Doing Business With Nestle

Doing Business With Nestle

Doug Rader

Doug Rader – Nestle Key Account ManagerEmail: [email protected]: 951-387-1050

“Doug has spent the past 10 years developing a Nestle Global Key Account strategy to support Nestle worldwide -- at their 480+ factories, Product Technology Centers, R&D Centers, Corporate HQ and Engineering groups.

Doug has been successful in negotiating, implementing and maintaining a complex global agreement that encompasses pricing models, innovative value and technological innovations. These milestones led his companies and clients a verifiable sales growth - year over year.”

Nestle Milestones Over The Past 146 Years

Nestle Milestones Over The Past 146 Years

Points:Nestle is a company comprised of many acquisitions. Integration into the Nestle

culture takes a long time.

Employees & Factories Worldwide

Points:Nestle workforce in North America is substantial and

costly.Anything YOU can do to promote cost savings or plant

safety is a WIN.

In 2014 Nestle had $ 91.6B CHF In Sales… down from $109B CHFNestle Is The #1 Food & Beverage Company In the World …

32 Billion Individual Products Produced Each Year

Business Unit Sales Breakdown

Business Units & Brands

Business Units & Brands

Nestle USA (North America Breakdown)

TOP BUSINESS UNITS

NUSA (Glendale) Dreyer’sBeverage Confection & Snacks Prepared Foods ProfessionalBakingPizza (Kraft) Nestle CanadaNPPC (St. Louis)Pet Food NWNA (Dallas) ArrowheadPoland Springs – Etc.NUTRITION(Florham Park, NJ) Baby CareJenny Craig OptiFast

90 Factories Across North America

NUSA (Glendale) – 34 FactoriesDreyer’s - (6 Factories) Beverage - (4 Factories)Confection & Snacks - (5 Factories) Prepared Foods - (6 Factories) Professional - (1 Factory)Baking - (4 Factories) Pizza - (3 Factories)Nestle Canada - (5 Factories)

NUSA – 34 Factories

Nestle Purina - 24 Plants

Purina More Centralized

• STL HQ Drives Larger Projects• Offers Engineering Services to Plants• Most Plants Have Similar Processes – Easy Duplication• New Pouch Filling• Possible Educational Event at HQ

Nestle Waters - 27 Factories

NWNA

• Centralized Engineering• Drives Larger Projects• Offers Engineering Services to Plants• Most Plants Have Similar Processes – Easy Duplication

NUTRITION – 5 Factories (Florham Park, NJ)

Baby Care Jenny Craig OptiFast NutriSystems

Nutrition – 5 Factories

ProductTechnology (PTCs)

Centers

The Product Technology Centers (PTCs) lead multi-center R&D programs for product and process innovation. Each PTC works in one specific business sector to fulfill the needs of Nestle of each SBU: coffee and beverages, confectionery, ice- cream, infant nutrition products, culinary products, etc…Each PTC works closely with Vevey HQ toserve all translate concepts

Nestlé markets worldwide to scientific ideas and research and findings into industrial

applications. The speed with which a product can be brought to market is one of the key elements in a competitive environment, and will become even more vital in the future.

R&D CentersR&D Centers work on non core product categories or to adapt products and processes to local tastes and needs. Certain products, like powdered milks, will be the same the world over, so whether product development is carried out in Switzerland or the USA is of little importance to the nature of the product.Culinary products like soups, sauces or prepared dishes are a different story. Tastes differ widely from country to country. Therefore, product development or adaptation needs to take this into account.

How PTC’s & R&D Centers Work

7 Key USA PTC & R&D Locations

Nestle Needs At These Locations – Sales Opportunities

• Constant new product development and packaging optimization create opportunities for new technologies.• These locations produce short run product samples for consumption.• These locations have many engineers who are seeking advice of all new technologies related to packaging.• Great locations to hold educational events.• Great Buying Influences that can help us at sister plant locations.

PTC - Marysville, OH – Beverage & Confections PTC - St. Louis, MO - PetcarePTC - St. Joseph, MO - PetcarePTC - Fremont, MI – Infant Nutrition

R & D - Bakersfield, CA – Ice CreamR & D - Minneapolis, MN – Healthcare NutritionR & D - Solon, OH – Prepared Foods, Frozen, Baking

GLOBALLY

28 R & D Centers 29 P.T.C. LocationsIMPORTANT

How North American Procurement Works•  Operational 2004•  Goal to provide Services to Nestlé Operating Companies in NA•  Offerings: Purchasing, H.R. , Finance, Sales, Retail Execution

North American

Procurement

•  Vets Vendors & Suppliers• RFP & Benchmarking•  Purchasing Contracts•  Accepted Supplier Program•  Preferred Supplier Program•  Innovation Partnership•  Links To Key

Plant Contacts•  Links To Engineering

•  Links T o GTP in Vevey•  Provides

CAPEX Opportunities•  Win-Win for

Nestle & You•  Hosts Factory

Buyer Events

Understanding Nestle Plant Buying Processes

•  Project purchases require a plant to budget by October•  CAPEX approvals roll-out in December for use January 1

– December 31st•  Purchases under $20k can use Non Specific CAPEX plant budget funds•  Additional purchases can be obtained through left over

unused MRO or CAPEX budget before year end (October – December)

•  Operational Equipment Leases can be obtained under MRO funds

Nestle Annual CAPEX Budget is $4.5B+

WHO TO WORK WITH AT NESTLE PLANTS

•  Plant Manager•  Factory Engineer•  Technical Resource•  Maintenance Manager•  Maintenance Planner•  Plant Purchasing•  CAPEX Buyer•  Training Manager•  TPM Leaders

Working with these 9 KEY Buying Influences at each plant will create many Sales Opportunities.HOW TO WIN AT NESTLE

•V  isit the Plant•C  onduct Plant Surveys• Foster Relationships – Develop A Coach•A  sk Questions• Find Pain Points• Offer Proper Solutions• Know Technology Advantages• Know the Competition• Offer Solutions• Quote Every Opportunity• Get the PO

THE END

QUESTIONS?