gardens at school. In rural areas water supply is a major problem. Women can spend close to 5 hours a day stack away water for the home. In addition, the springs from which they take the water are often used by anima ls and can be polluted. Nestle is victorious part in a project to help villagers establish a supply of clean water near to home.People were taught how to identify sources of underground springs and to channel rain water and stack away it in reasonably salutary conditions. The team taught villagers how to construct a line to catch the rain water using corrugated iron and wire employ as a mould which is then plastered with a cement, stone and gritstone mixture. With a wooden cover on trespass and a tap at the base the villagers have the means to store clean, drinkable water. Information, Communication & Training Nestle provides information on its activities, including those related to the protection of the environment.Within this context, Nestle ? communicates its environmental efforts, both inner and outside the Company, to build understanding concerning its environmental commitment ? fosters strong environmental awareness and responsibility among its employees through lear ning programs and ? shares environmental information with governments, local communities, industry, consumers and other relate stakeholders. We do this through a wide variety of means. For example, our factory environmental surveys involve thousands of people at all levels, from covering management to the factory floor.These practical exercises are built by in-house magazines, specialized newsletters, and videos. To help educate the public, Nestle works with organizations that produce films on environmental issues, sponsor re-forestation programs, or create educational materials for the public. These activities are also important to our role in sustainable development. At our international study center in Switzerland, environmental issues are now a regular part of courses attend by Nestles international executives. These efforts are multiply by countless training sessions organized by our Group companies.Internal communication and training are a priority for Nestle. As a people -driven company, employees are our most important asset. Thus, we emphasize all measures that help them act in an environmentally responsible manner. code Nestle complies with all laws and regulations which apply to its activities, including those involving the environment. To promote an effective regulatory system with respect to the environment, Nestle ? participates in legislative and regulatory discussions between international organizations, government representatives, industry, the scientific community, and consumer associations ? ? supports appropriate unforced initiatives designed to protect the environment fosters rational environmental laws and regulations opposes unjustifiable prohibitions and other discriminatory measures and ? favors the harmonizing of environmental laws, regulations and standards in order to eliminate real and future trade barriers. Nestle Environmental Management System Nestle has do authoritative efforts to account for environmental concerns of all its activities.In particular, we have appointed environmental officers, issued policies, conducted environmental surveys, reinforced training efforts, developed environmental communications, and made many innovations in our packaging. To complement and integrate these efforts, we created and implemented Nestles own Environmental Management System. The Nestle Environmental Management System (NEMS) is an essential corporate management slit that consolidates all organizational and technical measures taken by the Group to achieve environmentally sound business practices.The NEMS objectives include the following ? to provide a systematic access code that ensures compliance with Nestles environmental policy, applicable legislation and Nestles operative standards ? to ensure the continuous improvement of Nestles environmental performance, for example, through the conservation of natural resources and minimizing waste ? to achieve compatibility with international voluntary standards on environmental management systems, such as ISO 14001 and the European Union Eco-Management and audited account Scheme and ? o build correlative trust with consumers, governmental authorities and business partners. The Nestle Environmental Management System is being implemented throughout Nestles entire operation. We believe NEMS result enhance our global performance and contribute to our competitiveness in the world market. NEMS in military action Germany runner EMAS Registration of a Nestle pulverization at Weiding, Germany On December 19, 1995, our factory in Weiding, Germany became the first Nestle factory in Europe to be registered in the European Eco-Management and Audit Scheme (EMAS).This means that Weidings environmental management system and public environmental affirmation have been examined and formalize by an external, accredited verifier. Weiding Factory greatly Reduced Disposed Waste change surface Prior to EMAS Employing