The Future of Supply Chain

Transcription

1 The Future of Supply Chain Magdi Batato Executive Vice President Head of Operations Nestlé S.A. Leaders Forum 9 July 2018

2 1988 PhD Ecole Polytechnique Fédérale Joined Nestlé Head of Operations 2

3 Nestlé, a global organisation* Providing safe, quality nutrition for more than 150 years Over 2000 brands worldwide 1 billion Nestlé products sold every day 3 Number of countries we sell in CHF 89.8 factories in 85 countries *Nestlé 2017 Annual Report billion net sales

4 Nestlé, creating sustainable and long-term value Creating Shared Value Sustainability Compliance Nutrition, water, rural development our focus areas Protect the future Laws, business principles, codes of conduct Enabled through 323,000 people around the world 4

5 Evolving consumers 5

6 Capturing hearts and minds of our consumers + = What consumers expect from companies A history of social responsibility & tradition Recognized social responsibility Quality of products and services 6 Innovation

7 Satisfying customers across omnichannel Traditional retail Hard discounters ecommerce 7

8 Creating value for investors Underlying Trade Operating Profit margin 16.0% 16.5% 17.5% to 18.5% * Increase versus

9 Supporting sustainable growth Freeing up resources to invest in growth Customizing consumer offerings Improving real availability Efficiency & Marginal contribution GROWTH Digital as an enabler 9

10 Freeing up resources to invest in growth Aligning the organisation through Procurement HOW WE BUY Leveraging WHERE - WHO WE BUY FROM Speeding up WHAT WE BUY Simplifying 10

11 Freeing up resources to invest in growth Safeguarding long-term agricultural supply 11

12 Freeing up resources to invest in growth Competing on the shelves not on trucks UK Brazil 12

13 Building flexible sourcing Customizing consumer offerings France Organic offerings Chile Natural offerings 13

14 Customizing the manufacturing Thousands of material specifications 50 Coffee blends Customizing consumer offerings Non-standardized manufacturing lines 3 Manufacturing platforms Many limited offerings Differentiated offerings 14

15 Customizing consumer offerings SMALL BATCHES Flexible & cost efficient product offerings 15

16 Customizing the logistics Customizing consumer offerings Enabling small picks for ecommerce Late customization 16

17 Customizing consumer offerings Replenishing point of sales automatically 17

18 Merging inventories with Alibaba Improving real availability CURRENT FUTURE 18

19 Building a platform with JD.com Improving real availability Forecasting, replenishment & delivery < 19

20 Reaching directly the consumers Improving real availability -POINT -CUBE -WHEEL Vending at retail outlets Vending at airports and rail stations Delivering at designated locations 20

21 Building consumers trust Full traceability to origin Sourcing responsibly Free from forced & child labor Environmentally friendly packaging Free from defects 21

22 Providing full traceability to origin Single ingredient Known producers Easy traceability Multi ingredients Various producers More complex process 22

23 Sourcing responsibly TRANSPARENCY TO INGRAIN TRUST Supply chain disclosure DIGITAL FOR SPEED & COST Satellites monitoring DEMONSTRATION OF FEASIBILITY Human rights - be the doer 23

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25 It s all about people ENGAGING PEOPLE ALIGNING TEAMS IMPROVING WAYS OF WORKING 25

26 Enhancing quality of life and contributing to a healthier future Values rooted in respect FOR INDIVIDUALS & FAMILIES Enabling healthier and happier lives Offering tastier and healthier choices Inspiring people to lead healthier lives Building, sharing and applying nutrition knowledge FOR OUR COMMUNITIES Helping develop thriving, resilient communities Enhancing rural livelihoods Respecting & promoting human rights Promoting decent employment and diversity FOR THE PLANET Stewarding resources for future generations Caring for water Acting on climate change Safeguarding the environment Brands with purpose

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