Nestle launches global procurement hub in Malaysia

The Nestle logo is pictured on a truck outside the company’s headquarters in Vevey October 17, 2013. — Reuters picThe Nestle logo is pictured on a truck outside the company’s headquarters in Vevey October 17, 2013. — Reuters picPETALING JAYA, Nov 23 — The largest food and beverage manufacturer, Nestlé S.A, aims to source required ingredients, materials and services to supply the needs of over 100 countries globally through its 23,000 sq ft procurement hub in Malaysia.

Executive vice-president and head of operations Dr Magdi Batato said as a key Asian market, Malaysia was selected to host one of the group’s three global procurement hub, known as Nestrade.

“This new hub will provide the Nestlé group with enhanced strategic procurement support, delivering competitive and innovative solutions to help drive sustainable growth,” he told reporters after the launching of the global procurement hub by International Trade and Industry Minister II Datuk Seri Ong Ka Chuan at Taman Tun Dr Ismail  here today.

Batato said a 130-strong talented team have been employed at the Malaysian hub to oversee and conduct procurement activities for Nestlé markets.

“Given the country’s proven success record, it (Malaysia) is the ideal country for this hub with all the right elements to enable us to realise our vision to deliver procurement for Nesté,” he added.

Meanwhile, head of Nestrade procurement hub Malaysia Rahul Vashistha said the hub was part of the group’s procurement vision 2020, aimed at increasing value creation for the Nestlé business.

“It will help us to deliver sustainable value by focusing on efficiency, quality, safety and availability in all activities,” he said.

Earlier in his speech, Ong said the establishment of the hub was timely and a good reflection of the country’s potential as an investment destination.

“With our good infrastructure, skilled talent pool and strategic trade alliances coupled with our prime location in the heart of Asean, Malaysia is well-positioned as an attractive destination for business.

“The government is committed to facilitating companies in addressing challenges including identifying skilled workers and providing a conducive business environment,” he added.

Ong also emphasised that industry players should take full advantage of the government’s support to transform their businesses. — Bernama