Viet Nam is among the markets where Nestle Group is pioneering digital transformation throughout its logistics activities to control and optimise the supply chain.

Nguyen Tran Hoang Yen, supply chain director at Nestle Vietnam, said digital transformation is one of the Swiss consumer company’s priorities to promote sustainable development, and covers the entire operating system, including the supply chain.

Nestle estimates that 95 per cent of its greenhouse gas emission comes from its value chain, including activities like animal husbandry, farming and shipping.

Thus, transforming its supply chain would not only improve efficiency but also contribute to achieving the net zero emissions target by 2050 it has set, she told a seminar titled “Digital Transformation to Build a Modern and Sustainable Logistics Industry” in Ha Noi last week.

Nestle maintains smart operations in logistics activities to ensure flexibility and connectivity, according to Yen.

“Digitisation helps provide accurate and quality data, along with very detailed reports, which help the company reduce costs and improve supply chain efficiency.”

The company exports products to more than 40 markets, with each having different requirements, and so it has invested in digital transformation to ensure connectivity between manufacturers, suppliers, transporters, and customers.

In 2022 it began to deploy a smart application called Cargoo to connect manufacturers with importers and shipping lines.

It helps track the status of the entire freight process between partners for each order, retrieve shipment information when needed, make reservations with shipping lines, and manage all import and export documents.

So far 14 shipping lines have been integrated into this platform, enabling the company to improve packing efficiency and reduce shipping costs.

In the domestic market, Nestle applies a smart application for warehouse and transportation management called Transportation Hub.

It digitised its freight centre system two years ago, changing operations in terms of receiving orders, allocating transportation, operating warehouses, and tracking delivery to customers.

Automated order allocation helps optimise transportation. For example, small orders are combined and transported on the same trip, shortening the total distance, reducing emissions from transportation activities, and advancing the net-zero roadmap. — VNS