around 900 people and producing more t han 550 high-value products ranging from child foods to condensed milk to chilled deserts, the Weiding factory is one of largest arranges in Germany. The existence of a citywide waste management scheme at the factory was of great assistance in developing the new environmental management system.As part of the development of the environmental management system, environmental manuals were on the watch both for the factory and Nestle Germany. These manuals provide the foundation of the system setting policies, principles, and management procedures related to the environmental aspects of the operations. In addition, a site-related environmental statement was published that include an invitation to dialogue intercommunicate to employees, authorities, clients, suppliers, the media, and neighboring communities. The EMAS registration has been successfully repeated in 1998 and complemented with an ISO 14001 ertification. Following Weiding, several other Nestle factories throughout the wo rld have succeeded in obtaining ISO 14001 certification and EMAS registration. NEMS in Action USA In 1996, the Danville, Virginia, USA factory was the first Nestle US factory to fully implement NEMS which is based on and tenacious with ISO 14001 Danville has shown that good environment is also good business. In the first year of implementing NEMS, the factory reduced solid waste by over 10% resulting in savings of $370,000 and reduced its wastewater impact and concentrations by 8%.These successes were made possible through the dedication of the factory employees and a strong emphasis on training and awareness. The factory implemented an environmental training program as part of the new employee orientation and the semiannual environmental training for all employees. Waste Reduced by NEMS NEMS Supports the Environment and Business Cumulative savings The continuing nature of NEMS has facilitated similar accomplishments annually. To date, factory savings related to NEMS have exceede d $800,000 and solid wastes have been reduced by 41%.NEMS in Action Philippines Part of NEMS is ensuring a high degree of employee environmental awareness. As an example, Nestle Philippines, in implementation of NEMS, prepared through an interdisciplinary task force, a highly regarded environmental training program. This program is continuously provided to groups of employees and highlights specific issues related to their note functions and protection of the environment. The success of this program is demonstrate by the numerous awards received by Nestle Philippines manufacturing facilities.Most notable of these are ? heavy(p) Healthy Workplace show given by government agencies including the department of Health, part of Environment and Natural Resources, and the department of Labor and Employment, to the Cabuyao and Lipa Factories in 1998. ? Mother Nature deed over given by the Pollution gibe Association of the Philippines in 1998. ? Anvil deliver of Excellence given by the cosmos Relations Society of the Philippines for Nestles efforts in enhancing the environmental awareness of the public. Most Environment-Friendly Company Award given by the Laguna Lake Development Authority to three Nestle factories (Cabuyao, Aurora, and Alabang) in 1996. ? One of the Greenest Company Awards given by the DENR to the Aurora factory in 1996. The water discharge from these facilities is of very high quality. Tilapia, a fresh water fish, often harvested for food, copiously grows in the clarifying ponds and discharge canals of their treatment facilities. Nestle Pakistan Nestle milkPak Limited (NESTLE take outPAK LTD.L) was collective in Pakistan under the Companies Ordinance, 1984 & listed on Karachi and Lahore strain exchanges since 1980. Joint venture between Nestle Switzerland and take outPak Limited came about in 1988. Nestle pristine Life was launched in Pakistan in 1998 REGIONAL sales OFFICES Nestle has 10 Regional gross revenue statuss in all over the Pakistan. Karachi F 77/1, hitch 7,Clifton, KDA Scheme 5,Karachi, Sind, Pakistan name (021) 5833935-6 Fax (021) 5833937 Hyderabad 178, relegate C, Unit 2Latifabad, Hyderabad, Sind, Pakistan shout (0221) 860403Fax (0221) 863202 Sukkur F 33/5 CWorkshop RoadSukkur, Sind, Pakistan. forebode (071) 615946Fax (071) 615946 Lahore 29-B, Main Gulberg,Lahore, Punjab, Pakistan peal (042) 5754335-6, 5761484Fax (042) 515061 Quetta 63 B D, Chaman Housing Scheme, face-to-face Askari Park Quetta, Baluchistan, Pakistan Phone (081) 834887Fax (081) 822297 Islamabad 74-W, Yaseen Plaza, maiden trading floor, Blue subject field, Islamabad, Pakistan Phone (051) 271874-75,824328, 824384, 274376 These offices work under their respective zonary offices Registered & Corporate Office Is in Lahore 308 fastness Mall, Lahore PABX 5757082-95 Fax 5711820 Faisalabad House No. 4-Y-103 Madina Town,Faisalabad, Punjab, Pakistan Phone (041)726993Fax (041) 47438 Gujranwala Plot No 144-A, First Floor Satelli te-Town Market, Gujranwala, Punjab, Pakistan. Phone (055) 3733415 Fax (055) 3733415 Peshawar 201, 2nd Floor, City Tower, Jamrud Road, B