Nestle Indonesia

Generally you can differentiate the supply chain or supply network of Nestle Indonesia by two perspectives:

• The supplier side (a so-called Tier-1-supplier is a direct supplier, Tier-2 is a supplier of the Tier-1 supplier, Tier-n is a supplier at any level in the Nestle Indonesia supply network).
• The buyer side (a so-called Tier-1 buyer is a direct buyer, Tier-2 is a buyer of the Tier-1 buyer, Tier-n is a buyer at any level in the Nestle Indonesia distribution network).

To ensure business stability and continuity, a supply chain or supply network must be constructed in such a way that external influences can cause as little damage as possible to Nestle Indonesia. This applies both in the area of procurement (the loss of a supplier must be covered by an alternative supplier) as in the area of sales (the loss of a buyer must be covered by an alternative buyer).

Risks can generally be considered as the non-availability of goods, through cutback or complete halt of production, or the potential loss of business partners, violating compliance rules (e.g. protection of the environment, labor legislation) and thus drop out of the supply network.

This risk should not necessarily be limited to the direct business partner (Tier 1), it involves the entire supply chain, unless sufficient alternative suppliers and buyers have been put in place.

Get an overview of the international supply chain of Nestle Indonesia (upstream/procurement and downstream/sales) from Tier-1 to Tier-n

E.G.: Tier-1 Buyer Nestle Pakistan Ltd.

ABRAMS world trade wiki not only shows direct suppliers and customers of the first tier (Tier-1). With just one click in our tool Supply Chain Intelligence you get a comprehensive insight into the supply network with multiple tiers (Tier-n) beyond the first tier.

Each tier in the supply chain or supply network on the supplier side of Nestle Indonesia involves a single risk. The more tiers, the more difficult it is to analyze and monitor the business partners. Suppliers of suppliers are generally unknown, so there is already an increasing risk at the second (Tier 2) level.

If e.g. a first Tier supplier is not adding any value, the supply chain can be shortened and the risk of failure can be minimized by skipping this supplier. A previous Tier-2 supplier now turns into a Tier-1 supplier, which we call "go-direct". In our tool Supply Chain Intelligence as far as international suppliers are concerned, this analysis can be done with one click:

Analyze the potential of shortening and therefore stabilizing the supply chain of Nestle Indonesia

The performance of a company depends fundamentally on its buyers. Therefore, a largest possible base of stable buyers is crucial. A total of 52 international buyers of Nestle Indonesia could be identified in bills of lading. For example, one of the buyers is the company Nestle Pakistan Ltd., which has received 21 shipments.

Among 24 identified buying countries, an important target country to sell products to is: Philippines. 162 shipments of goods were shipped to this country in the period covered.

Get an overview of the international sales and its 52 buyers of Nestle Indonesia with Company Transparency.

Based on the analysis of international bills of lading (bill of lading/ bills of lading/ BOL), a total of 31 different product categories sold by Nestle Indonesia, can be identified.

These are classified by means of HS codes (HTS codes or customs tariff numbers).

For example, HS code 170490 classifies the following products:

„Sugar confectionery not containing cocoa, incl. white chocolate (excl. chewing gum)". This HS code was sighted 170 times in total.

From the product descriptions of the analyzed bills of lading (bill of lading/ bills of lading/ BOL), the following products sold to various buyers can be identified as an example:

Get an overview of internationally sold products by Nestle Indonesia with Company Transparency

Each tier in the buyer side of the supply chain or supply network of Nestle Indonesia is adding value and therefore costs. The more tiers, the more expensive the product gets. Supply chains are normally not very transparent, trade secrets are part of the survival tactics in each stage of the value chain, especially for trading companies.

If e.g. a Tier-1 buyer from Nestle Indonesia that primarily trades products and doesn’t add any value (only fulfills the distributor function) it is possible to shorten the supply chain downstream giving a potential to optimize profit margins for Nestle Indonesia. A previous Tier-2 buyer now turns into a Tier-1 buyer, which we call "go-direct". In our tool Supply chain Intelligence as far as international buyers are concerned, this analysis can be done with one click:

Analyze the potential to shorten the supply chain and optimize the profit margins on the sales side of Nestle Indonesia

Each company contributes significantly minimizing risks for its buyers, through its own stability. Internal risks (endogenous factors) can be e.g. financially (financial ratios, free cash flow, balance sheets) or operationally (production, lead times). Since 2021, external risks have increased due to worldwide shortages and are an important factor as to whether a supplier such as Nestle Indonesia can itself reliably deliver due to external dependencies (exogenous factors).

To assess this, data analysis should be conducted to get practical answers:

Which buyers does Nestle Indonesia consistently sell to over a long period of time that can be identified as a good reference?

The more constant outgoing shipments of a company’s, the easier it is to assess potential problems for a supplier like Nestle Indonesia

Operational aspects like a stable supply chain, an in-house production and reliable logistics define sustainable performance.

Since 2021, global supply shortages have increasingly added external factors as to whether a supplier like Nestle Indonesia can deliver reliably itself through dependencies.

Based on the statistical trend of shipments (in terms of the number of shipments and respectively the quantity of goods) the current supply and performance capacity can be indirectly analyzed.

Here you can see an analysis of shipments by Nestle Indonesia to international buyers in the last few months with Company Transparency

Generally you can differentiate the competition of Nestle Indonesia by the purchase and sales perspective.

• Start the competitive analysis on the purchase side.
• Start the competitive analysis on the sales side.

Competitors of Nestle Indonesia on the purchase side (procurement of raw materials and components for production or distribution) are exposed on ABRAMs wiki under Competitive Intelligence, purchased products, classified by HS-Codes or by top product terms.

Competitors on the sales side of Nestle Indonesia (selling raw materials or components for production or distribution) are exposed on ABRAMS wiki under Competitive Intelligence, sold products classified by HS-Codes (e.g. 170490, 190110) or by top product terms.