Nestle Philippines Resilience in Global Supply Chains 2015

Supply Chain Map LEGEND: - Factory - Co-manufacturing CABUYAO PULILAN CAGAYAN DE ORO LIPA & CPW TANAUAN PUREBEV RM FOODS NEW WORLD ANTONINA PORTION FILLERS 1 & 2 SINLIKAS COFIPAC CEBU DC DE ORO DC MEYCAUAYAN DC BATINO DC MMC PASIG DC LEGEND: - Factory - Co-manufacturing - Distribution Center

Throughputs Daily Weekly Monthly # of Trucks ~150 -350 ~1,900 ~ 7,600 # of Cases Picked ~410, 370 ~2, 872, 610 ~11, 490, 440

Reliance on Imports Equipment ( specialized ) not local. Basic Raw Materials not available domestically. Milk Powders. Cocao More Coffee than locally produced. Laminates for Packaging.

Port Situation Multi Facet Issue . Infrastructure Road System Transport In-Efficiency, from 25 TPM to 14 TPM Truck Ban. Red Tape , heavy burden and delays.

Manila Port Manila Port as of Aug 11, 2014

Port Issue Actions Materials Management Center. Container Yards at our Factories. Balancing inbound to correct Port of Discharge. Broker reviews and Changes Financial support to Brokers.

Disaster Issues ( roof off DC )

Global Physical Logistics Workshop Fire – Brazil 06.02.2012 Global Physical Logistics Workshop

Global Physical Logistics Workshop Earthquake in Chile, 2009 Thai floods, 2011 06.02.2012 Global Physical Logistics Workshop

In any Disaster ! Set the Priority. ( Communication ) Safety. Medical assistance / supplies . Shelter. Water. Food .

You must have FLOW. CLEAR : POWER : EQUIPMENT : Runways . Road Structure ( beyond the owned premises ) Private Enterprise can assist . Barricades in advance / clear planning . POWER : Generators . EQUIPMENT : A common inventory .

Ensure what is Needed. Transport. Designate essential to non-essential. Water / Medical / Food , more priority than luxury goods ! Clear priority from source to Disaster Centers .

Advance Knowledge Alternative Supply. Alternative methods. Example ….A fire brigade needs to know where they can get water ! Who has swimming pools ???? Alternative methods. Medical supplies , what could be used to disinfect if no specific product was available ?

Resiliency Government & Private Sector. Keys to success : A common understanding of the needs. A belief that WE can make a difference. A willingness to be flexible when it is justified. Trust that each party has a common goal to assist people ( no hidden agenda’s ) A non-selfish viewpoint to nurture the growth and benefits in the country or region.

Thank You