Nestlé DSD Controls Costs Through Better Warehouse Management

July 2012 Integrated Solutions For Retailers

By Bob Johns, associate editor

Using proper supply chain management and order processing, Nestlé DSD is able to maintain accurate orders and delivery.

In 2010, Nestlé, one of the world’s leading nutrition, health, and wellness companies, saw an opportunity it just couldn’t resist, buying the Kraft’s North American frozen pizza business. As Kraft divested itself of one of its only major frozen food products, Nestlé needed to have an adequate supply chain infrastructure to handle this type of frozen product, which has a limited shelf-life and requires special delivery and handling to prevent spoilage.

Nestlé already had a ton of experience with frozen products like ice cream, and the company looked to Insight Group for help distributing this new product. Nestlé was working with Insight through its association with Dreyer’s, which had been merged with Nestlé ice cream products years earlier. Over a four-year period, Insight had worked with Nestlé to develop a program that began with the national warehouse director rolling out the solution in cities like Seattle and Chicago first and then companywide. The system they had chosen, The DC Expert, integrated fully with the existing ERP (enterprise resource planning) system. This was essential to maintain accurate orders and proper deliveries.