Nestlé Vietnam promotes sustainable supply chain and logistics

Nestlé Vietnam completes supply chain to contribute to sustainable development

Accordingly Nestlé's sustainability approach is comprehensive, strengthened by various commitments to strive for net-zero emissions and deforestation-free supply chains and to advance regenerative agriculture at scale. In addition, Nestlé is committed to improving water stewardship, developing better packaging with improved circularity, creating opportunities for young people and building a diverse and inclusive workforce.

Hung also talked about the Nestlé Supplier Code which serves as a fundamental framework for building the mutual business relationship with suppliers, including transportation and logistics companies.

"Our Supplier Code is built upon four key pillars including Human Rights, Safety and Health, Environment Sustainability, and Business Integrity," said Hung. "We highly value our partnerships with suppliers who share our commitments and implement responsible and ethical practices."

Hung highlighted that Nestlé Vietnam focuses on optimising its supply chain to reduce environmental impact. This includes initiatives to minimise energy consumption, greenhouse gas emissions, and water usage throughout the entire supply chain. By implementing efficient transportation and distribution practices, the company aims to reduce carbon emissions associated with logistics operations.

Besides, Nestlé emphasises responsible sourcing and sustainable procurement practices. The company works closely with suppliers to ensure they adhere to ethical and sustainable standards, promoting fair labor practices and responsible resource management. Additionally, Nestlé is committed to transparency and traceability. Through advanced technologies and digital solutions, Nestlé tracks and monitors its supply chain to ensure compliance with sustainability standards and to identify areas for improvement.

"We have invested in digital transformation for all logistics activities to connect with global markets and promote import and export activities," added Hung. "We also optimise the transportation and distribution of goods in the domestic market."

In 2022, Nestlé Vietnam deployed 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.

For the domestic market, Nestlé Vietnam applies a smart application for warehouse and transportation management. 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.

Logistics landscape changing through e-commerce overhaul The promising e-commerce sector in Vietnam, which has seen exponential growth and is projected to surpass regional counterparts such as Thailand, Philippines, Malaysia, and Singapore, has had a profound impact on the logistics industry.

Logistics sector a golden egg for progress across Vietnam Vietnam has been the top choice for global investors in terms of logistics industrial sectors in Asia-Pacific. Trang Bui, country head of Cushman & Wakefield Vietnam, determines how this came to be, and analyses the tasks set towards 2030.

Logistics Summit 2023 will open on October 5 The Logistics Summit 2023, jointly organised by VIR and SLP Vietnam under the auspices of the Ministry of Planning and Investment, will take place in Ho Chi Minh City on October 5.

Discussing the latest insights into Vietnam's logistics market Vietnam's logistics industry is seeing significant growth due to the country's expanding manufacturing and e-commerce sectors. Edwin Chee, COO of SEA Logistics Partners (SLP) Vietnam, shared with Thanh Van his insights into the domestic logistics market and the company's plan to tap into this growth.