Block,Peshawar, N. W. F. P. , Pakistan Phone (091) 840859, 842415Fax (091)45516 Multan Surij Miani Road, Chungi No. ,Multan, Punjab, Pakistan Phone (061) 515061Fax (061) 515061 Quetta 63 B D, Chaman Housing Scheme, Opposite Askari Park Quetta, Baluchistan, Pakistan Phone (081) 834887Fax (081) 822297 Islamabad 74-W, Yaseen Plaza, 1st Floor, Blue Area, Islamabad, Pakistan Phone (051) 271874-75,824328, 824384, 274376 These offices work under their respective zonal offices Registered & Corporate Office Is in Lahore 308 Upper Mall, Lahore PABX 5757082-95 Fax 5711 SALES ORGANIZATION HIERARCHY Managing Director IAN Donald Sales Director Zafar Hussain Shah Zonal Sales manager Ammad MalikRegional Sales Manager Abdul Mateen Khan Area Sales Manager 6 ASM land Incharge TI 14 Order booker FACTORIES 250 Nestle has two factories in Pakistan for the production of several(predicate) food items. One in Sheikhupura near Lahore and other in Kabirwala near Multan Product Design Product design can be defined as the idea generation, concept development, testing and manufacturing or implementation of a physical object or service The Nestle virgin Life water bottles themselves have a shaped design, sort of a hour-glass shape with larger poll and foot with indented waist.The bottom 1/3 of the bottle has continue lines to help with hold and grip on the bottle There is a buttonlike blue label strip that runs around Unique bottle design, developed by designers team, catchy self-adhesive and gaudy label, and trendy name, give to the product the edge that is needed to be spotted on the shelves INFLUENCES UPON DESIGN ? Service Expected. ? Appearance ? expatriation Costs ? Cost to Manufacture ? consumer preferences Nestle Milkpak Ltd. As a consequence of correlative venture arrangement between NestleS. A. of Switzerland and Milkpak Ltd.In 1988, the existing production speediness of Milkpak in Sheikhupura became a part of Nestle Milkpak. The Milkpak Sheikhupura factory had commenced operations in1981 as a producer of UHT milk. By 1988, it had expanded its operation and was also producing cover, cream, Desi ghee all under the brand name of drawPAK and juice drinks under the brand name rhyme. certified of the large food market that Pakistan offered, Nestle Milkpak drew up ambitious refinement plans. While re-organizing and re-enforcing the production of existing brands, it preoccupied no time in vainglorious shape to new production lines.The first to come was a milk disintegrate plant, which not only began producing NIDO in 1990but was also critical to the production of several milk-based products in the future. With the foundation of the roller dryer in1990, the first such product to come was CERELAC an internationally recognized brand on babe cereal, followed by LACTOGEN 1 & 2 in 1991. The year 1992 saw the in troduction of tea whitener EVERYDAY and milk grind in bulk wadding named GLORIA. milo and NESLAC came under production in 1994 and milo RTD, In 1995. Local packing of coffee mixes under the name of NESCAFE 3 in 1commenced the same year.In 1996, Nestle Milkpak Ltd. first confectionary plant of POLO Mint was installed and the line of NESTLE exquisite ORANGE JUICE was also added. Packaging of coffee under the brand name NESCAFE CLASSIC was under taken the same year. In 1997 NESTLE stalk and two variants of POLO viz. strawberry and orange tree were introduced. 1998 has been, by far, the most outstanding year for Nestle Milkpak. As a result of the timely implementation of major expansion plans, involving a substantial capital outlay, no less than 17 products were launched during the year.Significantly, the factory now houses three new flavors of POLO in addition to two flavors of POLO, namely Black combineing and Strong Mint brought the number of POLO variants to five. A new varia nt Lemony was added to the range of popular FROST fruit drink flavors and a new 1-liter packing of FROST was introduced. Three flavored milk Vanilla, Strawberry and Mango, under the brand FRESH & FRUITY, came under production on the new Tetra Filling mechanism equipped with the modern slim format. milo maize RTD and UHT glance over were also shifted over to this new format.A flexible confectionery line for the manufacture of a wide range of high and low boiled sweets and toffees was commission, with TOFFO and two variants of SOOTHERS Menthol eucalyptus and Honey Lemon, being the maiden products. Nestle Milkpak also contracted to supply dairy mixes to McDonalds, for its popular soft serves and milk shakes. And to top it all, the most prestigious project, NESTLE PURE LIFE was also commissioned in December1998. based on the latest water treatment and bottling technology, this marked the entry of Nestle Milkpak in the Pakistan water market.In the past, Indus Fruit Products Ltd. h as been co-processing fruit pulping for Nestle Milkpak. In view of the growing needs of fruit pulp for its products as well as for exports, Nestle Milk pak entered into a 5-year lease agreement with the management enables Nestle Milkpak to put in place its own systems to ensure better product quality and power utilization. The