Nestlé accelerates sustainable packaging initiatives
Nestlé will reduce its use of virgin plastics by one third by 2025 whilst working to advance the circular economy and endeavor to reduce plastic waste from oceans, lakes and rivers.
“No plastic should end up in landfill or as litter,” said Mark Schneider, CEO of Nestlé. “Making recycled plastics safe for food is an enormous challenge for our industry. That is why in addition to minimising plastics use and collecting waste, we want to close the loop and make more plastics infinitely recyclable. We are taking bold steps to create a wider market for food-grade recycled plastics and boost innovation in the packaging industry. We welcome others to join us on this journey.”
What does this mean for Nestlé?
Nestlé has a firm sustainability drive and has a drive to enhancing the quality of life and helping to contribute to a healthier future. The firm harbours ambitions to help 50mn children lead healthier lives, improve 30mn livelihoods in communities directly connected to business activities and also strive to deliver zero environmental impact in operations. Building on its commitment in 2018 to make 100% of its packaging recyclable or reusable by 2025, Nestlé is set to source up to 2mn metric tons of food-grade recycled plastics and allocate over US$1.5bn to pay a premium for the materials between for the next five years. This latest news affirms the company's intent to continue to operate with a green approach.
Inside its supply chain
Nestlé’s supply chain professionals play a vital role in ensuring quality products reach customers and consumers. In order to achieve this goal, Nestlé works with commercial teams to develop the demand forecast and collaborates with suppliers worldwide to ensure responsibly sourced materials. Nestlé balances inventory levels to establish the right supply of products. Supply chain is responsible for safely storing and transporting products to meet customers’ and consumers’ needs efficiently. Nestlé’s procurement professionals ensure responsibly-sourced supply and create value. With hubs in Switzerland, Panama and Malaysia, the division offers several services, such as the management of procurement for specific raw materials, packaging, indirect materials and other services.
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Pandora and IBM digitise jewellery supply chain
Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery.
The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales.
A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.
Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs.
Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption.
"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added.
Pandora’s pivot to digital
The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand.
“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”
Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”.