From the Book "Greening the Supply Chain: A guide for Managers in the Southeast Asia". A case study by Purba Rao for Nestle Philippinine

2. CASE STUDY:
NESTLE PHILIPPINES:
GREENING THE BUSINESS
PARTNERS
Reference:
Greening the Supply Chain: A Guide for Managers in Southeast Asia
Purba Halady Rao
Reported by: YUTUC, ANGELO
GUECO, LAMBERT

3. “
WHAT IS A SUPPLY
CHAIN?
HOW DO YOU MAKE IT
GREEN?

4. SUPPLY CHAIN: A REVIEW
Is the movement of materials as they flow from their
source to the end customer. Supply Chain includes
purchasing, manufacturing, warehousing, transportation,
customer service, demand planning , supply planning and
Supply Chain management. It is made up of the people,
activities, information and resources involved in moving a
product from its supplier to customer.
http://www.supplychaindefinitions.com/

5. BRIEF HISTORY:
NESTLE PHILIPPINES
◍Nestle Philippines was established in 1963 starting with
coffee brand ‘Nescafe’
◍It has been well-acknowledged that Nestle Philippines has
high standards for environmental performance.
◍However, this does not guarantee that the supporting
vendors, contractors and suppliers abide by these
standards.
◍Hence , the company launched a program to “green” its
suppliers .

6. Nestle Environmental
Management System
(NEMS)
Nestle Philippines

7. • Established in 1996
• The goal is to systematize the company’s
environmental initiatives and to ensure
compliance with Nestle environmental policy,
legislations and Kaizen (continuous
improvement of environmental performance)
Nestle Environmental
Management System
(NEMS)

8. RESULTS OF NESTLE
EMS:
◍Nestle has no major environmental
problems
◍Nestle complies with relevant regulations or,
in a few exceptional case, has initiated actions
to do so
◍Measures taken are proactive and often
anticipate future regulations. Many times,
measures taken to improve the environment
also reduce costs.

9. NESTLE PHILIPPINES
GREENING THE SUPPLY
CHAIN OBJECTIVES
1. To help develop supplier commitment
to environmental improvement

10. 2. To demonstrate the business case for
integrating environmental management
into the corporate culture.
NESTLE PHILIPPINES
GREENING THE SUPPLY
CHAIN OBJECTIVES

11. 3. To deliver technical assistance and
training programs to all its business
partners.
NESTLE PHILIPPINES
GREENING THE SUPPLY
CHAIN OBJECTIVES

12. GREENING THE
SUPPLY CHAIN
@ NESTLE
-follows an approach consistent with
the development and implementation
of NEMS (Nestle Environmental
Management System)

13. Seminars and workshops were
conducted with different vendors
and suppliers covering:
◍ Introduction to EMS – concepts, elements,
structure
◍ Planning – aspects and impacts, legal
requirements, policy, objectives, targets,
programs
◍ Implementation, documentation and control
◍ EMS audit and review

14. The Nestle
Philippine
Supply Chain

15. To reduce the overall adverse
environmental impacts of the company,
one might look at the environmental
aspects and impacts at each phase of the
supply chain to determine what causes
them and how they can be controlled.
Purchasing
and Inbound
Logistics
Production
Distribution
and
Outbound
Logistics
Reverse
Logistics

16. NESTLE PHILIPPINES
ENVIRONMENTAL
MANAGEMENT PROGRAMME
ENVT’L ASPECTS
SIGNIFICANT
IMPACTS
OBJECTIVES
TARGETS TIME SCALE RESPONSIBILITY

17. INBOUND LOGISTICS
our office
ENVIRONMENTAL
ASPECT
Use of chemical fertilizers and pesticide
SIGNIFICANT IMPACTS Soil Erosion; water pollution; soil contamination;
OBJECTIVES • Eliminate chemical fertilizer use thus also
eliminating adverse effects on soil and water
• Reduce pesticide use
TARGETS Not mentioned
TIME SCALE Not mentioned
RESPONSIBILITY Nestle – not specified
RESULT Discouraged use of chemical fertilizers, instead
encouraged the use of biological or cultural farming
methods and Sloping Agricultural Land Technology
(SALT)

