• Laura L. Gay

Abstract

My paper will address the supply chain of Nespresso and its competitor Keurig to other coffee machines. Coffee is not just a drink but an addiction to some. The summary you will review provides a description of the companies along with some historical facts of interest. Specific details are provided for each companies supply chain and sustainability from products offered, purchasing of coffee beans, to interest in farming of the coffee plant for a quality product. My summation will give recommendations as to what Nespresso can do to improve their supply chain to be more in-line with Keurig, while increasing profitability.

The Competition of the Coffee Makers

Coffee is not merely a drink, to many it becomes an addiction so much so they can’t live without their daily dose. In 2011 up to over 400 million cups of coffee were consumed a day. The choice is to pay the prices of you elixir of choice at a barista or to purchase your own coffee machine making the brew of your craving. Though so many still get their choice of coffee at coffeehouses over 86 percent of Americans get their fix at home. Now comes the important part. What machine do you choose the simple coffee maker or a more complex model that will provide the ultimate barista coffee from Black & Decker, Bun, and West Bend to your more sophisticated electric machine Nespresso or Keurig? In my paper I will discuss the supply chain of Nespresso verses Keurig.

Organizational Profile

In this section I will address the concept of the company along with their focus on business. I will also provide information on where the corporate headquarters are located, number of locations along with the number of employees it counts among the business. The roadmap of the sustainability will show how key it is to growth of the organization.

Profile of the Organization

Nespresso began in 1986 on the concept to enable anyone to create their own perfect cup of espresso coffee. The company created a product to revolutionize the way people enjoy their coffee shaping global culture. Their focus is on delivery quality coffees with consumers having the ultimate experience. Nespresso competes on the business-to-consumer and business-to business segments. The concept is to allow consumers to enjoy coffee at the highest quality at home recreating the barista experience. The Nespresso system is designed to insure consistent quality in the portioned coffee sector as one of the fastest growing global beverage brands.

The production of the Nespresso capsule is produced in one of two state-of-the-art centers in Switzerland. The company is a globally managed business of the Nestle Group. The corporate headquarters is located in Lausanne, Switzerland, in almost 60 countries and counts for over 9,500 employees worldwide.