new polar sauces production line has been established at this plant. ESTABLISHMENT OF NESTLE MILKPAK, KABIRWALA FACTORY In 1986 Milkpak Ltd. beatd the services of Kabirwala Dairy Ltd. For co packing of UHT milk under the brand name MILKPAK.Nestle Milkpak acquired KDL in 1990 as a subsidiary and began installation on a MAGGI NOODLES plant in 1991. this production line became operational in 1992 with two flavors Chicken and Masala. This second milk powder plant was commissioned in September 1996. the plant produces NIDO, GLORIA and skim over milk powder. The UHT line was discontinued in June 1996 and the same year witnessed the launching of the MAGGI YAKHNI linewith 3 flavors Chicken, Masala and Chatpata. With the merger of this factory with Nestle Milkpak in April 1997,Kabirwala Factory, as it is now called, is a fully owned unit of Nestle Milkpak Ltd.In February 1999 the newly installed evaporator came on stream in Kabirwala Factory, two-baser the product of the spray dryer. Alongside, the warehouse capacity at Kabirwala to handle the increased volumes of ruined products was proportionately increased. 1999 also saw the installation of a pouch-filling machine, making Kabirwala Factory case-by-case from Sheikhupura . YEAR 1981 1983 1986 UHT Milk Butter Milk Desi Frost PRODUCT NAME Pak work Ghee Juice Milk Pak UHT Milk 1990 Nido Cerelac 1991 Nestum Lectogen 1992 fooling Gloria Maggis Noodles Tea Whitener 1994 Milo Neslac 1996Nestea Polo Nescafe unspotted Maggi Yakhni 1997 Nestle Wheat 1998 Toffo Soothers Nestle Pure Life 1999 Maggi Fruit Butter Skotch Sauces Drops 2001 Nescafe creamy Flavors Cream milk powder Nestle Milkpak Ltd. Market Leader Nestle Milkpak Ltd. is the market leader in food and beverage industry. They are producing high quality well known brands. There is no such competitor that can compete Nestle Milkpak Ltd . in its total product mix. There are a few local competitors of the company in diametrical product item. These competitors are Rafhan Rafhan is competing Nestle in infant and follow up cereals.Shezan and tot Shezan and Bambino is competing Nestle Milkpaks local brand Frost. CDL and Adar-e-kisan These two competitors are competing in milk and milk powder products. In spite of this competition, Nestle Milkpak Ltd. is enjoying about 70-75% market share in Pakistan. DIVISIONS OF NESTLE MILK PAK ltd. Production segmentation Quality asst surgical incision Brand wise production departments Marketing Division Customer Relation Department Distribution Department Research & Development Milk compendium Division Agriculture service Department Logistic Department HR Division Personnel departme ntFinance Division Treasury department OBJECTIVES OF NESTLE MILKPAK LTD. ? The major objective of the company is to sell high quality, innovative and superior products which satisfy needs and wants of consumers. ? ? Nestle not maximize arrive at through high market share but use satisfaction of consumer. The health of consumer and employees is at primary priorities ? Nestle provide the pollution free enviroNestle Milkpak ltd. ent and provide the aesculapian facilities ? ? Nestle establish policies, programs and practices to conduct operation in an enviroNestle Milkpak ltd. ntally sound manner. Nestle operate to achieve highest standard of ethical conduct, which acquire companys activities and relationship world-wide in each business sector. ? Nestle aim to deal only with reputable suppliers who ordain to apply Nestle Quality Standard. ? Nestle has been committed to enviroNestle Milkpak ltd. entally sound business practices throughout the world. EXTERNAL ENVIRONMENT NESTLE MILKPAK LTD. The top management of Nestle MilkPak continuously carries on environmental scanning and within the environmental trends.Opportunities & opportunities they carry on required coiffurements in their organization to remain variable and to give out in the face of competition. CORE COMPETENCIES Nestle Milk Pak has the following core competencies. hold out FORCE Nestle Milk Pak has a small work force as their most of the operations are automatize. They have a very skillful and learn workforce. FACILITIES The NESTLE MILKPAK LTD. s facilities i. e. offices stores and plants are very well determined and have the inevitable capabilities, which is a big competitive advantage for them.SYSTEM AND TECHNOLOGY Nestle Milkpak ltd. is an organization which hard depends upon new systems and technologies to excel in the market. The organization is well equipped with new developed systems and technologies in particular in their operations emulous PRIORITIES Following are the competitive p riorities of NESTLE MILKPAK LTD.. Consistent quality Development hasten Volume flexibility QUALITY Quality is the cone competitive priority of NESTLE MILKPAK LTD.. They take quality in two ways. High performance design and reconciled quality. CONSISTENT QUALITYNESTLE MILKPAK LTD. 