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Nestlé Re-balancing Case Study
Supply Chain Consolidation: When Less is More…
Nestlé is Switzerland's biggest company, founded by Henri Nestlé in 1867. Today it is capitalized at over £59 billion and is also the world's largest consumer food company, employing 253,000 people worldwide in the production of more than 15,000 different products. It manufactures and markets some of the best-known international FMCG food and beverage brands in the world - Nescafé, KitKat, Quality Street, Buitoni, Cheerios and Shredded Wheat to name just a few. Total Logistics has been helping Nestlé UK manage its supply chain for over eight years.
Making sure that the right goods get to the right UK multiples, wholesalers and retail outlets at the right time every time is a huge logistical undertaking and is underpinned by Nestlé's two biggest UK distribution hubs at York and Bardon in Leicestershire. When Nestlé UK decided to sell off a significant part of its food business to Premier Foods in 2002 - covering such brands as Branston Pickle, Sunpat, Sarsons Vinegar and Rowntree Jellies - it was faced by the simultaneous problems of under and over-utilisation at the two main distribution hubs. Total Logistics was appointed to assess the options and specify the strategic solution - dubbed 'Project Shirt' - for the rebalancing of Nestlé's UK supply chain.
Whereas Nestlé's York centre is operated in-house, the 456,000 sq.ft Bardon centre is managed on behalf of Nestlé by TDG, one of the UK's largest supply chain solutions providers with 8,000 employees and a 1,600-strong vehicle fleet. York handles Nestlé's confectionery business and Bardon concentrates on the rest of the Nestlé product portfolio. This was principally the Food and Beverage range where TDG was assembling deliveries for Nestlé from the Scottish Highlands to the Channel Islands - plus all sites in between utilising a network of eight trans-shipment centres around the country.
Absorbing Business Change
While the
Supply Chain Consolidation: When Less is More…
Nestlé is Switzerland's biggest company, founded by Henri Nestlé in 1867. Today it is capitalized at over £59 billion and is also the world's largest consumer food company, employing 253,000 people worldwide in the production of more than 15,000 different products. It manufactures and markets some of the best-known international FMCG food and beverage brands in the world - Nescafé, KitKat, Quality Street, Buitoni, Cheerios and Shredded Wheat to name just a few. Total Logistics has been helping Nestlé UK manage its supply chain for over eight years.
Making sure that the right goods get to the right UK multiples, wholesalers and retail outlets at the right time every time is a huge logistical undertaking and is underpinned by Nestlé's two biggest UK distribution hubs at York and Bardon in Leicestershire. When Nestlé UK decided to sell off a significant part of its food business to Premier Foods in 2002 - covering such brands as Branston Pickle, Sunpat, Sarsons Vinegar and Rowntree Jellies - it was faced by the simultaneous problems of under and over-utilisation at the two main distribution hubs. Total Logistics was appointed to assess the options and specify the strategic solution - dubbed 'Project Shirt' - for the rebalancing of Nestlé's UK supply chain.
Whereas Nestlé's York centre is operated in-house, the 456,000 sq.ft Bardon centre is managed on behalf of Nestlé by TDG, one of the UK's largest supply chain solutions providers with 8,000 employees and a 1,600-strong vehicle fleet. York handles Nestlé's confectionery business and Bardon concentrates on the rest of the Nestlé product portfolio. This was principally the Food and Beverage range where TDG was assembling deliveries for Nestlé from the Scottish Highlands to the Channel Islands - plus all sites in between utilising a network of eight trans-shipment centres around the country.
Absorbing Business Change
While the