Nestlé Vietnam focusses on digital transformation throughout its supply chain

April 30, 2023 | 09:46
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Nestlé Group is pioneering in the application of digital transformation throughout its logistics activities in the Vietnamese market.
Nestlé Vietnam focusses on digital transformation throughout its supply chain

The information was shared on April 27 at a seminar entitled Digital Transformation to Build a Modern and Sustainable Logistics Industry, organised by the Agency of Foreign Trade under the Ministry of Industry and Trade.

Nguyen Tran Hoang Yen, supply chain director for Nestlé Vietnam said, "Digital transformation is one of Nestlé's priorities to promote sustainable development. This drive covers the entire operating system of the company, including the supply chain."

Nestlé estimates that up to 95 per cent of the group's total greenhouse gas volume comes from the value chain, including animal husbandry, farming, supply, and freight transport.

Therefore, the digital transformation of its supply chains not only improves the company's operational efficiency, but also contributes to achieving the net-zero emissions target by 2050 set by Nestlé Group. Vietnam is one of the markets where Nestlé Group has implemented many initiatives related to the digital transformation of its supply chain.

Specifically, Nestlé Vietnam is investing in digital transformation for all logistics activities to connect with global markets and promote import and export activities. The company also optimises the transportation and distribution of goods in the domestic market.

"We maintain smart logistics operations to bring flexibility and connectivity to our business. Digital transformation helps provide accurate and quality data. This, coupled with detailed reports, helps the company reduce costs and increase supply chain efficiency," Yen added.

Nestlé Vietnam exports products to more than 40 markets around the world, each of which has different requirements. Therefore, the company has invested in digital technology to support the connection between manufacturers, suppliers, transporters, and customers.

In 2022, Nestlé Vietnam will deploy a smart application called Cargoo to connect manufacturers with importers and shipping lines. This platform helps track the status of the entire freight process between partners for each order. Partners can also retrieve shipment information when needed, make reservations with shipping lines, and manage import and export documents.

As of present, 14 shipping lines have been integrated into this platform, helping exporting countries accelerate reservations and ensure on-time delivery. Meanwhile, importing countries can also track orders and solve problems when needed. The move paves the way for Nestlé Vietnam to increase packing efficiency and reduce shipping costs.

For the domestic market, Nestlé Vietnam applies a smart application for warehouse and transportation management called Transportation Hub. For the last two years, Nestlé Vietnam has been digitising its freight centre system, changing the company's operations in terms of receiving orders, allocating transportation, operating warehouses, and tracking delivery to customers.

Automated order allocation helps optimise transportation. For example, small orders are combined and transported on the same trip, shortening the total distance, reducing emissions from transportation activities, and contributing to the net-zero roadmap.

In addition, analytics has become an effective tool for analysing and forecasting activities. Thus, sales, planning, and finance departments can make more effective decisions.

Nestlé Vietnam will continue to test and develop high-end analytical solutions to increase accuracy for forecasting and planning across the supply chain. This will help the company make faster and more accurate decisions in today's volatile world. The strategy helps the company improve customer service, ensuring a stable supply in the market.

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By Thanh Van

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