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 NESTLE MILKPAK LTD. is the industry leader not only in Pakistan but all over the world. They have a team of very innovative people which systematically focus on the development of new products and to improve the already existing products. pile FLEXIBILITYVolume flexibility is one of the competitive priority of NESTLE MILKPAK LTD.. When the availability of Milk is high in winter season they increase their production as the milk cannot be stored for chronic period of time. In season when there is shortage of milk their production rate dropped. So they can adjust their volume of production according to their requirements. decrease system Flow strategy is one of the primary element of operations strategy. ground on competitive priorities a flow strategy is selected. It specifies has the operations system to be organized and handled.For different set of products different flow strategies can be implemented. get out unravel STRATEGY NESTLE MILKPAK LTD. has take the line flow strategy here the system is organized around the product. In this strategy all products follow linear pattern in facility. NESTLE MILKPAK LTD. has high volume production with highly automated facility and huge capital investment is there and the standardized products they produce. So they follow the line strategy. STRATEGIES BASED ON FLOW Following are the flow based strategies adopted by NESTLE MILKPAK LTD.. hazard TO STOCK STRATEGY NESTLE MILKPAK LTD. ollows the make to demarcation strategy. They have high volume production and the demand for their products can be forecasted quite well, there exist repeating of work and a consistent quality is maintained all these priorities lead to make to stock strategy. STANDARDIZED SERVICE STRATEGY The products which are provided by NESTLE MILKPAK LTD. are standardized. Therefore the standardized service strategy also exist in NESTLE MILKPAK LTD. Ltd. They have standardized and consistent quality products. PRODUCTION PROCESS Milk assemblage & Reception Storing Standardization De-CreamingCooling Spray drying drying up Pasteurization Packing MILK gathering Milk Collection system of Industry is excellent. According to this system the companies trucks reach 140000 milkmen and collect milk daily. The milkmen provide milk on contract basis. Prices of milk vary in case of self- order and contract basis. On milk center price of milks is paid at Rs. 5. 80 per lit er at 6% Fats. If the quality of fat is less than required 6% then price leave alone be paid less proportionately. contribution of FAT in Various Kinds of Milk. cow 6% Fat Cow 3. 5% Goat 3% Sheep 6% Human 3. 5%At milk gathering centers, Gerber Test in done for the termination of Fat. Companies are bounded to maintain 3. 5%Fats under pure Food Laws. It is juristic requirement throughout the world Milk array system of Nestle Milk Pak is excellent. According to this system milk is composed from area of about 72,000 km . small town Milk centers Sub centers Main Centers 2273 583 23 On milk centers price of milk is paid according to percentage offers. If the quality of fat is less than required (6%) than price will be paid accordingly. At milk collection centers, gerber test is performed for ratiocination of fat.In milk collection centers temperature of milk is unbroken at 4oC. Nestle purchase milk directly few frames, there is no middle man. Collection Areas are in all over P unjab Nestle Milk Pak divide the areas in following Categories ? ? ? ? Sahiwal, Burewala, Okara etc. Pindi Bhattian, Chaniot, Sarghoda Kabir Wala, Mian Channu, Shorkot, Kahane wal, Kacha KHU Bahawalpur , Bahawalnagar, Chistian, Ahmadpur There are Area collection managers, Milk collection Cocoordinators and Milk Collection Supervisors in each Area for collection of specific amount of Milk in specific time. RECEPTIONFrom milk collection centers milk is collected and delivered to factory daily revenue stamp of tankers are properly decided. Receiving capacity of milk is 60,000 liters. At reception following tests are performed before storing milk to assure the quality of milk. 1. Alcohol precipitation test 2- curdle an turn 3- Fat (5. 8% 6%) 4- SNF (Solid non fat) (8. 5-8. 9) 5- PH test (6. 8 6. 9 Up to reception temp of milk is about 8-10oC, there is no rejection on temperature basis. Trollers are not preferred to layover 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 organization of fats in their milk neutral seasons. Standardize milk according to the chemical formula milk is given temperature of 72oC for 15 seconds to reduce bacterias in milk, this process is called thermization life of milk is increased by this process and in standardization fundamental law of fats and SNF are standardized.DE-CREAMING In this process diddlysquat particles, SNF and cream is separated, milk is given temp of 60oC and 60,000 rpm in de-creamer. So that smear particles cream can be separated. Cream is trip to butter section. Dirt is feed afterwardsward 30 seconds milk is send for further processes. PASTEURIZATION In This make milk is heated at 92 oC for 5 seconds t o remove remaining bacterias. Milk powder process activities after pasteurization milk to treated for rebirth into powder, following activities are performed to milk dehydration a) Low heat treatment Milk is heated at high compact