Introduction

The movement of goods via air, water, rail, cable, and other modes of transportation from one place to another is defined as transportation and distribution (Zimmerman & Blythe, 2013). Effective transportation and distribution are keys to success for a business in terms of market hold, business growth, and expansion. Hence, the primary aim behind presenting the report is to critically discuss and analyze the transportation as well as distribution management processes of Nestle Corporation (Nestle) on a global basis. For accomplishing the aforesaid objective, the report will be divided into several parts. The first part will cover the overview of Nestle, the second part will discuss about the company’s transportation system followed by a discussion about its distribution management system. And the last part will discuss about Nestle’s distribution channels.

About Nestle
The foundation of the Anglo-Swiss Condensed Milk Company in 1866 signalled the beginning of Nestle and the path for its foundation was leveraged when Henri Nestle developed a breakthrough infant food in 1867 and when the company Henri Nestle founded eventually merged with Anglo-Swiss Condensed Milk Company to form what is presently known as the Nestle Group. During the First World War and World War II, the firm flourished substantially and expanded its goods beyond its early condensed milk and child formula products. It has made several business acquisitions including Crosse & Blackwell in 1950, Findus in 1963, Rowntree Mackintosh in 1988, Klim in 1998, and Gerber in 2007. Nestle is a Swiss conglomerate company based in Vevey, Vaud, Switzerland. Since 2014, it has become the world’s largest food company based on revenues and other criteria. In 2017 the number was 64 in Fortune Global 500 and in 2016 the number was 33 in the list of the largest public businesses in Forbes Global 2000 (Huang & Abdel-Khalik, 2017). Production of Nestle includes infant food, medicinal feed, frozen meals, pet food, and snacks, bottled water, breakfast cereals, coffee and tea, dairy foods, and ice cream. Nestlé brands account for over twenty-nine product genre sales annually, including Nespresso, Nescafé, Nestle, Smarties, Nesquik, Stouffer’s, Vittel, and Maggi, amounting to more than 1 milliard CHF i.e., approximately $1.2 billion. In 189 countries Nestlé has 447 factories and has a workforce of about 339,000 employees (Johnson, 2020).

Nestlé’s Transportation System
The transportation method of the company is centred on sustainable environment. It aims at optimization of distribution paths and planning networks in all processes. It explores ways to improve travel alternatives by changing to other means of transport and discovering less hazardous fuels. The system aims at expanding the training of drivers so that they can deal efficiently with environmental and safety problems (Freudenberg, 2020). In addition, the transport and logistics managers work on reducing the number of empty transport routes, increasing vehicle utilisation, and occasionally examining the strategic distribution network as a method of enhancing the performance of the firm.

Optimizing route planning is a continuous effort for its fleet operations. The firm moves from traditional transport modes, such as road transport, to short-sea cargoes or to railways. Also, fossil fuels are switched to natural-gas vehicles with the objective of decreasing transportation’s environmental impact. Nestle focuses on lowering energy usage and on transitioning to alternative renewable energies in warehouses (Varma & Ravi, 2019). Moreover, the firm invests in innovative technologies for enhancing transportation and distribution that provide novel efficiencies. Three key variables are utilised to pick a carrier for the shipment of Nestle products, viz. greenhouse emissions reduction, and alleviation in the costs of transportation, and increased efficiency.

Nestlé’s Distribution Management System
The fourth part of the Marketing mix for every product is distribution channel structure i.e., the “Place” aspect, which makes it an essential factor. Different distribution methods are chosen by different firms in line with their product requirements and objectives. In addition to the above mentioned essential purpose of a distribution channel, it has several secondary roles such as collection of market research information to aid the future planning for product marketing, targeting and communicating with potential purchasers, product promotion, and evaluation of the unique requirements of the buyers, price setting, ensuring effective good storage and transportation, and proper financial management needed to operate through distribution networks. Nestle developed a plan, essentially referred to as the “whenever” or “anywhere” or “any” distribution strategy, which would make their goods available across the UK and to ensure that the supply is not lost.

For Nestle, the key stakeholders in the distribution process are large wholesalers like Tesco, Asda, Sainsbury’s, Waitrose, etc (Yang et al., 2021). They work on credit accounts originally created after a minor credit check. Nestle UK’s overview indicates that they have one of the finest procedures for distributing their products across the country. But it is recommended that the company should use UK rail network to quickly deliver the products and reduce time-consumption. This would enhance their market effectiveness and allow them to reach their target sales without any shortage effortlessly.

Nestlé’s Distribution Channels
The distribution channels of Nestle can be categorized in the following manner:
• Single Tier Distribution Network: Manufacturer – Retail – Consumer
• Two Tier Distribution Network: Manufacturer – Distributor – Distributor – Consumer
• Multi-channel distribution system: manufacturer – distributor – distributor regional – wholesaler/dealer – consumer.
Because of the enormous UK retail market, it was nearly impossible for Nestle to adopt the single tier distribution, since the distribution for Nestle was becoming highly difficult and the product strategy could not have been implemented effectively through a single tier distribution system.

Hence, Nestle created a multi-chain distribution network in Leicestershire, and in York in North Yorkshire they set up their own main distribution hubs. Nestle in the UK manages Bardon’s food and beverage sector and Nestle’s candy industry is manufactured at York. Nestle’s distribution system is very popular in the market and the distribution for Nestle runs round the clock. The shifting demand in the market is high in terms of timely distribution but the company has effectively handled the same. Moreover, it is noteworthy that Nestle has its own regional distribution facilities that span the whole United Kingdom, enhancing its market presence in the country extensively (Pillay & Scheepers, 2020).

Conclusion

The primary aim behind presenting the report was to critically discuss and analyze the transportation as well as distribution management processes of Nestle Corporation (Nestle) on a global basis with special reference to its operations in the United Kingdom (UK). As discussed in the report, the transportation and distribution of resources and goods to enterprises, customers and public officials relate to the transport and distribution. Effective strategies for distribution management and warehousing are involved in transport and distribution systems. Fort Nestle, transportation and distribution encompass a number of factors, including planners, transport managers, skilled workers and carriers. To enhance its transportation system the company has moved from traditional transport modes, such as road transport, to short-sea cargoes or to railways. Also, fossil fuels are switched to natural-gas vehicles with the objective of decreasing transportation’s environmental impact. Moreover, to make its distribution processes more effective, Nestle developed a plan, essentially referred to as the “whenever” or “anywhere” or “any” distribution strategy, which would make their goods available across the UK and to ensure that the supply is not lost. Besides, resorting to mixed process of distribution channels, Nestle has made its distribution system a robust and efficient one.

References

Freudenberg, N., & Nestle, M. (2020). A call for a national agenda for a healthy, equitable, and sustainable food system. UK: Rutledge.
Huang, D., & Abdel-Khalik, H. S. (2017). Development of Uncertainty Quantification Capability for NESTLE. In International Conference on Nuclear Engineering (Vol. 57878, p. V009T15A059). American Society of Mechanical Engineers.
Johnson, D. A. (2020). Confronting corporate power: Strategies and phases of the Nestle boycott. Journal of Human Lactation, 36(4), 756-765.
Pillay, R., & Scheepers, C. B. (2020). Nestlé South Africa and Department of Transport: response to food security during COVID-19. Emerald Emerging Markets Case Studies.
Varma, G. R., & Ravi, J. (2019). Total Quality Management in Nestle. UK: Rutledge.
Yang, H., Shen, Y., Cetin, M., & Wang, Z. (2021). Supporting Transportation System Management and Operations Using Internet of Things Technology. UK: Rutledge.