INTERNATIONAL LOGISTICS

OF NESTLE

Presented by Avisha Bhandare

62
About Nestle

Nestle is the largest manufacturer of consumer

goods worldwide.
The Swiss-based company has factories in more
than 86 countries, sells products in more than 196
countries and employs about 339,000 people
around the world.
Nestls headquarters are in Vevey, Switzerland.
The company was founded with the merger of the
Anglo-Swiss Condensed Milk Corporation and
Farine Lacte Henri Nestl in 1905.
 Nestl is well positioned in its operating markets.

The largest share of sales come from North and

South America.

The firms biggest international competitors

worldwide include Unilever, PepsiCo, Mars
Incorporated and Mondelez.
Transport and Distribution of
Nestle
Transport more than 140,000 tonnes of products
from 1600 warehouses to our customers.
Travelling the equivalent of 269 times around the
world every day, much of this distribution relies
on partnerships with third-party logistics
providers.
Distribution Networks

10 distribution networks globally to improve

efficiency.
In the Middle East, the import/export warehouse,
the regional distribution centre (RDC) and part of
the raw and packaging warehouse are combined
into one central distribution centre.
This will lead to transport synergies, and empty
trips will be significantly reduced by the use of an
efficient shuttle transportation system.
It is estimated to reduce the CO2 emissions by
around 2000 tonnes per year.
Distribution System

Competitive edge over its existing rivals.

Nestl has its own distribution networks equipped with all

necessary transportation facilities.

They transport their products at major regional sales offices,

which are situated at different cities of India.

These sales offices (distribution centres) have their own vans

with sales people who sell and transport goods to the small
retailers.
 Optimized Routing plan

Biggest Nestl-owned fleet is in the United States, where

they deliver frozen products and water directly to stores,
homes and offices.
Direct Store Delivery (DSD) business for pizza and ice
cream in the United States has completely revised all
delivery routes by leveraging new routing concepts and
optimising delivery distances, saving 3.8 million litres of
fuel.
Nestle continues to shift long-distance transportation from roads to
rail and sea wherever they can.
This helps avoid traffic congestion, cut costs, increase efficiency
and reduce GHG emissions.

EU Marco Polo project :

Through the EU Marco Polo project, there is shift in distribution of
more than 360 000 tonnes of petcare, water and cereal products
from road to rail transport by 2016, using several scheduled rail
services between Italy, France, Germany and Slovakia. This
transport mode shift will take around 5000 trucks per year off the
road and save EUR 2.7 million (CHF 3.2 million) over three years.
 Nestl Waters relies heavily on the rail network for efficient long-
distance transportation. In 2014, around 30% of its European
distribution was by rail, including 43% (by volume) of all water products
in Italy and 33% in the UK. Nestl Waters constantly reviews
opportunities to shift to rail transport, and achieved a 10% improvement
in the carbon efficiency of its transport since 2010.
 Outsource Partner of Nestle

Nestle Outsources Distribution and Transportation Operations to

Ryder
- Ryder manages Nestle Distribution, Warehousing Operations
and Outbound Transportation to More Than 600 locations
throughout Chile.
- Ryder manages two multi-customer distribution centers with a
combined 400,000 square feet and 25,000 pallet positions of
finished products located in Maipu and Quilicura, Chile. Through a
turn-key solution, Ryder also manages the outbound transportation
of approximately 60 to 80 vehicle loads per day from the
distribution centers to more than 600 Nestle customer locations
throughout Chile including supermarkets, distributors and
wholesalers. Utilizing a warehouse management system and hand-
held radio frequency equipment, Ryder's solution is designed to
optimize Nestle's inventory levels, improve order accuracy and
efficiency, while providing consistent levels of customer service.
Ryder will also be responsible for the management of regional
 Ryder manages two multi-customer distribution
centers with a combined 400,000 square feet and
25,000 pallet positions of finished products
located in Maipu and Quilicura, Chile.
Through a turn-key solution, Ryder also manages
the outbound transportation of approximately 60 to
80 vehicle loads per day from the distribution
centers to more than 600 Nestle customer locations
throughout Chile including supermarkets,
distributors and wholesalers.
Utilizing a warehouse management system and
hand-held radio frequency equipment, Ryder's