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This deficiency in standard commercial processes hindered Nestle from boosting productivity.
Behind this discovery lay the reasons for inefficiency. The first was that Nestle couldn't leverage its global purchasing power for the raw materials used in its products, even though each production plant used the same worldwide suppliers. This occurred because each company not only negotiated its own purchases and its own prices, but also made their own business decisions. The essence of this problem, stemmed from the autonomous decision making of the companies. For the resource vanilla, there existed twenty-nine (29) different prices and these prices were being all paid to the same vendor...
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