How did Nestlé Portugal manage supply chain disruptions caused by Covid-19 and the Ukrainian conflict?

Abstract

Over the past few years, the supply chains of several organizations, including Nestlé Portugal, have been significantly impacted by two external factors, the Covid-19 pandemic and the Ukrainian War. These disruptions significantly impacted the companies' operations and changed consumer behavior, requiring them to adapt their strategies to remain competitive. Nestlé's supply chains, including its distribution center of Avanca, one of Nestlé's most important in Europe, were severely impacted during the pandemic and the war. Workforce reductions, price hikes, and changes in consumer demand caused by these external shocks further worsened the operations. As a result, Nestlé was forced to adapt and find alternative solutions to keep its supply chain running smoothly. This case study relied on data gathered from annual reports, studies conducted by consulting firms, and interviews with people who have been directly involved in decision-making to improve supply chain strategies. This data-driven approach highlights supply chains' importance in companies nowadays and how their inefficiency can adversely impact an entire organization. This pedagogical study employs management and business strategy frameworks to thoroughly analyze the restructuring efforts undertaken by Nestlé Portugal to mitigate the impact of these disruptions and explore how the measures implemented during the pandemic influenced the organization during the war. The study includes comprehensive findings suitable for incorporation into management courses focusing on business strategy and crisis management.

Date of Award	3 Jul 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Reis (Supervisor)