Nestlé Waters is a global manufacturer and distributor of bottled waters for healthy hydration, including Ozarka® Brand Natural Spring Water, Nestlé® Pure Life®, Perrier® and S. Pellegrino®. The company operates 30 factories, 65 home and office delivery branches and four offices throughout the United States and Canada.
Natural disasters, such as hurricanes, can significantly disrupt Nestlé’s supply chain. Reliance on manual processes left Nestlé’s transportation managers scrambling to gather information and create reports, which were often no longer accurate by the time they were completed. As a result, Nestlé lacked timely insight into its network, causing them to be reactive versus proactive in managing supply chain disruptions, and forcing them to pay high premiums in order to secure necessary capacity.
To effectively mitigate the impact of a hurricane, Nestlé Waters used the Transplace Control Tower as its central hub for monitoring its supply chain. As a result, Nestlé was able to proactively pull capacity from other regions to avoid paying high premiums and ensure shipments were delivered to customers on time.
Having previously leaned on Transplace’s Control Tower to effectively manage its transportation network during holiday demand surges, Nestlé recognized that this solution would give them the visibility it needed in order to identify potential disruptions and proactively make adjustments throughout the life of the storm.
According to Nestlé Waters’ National Transportation Director, “Nestlé’s transportation managers would spend 45 to 90 minutes creating reports. However, a lot can change over the course of an hour during a hurricane, so even reports that were only 60 minutes old often excluded a large number of orders that had gone into the system. We needed a solution that gave us real-time visibility and allowed us to create timely, accurate reports to support our decision making.”
The Transplace Control Tower provided a comprehensive, graphical view of all shipments along with customized dashboards that allow Transplace and Nestlé to collaboratively monitor the entire network – both in real time along with a five-day snapshot. Using the Control Tower as its information hub, the two companies held daily calls to examine the status of Nestlé’s supply chain and make necessary adjustments.
Nestlé added, “Because the Control Tower is tied to the Transplace TMS, all of our transportation information goes into the system quickly and gives a snapshot of our entire network every 15 minutes. We can see orders within minutes of being made and if those loads have been appointed, tendered, tender accepted and more. This helps us focus our attention on shipments or regions where there are issues.”
Each order is classified as one of four categories: past due, at risk, tracking on-time, or delivered. This then allows Nestlé and Transplace to rapidly identify problem areas, such where they would be unable to secure necessary capacity (or be forced to pay high premiums).
“The ability to quickly view the status of every shipment, along with our entire network, in one place enables us to more effectively move around capacity to meet our changing needs,” said Nestlé. “By knowing almost immediately if an order was not tendered, we can determine if capacity is available in another region of our network before having to pay higher rates in the spot market. This takes strain off of Nestlé’s procurement operations while helping us meet the financial guidelines we have in place.”