Nestle Outsources Logistics Functions
By George Anderson
Nestle Chile S.A. has given Ryder the task of managing its distribution network in that South American country.
“We selected Ryder to consolidate our distribution network into a more centralized operation with improved technology and visibility,” said William Beltran, Supply Chain Manager of Nestle Chile S.A in a released statement. “Ryder’s proven track record in transportation and warehouse management will help us bring new products to market faster and improve customer service.”
Under the deal, Ryder will manage two distribution centers responsible for serving more than 600 customers in that country. The company expects to handle between 60 to 80 outbound vehicle loads a day using handheld radio frequency identification (RFID) devices in connection with its warehouse management system.
Ruben Elias, managing director of Ryder Argentina said the company has provided a similar service to Nestle in that country since 2003. “We are proud to have earned their confidence in Argentina, which in turn has given us the opportunity to serve them in Chile. We are honored that Nestle Chile has selected Ryder to manage their distribution and transportation operations.”
Moderator’s Comment: Do you see outsourcing of logistical functions increasing in the CPG and retailing arenas? What are the pros and cons to outsourcing?
George Anderson – Moderator
- Nestle Chile S.A. Outsources Distribution
and Transportation Operations to Ryder – Ryder System, Inc./ PRNewswire-FirstCall/MSN Money