MAGAZINE №5 (76) October 2016



TIHONOVA E.V.  - AssistantWorld Economics Department, National Research University Higher School of Economics (Moscow, Russia)

CATEGORY  Industrial companies’ corporate logistics Supply chains reliability and sustainability


The most sophisticated supply chains that integrate activities of producers from different countries and sectors are created in
transnational corporations. Paying a lot of attention to sustainable development principles implementation into business activities and supplier relationship, leading global corporations contribute considerably to the spread of sustainable business practices in developed and developing countries. Research into experience in establishing sustainable supply chains by companies that pursue multinational strategy and cooperate predominantly with local suppliers is of great importance.
The main goal of the research is to explore experience of the leading world food production company Nestlé in establishing its sustainable supply chain. Within the article methodological underpinnings of creating sustainable supply chains are examined, specifics of establishing global supply chains are explored, influence of company’s international strategy on building relationships with suppliers is analyzed, Nestlé initiatives and practices in the field are thoroughly explored.
Adherence to sustainable development principles is an integral part of Nestlé activities: clear, mandatory for employees, suppliers and contactors standards and requirements are set for every step of production and supply processes. Conducting operations in foreign markets Nestlé doesn’t not only set requirements for local farmers and producers, but exercises extensive support, consults and motives its suppliers in safety and health issues, prudent use of resources, quality of products and other issues. While sourcing predominantly from local producers, Nestlé stimulates them to implement best practices, assess sustainability of their activities on the regular basis, become more responsible in every business operation. Nestlé efforts in sustainable supply chain creation contributes greatly to the transition of global society to sustainable development and can serve as a guideline for big corporations and small andmedium-sized enterprises of any country of origin.



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