of 889 milli bar so that it start boiling at about 70 oC . (b)4-effect falling film Milk is evaporated in 4 effect system. Milk is evaporated about 56%, 62%, 67% and 75% after 1st 2nd 3rd and quaternary effect respectively. aft(prenominal) 3rd effect Homogenization is done which uneven composition of fats and SNF is homogenized Spray drying In this process there are 5 askance high pressure nozzles which exert high pressure on milk after that there which exert high pressure on milk after that there are about 50% water and 50%solids are remained in milk.After this step about 320oC impetuous air is propel on milk, it is very quick process in which powder settle in base and moisture evaporate in forms of vapors. Central lecithination Lecithinate is sp rayed on powder so that it is converted into highly dissolvable powder. That way Nestle Milk Pak say Nido is instant Milk (easily dissolvable in hot ad cold water). Drying After all these procuress still powder has 5. 5 % moisture in it, mill is dried through xEgran System to reduce moisture level up to 3. 1% Cooling After drying there is a cooling process, in which powder is cooled before storing.Storing of powder Powder is stored in bins there are 40 bins. Packing Milk is packed in different packing according to the weight required, form tote tilting station from bins. cleverness Capacity is the maximum rate of output for a facility. The operations manager must provide the capacity to meet contemporary and future demands otherwise the organization will miss the opportunities for growth & profits. Capacity planning is duty of top management and it is long term . In flush season when milk is abundantly available they expend capacity 100% as make clean time is just 4 hours dail y and 20 hours for working.Installed capacity in NIDO plant is 560 tons, it produces 4 tons / Hours & in 20 working hrs it can produce 80tons per day. In summer when availability of milk is lower they have their annual shut down (June). They have training session for employees and vacations in that time. There are certain standards for labor utilization. Efficiency of employees is calculated daily. LOCATION eagerness location is the process of determining a geographic site for a firms operations. Nestle Pack has located one of its factories at KabirwalaREASONS FOR SELECTING THIS LOCATION proximity TO SUPPLIERS AND RESOURCES This factory has been located in this area because here the supply of milk is more than the requirement of the local area. This factory location is immensely surrounded by Agricultural farms, villages and small towns. The people o f these areas have their own animals and the feudal of the region have their own live stock farms. So there is abundant milk availab le. Furthermore, by locating one factor y at Sheikhupura and the other at Kabirwala the Nestl MilkPak can cover the geographic area of milk collection very well, especially the area of whole Punjab.REPUTATION OF THE LOCATION Placing of the factory at Kabirwala is also advantageous in this way that at the current place there was actually the factory in the name of Kabirwala Dairies Ltd. (KDL). So the place has thereputation of having a milk factory. The suppliers of milk are already oriented with this location. PROXIMITY TO NATIONAL course Kabirwala factory is quite closer to case Highways so the transportation of dim Material and Finished Goods is also easier. In the end we can say that the most important and critical factor for locating the facility at this place is the availability of the milk in this area.SUPPLY CHAIN MANAGEMENT come forth Chain Management seeks to synchronize a firms functions and those of its suppliers to match the flow of materials ,services and informatio n with customer demand. A basic purpose of supply Chain management is to control arsenal by managing the flows of materials. TYPES OF INVENTORIES Following types of inventories are kept by Nestle Milkpak Kabirwala RAW MATERIALS unexampled Material inventory of Nestle MilkPak consists of milk. Their Raw Material is kept in Silos . Silos are the big tanks, which are used to store the milk.Inventories of their raw materials cannot be maintained in bulk quality and for a longer period of time. The factory can store the milk up to 596000 liters. They have five silos for storing the milk all have different capacities. The milk can remain there for the period of 36 hours without loosing quality. WORK IN PROCESS INVENTORIES Work in process inventories are not to huge. Whatever they put into production they stop production after its completion if there is no ludicrous break down. The unpacked goods inventory can be considered as the WIP inventory. The condensed milk is stored in Bins.Bins are the big boxes in which the milk powder is stored before packing it. hen through an automatic plant the milk is packed. The butter is stored in huge tubs. From where that is packed through the automatic. FINISHED GOODS INVENTORY Inventories of packaging material can also be included in WIP inventories. The packing material is purchase externally. The supplier of packing material is packag