CO – Supply Chain 2/23/2016

Sustainable

Logistics

Improve Environmental

Performance

2 | | 2/23/2016

Nestle needs to continue

to be in the A list

3 | | 2/23/2016

Supply Chain: Makes an impact across the world

442 Factories

900 Warehouses

86 Countries

600 Distribution centers

4 | | 2/23/2016

Improving the environmental performance of Transportation

requires a 3 dimension approach

Modality shift

from road to rail

Reduce Empty

Legs

Increase the

Vehicle Utilization

5 | | 2/23/2016

The 2020 Objective

We will reduce GHG emissions per ton of

product transported by 10% since 2014.

How?

Through better vehicle utilization and the

reduction of empty running using

Transportation Control Towers

6 | | 2/23/2016

Tendering

Planning

Execution

Invoicing

Implement Transport Control Towers

• Procurement to work with the best suppliers

• To have full visibility on multiple networks

• Analytics to optimize transport networks

• Planning & Execution to make it happen

7 | | 2/23/2016

Implement Control Towers where it matters the most:

USA

BRA

CWAR

EUR

RUS

IND

CHI

AUS ZAR

8 | | 2/23/2016

5 examples of reducing

Nestlé’s environmental impact

• Vehicle Capacity Utilisation

- Malaysia

• Milk Network Redesign

- Brazil

• Multi Model

- France & Italy

• Improved Contracting

- Nigeria

• Emission reduction

- US & Italy

CO – Supply Chain 2/23/2016

Full Truck Loads

Reducing Carbon output

across the world

10 | | 2/23/2016

2014 2015 2013

CO – Supply Chain 2/23/2016

Network Redesign

Brazil

Mileage Reduction

12 | | 2/23/2016

Milk deliveries in Brazil

800 Tanker Trucks

5600 Milk Farms

1500 Drivers

18 Factories supplied

No long Term Contracts

No Logistics Training provided

Before Redesign

30% Less Milk Losses

30% Less Kilometers

Redesigned Network

Training

provided

Contracts

signed

13 | | 2/23/2016

Sustainable Milk Logistics

1

2

1

YTD Sep’15

From 150 carriers to 5 transport

companies

Jul’09

30 2

1

1

Milk density increased by 15%

14 | | 2/23/2016

Sustainable Milk Logistics

1

2

1

YTD Sep’15 Jul’09

30 2

1

1

From 150 carriers to 5 transport companies

-5,500 tonnes of

CO2 per year

CO – Supply Chain 2/23/2016

Take the train

Reducing the CO2-

emissions

16 | | 2/23/2016

Combining forces and using the train

– Green Alpes

NW France CPW Italy NPP Italy

Bringing together:

2,800

fewer trucks

on the road

17 | | 2/23/2016

Combining forces and using the train

– Green Alpes

NW France CPW Italy NPP Italy

Bringing together:

2,800

fewer trucks

on the road

Saving

€750,000 per year

-2,300 tonnes of

CO2 per year

CO – Supply Chain 2/23/2016

Improving partners’

businesses in Nigeria

Better trucks = Better business

19 | | 2/23/2016

Improving partners’ businesses in Nigeria

Inefficient

Un-reliable

Potentially unsafe

20% More expensive to run

Bad Practices

20 | | 2/23/2016

How can Nestlé help to improve partners’ business?

Provide new trucks?

21 | | 2/23/2016

Provide longer term contracts

22 | | 2/23/2016

Allows partners to:

Apply for credit

Plan for expansion

Invest in people

Invest in trucks

20% less Fuel consumption

Better business partners for the future

23 | | 2/23/2016

Allows partners to:

Apply for credit

Plan for expansion

Invest in people

Invest in trucks

20% less Fuel consumption

Better business partners for the future

-1,700 tonnes of

CO2 per year

CO – Supply Chain 2/23/2016

Think clean

Utilising cleaner fuel

25 | | 2/23/2016

Gas truck trial

• Replace Diesel by Gas

• 15% reduction in CO2

• Nearly zero particles emission

• Nestle Waters plans to run

200+ gas trucks trails next

year

26 | | 2/23/2016

We will continue to reduce emissions globally

Thank You