Final answer:
The COVID-19 pandemic disrupted Nestlé's global supply chain, increasing operational costs and exposing vulnerabilities in food security and labor availability. These challenges underlined the need for immediate solutions to maintain continuity in operations amidst heightened supply chain risks.
Step-by-step explanation:
How COVID-19 Impacted Nestlé's Global Supply Chain: A CAGE Framework Analysis:
The COVID-19 pandemic has significantly disrupted global supply chains, affecting companies such as Nestlé. the challenges faced include production bottlenecks, distribution issues, and raw material scarcities. these disruptions have resulted in increased prices and have highlighted the fragility of interconnected global systems. food systems in particular have been compromised due to border closures, trade restrictions, and its implications on labor availability and crop harvests, leading to escalated food insecurity.
For Nestlé, a prominent player in the global food industry the pandemic's impact has been multifaceted. border closures and stringent quarantine measures have hampered the movement of goods, leading to delayed shipments and a shortage of essentials. consequently, this has resulted in increased operation costs and affected Nestlé's inventory management. Labor shortages due to illness and safety measures have slowed down production lines and led to a decline in product availability. moreover vulnerabilities in the food supply chain were exposed as food insecurity rates rose. The pandemic's economic implications also meant that farmers and small business owners found it more challenging to reach markets and sell their products. nestlé, relying on global sourcing for its materials and sales, faced heightened supply chain risks that required immediate and innovative solutions to maintain continuity in its operations. Despite these challenges, global trade has shown resilience indicating the potential for recovery and adaptation among leading corporations like Nestlé.