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Transportation & Distribution Management
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Added on 2020-04-21
Transportation & Distribution Management
Added on 2020-04-21
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Running head: TRANSPORTATION AND DISTRIBUTION MANAGEMENTTransportation and Distribution ManagementName of the Student:Name of the University:Author’s Note:
1TRANSPORTATION AND DISTRIBUTION MANAGEMENTTable of ContentsIntroduction......................................................................................................................................2Key Information about Nestle.........................................................................................................2Incoterms selection consideration....................................................................................................3Analysing the effectiveness of transport capability of Nestle.....................................................3Distribution and Transportation Approach by Nestle..................................................................3Incoterms used by Nestle.............................................................................................................4Carrier selection criteria..................................................................................................................5Modal shifts.................................................................................................................................5Fleet vehicles...............................................................................................................................6Use of alternative fuels................................................................................................................6Carrier relationship management.....................................................................................................7Conclusion.......................................................................................................................................8References......................................................................................................................................10
2TRANSPORTATION AND DISTRIBUTION MANAGEMENTIntroductionThe movement of raw materials, finished products animals, and people highlight theconcept of transport and distribution. With the help of transport and distribution, the businessorganizations move the product from one to another using various modes of transportation.Space, cable, rail, pipeline, water, and road are the major modes of transportation. Managementof people, operations, infrastructure, and vehicles are the key features of transport anddistribution. From the industrial perspectives, transport and distribution are defined as thedelivery of products and materials at the right time to the customers (Payaud, 2014). This report highlights the effectiveness of distribution and transportation in fulfilling theobjectives and goals of Nestle. Key Information about NestleNestle is one of the internationally recognized Health, Wellness and Nutrition Companythat dates back its origin in 1866 in Switzerland. Since the establishment, the company hasexpanded globally to countries such as the United Kingdom, the United States, Canada, andAsia. Considering the mission of the company “Good Food, Good Life”, the company provideshighly nutritious food and beverage to the customers. Frozen desserts, meals, pet care food,chocolates, ice creams, coffee, wafers, beverages, and confectionery are some of the mostpopular brands of Nestle. The company generated an annual revenue of 9.066 billion in 2015 thatwas comparatively lower from the profit generated in 2014, that was, approximately 14.456("Nestle", 2017).
3TRANSPORTATION AND DISTRIBUTION MANAGEMENT Within the cultural category, Nestle ranked within the top 10 as one of the most admired andpopular companies in 2013. Since the establishment of the company, the company has alwaysstrived to enhance the life of the customers by providing them with highly nutritious and healthyfood. The company has developed their products with the aim of helping and caring for thecustomers and their family. Therefore, the main motto of the company is to support andencourage people in leading a healthy life. One of the core values of Nestle is respect. Thecompany believes in respecting their customers, the future generation along with the surroundingenvironment, global diversity and culture. However, Mondelez International Inc. Danone, Mars,and Cadbury are the major competitors of Nestle ("Nestle", 2017). Incoterms selection considerationAnalysing the effectiveness of transport capability of NestleFrom the daily perspectives, from over 1600 warehouses, Nestle transports anddistributes an estimated 140,000 tons of products to the consumer markets (Sethi, 2012). Nestledistributes and transports the raw and finished products in collaboration with the logistics thattravels approximately 270 times regularly around the world. The Nestle products are generallytransported to the customers in the end after being distributed from the factory to the distributioncentres. Nestle is able to analyse the environmental performance and enhance the efficiency ofthe network by decreasing the level of noise, traffic congestion, emission of greenhouse gases,mileage and consumption of fuel (Pfitzer, Bockstette & Stamp, 2013). Distribution and Transportation Approach by Nestle Nestle has developed the distribution and transportation approach according to theenvironmental sustainability. The main concern of the approach includes:
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