18. Nestle established a local agricultural services
department tasked to implement a growers program
centered on the transfer of proven and well-tested
technology to local farmers who supplied the
company with their produce.
These agronomy programs also educated the farmers
on how to consume the least amount of energy,
protect water resources and preserve and improve
natural soil productivity.
Jute sacks were farmers contain their produce are
returned to them for reuse.
INBOUND LOGISTICS

19. PRODUCTION
ENVIRONMENTAL ASPECT Excessive industrial residues
SIGNIFICANT IMPACTS • Solid waste
• Water and air pollution
OBJECTIVES • Find ways to use industrial residues to make
value-added products
• Reduce total emissions and effluents
TARGETS Not mentioned
TIME SCALE Not mentioned
RESPONSIBILITY Pollution Control Officer (PCO)
RESULT During coffee production, the coffee beans were
crushed and the juice extracted leaving behind
solid waste or pulp. This was dried thoroughly and
used as fuel for boilers. The solid waste disposal
system installed in the coffee production center in
CDO also helped produced steam which was
used for manufacturing and other services.

20. PRODUCTION
ENVIRONMENTAL
ASPECT
• Use of refrigerant gases such as CFC and HCFC
SIGNIFICANT IMPACTS • Depletion of ozone layer that contributes to global
warming
OBJECTIVES • Substitute environmentally harmful refrigerant gases
TARGETS Not mentioned
TIME SCALE Not mentioned
RESPONSIBILITY Pollution Control Officer (PCO)
RESULT The refrigeration system was continuously monitored to
check for leakage of CFCs. The use od CFCs and HCFC
had since ceased with the company using other types of
refrigerant gases like ammonia which did not contribute
to global warming. Moreover, air emissions from the
production process were checked using advanced
equipment.

21. DISTRIBUTION & INBOUND LOGISTICS
ENV’TL ASPECT • Discharge of wastewater
SIGNIFICANT IMPACTS • Pollution in natural bodies of water
• Adverse effect to marine animals
OBJECTIVES • Treat wastewater before discharge to eliminate
pollutants
TARGETS Not mentioned
TIME SCALE Not mentioned
RESPONSIBILITY Pollution Control Officer (PCO)
RESULT • Wastewater treatment facilities in every plant
designed to biologically treat wastewater to
eliminate pollutants. The treated water is
discharged to rivers, ponds and other water bodies
where tilapia grew abundantly
• The residue or sludge left after treatment were
used as fertilizers ,land fill, soil conditioner in
banana plantation.

22. DISTRIBUTION & INBOUND LOGISTICS
ENVT’L ASPECT • Overall energy use and waste generation
SIGNIFICANT IMPACTS • Abundant energy requirement taken from
municipal and internal power source. Generation of
these energy results to emission and affluence that
adversely affect the environment
OBJECTIVES • To conserve energy and reduce waste over the
entire supply chain
TARGETS Within legal standards
TIME SCALE Annually
RESPONSIBILITY Energy conservation committee
RESULT • All sales vans were subjected to regular checkups
(to check smoke belchers, etc.)
• All factories had efficient lighting system to reduce
electricity consumption
• War on waste campaign dubbed “Walang Aksaya”

23. ◍The commitment of Nestle Philippines toward sustainability
and the environment has long been acknowledged.
◍This realization urged the company to embark
on a greening endeavor encompassing its
business partners associated with its
operations.
◍Through its endeavor towards sustainability, the company
achieved good business performance in terms of risk
reduction and direct tangible savings; still the company felt
that one was not “truly there” until one’s business partners
were “also there”.
◍The company intended to extend its resources to its
business partners so that they, too, would develop a similar
commitment toward environmental protection.
Summary:

24. QUESTIONS?

25. Thanks for listening!
Prepared for:
Engr. Ruby Pineda-Henson,
Ph.D., PIE
Presented by:
Yutuc, Angelo | Gueco, Lambert